SA wants to double UK trade

South Africa plans to double its trade with the UK and become a gateway for European companies looking to establish bases in Africa, says Minister of Trade and Industry Rob Davies.

Davies was briefing the media on Thursday on the work of the business delegation that accompanied President Jacob Zuma on his recent visit to the UK.

He said both nations agreed that there was great potential to become gateways to their respective regions, adding that the next stage was to establish a free-trade zone between the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (Comesa) and the East Africa community.

He said when the trade agreements came into force, a free trade area from the Cape to Cairo with about 700 million people would be created.

Minister of Finance Pravin Gordhan said the relaxation of exchange controls would enable overseas companies to bring more money into South Africa and send this onto other African countries.

Davies said the 216 business people that went along with Zuma on his state visit to the UK between 3 and 5 March, were part of South Africa’s biggest trade delegation yet which has accompanied a state visit.

He said though trade between the UK and South Africa had indeed doubled between 2000 and 2008 and reached R79 billion in 2008, the recession had eroded this to about R40bn in 2009. – BuaNews