Indian businesses wishing to invest in South Africa need to be prepared to invest in value addition over time.
Elizabeth Thabethe, visiting deputy minister for trade and industry, said entry was open to almost all sectors, but it was a ‘use it or lose it’ policy. For instance, natural resources such as coal and other minerals would have to be utilised in a stipulated time frame and the government there would appreciate evidence of commitment in developing these. There would have to be value addition.
Or, power plants could be set up by using coal reserves, for instance. She said bilateral trade between 2006 and 2010 had grown from $2.2 billion to $ 5.7 billion.
Numerous Indian multinationals had entered the South African market across sectors, including Tata Steel, Tata Motors, Tata Consultancy Services, the Mahindra Group, Cipla, Ranbaxy and Ashok Leyland. Total foreign direct investment from India to South Africa, to date, amounts to $3.8 billion, she said.
From there, South African Breweries had taken majority stake in Mysore Breweries and energy giant Sasol was exploring setting up a multi-billion dollar plant in India.
The Airports Company of South Africa, as part of the GVK Consortium, won a bid for the modernisation of Mumbai airport.
