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<title>NEW COMMERCIAL DEALS ANNOUNCED BETWEEN CANADIAN AND SOUTH AFRICAN PARTNERS</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">September 25, 1998 No. 221</font></p>
<p align="CENTER"><font face="Univers" size="+2">NEW COMMERCIAL DEALS ANNOUNCED BETWEEN CANADIAN AND
SOUTH AFRICAN PARTNERS</font></p>
<p><font face="Courier">International Trade Minister Sergio Marchi today announced six business and
investment deals between Canadian and South African partners at a special signing
ceremony held during the Canada-South Africa Business Summit in Toronto.</font></p>
<p><font face="Courier">The event involved Canadian companies and members of the South African business
delegation travelling with South African President Nelson Mandela, who is on an
official visit to Canada from September 23 to 25.</font></p>
<p><font face="Courier">"Today's deals demonstrate the wide variety of opportunities South Africa holds
for Canada," said Mr. Marchi. "South Africa is evolving quickly and Canadian firms
can provide the expertise in sectors where South Africa needs it most."</font></p>
<p><font face="Courier">South Africa is Canada's most important trading partner in sub-Saharan Africa and
provides a gateway for Canadian companies to other countries in the region.
Canadian exports to South Africa in 1997 were $361 million and imports were $494
million. This represented an increase of 180 percent in two-way trade since
sanctions against the previous apartheid regime were lifted in 1993. </font></p>
<p><font face="Courier">Canada's main exports to South Africa in 1997 were powered aircraft, wheat,
meslin, sulphur and wood pulp. South Africa's main exports to Canada in 1997 were
platinum, precious metals, iron, steel, and fruits and nuts.</font></p>
<p><font face="Courier">"The ability of the Canadian and South African governments to work so well
together is helping our companies do business," said Mr. Marchi. "In the end, our
partnership approach will support economic growth and job creation."</font></p>
<p><font face="Courier">The day-long summit was organized by Canada's Department of Foreign Affairs and
International Trade, and by the Department of Trade and Industry of the Republic
of South Africa. Nearly 1000 people attended the Summit luncheon, where they heard
a keynote address by President Mandela. Speakers at the Business Summit in the
morning included Minister Marchi, South African Minister of Finance Trevor Manuel,
Apotex International President Craig Baxter, Thebe Investment Corporation South
Africa Chief Executive Officer Vusi Khanyile and Ms. Portia Molefe of Investment
South Africa.</font></p>
<p align="CENTER"><font face="Courier">- 30 -</font></p>
<p><font face="Courier">Details of the business deals announced today are in the attached backgrounder.</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Leslie Swartman</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
<p align="CENTER"><font face="Univers" size="+1">Backgrounder</font></p>
<p align="CENTER"><font face="Univers" size="+1">CANADA-SOUTH AFRICA BUSINESS ANNOUNCEMENTS </font></p>
<p><font face="Courier"><strong>Bell Helicopter Textron Canada, Ottawa, Ontario</strong></font></p>
<p><font face="Courier">Bell Helicopter Textron Canada signed a Memorandum of Understanding with Grintek
Limited of South Africa to evaluate business opportunities between the two
companies. Bell Helicopter is the world's leading commercial helicopter
manufacturer. Grintek is South Africa's leader in the field of avionics systems
and build-to-print boxes. These Grintek systems could become standard equipment on
all of Bell's commercial helicopters.</font></p>
<p><font face="Courier"><strong>Data Capture Technologies Inc., Montréal, Quebec</strong></font></p>
<p><font face="Courier">In co-operation with the Canadian Commercial Corporation, Data Capture
Technologies Inc. has signed an agreement with the Eastern Gauteng Service Council
of South Africa for the supply of tax remittance (IT) equipment and services for
use by the Germiston City Council. The sale is for approximately C$265 000 and
includes a five-year maintenance contract. Data Capture Technologies will be
investing over C$140 000 in South Africa over the coming six months on staff
training, technology transfer and equipment purchases.</font></p>
<p><font face="Courier"><strong>Desbro Holdings Limited, Toronto, Ontario</strong></font></p>
<p><font face="Courier">Desbro Holdings Limited, an international development and investment group,
reached a joint venture agreement with the Black Empowerment Group, Cape Pipes Ltd
of South Africa. A facility will be established in Belville, Cape Province, to
manufacture polyvinyl chloride (PVC) and polypropylene pipes and fittings. The
initial investment will be C$1.3 million, with Desbro holding a 49 percent equity
stake and providing technical assistance. The facility is expected to be in
production by January 1999.</font></p>
<p><font face="Courier"><strong>International Development Research Centre, Ottawa, Ontario</strong></font></p>
<p><font face="Courier">Canada's International Development Research Centre (IDRC) signed a Memorandum of
Understanding with the Department of Trade and Industry of South Africa to further
co-operation in joint research projects in trade and industry in South Africa. The
projects will, for example, help promote the small, medium and micro enterprise
sector; create manufacturing advisory centres; and develop an industrial strategy
for South Africa. This collaboration is particularly important in light of the
establishment of the Southern Africa Development Community Free Trade Area by
2004, and the projects will create partnerships with non-governmental
organizations, private companies and universities.</font></p>
<p><font face="Courier"><strong>Newbridge Networks, Ottawa, Ontario</strong></font></p>
<p><font face="Courier">Newbridge Networks announced a multi-million dollar contract to supply Telekom
South Africa with state-of-the-art next-generation networking equipment. The
innovative network will enable Telekom South Africa to deliver a broad range of
multimedia services to its business customers and satisfy the growing demand for
telecommunications services from residential customers.</font></p>
<p><font face="Courier"></font><font face="Courier"><strong>Nortel (Northern Telecom), Ottawa, Ontario</strong></font></p>
<p><font face="Courier">Nortel announced that it is expanding its presence in South Africa to serve as a
hub for all of the Southern Africa region. By the end of this year, Nortel
anticipates having 30 employees in South Africa under the Nortel/Bay Networks
umbrella. The Nortel team will serve existing telecom operators and customers in
the banking and government sectors, and will pursue new opportunities in the
enterprise data and wireless areas.</font></p>
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