SA to sign €1bn deal with France

Cape Town - President Jacob Zuma will sign a €1bn deal with the French Development Agency during a state visit to France next month that could also touch on a pricey nuclear project, a minister said on Thursday.

The March 2-3 visit, at the invitation of President Nicolas Sarkozy, aims at deepening economic relations with the incoming leader of the Group of 20 (G20) group of nations, as wide differences between rich and poor countries could frustrate France's hope of helping stabilise the global economy.

"There are several agreements that will be signed during this visit; among them would be included the new partnership framework document for 2011 to 2013," Maite Nkoana-Mashabane, the Minister of International Relations and Cooperation, told reporters.

France has emerged as one of several countries, including South Korea, whose companies have been courting South Africa as it shops for multi-billion dollar nuclear power plants that could help South Africa  avoid a power crunch.

French nuclear company Areva signed an agreement during Sarkozy's 2008 state visit to South Africa to boost nuclear skills development in South Africa.

Areva in 2007 also submitted a proposal to  power utility Eskom to build several nuclear plants, in a tender process later scrapped due to its steep cost.

"Looking at energy security as one of the agenda points that President Zuma will discuss with President Sarkozy, the answer is yes, but this is not the only issue," Nkoana-Mashabane said.