Over 140 Indian companies which also operate in South Africa have collectively invested close to $4 billion, leading to the employment of over 18,000 people, as per a recent report. Companies have contributed beyond foreign direct investment (FDI) and have also taken initiatives for skill development and corporate social responsibility.
There is potential for trade growth between the two countries, says the CII-PwC report. India exports a lot of things to South Africa including textiles and footwear.
Bilateral trade between India and South Africa had gone up to $11.79 billion in 2014-15 from $2.5 billion in 2003-04, notes the report.
The trade had reduced slightly in 2015-16 to $9.5 billion owing to factors like credit rating downgrade of South Africa, political, economic and policy uncertainty and fluctuations in exchange rate, said media reports quoting the study.
The CII-PwC report has predicted an increase in the Indian business footprint in South Africa. South African companies are also increasing their investments in India, which can result in great returns.