Canadian export credit agency, EDC, is branding Canadian companies as being well-positioned to be involved in infrastructure and other key business opportunities in South Africa.
“There are plenty of opportunities for Canadian businesses to help South Africa build much-needed infrastructure, from green building solutions to transportation to communications technologies to the investments being made leading up to the 2010 World Cup in construction and infrastructure,” said Stephen Poloz, senior vice-president of financing products group, EDC, speaking to senior business leaders from South Africa and Canada at a reception hosted jointly by EDC and the Canadian High Commission.
Poloz and EDC’s Ottawa-based chief representative for Africa and the Middle East, Rizwan Haider, are currently in South Africa for high-level meetings with South African buyers, Canadian exporters and local banks.
In the first five months of 2009, EDC business in South Africa is running well ahead of last year, with C$310mn in business facilitated based on a significant increase in information and communications technology investment.
Last year, EDC facilitated C$412mn in trade and investment in a diverse range of sectors of the South African economy such as: extractive, information and communication technology, infrastructure and environment, light manufacturing, resources, and transportation.
“South Africa has been directly impacted by the global slow down, along with virtually every other country, and the authorities are responding with much-needed infrastructure projects,” says Poloz. “EDC is working alongside colleagues from the Department of Foreign Affairs and International Trade Canada to create new trade opportunities when global trade is faltering and risks are high.”
In March this year, EDC signed a US$100mn financing agreement with South Africa’s Nedbank to support Canadian exports to Africa. This initial allocation is part of an overall facility of up to US$200mn.
“Through this new facility, EDC intends to create more opportunities for Canadian companies by making it easier for Nedbank to offer flexible commercial solutions for its South African customers to buy Canadian,” said Poloz.
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