France keen to be long-term investor in South Africa - Sarkozy
Thématique :
sud afrique
By Jade Davenport, Engineering News, 29/02/2008
Economic ties between South Africa and France have been significantly strengthened this week, following a two-day state visit to the country by French President Nicholas Sarkozy and 40 senior business executives.
This visit has witnessed the conclusion of a number of deals between South African and French businesses, including the €1,36-billion contract to supply South African power utility Eskom with six turbines, six turbo-generators, and six air-cooled condensers for its second new 4 750 MW coal-fired power station, as well as the €100-million financing agreement between France’s development agency AFD and Eskom to help finance the construction of a wind farm.
On the back of these investment commitments, Sarkozy affirmed his country’s ambition to become a more established, long-term investor in South Africa.
Addressing French and South African business executives attending the South Africa-France Business Forum in Cape Town on Friday, Sarkozy explained he was not satisfied with his country’s current trade ranking with South Africa and that he aimed to boost the trade partnership between the two countries to first position in terms of trade on the African continent.
Sarkozy elaborated that it was important to understand that France did not view South Africa as a bank or as a market solely intended for the purchase of French products, but rather that France viewed the country as a haven for long-term investments that would benefit the local economy.
He also said that he was not satisfied with empty investment promises and would make concerted efforts to ensure that French companies won deals, such as the Eskom bid to build a new 3 000 MW to 3 500 MW nuclear power station, that would facilitate the strengthening of French investment in the country.
In a bid to assist in this ambition Sarkozy elaborated that he intended to establish an investment fund of €250-million. This would assist French companies to invest in the South African renewable energy and high-technology sectors, which the French viewed as the most vital sectors in terms of investment opportunities.
Sarkozy also urged South African businesses to change their Anglo-Saxon mindset and look upon France as a reliable investment and trading partner.
South Africa has long been considered to be aligned to the Anglo-Saxon trading camp and President’s Sarkozy’s affirmation of increasing French investment in the country signifies France’s strong intention to diversify investments out of Francophone Africa and break into, what is considered to be, the Anglo-Saxon trading camp.
Immense progress had been made to strengthen the South African economy since 1994 and Sarkozy said that France admired and respected this progress.
South Africa was now at the same level of most global economies and Sarkozy said that it was time for the country to take a more active role in dealing with international economic and political crises.
Responding to Sarkozy’s enthusiastic address, President Thabo Mbeki stated that the French President’s visit had communicated the message that France was certainly committed to strengthening political and economic ties with South Africa.
President Mbeki believed that the economic relationship that had been established up to now provided the opportunity to further extend economic ties between the two countries and that the only obstacle to the further development of this relationship was the limit of the imagination.
“If we are daring enough it is possible to find any number of new areas of economic and political cooperation between South Africa and France,” said Mbeki.
He also stated that the South Africa-France Business Forum represented an excellent opportunity for South African companies to strengthen relationships with their French counterparts, which would, it was anticipated, further promote trade and investment between the two countries.
Minister for Trade and Industry Mandisi Mpahlwa concluded the forum by stating that both South Africa and France had diverse economies although the critical difference between the two was that France had more highly-advanced manufacturing capabilities.
Thus, Mpahlwa hoped that through economic cooperation, South African companies would be able to leverage off of France’s technological experience, which would further promote the growth and advancement of the local economy in the long-term.
Economic ties between South Africa and France have been significantly strengthened this week, following a two-day state visit to the country by French President Nicholas Sarkozy and 40 senior business executives.
This visit has witnessed the conclusion of a number of deals between South African and French businesses, including the €1,36-billion contract to supply South African power utility Eskom with six turbines, six turbo-generators, and six air-cooled condensers for its second new 4 750 MW coal-fired power station, as well as the €100-million financing agreement between France’s development agency AFD and Eskom to help finance the construction of a wind farm.
On the back of these investment commitments, Sarkozy affirmed his country’s ambition to become a more established, long-term investor in South Africa.
Addressing French and South African business executives attending the South Africa-France Business Forum in Cape Town on Friday, Sarkozy explained he was not satisfied with his country’s current trade ranking with South Africa and that he aimed to boost the trade partnership between the two countries to first position in terms of trade on the African continent.
Sarkozy elaborated that it was important to understand that France did not view South Africa as a bank or as a market solely intended for the purchase of French products, but rather that France viewed the country as a haven for long-term investments that would benefit the local economy.
He also said that he was not satisfied with empty investment promises and would make concerted efforts to ensure that French companies won deals, such as the Eskom bid to build a new 3 000 MW to 3 500 MW nuclear power station, that would facilitate the strengthening of French investment in the country.
In a bid to assist in this ambition Sarkozy elaborated that he intended to establish an investment fund of €250-million. This would assist French companies to invest in the South African renewable energy and high-technology sectors, which the French viewed as the most vital sectors in terms of investment opportunities.
Sarkozy also urged South African businesses to change their Anglo-Saxon mindset and look upon France as a reliable investment and trading partner.
South Africa has long been considered to be aligned to the Anglo-Saxon trading camp and President’s Sarkozy’s affirmation of increasing French investment in the country signifies France’s strong intention to diversify investments out of Francophone Africa and break into, what is considered to be, the Anglo-Saxon trading camp.
Immense progress had been made to strengthen the South African economy since 1994 and Sarkozy said that France admired and respected this progress.
South Africa was now at the same level of most global economies and Sarkozy said that it was time for the country to take a more active role in dealing with international economic and political crises.
Responding to Sarkozy’s enthusiastic address, President Thabo Mbeki stated that the French President’s visit had communicated the message that France was certainly committed to strengthening political and economic ties with South Africa.
President Mbeki believed that the economic relationship that had been established up to now provided the opportunity to further extend economic ties between the two countries and that the only obstacle to the further development of this relationship was the limit of the imagination.
“If we are daring enough it is possible to find any number of new areas of economic and political cooperation between South Africa and France,” said Mbeki.
He also stated that the South Africa-France Business Forum represented an excellent opportunity for South African companies to strengthen relationships with their French counterparts, which would, it was anticipated, further promote trade and investment between the two countries.
Minister for Trade and Industry Mandisi Mpahlwa concluded the forum by stating that both South Africa and France had diverse economies although the critical difference between the two was that France had more highly-advanced manufacturing capabilities.
Thus, Mpahlwa hoped that through economic cooperation, South African companies would be able to leverage off of France’s technological experience, which would further promote the growth and advancement of the local economy in the long-term.
