Italian CEOs pursue trade, investment in Africa

Italy has a negligible presence in Africa generally and in South Africa in particular, a shortfall that the country is working to overcome.

Over the past two years it has opened trade offices in Mozambique, Ethiopia, Angola, the Democratic Republic of the Congo and Ghana to expand its official footprint previously limited to South Africa which served as the base for Italy’s trade promotion initiatives on the whole continent.

Italian Trade Agency president Riccardo Monti said at a media briefing on Thursday that Italy had concentrated its foreign investments over the past decade in China, Turkey and Russia but realised that with the growth of African economies and the emergence of a middle class of consumers, it had to expand its trade and investment relations with the continent.

“We are severely underrepresented in the region and realise we have to do more,” Monti said ahead of a summit between Italian and South African CEOs and government officials. About 50 Italian CEOs from a broad range of sectors are engaging with about 50 South African CEOs at a summit organised by Italian management consultancy firm The European House of Ambrosetti.

The aim of the summit — the second in two years — is to foster personal ties between top company executives from both countries out of which business ventures would hopefully flow. Trade and Industry Minister Rob Davies will address the summit on Friday.

Monti believed there was large scope for Italian investments in the renewable energy sector.

Senior partner in the consultancy firm Paolo Borzatta said a particular focus of the summit would be agri-industry, regional integration in the Southern African Development Community, urban development and payment systems.

He believed that South Africa and Italy had complementary competencies in agro-processing for the export of food to sub-Saharan Africa. Italy, he said was the third largest producer worldwide of agricultural machines and number one in terms of packaging. Mr Borzatta said Italy also had a lot of experience with small farmers that it could share with South Africa.

Italy also had a lot to offer in the manufacture of components for the automotive industry and in fostering the development of “techno-manufacturing” clusters of small businesses providing components to large companies within a specific manufacturing sector.

The automotive sector is regarded as ideal for this and Port Elizabeth-based Italian-owned company MA Automotive Tool and Die is already involved in producing stamping components for the seven major motor manufacturers in the country. Paolo Olivero the regional leader for MA’s holding company CLN said there was great potential for Italian collaboration with South Africa’s small businesses in the automotive supply industry.

Italy has one of the most vibrant small business sectors in Europe which is well integrated into the production processes of large multinationals based there. While the South African government has long promoted the development of small-and medium-enterprises (SMEs) as the key for economic growth and job creation, it has not been very successful.

“The collaboration between Italian and South African SMEs ca