Johannesburg - South Africa plans to learn from Italy on a larger scale regarding small and medium-sized enterprises (SMEs), says Minister of Trade & Industry Dr Rob Davies.
On Monday Davies met Claudio Scajola, the Italian Minister of Economic Development, and representatives of the Italian Confederation of Small and Medium Industries (ConfApi), and told Sake24 that agreement had been reached on closer co-operation between small enterprises in the two countries.
Italian companies are also investigating opportunities to benefit from South Africa's industrial development strategy.
As part of the attempt to establish closer ties between South Africa and Italy, about 18 South Africans involved with institutions lending support and advice to SMEs will soon make their way to that country for training.
Small enterprises play a significant role in the Italian economy, says Davies. Particular success has been achieved in clothing and textiles, food products and furniture.
South Africa also focuses on these industries as part of its industrial strategy to create skills and job opportunities. The Italians see opportunities for becoming involved in South Africa's industrial strategy by, among other things, supplying machinery and technology for processing raw materials.
Italy is the world's seventh-largest economy and its principal industries include tourism, textiles, clothing and shoes, chemicals, pharmaceutical products, food processing, vehicles, electrical goods and machinery.
Trading partners
In 2008 South Africa imported R17bn-odd worth of goods from Italy, mainly machinery, electrical equipment and appliances. Exports to Italy - mostly precious metals, coal and metallurgical products - were worth to some R13bn.
Despite expectations that South Africa will ask Italy for help in resolving problems with the European Union (EU) regarding its controversial economic partnership agreement (EPA), the EPA has not been discussed at all, Davies reported.
South Africa, Namibia and Angola have so far refused to sign an interim EPA with the EU. This could have serious consequences for Namibian exporters to the EU who could lose their preferential market access, and it also threatens the future of the South African Customs Union (Sacu).
Issues regarding the EPA will certainly be discussed next week at the South Africa/EU conference in Kleinmond, Davies asserts.
Later in the week trade ministers are meeting in India in an effort to inject new life into the Doha negotiations, which have been dragging on since 2001. The target is to reach agreement by mid-2010.
Davies believes that technical issues, such as the concessions countries will have to make in terms of tariffs and subsidies, will probably not be discussed. Rather, the focus will be on determining how the negotiation process is progressing and what can be done about it.
"When an agreement is reached is not important for us, but rather the content of the agreement. South Africa will not agree to it if we, or any other developing country, have to make exorbitant concessions in exchange for modest benefits."
- Sake24.com
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