The Department of Foreign Affairs yesterday said Schroeder's visit was expected to strengthen bilateral political and trade relations between the two countries.
Mbeki and his German counterpart were expected to hold discussions on increasing co-operation in labour and health issues, and to consolidate business, cultural and sporting relations.
Germany is South Africa's largest import partner and fourth largest export partner.
Total bilateral trade between the two countries has doubled since 1994 from €3,8-billion to €7,6-billion in 2002.
The growth of imports from Germany to South Africa in the period 2000 to 2002 was around 74%, whereas the growth of exports from South Africa to Germany during the same period was about 35%.
The department said on Monday Mbeki and Schroeder would discuss, among other things, the African Union and the New Partnership for Africa's Development; the Middle East peace process; and the situation in Iran, Iraq and Afghanistan.
Mbeki was also scheduled to brief Schroeder on the regional peace processes in Burundi and the Democratic Republic of the Congo.
The German chancellor's entourage would include members of the German parliament, senior government officials and a large business delegation.
Schroeder would also meet the Congress of SA Trade Unions, the Nelson Mandela Foundation and the Southern African-German Chamber of Commerce and Industry.
He was expected to visit the Stanza Bopape Memorial and Community Centre in Mamelodi, the Laepple Automobile Company in Rosslyn, as well as participate in the announcement of the DaimlerChrysler Art Exhibition at the Pretoria Art Museum.
The German chancellor's visit, his first official trip to Africa, forms part of an extended tour to other parts of the continent - Ethiopia, Kenya and Ghana.
Before coming to South Africa, Schroeder will make a brief stop to Ethiopia, where he is expected to deliver an address at the AU headquarters, focusing on G8-AU relations.
His next stop will be Kenya, where he is expected to pay a visit to the headquarters of the United Nations Environmental Programme.
Schroeder will conclude his African tour by visiting Ghana, where he is scheduled to participate in the opening of the Kofi Annan Centre.
A special feature of the ceremony will be the presentation of the German media prize to United Nations secretary-general Kofi Annan. – Sapa.
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