Free trade can boost SA - Zuma

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President Jacob Zuma, explained this when he commissioned a major sugar project in Zambia on the last day of his state visit to that country on Wednesday, 9 December 2009.

The project, a R1.7-billion investment by Illovo, is the biggest agricultural project in Zambia.

"This breakthrough is but one that shows that if we can have free trade globally as we have always advocated, such as in the Doha Development Round, we can really make important strides as a continent," Zuma said.

He noted that when Illovo Sugar acquired Zambia Sugar in 2001, the company was producing about 200 000 tons of sugar. "In less than a decade that output has been doubled," he said.

"This is a great achievement, Zambia is not only a copper producing country but it has also become a sugar producer of note.

"There is no doubt that the company's expansion has had a positive development in the economic development of Zambia through foreign exchange earnings and provision of sustainable and descent employment. We trust that this will grow substantially over the years."

He said that he believes that with the global sugar prices expected to stay at current highs for some years to come, Illovo will be able to make a significant impact in the countries where it is operating.

Winding up his visit to the country Zuma said that Zambia is now South Africa's number one trading partner on the continent, surpassing countries which traditionally used to attract huge investments from South Africa.

"Initially, these investments were largely concentrated in the so-called 'old economy' of mining, retail and related industries, he said, "but now there is a shift in the pattern because investments in the 'new economy' sectors such as financial services, information communication technology (ICT), agribusiness, leisure, etc have become visible."

He said that the various memoranda of understanding which were signed on Tuesday and the business interactions during the two-day business seminar will help ensure that economic relations between the countries remain vibrant and growing.

It is through these economic activities that the socio-economic challenges of poverty and unemployment can be addressed.

"As SADC we are working towards strengthening our regional cooperation and integration by implementing the Free Trade Area (FTA) in the region and the important trilateral SADC/EAC/COMESA co-operation.

"We hope that all of us, as Africans, will find common ground on these matters so as to achieve the much needed regional integration and development as a matter of urgency.

"Working together, we will achieve the African economic rejuvenation we dearly need on the continent."

The president thanked those businesses that contribute enormously towards the economic development of this continent.

"As governments we just need to create an enabling environment for private sector investments, ensuring that such investments not only contribute to economic development but also create sustainable employment," he said.

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