Malta Enterprise trade mission to South Africa

Malta Enterprise, in collaboration with Finance Malta, is to lead a business delegation to South Africa between February 18 and 25.

The mission to explore the opportunities for trade and promote Malta as an investment location will focus on Johannesburg and Cape Town.

Malta Enterprise will assist participating firms to arrange matchmaking meetings. Eligible companies may also benefit from a reimbursement of 60 per cent of the cost of an economy air fare and a per diem allowance for a company representative.

The business delegation is being supported by the Chamber of Commerce, Enterprise and Industry, the General Retailers and Traders Union and the Gozo Business Chamber.

Finance Malta is organising a hedge fund symposium in Cape Town.

Resource-rich South Africa currently contributes almost 20 per cent of the entire continent’s GDP. Its economy has recovered from the 1.7 per cent contraction registered in the 2009 recession to a growth of 2.8 per cent in 2010. Part of the positive performance was attributed to the hosting of the World Cup in 2010, although its contribution was estimated to amount to only around 0.5 per cent of the GDP.

The country’s infrastructure and transport system also benefited from the organisation of the event, which to date is the largest ever event to be held in the African continent.

The two-tier economy kept the momentum going and is expected to have reached 3.4 per cent growth in 2011, and forecasts estimate it will grow further by 3.6 per cent this year.

The scenario presents a wide range of opportunities to a multitude of sectors. South Africa has a sophisticated financial structure with a large and active stock exchange that ranks 17th in the world in terms of total market capitalisation, with consequent high demand for financial and professional services particularly in Johannesburg, which is the country’s major commercial, financial and industrial centre.

Johannesburg is home to the South African Stock Exchange, the leading banks, as well as major insurance, retail, engineering and construction companies. In addition, it also has a thriving mining and manufacturing industry. Cape Town has a robust financial and business services industry but has also taken advantage of its location at the crossroads of some of the world’s most important trade routes to develop into a dynamic metropolis that houses some of the country’s diverse manufacturing industry.

South Africa is a world leader in several specialised sectors, including motor vehicles and parts, synthetic fuels, and machinery. It is gradually also adding more value-adding processes to its economic activity, with sectors such as healthcare, alternative energy, transport and logistics, food and beverage, real estate, as well as travel and tourism having good business prospects.

The country is the EU’s largest trading partner in Africa and also has a Free Trade Agreement with the bloc. Malta is still strengthening its commercial ties with the country, despite the increase registered in the past years and an operative double taxation agreement.

Maltese exports to South Africa rose to €3.2 million in 2010, with the main sectors being pharmaceuticals, machinery and mechanical appliances. Imports amounted to €7.4 million, mostly food and beverages, marine, and precious stones.

Applications must be filed by January 18. More information is available at www.maltaenterprise.com on 2542 0000 or internationalisation@maltaenterprise.com.