South African President Jacob Zuma has recently visited India in a bid to strengthen bilateral trade and investment between the two countries. Both are developing nations and are very interested in attracting investment from each other. India and South Africa are thirsting for more business from companies in both countries. India is specifically looking towards bigger investments in infrastructure and a chance to tap into South Africa's rich natural resources.
A great example of this SABMiller, a South African brewing company, which has many breweries in India. It also holds 1/3 of the Indian beer market, which is by far greater than any other entity. And the opportunities are growing as the Indian middle class grows. GDP and purchasing power is greatly increasing in India, and beer is just one product that has a bright future there. Not to mention that urbanization is greatly increasing consumption.
It is also interesting to see Indian companies that are opening training centers in South African schools and universities. Many of these are educating young people in information technology and outsourcing skills, and are hoping to create a bond between the two countries. There are a lot of great opportunities for both countries, and a chance for a partnership that will last a long time.
By the way the World Cup started today in South Africa! Be sure to check out our blog next week. We'll have a great series on the different international business aspects of the World Cup and its effects on the South African economy. We hope you join us next Monday!