A preliminary agreement been signed between business chambers of the two countries, setting out a framework for partnership

The India-South Africa Chamber of Commerce (ISACC) and the India Commonwealth Trade Council (ICTC) have announced the signing of a Memorandum of Understanding (MOU) aimed at strengthening economic ties. The move followed South African Trade, Industry, and Competition Minister Parks Tau's working visit to New Delhi.

An MOU is a document that outlines an agreement between two or more parties, expressing a common intent or framework for a partnership or common action.

The signing of the MOU between ISACC and ICTC seeks to promote mutual economic cooperation and partnership between Indian and South African businesses.

The scope of the MOU seeks to:

• Facilitate exchange of business delegations, experts, and economic missions with mutual support,
• Develop a global business network to promote opportunities among members.
• Collaborate on sustainable tourism initiatives and cultural exchanges.
• Share market data, economic info, and business intelligence for informed decisions and joint ventures.
• Encourage joint research projects where relevant and feasible.
• Exchange business publications and legal/regulatory updates; public communications to be jointly approved.
• Promote technical expertise sharing, training, and knowledge transfer; each may nominate one advisor to the other's board

India South Africa Chamber of Commerce's (ISACC) Pradeep Ramlall said that there is a necessity to collaborate with small business chambers in India, "because we need a focused strategy rather than having a broad-based approach".

"It's about people-to-people, business-to-business contact, because there are various investors who are looking at coming into the South African market, but this MOU will allow them to go through the chamber, where they have the appropriate influence."

READ MORE: South African Post halts US deliveries

Ramlall added that signing MOUs with various smaller chambers across India also allows them to involve smaller interest groups, rather than excluding them from the conversation.

He added that they are also targeting the SMMEs as they "make up the strong component of the South African economy, we want to work with chambers that represent the SMME business community".

"We have specific objects, and we are looking at infrastructure too, as renewable energy is a big thing, and there are other infrastructure projects in the medical sector, as India has become a hub for low-cost generic manufacturers.

"One of the things is that they're able to get investors, who will bring in their own intellectual property into the country, which is very much needed in South Africa."

Ramlall added that this MOU signing echoes the public-private and private-private partnerships recently touted during Tau's visit to India.

"This is not about asking for money, but it is about partnerships, and of course, the chamber provides that role of trying to link various industries, and getting role players, in terms of matchmaking. We can't just go out see the audience of various businesses in South Africa and India, the Chamber unites it, and screens, and says who has got an appetite to enter this market."

Ramlall explained that a chamber plays an important part in attracting investors and that South Africa is welcoming equity into the country.

"The market is open, but we need to manage the entry into these markets, because there is always a fear of being taken for a ride, and that is where these chambers play an important role."

India Commonwealth Trade Council (ICTC)'s Honorary Trade Commissioner, Dr Arnob Bhattacharjee, said that the reason for signing the MOU is to collectively help build the infrastructure in defence, medical, and any other pending needs for the SA economy.

"We are all part of Commonwealth Nations, so helping and assisting each other to our strengths will also help assess our future growth for two different countries. We, from the ICTC, can assist with what we do best, but we also gain assistance from South Africa, as there are a lot of developments and products that we require in the Indian sub-continent, and the other Commonwealth Nations.

"It is more of an exchange programme, on the economic development side. That is what we're trying to achieve, and if we can assist a brother nation, then that is what we are here for, and get the assistance in return, because it will be win-win for everybody."

Bhattacharjee said that they have been facilitating such partnerships with several countries for decades and that they have been able to inject assistance.

"A lot of countries have been cut off and feeling the impact of tariffs, and we want to come in, and be the CPR for countries when it comes to their financial needs. We are opening doors, so that the development of the countries doesn't take a hit."

First published by IOL

(RT.com)