South Africa’s Deputy Trade and Industry Minister (DTI) Bulelani Magwanishe has invited Indian pharmaceutical companies to invest in the South Africa in order to contribute to the growth of the country’s economy, the ministry said on Monday.
“We have launched a major investment recruitment drive of $100 billion (over a trillion Rand) in the next five years. Our visit to India prioritises investment in the pharmaceuticals, medical devices and consumables. These are the main sectors that we have identified for growth,” Magwanishe said addressing potential investors at a pharmaceutical sector engagement session.
“These provide unlimited opportunities for the Indian companies to invest in as the South African pharmaceutical sector is the largest drug market in Africa. In 2015, the total market value was estimated at $3.3 billion. By 2019, the South African exports of pharmaceutical products will increase to approximately $526 million. This presents infinite opportunities for investors to access multiple markets in Africa.”
The session was hosted by the department in partnership with the Indian Chamber of Commerce in Hyderabad, India. Magwanishe led a mission as part of government’s investment attraction drive in the pharmaceutical sector.
He said that the South African government sought to construct a globally-competitive industrial economy through various initiatives and programmes such as the development of Special Economic Zones (SEZs) – singling out the Dube Trade Port SEZ in Durban as critical to expanding relations between South Africa and India.
“The Dube Trade Port is developing a pharmaceutical cluster which provides an integrated infrastructure and services for ease of doing business in the trade zone. Equipped with shared utilities, this will further enhance competition and access to global markets. The SEZ has about 10 pharmaceutical companies with an estimated value of $370 million worth of investment being negotiated,” said Magwanishe.
Magwanishe also urged the Indian Chamber to engage with the South African chambers in order to facilitate and enhance direct interaction between businesspeople from the two countries.