Economic fundamentals bearing fruit: Thabethe

Economic fundamentals such as trade liberation, inflation targeting, exchange control liberation and the control of government expenditure of fiscal measures since the dawn of democracy had helped the country.

"These measures are now starting to bear fruit with exports increasing sharply as a percentage of Gross Domestic Product. South Africa now finds itself in a position where it's regarded as a very desirable trade nation having negotiated a number of Free Trade Agreements (FTAs) over the past several years," she told the Indian Chamber of Commerce in the state of Cochin, Kerala.

Thabethe is in India where she is leading a technical mission to India to observe progress made by the Indian government on the development of Small Medium and Micro Enterprises (SMME).

The technical mission serves to reinforce the long standing friendship that South Africa and India have built, with bilateral trade rising from US$45m in 1993 to surpass the US$7bn mark last year.

India ranked amongst the top 10 investing countries in South Africa. India's investment in South Africa was estimated to be over US$57bn.

The challenge

"Also the challenge now, however, lies in increasing the pace of growth and consolidating gains," said Thabethe.

She added that both countries have initiatives in place that enhance relations. The initiatives include the India-South Africa Joint Ministerial Commission as well as the India-SA CEOs forum that is gaining momentum.

Various agreements have also been signed and entered into including a general trade agreement; co-operation on defence issues; small medium enterprises development and capacity building through small enterprises development agencies and the National Small Industries Corporation (NSIC).

Thabethe is accompanied by a delegation comprising senior officials from the dti and its agencies, including the Small Enterprise Development Agency (Seda) and the National Empowerment Fund.

The visit, which will also observe the connectivity of rural economies to the mainstream economic activity in India, will conclude on 30 August. It follows visits to the cities of Kerala, Chennai, Mumbai and New Delhi.