Johannesburg - The production of pipes in Cuba using raw materials from South Africa will create job opportunities, Trade and Industry Minister Rob Davies said on Wednesday.
"This will create job opportunities in South Africa and once Cuba has repaid the R70m it will be able to access the second tranche," he said.
"This will boost our efforts to achieve a bilateral trade target of R160m in the near future."
According to a statement from his office, Davies was speaking after meeting vice-president of the Cuban National Institute of Water Resources, Aymee Aguirre Hernanddez, in Cuba.
They discussed an economic assistance package that South Africa was providing to Cuba, amounting to R350m.
The institute would on behalf of the Cuban government be responsible for the purchase of raw materials from South Africa to manufacture pipes in Cuba.
The pipes were destined to be used for expanding Cuba's water infrastructure such as drinking water and irrigation pipes.