As many as 140 Indian companies with operations in South Africa have invested more than USD 4 billion and created 18,000 direct jobs.
New Delhi: As many as 140 Indian companies with operations in South Africa have invested more than USD 4 billion and created 18,000 direct jobs, according to a report released on Sunday.
The CII-PwC report showcased the contribution of Indian companies beyond foreign direct investment (FDI) in South Africa, including key CSR and skill development initiatives. According to the report, there exists substantial potential for trade growth between the two countries.
Exports from India to South Africa include vehicle parts, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, chemicals, textiles and rice.
The report noted that value of bilateral trade has increased from USD 2.5 billion in 2003-04 to USD 11.79 billion in 2014-15, a growth of more than 400 in ten years.
However, trade between the two countries declined slightly to USD 9.5 billion in 2015-2016. A number of factors explain this decline, including South Africa's credit rating downgrade, policy uncertainty, political and economic uncertainty as well as exchange rate fluctuations, the report said.
It projected that Indian business footprint in South Africa is likely to grow further, adding the South African business footprint in India is also expanding with the prospect of great returns for the African companies investing in this market.
"Leading Indian companies such as Wipro, Coal India, Cipla, Jindal Steel and Power, Mahindra and Mahindra have recently made investments in South Africa," said CII in the report.
It further claimed that in the healthcare sector, the entry of Indian pharma companies Ranbaxy and Cipla brought in drastic reduction in the cost of anti-retroviral drugs (ARVs) in South Africa, saving thousands of lives.
"As this report outlines, Indian companies are demonstrating their commitment to sustainable development in South Africa across education and healthcare schemes to job creation, agricultural projects and empowering women," said Dion Shango, Senior Regional Partner & CEO PwC Southern Africa.