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SA means business, Zuma tells UK

5 March 2010

The number of businesspeople accompanying President Jacob Zuma on his first state visit to the UK was indicative of South Africa's interest in strengthening economic relations with the United Kingdom, Zuma told British parliamentarians on Thursday.

"We have brought along to the United Kingdom 216 businesspeople representing various sectors," Zuma said in the Palace of Westminster. "This indicates our interest to take our economic relations forward, as we are determined to improve investments and the creation of decent jobs."

Zuma said South Africa provided an "excellent destination for investments in all sectors including manufacturing, agriculture, tourism and mining."

The UK is South Africa's largest foreign investor, as well as the biggest international patron of the country's tourism industry. Between 1998 and 2008, total trade between the two countries increased by 173 percent.

Stable, growing economy

Zuma said the country had achieved a level of macroeconomic stability and sustained a pace of growth that had not been seen in South Africa for many years.

"Until the onset of the global economic crisis, we had managed to accelerate the pace of job creation, and had even achieved a budget surplus," said Zuma, who is on a three-day state visit to the UK.

He said it was because of the country's economic policies, a sound regulatory environment, and a massive investment in infrastructure, that the prospects of the South African economy recovering looked promising.

Nationalisation of mines 'not an option'

Zuma also used the opportunity to set the record straight on South Africa's position on the nationalisation of mines.

"Let me use this opportunity to state that South African law does not provide for the nationalisation of mineral resources, and there is no discussion within government about the nationalization of mines," he said.

"Our Mineral and Petroleum Resources Development Act gives effect to the notion of State custodianship of mineral rights."

Last month, Zuma reiterated that nationalisation was not government policy.

Breakfast at 10 Downing Street

Meanwhile, earlier in the day, Zuma held breakfast talks at 10 Downing Street with British Prime Minister Gordon Brown, where the two reportedly discussed the issue of Zimbabwe, among other topics.

Zuma is said to have called for the lifting of international sanctions against Zimbabwe's 86-year-old President Robert Mugabe and some leading members of his Zanu-PF party.

South Africa, like most Southern African Development Community (SADC) countries, is against the European Union's targeted sanctions, which they believe if lifted will accelerate economic and political reform in the beleaguered administration.

Zuma told Parliamentarians later that South Africa was greatly affected by the crisis in Zimbabwe.

"The influx of economic refugees from Zimbabwe places a significant strain on our capacity and resources," he said. "That is why we have consistently sought to follow the path that holds out the greatest prospect of success."

Source: BuaNews