Johannesburg, South Africa — South Africa and Mozambique have signed an agreement that will see a gas supply pipeline linking the two southern African countries in closer trade ties.

President Thabo Mbeki and his counterpart, Joaquim Chissano, signed the agreement in Pretoria as part of their bilateral ties.

South Africa's massive industry will benefit from the gas supply pipeline, which will allow for cheaper energy sources.

South Africa's Trade and Industry Minister Alec Erwin said construction of the pipeline would begin before the end of the year.

"We signed a cross-border agreement to facilitate the gas trade between the two countries," said Erwin.

The Pretoria meeting, which ended Friday night, also sealed agreements in other mutually beneficial areas such as the possibility of setting up a huge game reserve, which would link Mozambique, South Africa and Zimbabwe.

Relations between the two countries have steadily improved over the years since South Africa gained its freedom from apartheid.

In the apartheid era, the white-led South African government destabilised its neighbours, including Mozambique, where it supported Renamo rebels to destroy the country.

Renamo, led by Alfonso Dlakhama, has since become Mozambique's official political opposition.

Last year's devastating floods saw the South African government responding positively, sending in military equipment and medical personnel to assist their Mozambican neighbours.

While this year's floods were less threatening, the South Africans responded all the same.

For its part, Mozambique provides thousands of labourers to South Africa's mines and farms, in addition to the use of Maputo Harbour for South Africa's northern provinces external trade.