Pretoria - South Africa and Mozambique are set to solidify an already stable bilateral trade and economic relationship with 41.4 percent of Mozambique’s imports coming from South Africa in 2005 reports Michael Appel of Bua News.

South Africa and neighbouring Mozambique share an economic relationship which is the strongest in the Southern Africa region.

Statistics show that in 2005, over 40 percent of Mozambique’s imports emanated from South Africa, and about 12.9 percent of Mozambique exports were destined for the South African market.

In line with further strengthening economic ties, President Thabo Mbeki will together with his Mozambican counterpart President Armando Guebuza, co-chair the South Africa - Mozambique Heads of State Economic Bilateral Commission, Tuesday.

Mr Mbeki will co-chair the session that is being held at the Presidential Guesthouse in Pretoria within the context of South Africa’s priority to consolidate bilateral trade and economic relations with its neighbour with the view of advancing the African agenda.

Mozambique remains South Africa’s second largest export market in Southern Africa. Total exports by South Africa to Mozambique amounted to over R6.2 billion in 2006. Imports from Mozambique were valued at close to R318 590 million for the same year.

The Industrial Development Corporation has been utilised by South Africa as the primary catalyst for South African investment in Mozambique.

To date, the IDC has approved funding for 10 projects geographically spread throughout Mozambique and is currently investigating six additional projects in the country.

These projects will include sectors such as mining and mineral beneficiation, agriculture, tourism, chemicals, forestry, transport infrastructure and energy.

The Mozal Aluminium Smelter remains the IDC’s largest investment outside the borders of South Africa. Another major project funded by the ICD is the titanium-bearing mineral sands in southern Mozambique worth an estimated $600 million.

Issues to be discussed at Tuesday’s Economic Bilateral Commission include the status of bilateral economic and trade relations, and border posts and developments since Mozambican and South African authorities agreed on 3 June 2005 that the main border between the countries at Ressano Garcia remain open 24 hours a day.