Excellent prospects for South Africans at the 17th SAARC summit by Srimal Fernando

Excellent prospects for South Africans at the 17th SAARC summit

            

   By Dr Srimal Fernando,  South Asia Correspondent for Foreign Exchange

                                                                

South Asia is home to nearly 1.5 billion people or about 22 percent of the world’s population. South Asian region includesthe countries of India, Pakistan, Bangladesh, Sri Lanka, Nepal, Afghanistan, Bhutan and The Maldives. The regions economy has grown dramatically largely as a result of opening up its economies to the rest of the world and adopting market-oriented policies. According to the World Bank report of 2011, South Asia has experienced a long period of robust economic growth, averaging 6 percent a year over the past 20 years. Most of the countries in South Asia are close to graduating from least developing country status to lower middle income countries. The significance in socio-economic development of the South Asian countries has been recognized since the inception of SAARC.

In late 1970's President  Ziaur Rahman of Bangladesh proposed, creation of a trade bloc consisting of South Asian countries. The Bangladeshi President’s proposal was accepted by India, Pakistan and Sri Lanka in 1981 during a meeting held in Colombo. The heads of India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and the Maldives signed the charter to establish the South Asian Association for Regional Cooperation (SAARC) on December 8th, 1985. The SAARC regional grouping charter serves as a solid foundation in achieving the legal and institutional framework to promote the welfare of the peoples of South Asia and to improve their quality of life through accelerated economic growth, social progress and cultural development in the region. Afghanistan was admitted to the regional grouping on 13th November 2005 as their eighth member.

In recent years, the member countries had formulated the South Asia Free Trade Agreement (SAFTA) which created a framework for the establishment of a   free trade area within the region. During the last five years intra-regional business had gone up to US$5billion (Est 2010). The regional summit has moved beyond declarations to covering cooperation in a range of areas including trade, development, education and culture. In its 25 years of existence Food Bank, Free Trade Agreement, Development Fund and South Asian University were significant achievements by the regional grouping.

The SAARC member countries have been cooperating in the development of sports. The governing body of these games is the South Asian Sports Council (SASC) formed in 1983 that oversees the bi-annual sporting event known as the South Asian Federation Games or SAF Games held among the athletes from South Asian countries. The 12th SAF Games is an upcoming major sporting event, scheduled to take place in Delhi in 2012.

Faced with the constant threat of disasters, the regional countries have worked hard on disaster response and risk reduction .The SAARC Disaster Management Centre (SDMC) was set up in October 2006 in New Delhi. The SDMC works on various dimensions of disaster risk reduction and on management in South Asia.

Over the years, there has been a growing interest among many countries to associate with SAARC. Currently Australia, China, USA, European Union (EU), Iran, Japan, Republic of Korea, Myanmar and Mauritius are the nine observers to SAARC. Even though South Africa has participated in previous meetings, the country is yet to become an observer. The Maldives will be the host nation for the 17th SAARC summit in 2011. Pre-SAARC Summit work currently being carried out in the Hulhudhoo Island or Addu City. The construction of the convention centre is expected to be completed by October to host the summit in November.

The historical links between South Asia and South Africa dates back to 19th century. Today about two per cent of the South African population are descendents from South Asians. South Asian region and South Africa have a 150-years old strong cultural relationship which added towards strengthening the economic and trade relationship with both regions. Since 1994 the bilateral relations between the South Asian countries and South Africa have been progressing gradually. The recent years have witnessed the rapid development in the relationship of friendly cooperation between South Africa and the SAARC regional grouping. The two-way flow between South Africa and regional countries has also been on the increase. South Asian countries view South Africa as an important strategic partner in the African continent with tremendous potential to offer. It is important to create a deeper longstanding dialogue between South Africa and the SAARC regional grouping in the upcoming 17th SAARC summit, scheduled to take place in the Maldives in November this year.

 

Source : http://www.thediplomaticsociety.co.za/index.php?option=com_content&view=article&id=194:excellent-prospects-for-south-africans-at-the-saarc-summit&catid=16&Itemid=25

 

Bangladesh: South Asia’s investment hub Author / Source : Srimal Fernando

 

Bangladesh: South Asia’s investment hub

http://www.theindependentbd.com/paper-edition/others/freeforall/57140-bangladesh-south-asias-investment-hub.html
Friday, 24 June 2011 Author / Source : Srimal Fernando

Bangladesh boasts a rich history dating back to two thousand five hundred years or more. Historically, Bangladesh has earned its reputation by being at the crossroads of many cultures. It is one of the most vibrant and dynamic countries in all of South Asia. The country has received a great deal of attention lately. The nation has transformed from a traditional agricultural society to a progressive and industrialized state. The country’s main endowments include its vast human resource base, rich agricultural land and its relatively abundant water. The economy of the country is named amongst the ‘Next 11′ club after the G20 countries. The economy of the country is expected to grow between 6 and 7 per cent in the next few years and benefits from the most favored nation status from the United States. Bangladesh has a population of 156 millions (2010) of which 18.6 percent are engaged in agriculture, 28.6 in industry and the balance 52.8 in the service sector. According to the Bangladesh Bureau of Statistics (BBS), the per capita income rose to $818 in the fiscal year 2010-2011. The country is close to graduating from least developing country status to a developing one. During the last 20 years, there was a marked improvement in the lives of the masses of Bangladesh. Bangladesh enjoys historic ties with neighboring South Asian countries and is a member of SAARC (South Asian Association for Regional Cooperation) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical & Economic Cooperation). The country pursues a moderate foreign policy that places heavy reliance on multilateral diplomacy. Investors will find that the cost of salaries and wages in Bangladesh is very much lower than in the neighboring countries.

The skilled, semi and unskilled labour force in the country is considered to be the country’s main asset. There are large numbers of Bangladesh expatriates working and living abroad and contribute to the economic development of the country. The remittance from Bangladeshis working overseas, mainly in the Middle East, is a major source of foreign exchange earnings. The country has the basic attributes for successful agro-based industries, namely rich alluvial soil, an adequate water supply and abundance of cheap labour. Mechanization of agriculture has played an important role in increasing the farm production. Present and previous governments from time to time have introduced a range of incentives to enable farmers to boost their production and increase output.The land is devoted mainly to rice and jute cultivation as well as fruits and vegetables products. The country has an exclusive economic zone of 41,000 square miles (110,000 km2). More than 80 percent of the animal protein in the Bangladeshi diet comes from fish. The fishery policy of Bangladesh is steered towards increasing fish production with modern cold storage facilities. It enabled improvements in the fish processing sector in the country. 

The traditional fishing industry or “artisan fishing” is a term used to describe small scale fishing practices, particularly using traditional techniques. Exports of garments and textiles are one of the main sources of foreign exchange income for Bangladesh. In 2009, the value of apparel exports stood at 2.66 billion dollars. The industry employs nearly 3.5 million workers. Cement is another rapidly expanding $1.2 billion industry. Despite having more than thirty active players inclusive of local and multinationals, the market is dominated by few companies. Pharmaceuticals are another important industry in Bangladesh having approximately 200 companies in the country. The value of the market is $825 million. In Bangladesh, the pharmaceutical industry has a growth rate of 18.41 percent. The unique feature of this sector is that it takes care of about 97 percent of the country’s pharmaceutical needs. Also, ship building has become a major force for the rapid growth of the GDP. The country has an estimated natural gas reserve of 195.4 billion cu m (2010 estimates). The other major industries in the country are cotton textiles, jute, tea processing, leather, paper and newsprint, chemical fertilizer, light engineering and sugar cane. The burgeoning high end industries based at the eight Export Processing Zones of the country including Dhaka and Chittagong yield many opportunities for investment. At present, around 300,000 are employed in all EPZs of Bangladesh. As of September 2010, the Bangladesh Telecom Regulatory Commission has reported that there are 65.14 million mobile phone subscribers in the country. It is further estimated that there are 4 to 4.5 million internet users. The government’s vision is to provide electricity for all citizens by 2021. New power plants having capacity to generate 12,000MW of electric power will be built in the next five years and it will be raised to 20,000MW by 2021 to provide electricity to all citizens. The tourism sector in Bangladesh which had an astounding success story is entering a new track with fresh dimensions. The geographic diversity of Bangladesh gives the country a rich diversity to its wild life and to rich archaeological heritage sites.

Bangladesh is indeed a shopper’s paradise with a rich tradition of handicrafts, often available at affordable prices. The country is famous for its natural pink pearls, silk fabrics, leather goods, cotton, silk and jute. Brassware also receives deep appreciation from the buyers. A study called ‘Bangladesh Tourism Vision 2020′ forecast that tourist arrivals to Bangladesh are likely to exceed 1.30 million. Considering its geographic location in South and South East Asia and having a large domestic market with a growing middle class, competitive labour market and flexible labour laws with stable inflow of remittances with a comfortable balance of payment situation the country should be your next place of investment.  

The contributor recently visited Bangladesh at the invitation of the Ministry of Foreign Affairs. He is a journalist and a senior representative of the non-governmental sector in Sri Lanka.

Maldives SA - Ties Prosper- Srimal Fernando

Maldives SA - Ties Prosper
 

Dr Srimal Fernando engages H.E. Aslam Mohamed Shakir, Minister of State for Foreign Affairs, Republic of Maldives       

                     

A brief background/Bio of the Minister of State for Foreign Affairs, Hon. Aslam Mohamed Shakir.

Hon. Aslam M. Shakir was appointed as Minister of State for Foreign Affairs on 17 May 2011.
He was born in the island of Madifushi in Meemu Atoll of the Maldives. He was educated in Male’ English School in Male’ and Science Education Centre in Male’.  He went to the University of the South Pacific, where he studied Town Planning and Land Management. He followed on to complete a Master’s Degree in Geography, specialising in Strategic Environmental Assessment at the University of Otago, New Zealand.  
He has published a book titled, “Post-Disaster Strategic Environmental Assessments (SEAs), Benefits, Constraints and Opportunities (LAP LAMBERT Academic Publishing AG & Co., Saarbrücken).
He has been an active member of the Maldivian Democratic Party since October 2005 and serves as member of MDP National Council and as member of the Standing Committee on Land, Agriculture and Natural Resources since 2006 and served as Cabinet Secretary of the Shadow Cabinet and as Deputy Spokesperson of the MDP Presidential Election in 2008.
In the present government he has served as, Minister of State for Housing, Transport and Environment, Policy Secretary at the President’s Office and Minister of State for Finance and Treasury.

Srimal Fernando: What is the current state of the Maldives –South Africa relations and your government’s objective for enhancing them?

Foreign Affairs Minister Shakir: The Maldives and South Africa continue to enjoy friendly relations since the establishment of diplomatic relations in July 1994. We believe that both Maldives and South Africa has a lot to learn from each other and could explore mutual benefits irrespective of the differences of size. We give paramount importance to Sustainable Development – the development in which we could maximize our social objectives and business opportunities while applying environmentally friendly methodologies. This is considering both short-term and long-term implications of our political and technical decisions.  
As a country that has emerged from 30 years of autocratic rule to a multi-party democracy, the Maldives has a lot to learn from the transitional experiences of South Africa. Transitional Justice is an area in which South Africa has given hope to countries that are embarking on or going through difficult transitions from a repressive regime to a democratic, free and rights-based regime of governance.
South Africa has well established world-class reputable institutions of learning, including universities and technical and vocational institutions. Tourism is a major foreign exchange earner in South Africa like the Maldives, although the tourism products offered by South Africa may be more diverse than those offered by the Maldives.  This is an area where the Maldives gain a lot of know-how and experience from South Africa.
As a large emerging economy, South Africa is expected to play a significant role in International Affairs, and is also a potential tourism market for the Maldivian tourism industry. The Maldives also seeks to enhance trade relations between the two countries, particularly as South African products are reputed to be of good quality. South Africa has huge potential to be a major tourism market for the Maldivian tourism industry.  This has already been tested and proven when there were direct air links between South African cities and Male’.  In addition to that, the Maldives being a net importer of all sorts of consumer items, the huge range of high-quality products, including fruits, vegetables, meat and poultry products that are produced in South Africa can be imported to the Maldives.  However, in order to facilitate these trade exchanges, direct air links need to be re-started.  The technical and vocational educational development are key areas that requires external support.   

SF: How are your government’s preparations progressing for the seventeenth South Asian Association for Regional Cooperation (SAARC) Summit to be held this year in your country?
FM: The preparatory work is all on schedule and the Summit is going to be held in the South Province of the Maldives from 10-11 November 2011. As announced by the Maldives Government, the 17th SAARC Summit will be held in the Southern Province of the Maldives. For the first time a SAARC Summit is being held in the southern hemisphere.

SF: Has the Maldivian government decided to invite a South African government delegation as observers to the 17th SAARC Summit?
FM: We would welcome South Africa to be an observer and we would support such a request. However an existing moratorium, which will expire at the end of July 2011, prevents new countries from becoming observers. We encourage those countries who are interested in becoming SAARC observers to follow the due process and request the current SAARC Chair, Bhutan, expressing their interest.

SF: “The impacts of climate change can already be felt” “One-third of our inhabited islands are suffering from coastal erosion” remarks by President Nasheed of the Maldives. How is your government addressing these concerns of climate change and rising seas in the Maldives?
FM: Climate Change and Sea-level rise has always been a concern to the Maldives and over the past few years climate change adaptation measures are well prioritised within the Government. The Strategic Action Plan, the action plan of the Manifesto of the current government, accords high priority to acknowledging and taking positive action on adaptation to climate change as a basic right of the people and identifies actions points to address this in the next five years and beyond. The President of Maldives has declared the ambitious target of the Maldives to become carbon neutral by 2020. Under the GEF funding we are already implementing a project “Integrating Climate Change Resilient Island Planning in the Maldives (ICCRRIP)” and the government is working closely with all like-minded countries in the international community to achieve this target.
In this context, the government has already concluded a national carbon audit. The carbon audit will facilitate the rolling out of the carbon neutrality plan by identifying specific areas that need to be focused in order of priority. The focus is also on  rising sea levels, global warming and on green house gases.
While, at present fossil fuels are comparatively cheaper for the generation of power than the investments required for the generation of renewable energy, the Maldives is convinced that as the world turns to a Green Economy and the renewable energy technology leap-frogs in the future, the long-term cost of investing in renewable energy is bound to become not only cheaper but also more ethical.
One of the solutions to battle coastal erosion is through reclamation of land.  The Maldives is learning of new technologies of land reclamation that does not affect the well being of the delicate coral-reef systems that consists of the Maldives.  Recent reclamation projects that use modern technology to identify and pump out sand deposits in the deeper sea, away from the reefs are proving to be more effective, efficient and its impact on the fragile reef ecology minimal.  The environmentally friendly dredging to minimise damage to the marine ecology is step forward to adopt to sustain the process. In addition the government is looking forward to develop curriculums to enhance the    knowledge on environmental education. Since it is the peoples mindset that requires a change to look on safe guarding the planet.

SF: Has the Maldivian government decided to send a   high   level delegation to the 17th United Nations Framework Convention on Climate Change (COP 17) to be hosted in Durban, South Africa in November?
FM: The Maldives will continue to play an active part in the international negotiations on climate change and the Government of Maldives will send a High Level delegation to represent the country at the COP 17 in Durban.  

SF: The Maldives exceed 700,000 tourist arrivals per year. What are your thoughts of selling Maldives to the South African tourist markets?
FM: South Africa had been a valuable market for the Maldives tourism industry in the past when there was a direct charter flight operation between South Africa and the Maldives. However, once the operation stopped the number of arrivals has decreased considerably. The government believes that a new initiation of direct links would benefit trade exchanges between both countries.

SF: What opportunities are there for setting up a foreign investment or joint ventures in the Maldives?
FM: Maldives has adopted a very liberal policy to attract foreign investments. As such no limitations pertaining to equity participation exists and up to 100 percent foreign private investment is allowed. The economy has enjoyed robust growth averaging close to 8 percent per annum during the last decade, particularly through the success and continued expansion of its tourism industry. To build on this growth, the government recognises the need for greater private sector involvement and foreign direct investment in the Maldivian economy. The process of registering a foreign investment, as required by Law, is simple and straightforward. Maldives offers safe haven for foreign investor’s in-terms of political stability, safe, stable and predictable environment to operate. The most attractive features on offer on for prospective investors are; friendly rules such as, long term lease of land, tax breaks and ability to repatriate a high percent of profits. Many other incentives are provided to foreign investors as well.

SF: What specific sectors offer the greatest opportunities for South Africans investors?
FM: Maldives graduated from the UNs list of Least Developed Countries at the beginning of this year. Today, more than ever before, the Maldives needs investments in all sectors. Despite the high growth potential, health and agriculture are particularly under-invested areas open for foreign investors.  As evident from the phenomenal improvement made by South Africa over the years in these sectors, South African investors may find these particularly attractive. Education, tourism and energy sectors are other areas that offer great opportunities. Unlike the well established tourism sector, renewable energy sector is a relatively niche development in the Maldives. The weather conditions in the Maldives offer excellent opportunities for the production of renewable energy on a highly profitable basis. Currently few projects are ongoing and very recently international investors have shown interest to this sector as well. The future of the Maldives economy will be further sustained by a green economic strategy and a blue economic strategy to safe guard and develop the marine resources in environmentally friendly manner.

SF: How can South Africa support to overcome certain challenges faced by your country?
FM: Definitely South Africa is one of the most diverse countries in the world. Maldives could seek cooperation with South Africa in many areas of development. While formal education is fairly established in the Maldives, technical and vocational education opportunities are lacking in the country. The Maldives could immensely benefit from the vast experience South Africa has in this sector. The growing drug problem is a concern for the government. The Government does not have the capability and the expertise to handle the problem. South African expertise in dealing with youth unemployment and drug use among youth can be utilized to address these problems in the Maldives. The relationship between the two countries can be mutually beneficial.

SF: Is there anything else that you would like to add?

FM: The Maldives is keen on intensifying cultural and people to people exchanges with South Africa. In addition  the Maldives  needs support for   institutional development and for capacity development for such institutions. However the Maldivian judicial system is at an infant  stage .It is important to strengthen this  area with external  support. South Africa can support the Maldives to strengthen its judicial system. I would like to recall that there was interest from a South African business  group that was interested in developing the transport sector in a certain part of the Maldivian island.  Fisheries is another  area where  South African expertise might be needed.  This interest was mainly focused on air and sea transport. South Africa can play a key role in developing the cultural and sports capacities of the Maldivians.  People to People interaction between both countries will be a vital aspect in such exchange programs. The other point  was building bridges which will be the central theme of the upcoming SAARC summit in the Maldives.

The Maldives remains attractive for South African investors - SrimalFernando

The Maldives remains attractive for South African investors

By Dr Srimal Fernando ,

South Asia Correspondent for Foreign Exchange

 

 

In the vast blue Indian Ocean lies one of the most beautiful, unspoiled island destinations of our planet. The Maldives islands have been shaped by isolation, migration and with the vast ocean settings, white sandy beaches, turquoise reefs and palm trees.The Maldives Islands situated 500km from the Southern tip of both Sri Lanka and India comprises 1190 islands. It is formed by a double chain of twenty six natural ring like atolls stretching in a north-south direction off India’s Lakshadweep islands. The population of nearly 330,000 the country still remains one of the smallest independent nations in Asia. The people of the islands are widely dispersed across the atolls, with about 200 inhabited islands. Malé, the capital city of the country is located at the southern edge of North Male’ Atoll. One third of the population is located in this 1.77 square km. small island.

 

After gaining Independence from Britain in 1965 the country implemented economic reforms, beginning in 1989.The government administration of the Maldives actively pursued the policy on economic liberalization with emphasis on private sector investment. The decentralization policy of the country reduced economic disparities between the capital and the outer atolls. The economy of the country increased tremendously as a result of booming tourism industry and due to the mechanization of vessels used in fishing.

 

Significant progress has also been achieved in human and social development over the past two decades .As of 2002, the Maldives achieved   universal primary education .Both public and private schools have made remarkable progress in the modern English-medium and the traditional system in the last decade. Maldives experienced a sharp decline in measured head count poverty from 23 percent to 8 percent during the period 1997 to 2004. The Maldives has recorded remarkable economic growth over the past two decades, especially compared with the rest of the South Asian countries. Sound macroeconomic and public investment policies and favorable external environment facilitated the rise in per capita income from USD 377 in 1978 to USD 2401 in 2004.According to the World Bank’s 2006 Investment Climate Assessment forecast Maldives offered one of the most business friendly environments in the region.

 

Tourism was introduced to the Maldives in the early 1970s with the opening of a 280 beds capacity   two island resorts. The opening of Male’ International Airport in 1981 on adjacent Hulhulae Island which includes a seaplane base and a domestic base for internal transportation was an important landmark in the Maldivian travel industry .The country made the optimum out of almost 100 island resorts with a capacity of  24,862 beds by 2011. Tourism is the largest industry in the Maldives. Nearly 70 percent of the foreign exchange that flows into the country is through the tourism sector.

 

The Maldives has an Exclusive Economic Zone (EEZ) of 200 nautical miles and Fishing is the main traditional livelihood of the Maldivian. The fishing industry provides job opportunities to a vast majority of the Maldivian islanders .It is the second most important profitable sector in the economy which employs about 11 percent  of the total work force. Mechanization of the traditional sailing dhoani in 1974 revolutionized the fisheries industry of the country. Of the fish catch sixty percent of the catch is skip jack tuna.

Agriculture is another sector in the Maldives which has been recently growing in quantity and quality. The government has introduced a range of incentives to enable farmers to boost production and attract direct foreign investment to the Agriculture sector. Coconut, banana, water melon chilies, cucumbers and papaya are the main agro based crops which are grown in the islands of the Maldives. Traditional industry consists of boat building and handicrafts. The industrial sector provides only about 7 percent of the GDP (Gross Domestic Production).

 

The telecommunication sector is well developed in Maldives. The county is  linked to the world via satellite earth station - 3 Intelsat and the  international submarine cable Fibre-Optic Link Around the Globe (FLAG). As of April 2011 there are 527,459 mobile phone subscribers in the country. It is further estimated that there are 71,700 (2008) internet users in the country.

The cultural affinities between the people of Maldives and her neighboring South Asian countries continue to provide the bedrock for bilateral relations. The institutional mechanism within the member states of the SAARC (South Asian Association for Regional Cooperation) remained active during the years. The Maldives will be the host nation for the seventeenth SAARC summit in 2011. The Maldives represents the dangers of climate change and is trying to move towards a new, green economy. The country aims to become the world’s first carbon neutral nation by 2020. Over the years, relations between Maldives and South Africa have grown in depth and dimension. The Maldives and South Africa have common positions on most of the international issues, be it human rights, eradication of poverty, UN reforms, ramification of globalization on trade or international terrorism. Although with wealth of experience between the two countries the potential for trade has not been fully exploited. Among the South Asian Countries the Maldives is one of the most attractive investment places for the South Africans.

 

 

Source http://thediplomaticsociety.co.za/index.php?option=com_content&view=article&id=170:maldives

 

 

India–South Africa investment & trade reliance is optimistic - Srimal Fernando

Source : www.thediplomaticsociety.co.za

India–South Africa investment & trade reliance is optimistic

By Dr Srimal Fernando

South Asia Correspondent for Foreign Exchange

As India marks 65 years of independence on 15August 2011, the country has become one of the fastest growing major economies that aspires to be the major financial, educational and transportation center of the world. Since achieving independence India experienced numerous phases of developments and changes.
Following market based economic reforms in 1991. India has rapidly risen to become a global economic force to be reckoned with. As the world’s fourth largest economy with a population of over 1.2 billion people, and a middle class of more than 400 million people India is an increasingly big player on the world stage and has transformed itself from a Third world country into one of the World’s fastest growing economies.

The International Monetary Fund (IMF) projected that the Indian economy will expand by 8.2 percent in 2011. Driven by growth, India’s nominal GDP per capita has steadily increased from U$329 in 1991, when economic liberalization began to US$1,265 in 2010. India’s unique and vast geography, endowed with diverse topography, the country has made it one of the most attractive investment destinations in the world. India now boasts a private sector business that is continuing to attract the interest of the foreigners.
The economy of India has taken important steps towards boosting its agricultural output. Today it ranks number two in the global farm output. Agriculture and related sectors accounts for 16.6 percent of the Gross domestic product (GDP) (est 2007). India had a very large breed of indigenous cows and buffaloes. With an estimated 86.8 million tons of annual milk production from animals, managed by nearly 70 million farmers, India is the biggest milk producing country in the world. Manufacturing sector accounts for 27.6 percent of the GDP .The Government of India has introduced policies aimed at increasing domestic oil production and oil exploration activities. The ports are the main centers of trade. Maritime and air transport network has attracted several investments in the Indian air industry in the past few years. There are more than 335 (2008 est.) civilian airports in India.

Thus, India is one of the few markets in the world which offers high prospects for growth and earning potential, in practically all areas of business, particularly in agriculture, information technology (IT) and in tourism. India is viewed as the second most favorable outsourcing destination after United States. It has also made rapid progress in electronics and offers very attractive property investment opportunities. Several avenues have been opened to get the foreign investment flow in to the infrastructure sector. Infrastructure in India is gaining in importance and a number of public private partnerships (PPPs), targeted at US$150 billion are in the pipeline. Tourism in India is the largest service industry. More than five million foreign tourists visit India every year. The country’s  tourism industry is thriving due to an increase in foreign tourist arrivals. The remarkable growth in Indian Tourism market has benefited many support industries such as aviation, transport, hotel, medical and sports. Tourism in India is the largest service industry, with a contribution of 6.23 percent to the national GDP.

Railways provides an important mode of transport in India, transporting over 18 million passengers and more than 2 million tones of freight a day across the country. India has a network of 66,590 km of National highways connecting all the major cities and state capitals, forming the economic backbone of the country. The country has brought about revolutionary improvements in its communication system. There has also been remarkable improvement in the sphere of transport and communications during the last three decades. Industrialization process allowed growing industries such as steel, aluminum, and cement production to reduce the dependence of the economy on agriculture.

Since the 19th century, ethnic Indians have established communities in every continent including the African continent. India and South Africa have a 150 years old strong cultural relationship which is an added advantage towards strengthening the economic and trade relationship. Since 1994 the bilateral relations between India and South Africa have grown. The bilateral trade doubled from $3.18 billion in 2004-05 to $7.73 billion in 2009-10. Both nations have since developed close strategic, cultural and economic ties. Today there are close to 1.3 million Indians living in South Africa, most of them belong to fourth or fifth generation. With India as part of the India-Brazil-South Africa (IBSA) dialogue forum, the ties further solidified South Africa’s 2011 acceptance into the BRICS group. By joining the emerging economies BRICS group (Brazil, Russia, India, China and South Africa) India has been actively promoting trade with South Africa in recent years. The growth of India- South Africa trade has been explosive in the last decade. India shares an extensive energy partnership with South Africa. India’s largest import from South Africa is coal, which amounted to about $1.5-billion. On the other hand South Africa imported mostly information technology services and pharmaceutical goods from India. India has become the sixth largest trading partner to South Africa in the Asian region. South Africa is considered by the technocrats, where foreign capital realizes the best return on investment products from India. The two countries have decided to set a target of achieving $15 billion bilateral trade by 2015.

The Indian and South African economies continue to surprise with its very healthy growth rates  The growth rates, driven by consumer spending, investment, and exports, have surpassed most predictions

(Source : http://thediplomaticsociety.co.za/index.php?option=com_content&view=article&id=176)

Sri Lanka is an Investment Gateway for South Africans -Srimal Fernado

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Sri Lanka is an Investment Gateway for South Africans.

By Dr Srimal Fernado

Colombo Sri Lanka

Sri Lanka maintains a sense of identity with a divinely determined past moving towards a bright future.Centuries of leverage has shown that Sri Lanka is a strategic trading location between the Middle East and Far East and is one of the most remarkable countries in the world.  The country’s main endowments include its vast human resource base, rich agricultural land, the rapidly growing industrial and service sector with relatively abundant water. The economy of Sri Lanka is expected to grow eight per cent this year according to “the Asian Development Out Look (ADO) 2011” the annual flagship publication of the Asian development Bank (ADB). Sri Lanka is a middle income country with a per capita income of around US$ 2000. It has a population of 20 million (2010). The private sector plays a vital role in traditional areas of public investment such as transport, energy and telecommunication. The burgeoning high end industries based at the Export Processing Zones (EPZs) of the country yields many opportunities for investments. Exports of garments and textiles are one of the main sources of foreign exchange earnings to the country. An excellent business framework backed by the Sri Lanka Board of Investments (BoI) adds to the attractiveness of the Sri Lanka investment climate. Comparisons have shown that Sri Lanka offers the most business friendly environments in South Asia. Foreign ownership is welcome in most areas of the countries economy. The tourism sector in Sri Lanka as in South Africa, which had an astounding success story, is entering a new track with fresh dimensions. Tourism in Sri Lanka has become a major industry generating wealth and employment and opening the minds of both visitor and resident to different ways of life. The expansion of tourism in the country continues to achieve spectacular gains. Tour operators forecast that tourist arrivals to Sri Lanka  is  likely to exceed 700,000 this year. In Sri Lanka and in South Africa the hotels and guest inns, elegant restaurants and captivating boutiques give enterprising spirit to the sector.  Sri Lanka recently opened the second largest port constructed at a cost of US$ 360 million closer to the main sea lane to the East Asia.  The   country is building its second International Airport at a cost estimated at US $ 210 million. This will have capabilities of landing Airbus A 380 planes.

The country has the basic attributes for successful agro based industries, namely rich alluvial soil, an adequate water supply and abundance of cheap labour. The country has divided agro industry into food crops, cash crops, long term crops, vegetables and fruits. Mechanization of agriculture has played an important role in increasing the agro production. Present and previous governments from time to time had introduced a range of incentives that enabled farmers to boost their production and increase the output by allowing foreign direct investments in the agriculture sector .The land is devoted mainly to rice, tea, rubber and coconut cultivations as well as to fruits, spices and vegetable products. Sri Lanka is one of the world’s largest exporters of tea. According to the Sri Lanka Tea Board, the country earned a revenue of US$ 1.4 billion in 2010 with a production of 329.4 million kilos. South Africa is an area leader in production of cow’s milk and fish. As Sri Lanka is trying to reach self sufficiency in cow’s milk and fish there can be a strategy to invest or transfer technologies of South African expertise to improve the performance of the animal husbandry, and fisheries sectors in Sri Lanka.

 

 

The country’s climate and contrasting landscape is ideal for endurance sport activities. Both countries have hosted cricket and rugby championships. Sri Lanka is bidding for the Commonwealth Games in 2018. The marketing connected to the Commonwealth Games would give unprecedented exposure to the country.

The country   pursues a moderate Foreign policy that places heavy reliance on multinational diplomacy.  Sri Lanka enjoys historic ties with South Africa. The High Commission of the Republic of South Africa in Sri Lanka oversees and coordinates South African Foreign Policy in The Maldives, Bangladesh and Nepal.  H.E Geoff Doidge of South Africa is the current High Commissioner for the respective countries. .

Considering the geographic location and having a large domestic market with a growing middle class, competitive labour market, and flexible labour laws with stable inflow of remittances with comfortable balance of payment situation, Sri Lanka is an ideal place for investment for South Africans.

 

(The writer is a Journalist and a Senior Representative of the International Non Governmental (INGO) sector in Sri Lanka)

Source  :http://www.thediplomaticsociety.co.za/index.php?option=com_content&view=article&id=120:sri-lanka-is-an-investment-gate-way-for-south-africans