• Submitted by: manso
• Business and Economy
• 05 / 11 / 2011

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Some 40 South African business executives were in Havana May 9 to negotiate deals in construction, manufacturing, technology and services, Cuban official media reported.

The South African delegation — put together by the Progressive Business Forum, an organization affiliated with the governing ANC party — was headed by Deputy Finance Minister Nhlanhla Musa Nene.

PBC co-president Daryl Swanepoel talked about the big potential of bilateral trade during his opening speech at the Hotel Nacional. In a round of negotiations, South African and Cuban executives talked about renewable energy, mining, agribusiness, culture, pharmaceuticals, manufacturing, and healthcare.

This is the second PBF delegation to Cuba in two years. It comes six months after a visit by South African President Jacob Zuma, who was accompanied by a 50-member business delegation. Despite close political relations, South African exports to Cuba plummeted from a lowly R82 million rand ($11.85 million) in 2008 to only R1 million rand ($144,000) in 2010.

Due to Cuba’s default on debt dating to the 1990s, South African exporters had demanded cash in advance from Cuban buyers in recent years. However, in December the South African government agreed to cancel $159 million worth of debt, granted Cuba new lines of credit to restart South African exports, and offered Cuban state companies to participate in the country’s $100 billion infrastructure construction program.

The credit package includes R100 million rand ($14.45 million) for purchases from South Africa, and R70 million ($10.1 million) of credit guarantees from South Africa’s Export Credit Insurance Corporation.

South African mining companies have expressed interest in Cuban nickel and other minerals in the past, but no major investments have materialized. More recently, a South African group of investors has financed hotel construction in Cuba. Meanwhile, Cuba has provided health services, as well as personnel and logistics for workforce housing construction and construction of facilities in the run-up of the 2010 soccer World Cup. Also, South Africa is funding some of the healthcare programs Cuba is providing to third nations in Africa.

Cuba and South Africa maintain cooperation agreements in health, labor relations, social security and information and communications technology.

Source: www.cubastandard.com/2011/05/10/south-african-businesses-negotiating-deals/