Great opportunities await Indian SMEs in South Africa: Omar

South Africa: A land of opportunities for Indian SMEs

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Anand Choudhary | 31 Mar, 2008
South Africa is a rapidly developing country with immense investment and export opportunities. So, today I have with me Mr. Jardine Omar, Counselor (Economic) of South Africa in India to talk about the trade and economic opportunities in South Africa and the bilateral trade between the two countries...

Good morning Sir, it's a pleasure to meet you, now I should start the interview...

How do you see the future of trade between India and South Africa?
Jardine Omar: The future seems to hold great prospects for the growth of trade relations between India and South Africa. India is one of the biggest markets in the world and one of the fastest growing economies growing at a pace of 9 percent annually and it holds great opportunities for the South African businessmen. I will say that the South African businessmen have not been able to tap the immense opportunities that the India has to offer.

What kind of opportunities are you talking about?
Jardine Omar: I mean for example, we are a world leaders in mining among other fields, but we have not been able to supply our advanced mining technologies to places like Jharkhand, Bihar and Orrisa where a lot of mining is done.

What are the goods that South Africa mainly exports to India?
Jardine Omar: We mainly deal in commodities. In commodities I mean metals and minerals, precious and semi -precious stones, gold, magnesium, diamonds among others.

What forms the major chunk of South African exports to India?
Jardine Omar: I will say, metals, minerals, gold and magnesium form the major chunk of South African exports to India, comprising more than 60%.

What forms the major chunk of South African imports from India?
Jardine Omar: (Laughs) Well, well...I am here to promote South African trade in India. But anyways as you said that bilateral trade means export-import and investments between both the two countries involved...so I will answer your question...Currently, rice, leather goods, garments and chemicals form the majority of South African imports from India. In fact, India is the biggest exporter of rice to South Africa. Also India is the world's number one supplier of leather goods and leather products to South Africa.

Which are the goods that South Africa will like to procure from India? I mean which are the goods and products that will be welcomed in the South African markets?
Jardine Omar: Automobiles and pharmaceuticals. In fact, automobile companies like Tata and Mahindra have been exporting automobiles and auto parts to South Africa at a large extent. Tata has in fact, set up a plant in Richards Bay in South Africa and has been producing around 35 thousand vehicles annually.

What kind of export opportunities South Africa holds for Indian SMEs?
Jardine Omar: For SMEs there are opportunities in the field of leather, rice, chemicals and garment exports...

What kind of garment and leather exports? If you can be more specific...
Jardine Omar: All sorts of leather and leather products like bags, jackets and any thing you can think about. While in garments I will say it's mainly cotton.

What kind of facilities can be provided to Indian businessmen setting up businesses in South Africa?
Jardine Omar: We may not be able to provide facilities like tax holidays and other things you were talking about as given in some other West African countries, but there are other incentives...like better infrastructure, huge markets and better facilities. Besides we may offer industry specific incentives program. The details of that I don't have with me now.

Where do you see the trade between South Africa and India may be five years down the line? What are your aims in this regard?
Jardine Omar: Well, our target is to reach $ 10 billion by exporting more value added products to India.
Especially in mining, defense and agro-products. While from India we look forward to get more imports in the field of automobiles and pharmaceuticals.

SME Times: Thank You very much Sir, It was a pleasure to have you.