Israel and South Africa have agreed to start talks for a bilateral economic and commercial cooperation agreement, to be signed by mid-2005.
Minister of Industry Trade and Labor Ehud Olmert and South African government leaders were expected to sign a mutual investment protection agreement.
Olmert, who began his visit to South Africa yesterday, told "Globes" that the final wording of the agreement the approval of South African President Thabo Mbeki, due to the high sensitivity of relations with Israel, which require approval at the highest level.
"My visit to South Africa is causing huge waves here, since it is the first visit by an Israeli minister since the Blacks came to power in this country," said Olmert. "That's why the decision by South Africa's minister of trade and industry to visit Israel in 2005 is so significant."
Olmert added that because of the heavy security surrounding him and the Israeli business delegation, he could see no demonstrations against Israel and his visit reported in the international media.
Olmert said, "I'm aware of the pressure by radical Islamic groups, but all the scheduled meetings with senior government officials will be held as arranged."
Netafim president and CEO Erez Meltzer attended a meeting between Olmert and South African Minister of Trade and Industry Mandisi Mpahlwa. Meltzer heads the 23-member business delegation of agro-technology, agriculture, safety, security and other companies.
Olmert and Mpahlwa discussed bilateral cooperation in R&D and small businesses. Olmert told "Globes" that the possibility of Israeli companies participating in the South African government's Black economic empowerment (BEE) plan, and promoting cooperation in the diamond industry were also discussed.
Olmert met De Beers Group chairman Nicky Oppenheimer last night in Johannesburg to discuss changes in the diamond market and in South African regulations in recent years.
Olmert asked Oppenheimer to allow Israeli diamond merchants to receive allocations for young sites (reduced allocations) for less than the price set by De Beers. Oppenheimer promised to see how to help.
Published by Globes [online] - www.globes.co.il - on October 21, 2004