Closer economic and trade relations with South Africa

On Monday, the founding session of the Hungarian-South African Economic Joint Committee was held in Pretoria, South Africa. The Hungarian Co-Chairman of the Committee is Secretary of State Kristóf Szatmáry, while his South African counterpart is Deputy Minister of Trade and Industry Elizabeth Thabethe.

Establishing this Committee fits in well with the Government’s External Economy Strategy, the primary goal of which is to help Hungarian enterprises gain ground on international markets and to further stimulate the export performance of the Hungarian economy. The founding of the Committee provides the opportunity for future large-scale cooperation between the two countries within the field of water management.

At talks held at South Africa’s Ministry of Water Affairs, the parties declared their intention to conclude a cooperation agreement that would clear the way for Hungarian enterprises to participate in South-African water projects. As a result of Kristóf Szatmáry’s talks with the South African Minister of State for Tourism, the African country is evaluating the possibility of opening a South African tourism office in Budapest. In addition, establishing the Joint Committee also opens up channels of cooperation with regard to tertiary education, vocational training, mining, science and technology, and agriculture.

During his visit, Kristóf Szatmáry also met with representatives of the local Hungarian communities, and attended a citizenship oath ceremony at the Hungarian Embassy in Pretoria. Similarly to people of Hungarian origin who live in other countries of the world, those with Hungarian roots in South Africa are also increasingly keen on learning more about the simplified nationalization procedure introduced by the Government.

Kristóf Szatmáry also held a meeting with the Chairman of a Jewish organization, at which the speech delivered by Prime Minister Viktor Orbán at the World Jewish Congress in Budapest was highly appreciated. South Africa has been Hungary’s most significant trade partner on the African continent: South Africa is the fourth largest importer among Hungary’s non-EU trade partners.

Hungarian exports to South Africa exceeded USD 776 million in 2012 and South African investments in Hungary have until recently totalled USD 200 million. In accordance with the Government’s economic growth objectives and the mutual interests of the two countries, the Economic Joint Commission identified as key goals the stimulation of bilateral trade, the assistance of SMEs in gaining market share and the promotion of mutual investment projects.

As a result of improved cooperation between the two countries, a Memorandum of Understanding was concluded between the Hungarian Chamber of Commerce and Industry and the Johannesburg Chamber of Commerce and Industry. The objective of the agreement is to promote the activities of domestic SME on external markets and establish cooperation channels for enterprises.

The session was an excellent opportunity for promoting the Budapest-Africa Forum held on 6-7 June. Within the framework of this event, an economic forum will also be held at which several high-ranking South African government officials and business people will have the opportunity to meet with representatives of Hungarian companies and the Hungarian Government.

(Ministry for National Economy)