President Cyril Ramaphosa: South Africa-Angola Business Forum

Programme Directors,
Your Excellency Joao Lourenço, President of the Republic of Angola,
Minister of Trade, Industry and Competition of South Africa, Mr. Parks Tau,
Minister of Industry and Commerce of the Republic of Angola, Mr. Rui de Oliveira,
Ministers from Angola and South Africa
Ambassadors,
Leaders of business from Angola and South Africa,
Representatives of business and trade organisations,
Guests,
Ladies and Gentlemen,

It is my pleasure to address this inaugural South Africa-Angola Business Forum.

It is heartening and encouraging to see such a broad representation of business from our two countries.

This is in itself a solid demonstration of confidence.

Confidence in the strength of the region’s two largest economies.

Confidence in the potential that exists for deepening trade and investment ties.

Confidence that the governments of both countries are taking the necessary steps to ensure that the business operating environment is improved so investments can be safe and secured.

Earlier today, President Lourenço and our respective delegations held fruitful talks.

We explored a wide array of critical political, economic, and social issues of mutual concern, addressing challenges and opportunities not only for our two nations but also for the broader African continent and the global community.

During our official engagement, we reached a shared understanding that significant opportunities exist to further strengthen and expand our bilateral trade and investment relations.

More than twenty South African entities are already investing in Angola in a range of sectors including rail, agriculture, industrial parks, oil refineries, manufacturing, IT, financial services and logistics.

I am pleased to see some of these investors present here today.

South African Development Finance Institutions are also financing several key projects in Angola.

By way of example the Development Bank of Southern Africa is financing port development, railway rehabilitation, oil and gas infrastructure and renewable energy development in Angola.

The Export Credit Insurance Corporation of South Africa has also maintained a healthy pipeline in Angola in infrastructure development - and the Industrial Development Corporation is involved in financing the Cabinda Oil Refinery and the Cabinda phosphate project.

We would like to see substantially more Angolan FDI inflows into the South African economy.

Between 2003 and 2024 we have seen only a handful of Angolan companies investing in South Africa, in communications, financial services and the metal sector.

With respect to trade, though South Africa’s exports to Angola have grown by approximately 11 per cent since 2019, they account for just three per cent of Angola’s total imports.

Our imports from Angola have declined by some 19 per cent since 2019.

Casting the net wider presents immense possibilities for improving both trade and investment flows.

South Africa is pursuing an ambitious economic development agenda based on export-led industrialisation.

We seek to revitalise our industrial base, modernise our infrastructure network and strengthen logistics and supply chain connectivity with the rest of the continent.

This presents significant opportunities for cooperation in various sectors such as agriculture and agro-processing, energy, rail rolling stock, infrastructure, healthcare, oil and gas, as well as mining and minerals beneficiation.

The rapid growth of key clean energy manufacturing industries as part of the global transition to a low-carbon economy is an area we must explore urgently.

The global energy transition offers new opportunities to upgrade and diversify into technology-intensive global value chains.

The transition to a low-carbon economy therefore presents scope for collaboration around critical minerals – specifically with regards to value addition and beneficiation.

South Africa and Angola have an opportunity to work with other countries in SADC to ensure that we leverage our critical minerals to industrialise.

The era has passed of African countries being locked into the lower end of global value chains as suppliers of raw materials.

In this regard, as South Africa we are most impressed with President Lourenço’s vision for the Lobito Trans Africa Corridor as an economic development zone.

The Development Bank of Southern Africa is already supporting the development of the Lobito Railway Corridor, and we are keen to explore other avenues for collaboration in this regard.

Infrastructure development that unlocks intra-Africa trade is a priority, and we must build on the work already underway on the Lobito Corridor to create sustainable industries in the region.

South Africa is ready to partner with Angola in the development of strategic corridors, including the Central, North, and South Corridors, with the aim of transforming them into dynamic economic infrastructure projects that can promote growth.

We are committed to ensuring that continental economic development frameworks like African Continental Free Trade Area are a success.

In this regard we look forward to Angola’s accession into the Southern African Development Community Free Trade Agreement.

Both these Agreements will unlock trade and investment opportunities for both countries.

As one of the founding members of the SADC, Angola's recent submission of its tariff offer to accede to the SADC Protocol on Trade is a commendable and transformative milestone for regional integration.

This significant development opens new avenues for Angola to benefit from a range of economic advantages.

They include access to more affordable inputs and consumer goods, increased employment opportunities, and the establishment of robust regional value chains.

Furthermore, this move is poised to attract greater foreign direct investment, facilitate joint ventures with other member states, and enhance Angola’s participation in the regional economy.

As government and business, we must use this forum to engage proactively around not just the possibilities that exist, but also how to resolve the challenges in the business operating environment.

Companies in both Angola and South Africa have challenges that make it difficult to do business.

Stringent business visa requirements, high export costs, onerous import processes, taxation issues and bureaucratic red tape are just some of these.

We must be able to emerge from this forum with a clear understanding of what the main challenges are and what steps will be taken to facilitate greater market access on both sides.

Promoting greater economic growth for the benefit of Angola and South Africa necessitates that we are agile, adaptable and responsive as both the public and private sectors.

It necessitates a thinking out of the box approach with respect to funding and financing models at our disposal.

If we are to achieve the ambitious goals of the Bi-National Commission, we need the private sector in Angola and South Africa on board.

Through trade and investment, we can make a real, lasting and sustainable impact on our respective national economies, and improve the lives of our respective peoples.

Let us build on the partnerships that already exist and work together to unlock economic potential, enhance value addition, and create sustainable growth pathways that contribute to long-term economic resilience and prosperity for both countries.

South Africa is open for business.  I look forward to today’s engagement.

I thank you.