India-South Africa Relations
Historical Background

India had been in the forefront of the international community in supporting the anti-apartheid struggle in South Africa ever since Mahatma Gandhi started his Satyagraha movement in South Africa a century ago. India was the first country to sever trade relations with the apartheid Government in 1946, and imposed a complete - diplomatic, commercial, cultural and sports- embargo on South Africa. India worked consistently to put the issue of apartheid on the agenda of the UN, NAM and other multilateral organisations and for the imposition of comprehensive international sanctions against South Africa. The ANC maintained a representative office in New Delhi from the 1960s onwards.

2. Following the commencement of talks between the South African Government and the ANC, India’s relations with South Africa were restored after a gap of over four decades, with the opening of a Cultural Centre in Johannesburg in May 1993. Formal diplomatic and consular relations with South Africa were restored in November 1993 during the visit to India of the then South African Foreign Minister Pik Botha. A Consulate General was thereafter established in Johannesburg. The Indian High Commission in Pretoria was opened in May 1994, followed by the opening of the Consulate General in Durban in the same month. Since Parliament in South Africa meets in Cape Town, a permanent office of the High Commission was opened there in 1996.

Political Relations

Development of political relations since 1994

3. Against the background of India’s consistent support to the anti-apartheid struggle, there has been a steady consolidation of our close and friendly ties with South Africa, both bilaterally and through the trilateral IBSA Dialogue Forum. A number of bilateral agreements have been concluded between the two countries since the assumption of diplomatic relations in 1993 in diverse areas ranging from defence, culture, heath, human settlements, public administration, science and technology and economic cooperation.

Recent High Level visits

4. Prime Minister Dr. Manmohan Singh made an official visit to South Africa from September 30 to October 3, 2006, accompanied by Minister of Tourism Smt. Ambika Soni, MOS Shri Anand Sharma and a high level delegation. The first leg of the visit was in Durban for the joint celebration of the centenary of Satyagraha. Prime Minister and President Mbeki addressed a public gathering at Kingsmead Stadium on October 1 and paid homage to satyagrahis at the Umbilo Road Resistance Park. Prime Minister also visited the grave of Rev. John Dube and the Phoenix Settlement which was set up in 1904 by Mahatma Gandhi and was reconstructed and renovated with the help of the two Governments.

On October 2, Prime Minister held bilateral discussions with President Mbeki and other ministers in Pretoria. A Tshwane Declaration was signed on reaffirming and deepening the strategic partnership between India and South Africa and laying down benchmarks in all areas of cooperation including heath, science & technology, trade & investment, defence, culture and education. Two bilateral agreements were signed during the visit – on cooperation in railways and education. Prime Minister also addressed the India-South Africa CEO’s Forum, chaired by Mr. Ratan Tata from the Indian side, which met on October 2. He inaugurated a permanent exhibition on Mahatma Gandhi in the Old Fort prison in Johannesburg where Gandhiji was incarcerated at one time and also had a meeting with former President Nelson Mandela.

5. The South African Deputy President Ms. Phumzile Mlambo-Ngcuka visited India from September 10-13, 2006 at the invitation of Vice President Shri Bhairon Singh Shekhawat. The visit of the Deputy President, who was accompanied by five Ministers, was in the context of South Africa's Accelerated and Shared Growth Initiative (AsgiSA) and Joint Initiative for Priority Skills Acquisition (JIPSA), which are aimed at ensuring a shared and faster economic growth in South Africa.

Issues on the agenda for discussions during the Deputy President's visit included:

  • Co-operation between India and South Africa in terms of skills acquisition and placement by expanding existing opportunities for young South African trainees and unemployed graduates to gain experience in their specified fields of interest;
  • Expansion of training programmes between India and South Africa, specifically in the fields of engineering, mathematics, science and vocational training;
  • Co-operative projects for small industry development, particularly for the benefit of rural women; and
  • SME development projects, specifically in the fields of ceramics, jewellery manufacturing and textiles.

    The Deputy President also delivered the fifth Alfred Nzo Memorial Lecture on Satyagraha at Indian Council for World Affairs (ICWA) on September 11, 2006.

    6. In 2004, the Vice President of India, Shri Bhairon Singh Shekhawat visited South Africa from April 26-May 1. He attended the inauguration of the President of South Africa and celebration of 10 years of democracy. He also inaugurated the launch of the Centenary Celebrations of the Phoenix Settlement in Durban. His visit imparted further impetus to the already warm bilateral relations.

    7. President A.P.J. Abdul Kalam visited South Africa in September 2004, the first visit to this country by an Indian President. He was accompanied by the Minister for Social Empowerment and Justice Mrs. Meira Kumar. He held wide-ranging discussions with President Thabo Mbeki. Both leaders reiterated the need for expanded trade between the two countries. A bilateral Memorandum of Understanding on Information and Communications Technologies was signed during the visit. The presidents agreed that the two countries could share their expertise and strengths for growth of both countries. Speaking at the Pan African Parliament during the visit, President Kalam reaffirmed India’s engagement with Africa. He announced Government of India’s offer of creating a $50 million-worth integrated satellite and fibre-optic wireless network for improved communication connectivity among the 53 African countries, which could be used for tele-education, tele-medicine and e-services.

    8. President Thabo Mbeki, accompanied by the First Lady and 11 Cabinet Ministers, visited India in October, 2003. This was his second visit, but first as President of South Africa. Five important documents were signed on the occasion. These included: an Extradition Treaty; an Agreement on Mutual Legal Assistance in Criminal Matters, Cultural Exchange Programme for 2004-2006 and Agreements on cooperation in the field of power and in the field of hydrocarbons.

    A Joint Declaration reaffirming the commitment of the two countries ‘towards a strategic partnership, based on their shared values: democracy, economic development with social justice, and a just and equitable global order’ was issued during the visit.

    Other recent high level visits

    9. In March 2006, Shri Anand Sharma, Minister of State for External Affairs visited South Africa en-route to Rio de Janeiro. He visited South Africa again in April and September 2006. Shri T.R. Baalu, Minister of Shipping, Road Transport and Highways visited South Africa in March 2006 to sign a bilateral MOU on Merchant Shipping and Other Maritime Transport Related Matters. Minister of State for Personnel, Public Grievances and Pensions, Shri Suresh Pachouri visited South Africa from June 9-12, 2006 during which he signed an agreement on Cooperation in Governance, Administration and Related Matters. Several important delegations also visited South Africa in 2006. These included five State Public Service Commission Chairpersons from Jammu & Kashmir, Gujarat, Mizoram, Meghalaya and Arunachal Pradesh from April 2-9, 2006, Secretary, Science & Technology, Dr. T. Ramasamy in September, 2006, Vice Admiral S.S. Byce, FOC-in-C, Western Naval Command from September 21-27 and Revenue Secretary Shri KM Chandrasekhar in November, 2006 for the first meeting of the IBSA Heads of Revenue Administrations. From South Africa, there were visits by the Health Minister Dr. Manto Tshabalala-Msimang in January 2006 to sign a bilateral agreement on cooperation in Health-related matters, Housing Minister, Ms. Lindiwe Sisulu in May, 2006 during which an MOU on Cooperation on Human Settlements was signed, Dr. Essop Pahad, Minister in Presidency from November 10-17, 2006 and by the Premiers of Limpopo and Western Cape in October and November 2006 respectively to study different aspects of cooperation. Three important Parliamentary Portfolio Committees also visited India in 2006.

    10. In April 2005, Shri Rahul Gandhi, MP visited South Africa to accept on behalf of late Prime Minister Pandit Nehru the award of the Companion of Oliver Tambo(Gold), the country’s highest award for foreigners. In March 2005, the then External Affairs Minister Shri Natwar Singh visited South Africa for the 2nd IBSA Ministerial meeting. Later in the month, Rao Inderjit Singh, MOS for External Affairs paid a bilateral visit.

    Joint Commission and Foreign Office consultations

    11. The India-South Africa Joint Commission at the level of Foreign Ministers was set up in 1994 to identify areas of mutually beneficial cooperation. Its 6th highly successful session took place in New Delhi on December 5-6, 2005. As PM was holding the portfolio of External Affairs, the meeting was chaired by Minister of State Rao Inderjit Singh and Deputy Foreign Minister of South Africa Mr. Aziz Pahad. The Ministers reviewed the whole gamut of relations between the two countries, encompassing political, commercial and economic and defence matters as well as fields like science and technology, culture, education, health, different aspects of energy, information and communications technology and human resource development. The two sides also discussed a wide range of global issues including international economic relations, the forthcoming Hong Kong WTO Ministerial meeting and South-South Cooperation including the New Afro-Asian Strategic Partnership. Other important matters discussed included the prospects of economic development, stability and security on the African continent.

    12. The Joint Commission was preceded by Foreign Office Consultations on December 2, 2005.

    IBSA Initiative

    13. On June 6, 2003, the Foreign Ministers of India, Brazil and South Africa met in Brasilia and agreed to set up a Dialogue Forum for regular consultations on such matters. The 1st meeting of the IBSA Trilateral Ministerial Commission was held in New Delhi on March 4-5, 2004. The three Foreign Ministers agreed on a Plan of Action for trilateral cooperation in the fields of Transportation (Civil Aviation and Shipping), Tourism, Trade & Investment, Infrastructure, Job creation and small, medium and micro-enterprises, Science & Technology, Information Society, E-Governance, Capacity Building, Local Content Development, E-Health, Information Society, Health, Energy, Defence and Education. The 2nd Ministerial Commission met in Cape Town on March 10-11, 2005 and reviewed progress. Agriculture and Culture were added to the list of areas identified for cooperation under IBSA. The 3rd Ministerial Joint Commission met in Rio de Janeiro from 28-30 March 2006 and the IBSA summit was held in Brasilia on 13 September 2006.

    Multilateral Cooperation

    14. India and South Africa have a common approach on many global issues, including the future of multilateralism, South-South Cooperation and multilateral trade negotiations. This has led to fruitful cooperation in the UN, NAM, Commonwealth, IOR-ARC, WTO, G-77, G-20 and the New Asian-African Strategic Partnership (NAASP).

    Commercial & Economic Relations

    15. Commercial relations have flourished since the establishment of diplomatic relations in 1993. From virtually nothing at that time, bilateral trade crossed US$ two billion (excluding India’s imports of gold which are routed through the international gold bourse) in 2005, more than doubling over the last 3 years. Bilateral trade figures since 2001 are as follows:

    Figures in
    M. Rands

    2001

    2002

    2003

    2004

    2005

    2006
    (Jan-May)
    India's Exports

    2113.50

    2943.26

    3126.14

    4547.26

    7029.8

    3138.39
    India's Imports

    3300.03

    4037.28

    3350.32

    3713.04

    7393.8

    1772.52
    Total Trade

    5413.53

    6980.54

    6476.46

    8260.30

    144423.6

     4910.91    

    Source: South African customs, * Excludes imports of Gold routed through international gold bourse.

    16. There is substantial untapped potential for growth between the two countries. Potential exports from India to South Africa have been identified as vehicles and components thereof, transport equipment, drugs and pharmaceuticals, computer software, engineering goods, footwear, dyes and intermediates, chemicals, textiles, rice, and gems and jewellery, etc. Potential areas of import from South Africa to India have been identified as rock phosphates, precious stones and minerals, fertilizers, steel, coal, transport equipment, pulp and pulp manufacturing, etc.

    17. Commercial interaction, visits of businessmen, both ways, and trade promotion measures including participation in trade fairs, etc. have been and continue to be intensive. South Africa participated in three major trade fairs in India : as a partner country in a Tourism Fair and in a Mining and Machinery Exhibition, both in November 2004 as well as in the International Engineering and Technology Trade Fair in March, 2005.

    18. Indian investments in South Africa have grown in quantity as well as diversity. Investors include the UB Group of India (beer manufacture, hotels) Tatas (vehicles, IT, new investment in a ferrochrome plant), Mahindras (utility vehicles) and a number of pharmaceutical companies, including Ranbaxy,CIPLA etc, Coromandal of India acquire 2.5% stake in the major phosphoric acid producing company of South Africa – Foskor. According to the three year agreement signed between Coromandal and Foskor , this stake can go up to a maximum of 16.5% and Coromandel could provide technical assistance in Foskor phosphoric acid plant. The Tata Group has 26% participation in the Second National Operator in the telecom sector approved by the government in 2005. A JV is reported to have been set up between Adlabs Films, India and Pan African Strategic Investments to produce films, bringing an estimated 50 million rands of Indian investment. In January 2006, Apollo Tyres acquired Dunlop SA in a Rand 400 million deal. Also in January, an Indian power generating and coal trading company Sandro Power Supply announced its plans to list on the Johannesburg Stock Exchange and to build a terminal to ship coal and iron are to India and China. This month, the Indian company Godrej Consumer Products Ltd signed an agreement to acquire the South African hair color business of Rapidol, UK, as well as its subsidiary Rapidol International. The two had a combined turnover of 52 million South African rand (approximately Rs33 crore) in 2005. The acquisition, proposed through a 100 per cent cash deal, is subject to regulatory approvals. Investments in the opposite direction are less, but growing. According to Secretariat for Industrial Assistance newsletter, foreign direct Investment received from South Africa upto January 2005 was only US$ 9.43 million, making it 42nd in rank. However, the actual figure is likely to be higher. South African Breweries is reported to have acquired a majority interest in Mysore Breweries in a US$ 17.5 million deal, after having first invested in Narang Breweries in 2000. Other Areas in which South African companies have invested include insurance, diamond exploration and infrastructure. A major South African chainstore (Shoprite) has established an outlet in Mumbai. Durban-based businessman Mr. Vivian Reddy has plans to invest in a casino project in Haryana in partnership with former cricketer Shri Kapil Dev and others. In February 2006, Airports Company of South Africa (ACSA) won the contract for upgrading of Mumbai Airport. The energy giant SASOL is keen to explore the possibility of collaborating in a coal-to-synthetic automotive fuel project in India.

    19. Commercial interaction visits of businessmen, both ways, and trade promotion measures including participation in trade fairs, etc. have been and continue to be intensive. CII – which had an office in Johannesburg till recently– organises ‘Enterprise India’ and ‘Made in India’ shows regularly. The last ‘Enterprise India’ show – with focus on ICT sector was held in Cape Town in March,2005 and ‘made in India’ show in Johannesburg in November 2005.

    20. The India-South Africa Commercial Alliance (ISACA), which groups government and private sector on both sides, met last in South Africa in October 2004. An India-South Africa CEOs Forum had its first meeting in the same month. Its second meeting was held in Mumbai in early May, 2005 and its third in South Africa on October 2, 2006. 21. An important initiative under negotiation between the two countries is the Preferential Trade Agreement (PTA), eventually leading to a Free Trade Agreement (FTA)/Comprehensive Economic Co-operation Agreement (CECA) between India and the South African Customs Union (SACU). Its early conclusion could provide a real impetus to trade and investment. An Agreement for Reciprocal Promotion and Protection of Investments is also due to be finalized shortly.

    22. The presence of Indian banks (SBI, Bank of Baroda, EXIM Bank and recently opened ICICI Bank) has promoted economic interaction. EXIM Bank signed an agreement for a Line of Credit of US$ 10 million with a major South African Bank in July 2003; its utilization is yet to begin. Resident offices of GOI Tourist Office and National Small Industries’ Corporation are also active in promoting exchanges and cooperation. The Engineering Export Promotion Council opened a resident office in Johannesburg in October 2005.

    23. In a recent positive development the International Marketing Council (IMC) of South Africa has opened an office in Mumbai - only its third office abroad. The IMC, which works directly under the Presidency, has the mandate of promoting South Africa as a brand in foreign countries.

    24. Tourism from South Africa to India to has shown an upward trend but is still below potential. Recent figures are tabulated below:

    Inbound/outbound

    2002

    2003

    2004

    2005

    India to South Africa

    34,062

    41,018

    36,172

    36,045

    South Africa to India

    18,238

    23,873

    32,148

    39,234


    NEPAD

    25. India has strongly supported the objectives of New Partnership for Africa’s Development. US$ 200 million have been committed for this purpose to be utilized through credit lines, grants etc. Its utilization has begun with some major projects in Angola, Senegal and Mali etc. The Pan-African e-Network will also be funded under this programme.

    Defence

    26. Defence is a key area of cooperation. A Defence Cooperation Agreement was signed in September 2000 during the then Raksha Mantri’s visit. It has provided the framework for further strengthening cooperation in this sector. The intention is to act beyond simply buying and selling, transcending to joint ventures and R&D and joint marketing in 3rd countries. The Fifth Defence Committee meeting took place in South Africa in June 2006. A large IAF contingent participated in a joint exercise ‘Golden Eagle’ in September-October, 2004. India’s participation in the last Aerospace and Defence Exhibition in Cape Town in September 2006 attracted considerable interest. Four Indian ships paid a goodwill visit to South Africa in June 2005 and INS Mumbai visited Cape Town and Durban in September-October 2006. Training has emerged as an important new dimension of defence co-operation. On request of the South African Navy, their submarine personnel are being trained in India. This cooperation is likely to continue; a Memorandum of Understanding has been signed in this regard.

    ITEC

    27. The Indian Government’s International Technical Cooperation Programme (ITEC) has been a useful medium of promoting cooperation in development of human resources. South Africa has utilized around 500 slots since 2000. Due to increase in utilisation, the number of slots allocated to South Africa has been almost doubled from 55 to 100, as agreed during Prime Minister’s recent visit.

    Culture

    28. With over a million people of Indian origin in South Africa, one of the largest Indian diaspora abroad, cultural exchanges and cultural diplomacy assume great importance, not just in terms of interaction with this community, but with South Africans across the whole spectrum of population. With the help of the Indian Council for Cultural Relations (ICCR), an intensive programme of cultural exchanges is being promoted throughout South Africa. Under the Cultural Exchange Programme, the first major exhibition of Indian contemporary art “Visual Trajectories” traveled to South Africa from April –September 2006 and was a great success. ICCR sponsored artists such as Odissi dancer Reela Hota, Bharatnatyam danseuse Urmila Satyanarayanan and a Qawwali troupe led by Mohd. Idris performed throughout South Africa. Ustad Amjad Ali Khan came specially to Durban to perform at the Satyagraha celebrations in Kingsmead Stadium on October 1, 2006. An Indian Film Festival was organized in Durban, Johannesburg, Pretoria and Cape Town from October 20-November 14, 2006. In addition, Posts in Durban and Cape Town organized major themed expositions on various facets of Indian culture through the Indian Experience programmes in November, 2006.
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