The South African Minister of Trade and Industry yesterday encouraged African countries to work towards obtaining high standards and compliance certification of their export products, regardless of the outcome of the discussions of the World Trade Organisation (WTO).

Mandisi Mphalwa was speaking at the opening of the Tanzania Business Opportunities and Investment Conference, in Midrand, Gauteng.

Mphalwa said that in order for African countries to take on the global market, their products must be very competitive and comply with international standards “While the WTO is working on the standards and compliance levels, African countries must work towards achieving those levels,” he said.

“We cannot dispute the existence of standards and the certification of products, and must thus get the products up to those standards.”

The WTO is currently investigating various standards-setting practices that developing countries say are hindering their access to the global market.

The conference, which was attended by an extensive Tanzanian delegation, including its Prime Minister Frederick Sumaye, and the ministers of finance; energy and minerals; co-operatives and marketing; agriculture and food security; industries and trade; state office of the presidency; and foreign affairs and international co-operation, aimed to promote South African business interest in one of Africa's fastest-growing economies.

The governor of the Tanzanian central bank, as well as numerous government officials and private sector representatives, were also present.

The latest trade figures indicate that two-way trade between the long-time allies amounts to R1,8-billion a year, with R1,7-billion of that arising from South African exports to Tanzania. Approximately R125-million comes from imports from Tanzania into South Africa.

It is this steeply-skewed trade balance that the government of Tanzania is hoping to redress, by facilitating South African investment into the country and thereby increasing Tanzania's economic capacity for exports.

Mphalwa added that South Africa, through the Department of Trade and Industry, is currently in the process of developing a holistic integrated approach that aims to improve the distorted trade balances between South Africa and its African peers, by studying trade patterns and ascertaining which products South Africa imports from outside Africa but which could be obtained from within the continent.

This issue is also being tackled through the Southern African Development Community.

He emphasised that creating symmetry in the trade balance between Tanzania and South Africa will not happen overnight and it should be viewed in terms of a medium- to long-term programme.

Currently, imports emanating from Tanzania to South Africa are growing by 25% a year, with South African exports increasing between 7% and 10% a year.

During his keynote address, Sumaye discussed the economic and political reforms that Tanzania has been going through during the last ten years, and highlighted the numerous sectors that South African companies could invest in, such as agriculture, mining, oil and gas, manufacturing, tourism, infrastructure development, telecommunications and banking.

He said his government is committed to economic reform and to the fight against corruption.

Sumaye also said that there are a number of attractive tax incentives available that South African investors could make use of.

Mphalwa said that he was confident that the two countries could sign a trade agreement before the end of the year.