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Wednesday, October 4, 2000

South Africa, CR tie the knot Two countries work to increase their economic ties By Leah Bower South Africa and the Czech Republic are paving the way for new economic ties between the two countries after a series of meetings between government officials. South African deputy president Jacob Zuma signed a new agreement with Czech Finance Minister Pavel Mertlik that sets the two countries' customs offices up to cooperate on monitoring trade, and could jumpstart economic relations between the two nations. Zuma, who is the first South African political leader to visit the Czech Republic since 1993, also met with both Prime Minister Milos Zeman and President Vaclav Havel to discuss trade issues and cultural exchanges between the countries. The Czech Republic and South Africa are planning to develop relations further, said Zuma, who is hoping trade between the African and Central European nation will double. "We need to increase our trade relations and general economic ties," Zuma said after his meeting with President Havel. "[This agreement] makes the flow of economy easier between to two countries." The Czech Republic imported slightly more than 200 million Kc ($4.9 million) worth of goods from South Africa in the first half of 1999, Standard Corporate and Merchant Bank reported, and exported nearly 350 million Kc worth of goods. While South African import of Czech goods has grown only a small amount since 1998, the African country's exports to its Central European partner have more than doubled. Still, trade will have to increase drastically for the Czech economy to feel a significant impact, said Terence Moll, a financial analyst with Meridian Consultants. Even though trade relations between the two countries has a long road to travel, Moll said there is at least one large investment that ties South Africa to the Czech Republic. Brewing giant South African Breweries (SAB) is the major stakeholder in the merged Radegast, Velke Popovice and Plzensky Prazdroj breweries -- which control 45 percent of the Czech beer market. SAB will probably use the same aggressive international marking program in the Czech Republic that it used to become the third largest brewing group in the world, Moll said. That move should push Czech beers into the international spotlight, and increase European sales for the local breweries. But Moll said SAB's investment in the Czech Republic is not indicative of standard economic relations between the two countries, and he knows of no other large investments linking the African and Central European nations in the works. Still, Zuma said the two governments are planning to have concrete proposals outlined for their next meeting, possibly next year if Havel accepts an invitation to visit South Africa. Leah Bower's e-mail address is lbower@praguepost.cz More business stories Ray of hope U.S. airline becomes latest suitor eyeing troubled Czech aircraft maker LET Stumbling over a growing economy Trade deficit growth driven by increase in domestic consumption Gross stakes out the high ground Interior minister strengthened in wake of city riots New law chases fakes Legislation sanctions stricter enforcement against counterfeit name brands Lenders asked to clean up launderers G7 ministers urge IMF/World Bank to do more in money movement battle Movers & Shakers Corinthia hires Grage Spaces & Places Miskovic crosses the river

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