On a three-day state visit to Britain from March 3 to 5, President Jacob Zuma of South Africa was given a ceremonial welcome on Horse Guards Parade, London, where he reviewed a guard of honour with Prince Philip, Duke of Edinburgh. (Photo Courtesy FCO)

Cape Town — SA and the UK wanted to double the value of their two-way trade over the next five years from the recession-hit low of R40bn last year, Trade and Industry Minister Rob Davies said yesterday.

The doubling of trade was "very attainable" as it would be growing off a low base and had already reached R79bn before the global economy was hit by the financial crisis, he said.

SA would also like to change the composition of the trade - which was dominated by mineral and primary products - by raising its share of value-added goods.

Davies and Finance Minister Pravin Gordhan briefed the media on the trip to the UK by a delegation of 11 Cabinet ministers and 216 business people with President Jacob Zuma this month.

The Cabinet discussed the trip on Wednesday and concluded it had been successful in cementing strong economic ties and other relations between SA and the UK.

In 2008, the UK was SA's fifth-largest export partner and its largest foreign investor.

About 270 British business people attended a seminar opened by the UK and South African trade ministers. The seminar discussed opportunities, challenges and areas for collaboration in sectors such as financial services, mining and natural resources, energy, infrastructure, construction and engineering, education and skills development, and healthcare.

Davies said there was keen interest in a plan to establish a free-trade area from Cape to Cairo which would create a market of 700-million people. There was also interest in the possibility that UK firms could invest in SA to take advantage of infrastructure development programmes. The 20-year project of the Passenger Rail Agency of SA to renew all its 8600 railway carriages generated a lot of interest.

Asked about the pricing dispute between Kumba and ArcelorMittal SA , Davies said it was not correct to say he would act as mediator as this was fundamentally a commercial dispute. However, the government was concerned about possible implications for the steel price and the availability of steel for local beneficiation.

Gordhan stressed the high regard in which SA was held by British government officials and business people, not least because it offered access into Africa. SA's sound fiscal policies and economic management were recognised.

"Overall, there are more things going for us than against us and we need to optimise our growth and job creation," Gordhan said. The Treasury had been offered almost 7bn in its bid to raise 1,5bn for the 2010-11 fiscal year, finally settling on 2bn, which completed overseas borrowing for 2010-11, he said.

The Cabinet also approved the preferential trade agreement between the Southern African Customs Union and the South American common market, Mercosur, to be ratified by Parliament.

Meanwhile, French Trade Minister Anne-Marie Idrac said in SA that Airbus had signed a deal with South African Airways to lease six new aircraft from next year. Aircraft in the 10- to 12-year lease were new A330-200s to replace A340- 200 planes that were 17 years old.