The South Africa-European Union Business Forum was launched in Brussels yesterday, in a bid to consolidate bilateral relations and agree further economic partnerships.

The Forum opened a day before the South Africa-European Union Summit was set to begin, with President Jacob Zuma due to arrive at the Summit today to give the keynote speech.

South Africa hopes that through the tailored Business Forum, and supported by President Zuma’s speech today, new investors will be drawn to the country.

While the Summit is in its fifth year, with parties from South Africa and representatives from various European Union (EU) countries in attendance; this year sees the inauguration of the new SA-EU Business Forum – an initiative developed in order to focus upon business and trade partnerships between the two regions.

The EU bloc is South Africa’s main trading partner – providing for 26 per cent of South Africa’s global trade figures.  In 2011, South Africa exported goods totalling 152 billion rand ($18.4 million), to the EU, with imports from the EU to South Africa coming to 223 billion rand ($27 million).

Despite the financial difficulties that have plagued both the parties to the Forum over recent years, bilateral trade has not suffered; South African Trade and Industry Minister Rob Davies told the Forum: “Total trade between South Africa and the EU indicates an increasing trajectory during the period 2007 to 2011, except for a sharp decline in 2009.”

The rationale behind the creation of a Business Forum separate from the main Summit is to provide a specialised space for the representatives of the countries to come together and discuss new initiatives and potential partnerships at a bespoke event.

This year, particular attention is to be paid by South Africa to Central and Eastern European states – which until now have not had many independent trade or industry ties with South Africa.  It is hoped that the Forum will provide a catalyst for such new ties to be agreed.  Davis noted: “The forum will offer opportunities to reflect on the future, on where the parties would like to go. The forum will also give the smaller EU member states an opportunity to get involved in the economic relations with South Africa”.  He underlined that South Africa would be very eager to become involved in relations with such smaller EU states.

The Forum is expected to present a joint business declaration to the Summit over the course of the Summit’s launch today, outlining conclusions and projects agreed at the Forum.