SA lags behind other Brics in Angola deals

using its political and commercial capital to clinch significant contractual agreements in Angola, research published last week by financial services group Standard Bank found.
Angola is the continent’s second-largest producer of crude oil and accounts for 6 percent of Africa’s gross domestic product (GDP), 10 percent of its trade and 5 percent of investment flows.
Public Enterprises Minister Malusi Gigaba warned last week that SA would lose out to the other Brics members on deals on the continent if an innovative plan was not in place to conquer these markets.
China has been the biggest winner in concluding lucrative commercial transactions with Angola, followed by Brazil and India, the Standard Bank research shows.
Two-way trade between Angola and China was about US$24,8 billion last year. Brazil has signed 39 bilateral agreements with Angola, with bilateral trade reaching US$5 billion in 2008, while in 2009 India’s bilateral trade with Angola reached US$3,8 billion.
“The manner in which the Brics (countries) have benefited from Angola’s ongoing economic surge has shone a light on SA’s failings in the market,” Standard Bank’s research analysts, Simon Freemantle and Jeremy Stevens, note in the report. With a few notable exceptions, South African corporations have lagged the tremendous pace of interactions by the Brics, and indeed other emerging and advanced economies, in Angola.”
SA’s imports from Angola, which were largely concentrated in the petroleum industry, amounted to R12 billion last year. Exports to Angola in the same period were valued at R5,5 billion. SA’s relations with Angola were frosty during the terms of office of former presidents Nelson Mandela and Thabo Mbeki.
In 2009, President Jacob Zuma made his first foreign visit to Angola after his inauguration in an attempt to mend relations. This was reciprocated by Angolan President Jose Eduardo dos Santos when he paid a two-day state visit to SA last year. Mr dos Santos had committed his government to relaxing visa restrictions to facilitate business relations.
However, Roger Ballard-Tremeer, honorary CE of the SA- Angola Chamber of Commerce, said yesterday that strict visa regulations were still in force.
“The governments (SA and Angola), for reasons known only to themselves, have done absolutely nothing on the visa regulations,” he said. “It’s a tough task to apply for a visa to visit Angola.”
Mr Ballard-Tremeer urged authorities in both countries to hasten the process of implementing an investment protection plan agreement concluded in 2005. – BusinessDay.