Indian investors should not be unduly concerned about South Africa's financial situation: Diplomat

Indian companies wanting to invest in South Africa since the advent of democracy in 1994 should not be unduly concerned about the financial situation in the country, Indias Consul General here Anju Ranjan has said.

Indian companies wanting to invest in South Africa since the advent of democracy in 1994 should not be unduly concerned about the financial situation in the country, India's Consul General here Anju Ranjan has said. "Don't be afraid - the financial sector in South Africa is very well developed. It offers innovative products and services. It is supported by many local and global banks," Ranjan said at the business-to-business meeting here on Friday evening.

''The Johannesburg Securities Exchange is the 15th largest bourse in the world. Given the size and range of banking operations in South Africa, I can say that Johannesburg is not only the financial capital of South Africa, but also of the whole of the African continent," the diplomat added as she highlighted the existing business relations between the two countries.

"We have grown a lot with each other, with mutual investments from leading companies on both sides in each other's countries, but there is always scope for growing bigger together," Ranjan said.

Underlining that India is the fourth largest investor in South Africa, she said the trade between India and South Africa, despite Covid, has gone to record highs in the past two years to over USD 17 billion. There are more than 150 Indian companies with offices and investments in South Africa, she added.

"India is South Africa's biggest coal importer. Eighty per cent of South African coal is imported by India. Also, we are the biggest importer of gold, steel, copper rolls, phosphoric acid, manganese and other minerals,'' she said.

"Some of the major sectors that are open to India -South Africa collaboration are mining, communication, logistics, the financial sector, tourism, infrastructure, IT, agriculture and pharmaceuticals," Ranjan said.

Ranjan said the South Africans of Indian origin make up less than one per cent of the population at 1.2 million, but their contribution to the economy, politics and culture was "immense".

More than 20,000 Indian tourists had visited South Africa last year despite the Covid pandemic challenges and over 100,000 South Africans had visited India when Covid was at its peak in 2021.

Shameem Bux of Yobuningi Business Networking, who coordinated the event, said her organisation did so to inspire business leaders from both countries to share skills and inspire each other to build successful businesses through collaboration.

Several well-established Indian businesses in South Africa presented their success stories as well as opportunities for other Indian investors.

Ashwani Pathak, CEO of Auk Marines, said that he had been involved in the aviation, mining and port sectors in South Africa for nearly three decades before establishing his current company.

"I think for any company wanting to invest into South Africa, the freight forwarding sector seems to me a very good sector to invest in, even if they do become our competitors. This is a very lucrative sector," Pathak said.

Ashish Patnaik, Vice President (Syndication) from the State Bank of India outlined how the institution has prospered in South Africa after first setting up a branch here 25 years ago.

Although the initial 25 branches have been reduced to just two with the advent of electronic banking, SBI continues to play a role in assisting the Indian companies in South Africa, he said.

"Indian businesses have a large presence in South Africa with investments of over nine billion dollars," Patnaik said, adding that SBI deals with the accounts of most of these companies.

"The South African market has become the gateway for Indian business houses to establish their business here first and their subsequent venture into all the African nations," Patnaik said.

Ashish Sharma, Regional Director for southern Africa of global travel agent Satguru Travels, said opportunities existed in India for medical tourism, as procedures there would cost a tenth of the South African charges.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)