Trade relations between South Africa and Russia are woefully inadequate, struggling to reach 1 billion dollars per annum. This was revealed in remarks by the Deputy President Paul Mashatile in a press conference during his working visit to Russia this week.
Mashatile was attending the annual St Petersburg International Economic Forum (SPIEF) along with a big government delegation led by Minister of Trade, Industry and Commerce, Parks Tau. Also accompanying Mashatile was leading business leadership personality Mr Elias Monage, President of Black Business Council who is also head of the Russia-South Africa Business Council.
Mashatile said that it was about time that SA and Russia created pathways for growth and increased economic cooperation in order to boost bilateral trade.
“We need to increase our trade to over 1 billion dollars, double it or maybe even triple it,” he said.
Some of the bottlenecks that hamper efficient trade between the two BRICS member-states, Mashatile pointed out, were “poor payment system”. He said in various engagements that he has had the issue raised repeatedly and it requires urgent attention to be corrected.
Looking ahead, the two parties attempt to reset their trade relations in the area of logistics, particularly transport, Mashatile said. He also decried the state of South Africa’s rail network, saying at needs immediate attention. “In fact, we need to build new railway lines,” he told a packed briefing that was also attended by Russian counterparts.
Mashatile was accompanied to Russia by eight cabinet ministers and eight deputy ministers. He said following the bilateral discussions between the two sides, they had agreed to actively work on identifying “areas of mutual interest. For example, energy is one important area.” he said.
Mashatile also alluded to SA’s vast mining industry and the related critical minerals. He said the time has passed whereby SA exports raw materials overseas. He spotlighted the determination, to “intensify local beneficiation programmes where local businesses will benefit”.
In a fairly long list of identifiable long-hanging fruits, Mashatile further courted the Russians to assist SA in the building of ships, development of pharmaceuticals, aviation as well as the manufacturing of fighter jets.
“We will also look into the helicopters that Russia is building,” the Deputy President said, being whisked away for a hand-shake photo opportunity with the Russia President Vladimir Putin.
He later delivered a public lecture at the St Petersburg State University where he focused mainly on geopolitics. And there, he called on the “reform of the UN Security Council, the multilateral trading system and the International Financial Architecture”.
