ADDRESS BY THE DEPUTY-PRESIDENT OF SOUTH AFRICA, PHUMZILE MLAMBO-NGCUKA, AT THE INDIA-SOUTH AFRICA BUSINESS CONCLAVE, JOHANNESBURG, 01 AUGUST 2007.

Minister Kumar,

Minister Mpahlwa,

Minister in the Presidency, Dr. Essop Pahad

Minister of Overseas Indian Affairs, Mr. Vayalar Ravi,

Deputy Ministers who are present here

The leadership of the delegation

All the member of the Indian Merchants Chamber

Distinguished guests,

Ladies and gentlemen:

I wish to extend a very special welcome to our delegates from the Indian Merchant's Chamber and further thank you, on behalf of all South Africans, for considering our country worthy of hosting India Calling 2007.

Equally, let me thank the Business Unity South Africa, together with the International Marketing Council, for ensuring the successful hosting of this historic conference by our country. I do have to apologise that the President couldn't be here with you today as He had to go to an urgent meeting in Limpopo.

I am deeply honoured to have been invited to be part of the centenary celebrations of the Indian Merchant's Chamber and India Calling 2007.

Let me share with you the words of one of our outstanding sons here in South Africa, Oliver Reginald Tambo, on the occasion of accepting the 1979 Jawaharlal Nehru Award for International Understanding on behalf of Nelson Mandela in 1980. He said:

"... there is a golden thread that has linked the people of India and South Africa over the centuries. Jan van Riebeeck, of the Dutch East India Company, was on a voyage to the seaports of India and the Far East when, in 1652, he stopped in South Africa and there planted a problem...It is fitting that on this day, I should recall the long and glorious struggle of those South Africans who came to our shores from India 120 years ago. Within two years of entering the bondage of indentured labour, Indian workers staged their first strike against the working conditions in Natal. This was probably the first general strike in South African history. Their descendants, working and fighting for the future of their country, South Africa, have retained the tradition of militant struggle and are today an integral part of the mass-based liberation movement in South Africa."

Our country attained its liberation in 1994, 14 years after these insightful words were uttered by OR Tambo, because among others, the people of India worked tirelessly to put enormous pressure on Apartheid South African in international forums and support in many ways the struggle for freedom of the people of this country.

Indeed, today we meet in the context of trade relations between our two countries for the benefit of our people, not for the exploitation or oppression of one people by the other.

The golden thread that has linked the people of India and South Africa over the centuries, of which OR Tambo spoke with such conviction, continues up to now, and serves to bond our two nations closer and closer.

I know for a fact that the Indian Merchants' Chamber is one of the leading business organisations in India with a very rich history starting from 1905.

Our increasing relations with this leading commercial institution of one of the fastest-growing economies among the developing countries will stand us in good stead in many critical areas of our economy, not least in the key area of economic development.

Also, I am confident that, through working together with the Indian Merchants' Chamber, BUSA and other South African commercial institutions will contribute to the challenge of poverty eradication and economic development and growth of our country.

By the same token, I believe the Indian Merchants' Chamber will reap the benefits of doing business with our country, which, despite its many challenges, also offers immense economic prospects, especially with regard to much needed resources.

I am also confident that our country, just emerging out of centuries of colonialism and Apartheid will benefit a great deal from this and other bilateral engagements with India, especially because we have here as a partner a major exporter of highly-skilled workers in software, financial services and software engineering

Taking a leaf from India's gradual transforming into an important back-office destination for global companies for the outsourcing of their customer services and technical support, this cross-pollination of experience should also contribute, in terms of skills transfers, among others, to our eradication of poverty and encourage economic growth.

Clearly, at the core of a conference such as this one is the objective of exploring opportunities and investigating areas of cooperation between our two countries.

Equally, this conference will have the added benefits of projecting our two countries as attractive investment destinations and effectively providing a platform for interaction between South African and Indian business people through matchmaking seminars.

Among other key focus areas which I think both the Indian Merchants' Chamber and Business South Africa will find fruitful to reflect on include the following:

· Infrastructure: Logistics, Energy and Roads;
· Business Process Outsourcing (BPO) and ICT;
· Vocational training & Education;
· Finance, Banking and Investment;
· Pharmaceutical, Health Care and Biotechnology;
· Mining and Diamond Industry;
· Media, Entertainment and Retail.

We are indeed very happy that Indian investments have grown in quantity as well as diversity, with investors including such notable giants as the UB Group of India Tata (vehicles, IT, new investment in ferrochrome plant), Mahindra and a number of pharmaceutical companies including Ranbaxy and CIPLA.

We are glad that in February 2006, Airports Company South Africa (ACSA) won the contract for upgrading the Mumbai Airport. Again, we are encouraged by the fact that the South Africa energy company, Sasol, is keen to explore the possibility of collaborating in a coal-to-synthetic automotive fuel project in India.

These mutually beneficial investment activities between our two countries should indeed be ramped up in the fullness of time.

Importantly, we envision an economic trade between our two countries where both countries are not only engaged in large scale investment ventures but do trade in a meaningfully mutual and beneficial fashion

I am sure when the 7th Joint Ministerial Commission takes place in South Africa in November this year numerous matters which have as yet not lent themselves to some solution between our two nations will be successfully concluded.

These matters include:

· the negotiations on the Preferential Trade Agreement;
· a review of India-South Africa Commercial Alliance;
· the IBSA Trilateral Free Trade Agreement; and
· the Promotion and Protection of Investments.

Indeed, for trade to be meaningful between India and South Africa, our two nations should assume their responsibilities of creating efficacious economic environment geared to protect investment and realising returns on such investment.

In this regard, among other things, our Department of Trade and Industry undertook a visit to India in February this year further to broaden the scope of our economic trade.

Meeting the Indian Ministry of Commerce, our Department of Trade and Industry discussed, among others, issues of the establishment of the working group to focus on the modalities around the matters I have just mentioned.

Importantly, the objective of this meeting and others is to ensure viable trade relations that enable the private sector from both countries to carry out investment in a free and unfettered economic environment.

Chairperson,

I trust that the this conference will reflect also on the progress made during the lifespan of the India-South Africa Commercial Alliance (ISACA). As will remember, when this organisation was formed in 1997 its major objective was the strengthening and expansion of commercial ties between the two countries through enhanced sectoral co-operation.

In this regard, our task is to reflect on the CEOs' Forum and other business engagements, which now perform the same functions with a view to how best to leverage progress already made during ISACA, further to consolidate such progress. Today, because of mutual agreement between ourselves we have decided that ISACA will cease to exist.

Clearly, our task is to reflect on the existing structures, including the CEO's Forum. Which now perform the same functions as those of ISACA.

Dear Friends,

Together we come a long way. Our bonds of friendship and solidarity have defied the turbulent ocean and the long distance dividing our countries. We are indeed forever heartened and emboldened by this remarkable and enduring bond.

I am confident that this conference of the Indian Merchants' Chamber will be a resounding success and will further help us grow and develop the India-South Africa relations.

Tomorrow I will have an opportunity to open the Peacock's exhibition and meet with the leading women of the Indian Merchants Chamber.

I thank you