The business conclave sessions are crucial for connecting and facilitating the networking between the businesses of South Africa and India. Dr Neelam Rani is an associate professor of finance.
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By Dr Neelam Ran
India and South Africa have imprinted 30 years of diplomatic relations on the canvas of time, an important mark on the globe between an economy gaining an influence and crafting a considerable mark on a global scale and another economy that is the centre of gravity on the African continent.
Both assume an important role in the emerging Global South. The South African High Commission in Delhi conducted two events with the Federation of Indian Chambers of Commerce and Industry in Delhi and in Mumbai, where major industrialists, business partners, and companies interacted. The discussions took place around key topics including direct flight, tourism, film industries, and IPL cricket.
The India South Africa Chamber of Commerce (ISACC) organised a business conclave in India from December 2-6, 2024 in New Delhi and Mumbai to strengthen economic ties between both countries.
This significant event witnessed the visit of a government delegation led by the Minister of Tourism Patricia de Lille, members of portfolio committees on International Relations, and Trade, Industry and Competition, as well as Home Affairs. The endeavour is much much-needed initiative to strengthen economic ties between the two countries.
The business conclave sessions are crucial for connecting and facilitating the networking between the businesses of the two countries. The networking in turn brings trust which is an important driver of business alliances. The visit of a government delegation to India and the ISACC business conclave will include a series of business round tables and working dinners both in New Delhi and Mumbai.
The platform will also serve to build trust and relationships through interactions and engagements with tourism, trade and civil society, professionals of industry as well as other relevant stakeholders.
The networking through these outreach programmes enables the policymakers of both countries to engage further on bilateral issues and enhance relations.
The event facilitated business-to-business (B2B) and business-to-government (B2G) dialogue and engagements, enabled participants to explore new commercial opportunities, strengthen existing ties, and develop collaborative strategies that contribute to the growth of both economies.
Despite a remarkable bilateral trade of around $18.8 billion, there remains a notable disparity in business representation, over the presence of 130 Indian companies in South Africa, and less than 30 South African groups operating in India. At present, India is South Africa’s fourth-largest import partner and second-largest export partner. The country imports mineral products, wood pulps and materials, metals, chemicals, pearls and precious stones, metals, machinery and equipment, vegetable products, textiles, prepared foodstuffs, stone, plaster, and cement from South Africa.
India exports petrochemicals, fuel, drugs and pharmaceuticals, vehicles and components, transport equipment, engineering goods, footwear, dyes, inter- mediates, chemicals, textiles, rice, gems and jewellery, and sports goods to South Africa.
Vedanta, TCS, Wipro, Infosys BPM, Tech Mahindra, HCL, Zensar, Tata Motors, Sun Pharmaceuticals, Dr Reddy’s, Lupin, Aurobindo Pharma, Glen-mark Pharmaceuticals, Cipla, Zydus and Mahindra & Mahindra are well established in South Africa.
The holding companies of SABMiller AB InBev, FirstRand Bank RMB, Momentum, Naspers, Sanlam, Old Mutual, Smolla, Shaft Sinkers and Life Healthcare are a few leading companies from South Africa that have invested and are now established in India.
Key sectoral focus areas of discussion for crafting strategic partnerships included:
⯁ Agriculture and agro-processing
⯁ Energy, infrastructure and mining
⯁ Healthcare and medicine
⯁ Tourism, arts, culture and sports
⯁ Education/ capacity building/ ICT/ digital banking/ sustainable finance/ payments and innovation.
The conference was attended by South African apex business organisations such as the Black Business Council, the South African Chamber of Commerce, and other esteemed organisations. The event facilitated businesses to get a deeper understanding of both the obstacles and opportunities that may exist in trade relations between India and South Africa. The networking of participants during the conclave enabled the diverse stakeholders to identify the opportunity and co-ordinate a South African delegation seeking import and export opportunities, trade, and investment partnerships in India.
South Africa and India have maintained strong bilateral relations for many years and are also key partners in the BRICS and G20 member states. The two countries also form part of the IBSA (India, Brazil, South Africa), a unique forum with three large democracies and major economies from three different continents that have common social issues and face similar challenges. IBSA was formed almost more than 20 years ago. These organisations provided the broader framework to promote co-ordination on global issues between three large democracies of Asia, South America, and Africa, and to leverage trilateral co-operation in sectoral areas.
The enabling ecosystem and policy framework are crucial to ensuring ease of business among these countries.
Institutions such as ISACC may facilitate the market intelligence needed to gauge the demand from South African businesses to understand the Indian economy and why it is crucial to do business with the emerging and influential economic powerhouse.
The one-week Partnership Summit focused on the need to strengthen the existing diplomatic and economic ties to urge and broaden the South African businesses to expand their operations into India. The recent announcement of an innovative Trusted Tour Operator Scheme (TTOS) for visas for Indians and the collaboration between the Department of Tourism, as well as the Presidency and Operation Vulindlela, the Department of Home Affairs emphasised making this process simpler. India has the largest population in the world and is the fifth-largest economy in the world. It has deep political ties with South Africa and links with the Struggle for freedom and justice in South Africa.
* Dr Neelam Rani is an associate professor of finance. She is a Fulbright Scholar and holds a PhD from the Department of Management Studies, Indian Institute of Technology (IIT) Delhi, India in the area of Mergers and Acquisitions and Corporate Governance.
** The views expressed do not necessarily reflect the views of IOL or Independent Media.