South Africa is seeking a greater trade relationship with fellow South African Development Community (SADC) country Mauritius, with the signing of a memorandum of understanding (MoU) on economic cooperation last week. 

While trade and investment has been steadily increasing between the two countries over the last few years, it is expected that the MoU will help to strengthen the budding relationship.

Mauritius is currently one of South Africa’s largest trading partners with exports to the island amounting to R2.4-billion in 2007.

South African Minister of Trade and Industry Mandisi Mpahlwa added, however, that there was an imbalance between the two as the value of imports from Mauritius only amounted to R437-million in 2007, which was up from R124-million in 2003.

Mpahlwa also noted that the new agreement is indicative of the South African government’s determined strategy to pursue greater trade relationships with SADC members to increase further development in Africa.

The agreement is also significant given the current protectionist climate originating in the developing world, ensuring continued trade and investment in South Africa and Mauritius despite fears that trade with the western world could start to decrease.