President Zuma announces major credit lines package to Cuba

7 Dec 2010

The Minister of Trade and Industry, Dr Rob Davies and the Minister of Home Affairs, Dr Nkosazana Dlamini-Zuma signed two important agreements in Havana, Cuba today, aimed at boosting economic relations between the two countries.

Dr Dlamini-Zuma signed an agreement on the waiver of visa requirements for holders of diplomatic, official and service passports. Therefore, Cuban and South African citizens holding such travel documents can enter and remain in the respective countries for up to 90 days without visas.

Dr Davies signed an agreement cancelling Cuba's R1,1 billion debt, which had been incurred during the 1990s when Cuba purchased diesel engines from South Africa.

Minister Davies said, "It is not as if Cuba could not repay the debt. The problem is that it was becoming a hindrance to trade and economic development between the two countries. South African businesses demanded cash in advance because the Export Credit Insurance Corporation of the Department of Trade and Industry could no longer insure Cuba's orders as it had exhausted its credit limit. So we are re-opening the credit lines so that we can start trading actively again."

The total credit lines package offered by South Africa is as follows:

• R1,1 billion debt cancellation
• The extension of credit guarantees to the value of R70 million rand
• R40 million rand to support Cuba with seeds and fertilizers following the devastating 2008 hurricane which destroyed agriculture
• R100 million from our African Renaissance Fund for purchases from South Africa.

It is envisaged that this package will help to boost trade and investments between the two countries which had stagnated. 

South African exports to Cuba had fallen from R82 million rand in 2008 to only a million rand this year, in 2010.

Statement issued by The Presidency, December 7 2010

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