Diplomatist Magazine Diplomatist October 2019

Q & A AFRICA DIARY The structured bilateral mechanism between the two countries, namely the Joint Ministerial Commission (JMC) with its relevant Sub-Committees and Joint Working Groups (JWG), as well as the Foreign Oﬃ ce Consultations (FOC) which is held at senior oﬃ cials’ level meet annually, will be utilised to achieve the three-year strategic programme’s objectives. These include increased cooperation in the ﬁ elds of defence, infrastructure’ development, mining, direct trade in rough diamonds, information technology, energy, agro- processing, pharmaceuticals, tourism, ﬁ nancial services, start-ups, fin-tech, biotechnology, healthcare and water management & irrigation technology. These areas have been largely incorporated in the economic targets of the Mission. The South African High Commission in New Delhi will prioritize its Economic Diplomacy programme with a view to building on the work conducted in the previous year primarily based on the areas identiﬁ ed in the three-year strategic programme objectives and highlighted during the State Visit by the President in January 2019. A number of bilateral agreements have been concluded between the two countries since assumption of diplomatic relations in 1993 in diverse areas ranging from economic a n d co m m e r c i a l co o p e ra t i o n , d efe n ce , culture, health, human settlements, public administration, science and technology and education. Do you think India-South Africa cooperation needs to be expanded beyond current levels? Indeed, a lot has been achieved through bilateral agreements and as you mentioned, this was done in 1993. Today, as we grapple with the challenges of our recent past, and as we deepen our eﬀ orts to overcome the grave injustices of centuries, it is essential that we do so with our eyes ﬁ rmly ﬁ xed on the future. The world we now inhabit is changing at a pace and in a manner that is unprecedented in human history. Revolutionary advances in technology are reshaping the way people work and live. They are transforming the way people relate to each other, the way societies function and the way they are governed. The devastating eﬀ ects of global warming on our climate are already being felt, with extreme weather conditions damaging livelihoods, communities and economies. As a young nation, only 25 years into our democracy, we are faced with a stark choice. It is a choice between being overtaken by technological change or harnessing it to serve our developmental aspirations. It is a choice between entrenching inequality or creating shared prosperity through innovation. Unless we adapt, unless we understand the nature of the profound change that is reshaping our world, and unless we readily embrace the opportunities it presents, the promise of our nation’s birth will forever remain unfulﬁ lled. Today, we choose to be a nation that is reaching into the future. In this regard, our bilateral agreements must be informed by realities of the contemporary generation and therefore we must adapt to these new realities. What measures will be taken to make it easier and more attractive for Indian companies to do business in South Africa? Firstly, the South African government is pursuing a prudent ﬁ scal and monetary policy to create a favourable business environment for businesses to operate in. It should be mentioned that it is in addition to the stable political environment in South Africa for businesses to thrive in. South African government is actively working towards lowering the costs of business in terms of telecommunication, transportation, power etc. Currently, South Africa is restructuring State-Owned Enterprises operating in these sectors to become more operationally eﬀ ective. South African Company registration Oﬃ ce has substantially cut the turnaround for the registration of new businesses. In the past, it took months to register. However, now it could be done in a couple of days. South African Government have set up Special Economic Zones to attract investment through lower corporate tax rates (15% rate instead of 28%), and the levying of zero rates for VAT and customs duties. There is potential to expand cooperation in the renewable energy sector as well as oil and gas. How would you like to see the cooperation develop? There is tremendous scope for cooperation in the renewable sector and the oil and gas sector between the two countries. As part of South Africa’s energy plan, South Africa has completed four rounds of tendering for the development of renewable energy projects in South Africa. The country managed to attract approximately 10 billion USD in terms of FDI in the last 10 years, which was very beneﬁ cial for GDP growth and job creation in South Africa. South Africa is due to announce the 5th round of renewable energy projects. The tender process is open to all Indian companies that are interested in the development of renewable energy projects. It is our wish that Indian renewable energy companies should participate in this process in order to eﬀ ect FDI investment in South Africa. As a Mission, we are also encouraging South African companies to participate in India’s renewable energy projects In terms of oil and gas, Petro SA and ONG have interacted in the past to explore cooperation in the exploration of oil blocks being situated at the coast of South Africa. Furthermore, Sasol, coal to liquid South African company is actively looking to joint venture with a partner in India to utilise the South African technology to beneﬁ t India in the gas and oil sector. The Mission is encouraging the mentioned Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 10 • October 2019, Noida • 51

Diplomatist Magazine Diplomatist October 2019 | Page 51