Latin America’s largest economy, Brazil, is expected to become one of South Africa’s top-20 trading partners, said a top South African official on Wednesday.

The countries aim to boost bilateral trade by $1-billion over the next 12 months.

Trade has grown from about $500-million in 2000, to a peak of $2,5-billion in 2008, but dropped sharply during the global recession. In 2010, it rebounded to $1,76-billion.

Despite growth over the last decade, Brazil is still only South Africa’s 32^nd export partner.

Brazil’s Foreign Trade Deputy Minister Welber Barral said in Johannesburg that the low trading figures between the two countries created room for future growth.

South African Trade and Industry acting deputy director-general Riaan le Roux said that Brazil could become one of the country’s top-20 trading partners in the short term,

Brazil will be hosting the 2014 FIFA World Cup and the 2016 Olympics, and Le Roux pointed out that with South Africa having successfully hosted the most recent soccer World Cup, great opportunities could be explored, not only in the trading of products, but also in the transfer of skills, expertise and services.

“The world has seen its global economic poles shift over the last three years, and there are still great benefits that can be reaped from south-south trade.”

Brazil, South Africa and India, which formed the tripartite grouping IBSA, aim to increase trade between the three countries to $15-billion by 2014.

Ambassador of Brazil to South Africa José Vicente Pimentel pointed out that one of the biggest challenges limiting trading growth between the two countries was logistics. He noted that there was also some work to be done around tariffs and incentives to stimulate further bilateral relations.

Barral agreed, pointing out that there was still only one flight a day from Rio de Janeiro to Johannesburg. Also, he noted that some companies even used Singapore as a gateway to transport goods to South Africa, because of logistical difficulties.

About 65% of Brazil’s exports to South Africa comprised manufactured goods, but Pimentel said that there was still a lot of potential in the agribusiness, energy and automotive industries.

“There are also opportunities to be explored in especially South Africa’s tourism, wine, processed minerals, chemicals and information technology sectors,” said Barral.

All parties agreed that the role of government was important in building trade, but stressed that private sector had to be well-informed of efforts to stimulate growth, as these companies were integral to boosting trade between these emerging economic powerhouses.