South Africa and India both agree that their bilateral relationship is a strategic one, South African Trade and Industry Minister Rob Davies told a press conference on Monday.

"India is already South Africa's tenth largest foreign investor," he highlighted. "Trade between our two countries tripled between 2003 and 2007. We believe that we can do more."

"We have observed that Indian companies are quite quick to move from supplying products into investing in South Africa," he stressed. "It is a necessity for us that this happens. There are very significant opportunities in the South African economy for investment in a number of areas. This is something we'd want to encourage."

He also referred to South African companies investing in India, such as the Airports Company South Africa, which is involved in a joint venture controlling and redeveloping Mumbai Airport.

He admitted that the bilateral Investment Protection Agreement between the two countries, which "we have been working on for some time" is, at the moment, "more-or-less stalled."

However, "we are undertaking an internal review" of the proposed agreement, which "will be completed within a few weeks," he assured.

"Then we will re-engage" with the Indian negotiating team.

"South-South trade is assuming a growing and increasing importance," stressed Davies.

"Already it is touching 36% of global trade," he said, quoting the United Nations Conference on Trade and Development. He added that he believed that as a result of the current global recession, that proportion would soon reach 50%.