Issued by: Department of Foreign Affairs
21 October 2002
President Thabo Mbeki will lead the South African delegation to the 3rd session of the South Africa - Algeria Binational Commission in Algiers, Algeria from Tuesday, 22nd - Wednesday, 23rd October 2002.
This is one of only two Presidential Binational Commissions South Africa has entered into and attests to the excellent bilateral relations existing between our two countries. This relationship has its roots in a common world-view, informed by shared values and a commitment to development of the African Continent.
The Presidential Delegation will include the Ministers of Foreign Affairs, Dr Nkosazana Dlamini-Zuma; Defence, Mosiua Lekota;Transport, Dullah Omar; Public Enterprise, Jeff Radebe; Health, Dr Manto Tshabalala-Msimang; Intelligence, Dr Lindiwe Sisulu; Minerals and Energy, Phumzile Mlambo-Ngcuka; Agriculture and Land Affairs, Thoko Didiza; Environmental Affairs & Tourism, Valli Moosa; and Deputy Minister of Finance, Mandisi Mpahlwa.
A comprehensive bouquet of international agreements already exists between our two countries, establishing a solid legal framework for our interaction.
Since the inception of the BNC in 2000, we have seen the relationship between our two countries grow exponentially. Algeria is now South Africa's second largest export market in North Africa.
Significant potential for engagement exists in areas such as energy and mining, infrastructure development, water treatment and management, information technology and communications.
It is anticipated that the 3rd session of the BNC will present an opportunity to consolidate progress already made and to develop a Plan of Action determining the key objectives focussed on lead projects for the forthcoming year.
A trade mission, representing established and new South African business interests will engage their Algerian counterparts in a Business Forum. This Forum will be addressed by both President Mbeki and President Bouteflika on Tuesday, 22 October 2002.
In this regard, four South African companies have established opened Joint Venture (JV) offices in Algeria:
New entrants to the Algerian market include:
In addition ten Algerian companies participated in SAITEX held in South Africa during October 2002.
For further information contact Ronnie Mamoepa on 082 990 4853 or Nomfanelo Kota on 082 377 7208.
Background
Algeria has historically played a strong leadership role in international organisations, within the OAU, and international organisations like the United Nations, the Non-Aligned Movement, as well as the G-77.
Algeria is a founding member of the NEPAD and continues to give active support to NEPAD. Algeria has been tasked with the Health and Human Resource Development portfolios in NEPAD.
Algerian foreign policy objectives in Africa are largely similar to those of South Africa in that they support the African Renaissance namely, the promotion of peace, security, stability and sustainable development on the African continent and cooperation between African countries.
Bilateral Relations
Since the inception of diplomatic relations in May 1994 and the establishment of a South African Embassy in Algiers, the relations between South Africa and Algeria have grown extensively.
A Ministerial level Joint Bilateral Commission (JBC) was established in 1998, and it was subsequently upgraded to a Binational Commission at Presidential level in 2000. Within the framework of the BNC links between our countries have expanded and filtered down to various levels of Government, business, NGO's, academic institutions and amongst our two people.
A strategic partnership between South Africa and Algeria through NEPAD could make a major contribution to the promotion of peace, stability and development on the Continent. This partnership could also lead the way in addressing the challenges facing the developing world, e.g. debt relief and the transformation of international political, economic, financial and trade structures to make them more representative and thus more responsive to issues concerning the developing world.
Relations were further strengthened through the common vision and objectives of the AU and NEPAD. Both South Africa and Algeria are committed to the success of both structures and have canvassed support together and separately on a number of international fora.
Economic relations
Algeria is ranked as the 41st biggest export market for South Africa and the second largest export market in North Africa (2001) after Morocco (35th). Since 1998 South Africa has experienced an increasing trade surplus with Algeria which further grew between 2000 and 2001.
The Economic Cooperation & Partnership Agreement signed on the 23rd September 2000 provides for the establishment of a Joint Committee, to encourage trade between the two countries and to remove any obstacles to such trade. This Committee would consists of representatives from various South African and Algerian Government departments, to be chaired by the Ministers of Trade
The Algerian market holds substantial potential for South African Investors. Hydrodrocarbons, pharmaceuticals, infra-structural construction, the financial and manufacturing sector are some of the industries that offer lucrative opportunities.
In addition, the South African and Algerian Pharmaceutical companies, Saidal and Beula have signed agreements, to jointly develop specific products. Umgeni Water and the East Rand Water Board are negotiating for water reticulation rights in Algeria. Similarly various engineering, telecommunications and IT companies are bidding for an assortment of projects in Algeria.