UPDATE - Indian premier aims to boost trade with South Africa

UPDATES WITH MORE QUOTES FROM MODI, ZUMA

By Hassan Isilow and Shu'eib Hassen

PRETORIA, South Africa (AA) - Indian Prime Minister Narendra Modi has promised to strengthen political and economic ties with South Africa.

Modi arrived in South Africa Thursday night from Mozambique where he began the first leg of his four nation Africa tour.

In remarks made at a joint media briefing in Pretoria, Modi said India and South Africa agreed to cooperate in the fight against regional and global terrorism.

“President [Jacob] Zuma and I agreed that our two nations need to stay vigilant and cooperate actively to combat terrorism both in our region and the world,” he said.

The Indian leader said terrorism was a sad threat that puts at risk the safety and security of the peoples of the two nations.

Speaking about trade, Modi said Indian companies had strong business interests in South Africa.

He said there was potential for Indian companies to increase investments in the country in sectors like mining, chemicals and pharmaceutical.

“About one fourth of our investments in Africa are in South Africa and there is potential to expand our business and investment ties further,” he said.

The prime minister said the two-way trade between the two nations had grown by over 300 percent in the last 10 years.

Mondi said beyond economic ties, India could also partner with South Africa in the fields of defense and security.

Zuma said Modi’s visit had further strengthened the already warm historical relations between the two countries.

“South Africa and India enjoy strong relations dating back to the struggle against apartheid. India was a vociferous campaigner against apartheid colonialism,” he said.

“We are looking to increase and diversify South African exports to India,” he said, adding: “We have identified new areas for market access, including defense, deep mining, renewable energy and health sectors.”

Earlier, in a late Thursday statement, Zuma said his country was keen to strengthen trade with India.

“To date, India is South Africa's largest trade partner with trade in 2015 being at almost 95 billion rand (about $6.5 billion). Trade with India represented 4.9 percent of SA [South Africa] imports and 4.1 percent of exports last year,” he said.

South Africa and India are members of the BRICS strategic economic bloc, which includes Brazil, Russia, India, China and South Africa.

The two leaders are also expected to address a meeting of the joint South Africa-India business forum and the South Africa India CEO (chief executive officers) forum.

Indian companies have 82 projects, including those linked with financial services, software and IT services, in South Africa. According to the presidency, Indian investments in South Africa have created an estimated 10,660 jobs.

Meanwhile, South African companies have also expanded their investments in India with 24 projects. The leading sectors for South African investment in India are the financial sector, machinery and equipment as well as software and IT services.

South African investments in India have created an estimated 6,981 jobs.

Earlier, during his talks with Mozambican President Filipe Nyusi Thursday morning, the Indian leader agreed to strengthen defense and security relations. “President Nyusi and I recognize that terrorism is the gravest security threat facing the world today,” Modi tweeted shortly after the meeting.

The Indian premier will also visit Tanzania and Kenya during his Africa tour.