Big boom in Switzerland's SA investments

(Image: GCIS)

Addressing the South Africa-Switzerland Business Forum held at the Waterfront today, Davies said while 12 Swiss investments valued at R3.8bn and had created 3,000 jobs were made in South Africa between 2003 and 2008, this had picked up such that between 2009 and 2012, 20 Swiss investments in South Africa were made, valued at R13.9bn and had created 7,000 jobs.

Davies attributed the overall decline in Swiss-SA trade - which fell from R21bn in 2011 to R14bn last year - to a fall in platinum trade.

Praising Switzerland as "one of the most technologically advanced and sophisticated" countries in the world, Davies said with Europe stuck in low growth, Africa offered various opportunities for Swiss business as at present, the continent was the second fastest growing region in the world after Asia.

He pointed to a recent survey by the Financial Times that revealed that on the African continent, South Africa was the most favoured destination for foreign investors when it came to destination of choice for foreign direct investment (FDI), business friendliness and best economic potential.

"Switzerland is a country that we regard as strategic, very important with very important skills and abilities," said Davies.

Federal Councillor Johann Schneider-Ammann, who heads the Federal Department of Economic Affairs, Education and Research, said Switzerland also regarded South Africa as a key strategic partner and pointed out that the country was the most important trading partner on the continent.

Added to this, Switzerland is the fifth largest foreign investor in South Africa, home to more than 100 Swiss companies employing over 35,000 people.

Schneider-Ammann praised the Swiss-South African Joint Research Programme, set up in 2007, saying that the programme now counted 65 joint research projects.

Switzerland remains one of the few European countries which continues to report economic growth and Schneider-Ammann attributed this to Switzerland's open and innovation-led economy.

Schneider-Ammann is expected to hold meetings also with Higher Education and Training Minister Dr Blade Nzimande and Science and Technology Minister Derek Hanekom, and will also visit various businesses.

South Africa and Switzerland today also signed a Memorandum of Understanding on cooperation and trade promotion.

The agreement was signed between Switzerland Global Enterprise and the Department of Trade and Industry to promote market access for South African small businesses through the Swiss Import Promotion Programme (Sippo).

Sippo facilitates market access for small businesses in various countries around the world.

Daniel Kueng, CEO of Switzerland Global Enterprise - which helps foreign companies invest in Switzerland and overseas - said the South African office, started five years ago, is in high demand from Swiss investors.

He said Switzerland accounts for 5% of foreign direct investment (FDI) worldwide and 1.4% of all exports against a population that accounts for 1% of the world's population.