LAHORE:In a bid to foster stronger economic ties between Pakistan and South Africa, High Commissioner Mthuthuzeli Madikiza made his third visit to the Lahore Chamber of Commerce and Industry (LCCI) on Monday. During his address to the business community, Madikiza underscored the need for collaborative efforts to address challenges faced by the business community and enhance trade cooperation.
LCCI President Kashif Anwar, Honorary Consul General of South Africa Syed Shahid Ali, LCCI Senior Vice President Zafar Mahmood Chaudhry and Executive Committee members were also present.
Madikiza highlighted the importance of understanding the unique opportunities and complexities that Africa presents for trade and investment. He commended the presence of an Africa Desk at the LCCI and acknowledged the commendable initiative of the government of Pakistan, “Look Africa”, aimed at bolstering economic relations with the continent.
Madikiza said the two countries suffered during the Covid-19 pandemic and stressed the need for diversification and expansion of trade beyond coal, urging stakeholders to analyze the progress made and work towards increasing trade volumes.
In his address, LCCI President Kashif Anwar expressed optimism that the meeting would pave the way for stronger bilateral economic relations. He emphasized the significance of South Africa in the African continent, with its impressive GDP of over $400 billion and diverse economy, and highlighted the mutual benefits that closer cooperation could bring.
He said participation in trade fairs, exhibitions and exchange of trade delegations play a fundamental role in boosting two-way trade. He informed the High Commissioner that the Lahore Chamber of Commerce and Industry had established a state-of-the-art Alternate Dispute Resolution Center to settle business disputes.
Kashif Anwar noted that while Pakistan and South Africa shared cordial relations, the trade balance had been skewed in favour of South Africa. He cited figures from the State Bank of Pakistan, revealing a decline in bilateral trade from $1.7 billion in 2021-22 to $626 million in 2022-23, primarily due to reduced imports from South Africa.
The LCCI President emphasized the potential for collaboration across various sectors including agriculture, textiles, manufacturing, and technology. He also stressed the need for Pakistan to tap into South Africa’s pharmaceutical market, which imported $2.5 billion worth of products in 2022, mainly from India, Germany, France, and the US.
Senior Vice President LCCI Zafar Mahmood Ch outlined LCCI’s plans to organize an “Africa Day” to promote trade and investment opportunities between Pakistan and South Africa. He highlighted the strong demand for IT professionals in South Africa and potential areas of cooperation such as vehicle parts, tractors, and pharmaceuticals. He also called for the removal of duties on cement imports from South Africa.
At the end, both sides expressed a shared commitment to further explore avenues for trade and investment, with a focus on leveraging each other’s strengths to create a win-win scenario. The collaborative efforts between Pakistan and South Africa are poised to open doors to increased economic cooperation, leading to prosperity and development for both nations.