Issued by: Department of Foreign Affairs
MEDIA STATEMENT ON JAPANESE ODA LOAN TO SOUTH AFRICA SIGNING OF EXCHANGE OF NOTES
Foreign Minister Alfred Nzo and Ambassador Atsushi Hatakenaka of Japan exchanged Notes for the "Urban Rail Transport Modernisation Project" on 19 February 1998 in Cape Town.
Minister Nzo expressed appreciation to the Government of Japan for its ongoing commitment to strengthening democracy and promoting economic development in South Africa. He said that South Africa, a vibrant and young democracy, highly values its relationship with Japan.
The Japanese loan to the South African Rail Commuter Corporation is aimed at the implementation of a project to replace the ageing rolling stocks in order to serve the commuter demand on the Soweto and Southwest Corridor lines in the Gauteng Region. The 6,230 million Yen (approximately R250 million), in the form of a 25-year loan, with a seven year grace period, carries concessional interest rates.
This marks the seond Exchange of Notes for the Japanese Official Development Assistance (ODA) loans to South Africa, the first of which was signed on 30 April 1996, for the KwaNdebele Region Water Augmentation Project and the Rural Social Infrastructure Programme worth Y 783i million (R313 million). This Japanese loan is part of the package of assistance in the amount of US 1,3 billion (R6,24 billion), which was announced in July 1994.
Japan is South Africa's fourth largest trading partner, with current two-way trade amounting to more than R16 billion.
Since 1993 twenty-four direct investments in South Africa have been announced by Japanese companies, including those by Toyota (R466 million); Bridgestone (R290 million) and Nissan (R361 million).
ISSUED BY THE DEPARTMENT OF FOREIGN AFFAIRS PRETORIA 19 FEBRUARY 1998