PRESENTATION BY AMB D VENTER,
CHIEF DIRECTOR LATIN AMERICA
AND THE CARIBBEAN
SA-CUBA RELATIONS
PORTFOLIO COMMITTEE ON
INTERNATIONAL RELATIONS AND
COOPERATION
14 AUGUST2013
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HISTORICAL CONTEXT
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The bilateral, political and multilateral relations between South Africa and Cuba
are excellent, underpinned by historical ties forged in the common struggle
against apartheid, colonisation and repression.
South Africa-Cuba relations were established long ago between the then
liberation movement, the African National Congress (ANC) and the government
and Communist Party of Cuba. The pre-1994 support given for the liberation of
SA included the education of South African students, international, military,
political and material support. Many South Africans also carried Cuban passports
to facilitate international travel. Cuba has, therefore, been the backbone of the
South African liberation despite its own many challenges.
After 1994, Cuba was one of the first to offer material and human resource
support. The success of South Africa’s political bilateral and multilateral relations
could, therefore, be measured in the extent of the numerous development
programmes, co-operation projects as well as the strong political and social
solidarity and support that exist between our two countries and peoples. It thus is
critical that these relations be supported in whatever way possible, especially
because South Africa’s population still benefits from the SA-Cuba relations.
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BILATERAL RELATIONS
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Since 1994 many high level interactions have taken place.
The State Visit to Cuba of President Jacob Zuma on 5 to 8 December 2010 was
a major development and served to further enhance the excellent relations
between our country and Cuba.
Cuba is a key partner to focus on in enhancing foreign policy objectives in
pursuit of our identified domestic priorities. As a result, South Africa’s bilateral
relations with Cuba are aligned to several key strategic priorities.
Various bilateral agreements in the fields of science and technology, health,
trade and industry, arts and culture, education, minerals and energy, transport,
human settlements, defense and home affairs are in place.
South Africa is a beneficiary of Cuba’s on-going assistance in the form of
scholarships for our youth. There are currently close to 1400 South African
students studying medicine in Cuban universities. A total of 323 South African
graduates from the Cuba programme work as medical doctors in various South
African hospitals.
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BILATERAL RELATIONS CONTINUED
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In 2012 the South Africa – Cuba Extended Cooperation Agreement in the
fields of health and medical sciences was signed which will lead to an
increase of SA medical students studying in Cuba and thereby contributing
to the implementation of the National Health Insurance (NHI)
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BILATERAL RELATIONS - CONTINUED
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There is also a considerable number of Cuban medical doctors, engineers and
academic staff currently giving their services in the deepest rural areas of
South Africa.
On the bilateral economic front, it is worth noting that in the past few years,
authorities of both countries have increased efforts to enhance bilateral trade
and commercial relations to the similar level as the political ones.
In 2008 the government of South Africa, working with civil society, pledged
humanitarian aid to the government of Cuba in the wake of the severe
destruction and damage caused by three successive hurricanes. In its
statement announcing the decision, the South African government said “the
Cuban government and its people must be commended for the extensive
evacuation effort which saved millions of lives”.
In 2010 South Africa announced the cancellation of Cuba’s +R1 billion debt
that has paved the way for enhanced trade and commercial relations, which
could be seized upon by economic actors in the respective countries.
In 2012 the agreement on Economic Assistance to Cuba was signed.
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BILATERAL RELATIONS CONTINUED
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The R350 million economic assistance package comprises of;
- R100 million solidarity grant;
- R40 million grant for the purchase of seeds (R5 million
for the procurement of onion and sunflower seeds in SA
and R35 million for purchases elsewhere);
- R70 million credit line facility under written by the Export
Credit Insurance Corporation (ECIC) to provide risk
cover to potential SA exporters to Cuba’
- R140 million second tranche of export guarantee under
written by ECIC which will become available based on the
payment of the initial R70 million
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BILATERAL RELATIONS CONTINUED
• The Assistance package is in a very advanced stage of
implementation with the following role players;
- DTI – coordinating
- IDC – State agent
- DIRCO – ARF facilitating the R100 million
- DAFF – seed etc
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BILATERAL RELATIONS - CONTINUED
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The South Africa Cuba Joint Bilateral Commission (JBC) was established in
February 2001 as a co-ordinating forum for the periodic review of bilateral cooperation projects in identified areas of Economic, Scientific, Technical and
Commercial Co- operation and the extension of co-operation to new areas.
South Africa has placed priority in its Skills Development Programmes and
benefited in more than one way from the relationship with Cuba. Currently,
several Cuban specialists are deployed in South Africa under the auspices of
various government-to-government cooperation projects.
The Joint Consultative Mechanism (JCM) was created in 2000 to enable the
Department of International Relations and Cooperation and the Ministry of
Foreign Affairs to hold regular bilateral and multilateral consultations. Cuba will
host the 10th Consultative Mechanism Meeting later this year in Havana and
South Africa is looking forward to a successful gathering with a view of
reviewing and analysing our strategic partnership.
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TRADE OPPORTUNITIES
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It is accepted that the Cuban market and limiting logistics have a dampening
effect on trade
The economic assistance package lays the foundation to further develop trade
and commercial activities
During recent engagements between the SA Embassy in Havana and the
Cuban Chamber of Commerce, they have been exploring possible sectors for
business opportunities and investments in Cuba
Cuban priority sectors include energy, oil, mining and tourism that are not
exhaustive. Textile, Aero space, rail and marine can be added
Supporting industries and projects such as extending the hospitality (hotel)
infrastructure has become important which in turn requires furniture, linen,
packaging and related equipment
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TRADE OPPORTUNITIES CONTINUED
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It has also been noted that there are a number of Cuban manufacturers for
example rum, beer, pharmaceuticals and agricultural produce that require
packaging in order to increase regional and global marketing
Mining and construction vehicles
SA through the DTI will participate in FIHAV2013 (Havana Trade Fair) in
October
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CONCLUSION
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Challenges
- In order for the above to succeed it is of utmost importance that government
and business to coordinate efforts in order to grow trade
- Distance (logistics)
- US legislation
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Opportunities
- Caribbean market (hub)
- skilled artisans
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THANK YOU
BRANCH: AMERICAS AND THE CARIBBEAN
JUNE 2013
DIRCO INTERNAL USE ONLY
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