Amidst the urban sprawl of Johannesburg, on the eighth day of February, Consul General Mahesh Kumar delivered an insightful address to a gathering of local business luminaries. His discourse centered on the necessity for South African investors to reassess their reliance on Western intermediaries when engaging with Indian markets. Instead, Kumar advocated for a more direct approach, urging the business community to bypass traditional channels and engage directly with Indian enterprises.

The occasion, titled ‘Engaging with the Indian Market’, was jointly organized by the Consulate and the Johannesburg Chamber of Commerce and Industry (JCCI). Representatives from Invest SA and Invest India were also present, providing illuminating presentations on the myriad opportunities available within their respective domains.

Kumar, in his address, highlighted the ongoing dialogue between his office and key stakeholders within South Africa’s banking, equities, and financial sectors. He emphasized the imperative for South African investors to consider direct investment in India, rather than resorting to the customary route through Western intermediaries.

“There exists a symbiotic relationship between South Africa and India,” Kumar articulated, “and it is high time we acknowledge our capacity to manage our own affairs independently. Your companies possess the acumen and resources to engage directly with our counterparts in India.”

Kumar cited instances of successful engagements, particularly noting the positive response from a prominent banking institution that had initially contemplated establishing an India Fund with funds sourced from London. However, subsequent discussions with Kumar’s office led to a strategic shift, with the institution opting to raise capital locally—a testament to the burgeoning confidence in bilateral relations.

Reflecting on the burgeoning bilateral ties, Kumar remarked, “The past year has witnessed a palpable enthusiasm within the business community regarding India’s economic trajectory. However, there remains a collective aspiration to ensure equitable participation for South African entities in India’s growth story.”

He underscored the imperative for increased bilateral engagement, citing recent reports indicating a substantial outflow of investments from South Africa over the past decade. In contrast, India has emerged as a net recipient of investments during the same period—an encouraging trend that underscores the burgeoning economic ties.

Highlighting specific investment prospects, Kumar revealed ongoing discussions with several Indian conglomerates poised to make significant investments in South Africa across various sectors. Notably, he mentioned Pepsi India’s subsidiary, Varun Beverages Ltd, which recently announced plans to acquire South African beverage company Bevco—a testament to the growing commercial exchanges between the two nations.

Kumar emphasized the mutual benefits of expanding investment horizons, particularly in the manufacturing sector—an area of strategic focus for both nations. He extolled India’s robust incentive structure for the manufacturing sector while encouraging South African companies to explore collaborative opportunities.

In addition to governmental incentives, Kumar highlighted the advantageous position enjoyed by South African companies under the American Growth and Opportunity Act (AGOA), an underutilized avenue for expanding trade relations.

Proposing a novel approach to collaboration, Kumar urged South African companies to consider establishing Overseas Development Centers (ODCs) in India—a move that could leverage India’s skilled workforce and cost-effective infrastructure for product development and testing.

Bernadette Zeiler, CEO of JCCI, commended the bilateral ties facilitated by the BRICS agreement, acknowledging India’s proactive stance in promoting gender equality. She expressed optimism about fostering similar initiatives within South Africa, inspired by India’s commendable efforts in this regard.

As the gathering adjourned, the discourse resonated with a shared commitment to fostering deeper economic ties, underpinned by mutual respect and collaboration.