South Africa is fostering closer trade relations with Mozambique – one of the fastest growing economies in Sub-Saharan Africa. The Department of Trade and Industry (DTI) has sponsored 29 export-ready small and medium South African businesses, who are currently showcasing their products at the 50th Jubilee of the Feira International de Maputo (FACIM) Fair, in Maputo.
Speaking at the official launch, the Director for Export Promotion at the DTI, Dr Julius Nyalunga said South Africa urged closer trade relations with Mozambique.
“Mozambique is among the seven fastest growing economies in sub-Saharan Africa and we cannot achieve economic growth if our economies are not linked. It is important to understand that we are pursuing a mutually beneficial regional economic development agenda, and for us to turn around our economy we need to be outward looking in order to strengthen trade with our neighbouring partners,” he said.
Dr Nyalunga highlighted that although the biggest challenge in African countries is economic diversification, human capital is key to successful business in Mozambique.
“Africa contributes only two percent of the world’s exports; therefore South African companies should fast-track trade with their Mozambican partners in order to achieve economic diversification,” he added.
The head of Business Linkage Services at the Centre for Promotion of Investment (CPI) in Mozambique, Antonio Makamo said strong investment opportunities exist in sectors, including construction, mining and petroleum and strong relations between the two countries will be mutually beneficial. Makamo added that Mozambique also has abundant reserves in gas, coal, agriculture and forestry.
In recognising South Africa’s continuous contribution to development and implementation of FACIM, Mozambican President Armanda Geubuza, awarded SA with a diploma of merit.
Makoma further stated that Mozambique will tap into South African expertise to overcome hindrances in economic growth.
“Infrastructure development is one of the biggest challenges Mozambique is faced with. Mozambicans cannot easily grow their oil sector because of lack of infrastructure and know-how. We are counting on South African expertise to grow this sector through your proven track record in the rail sector,” alluded Makoma.
