Report. A 12th international business conference "Russia and South Africa: Business on Emerging Markets" was organized by RBC in Cape Town on November 4-8, 2005. Some 200 people attended the event.

Representatives of the business world and political elites of the two countries debated what the economies of Russia, the African continent and the Indian Ocean basin have in common. The conference included several plenary sessions and topical round-table meetings. Issues related to direct partnership between business entities on emerging markets, along with the reinforcement of business ties between Russia and the African states were in the spotlight at the forum. Respectable speakers from the Russian side made an attempt to expand on the main problems impeding the establishment of national competitiveness in Russia. For example, Administrative Department Director of the Russian Ministry of Industry and Energy Yevgeny Dedkov mentioned in his speech that the only way Russia could achieve a high level of competitiveness was "to stick to a strong, balanced government - a strong business system." President of the Russian Financial Corporation Andrei Nechayev raised the most applause when he criticized bureaucracy in Russia. According to him, the government's pressure on businesses had not been reduced, and the number of state officials and bribes had only increased, despite on-going administrative reforms. "The state is an inefficient manager. YUKOS did evade taxes but in monetary terms it paid more than state-owned Rosneft," he emphasized. Chairman of the State Duma Committee for Ownership Viktor Pleskachevsky added: "Governmental regulations in Russia are an impenetrable membrane, and if you do get through them it will cost you a fortune." Senator Lyudmila Narusova joined the discussion by raising the provocative question "whether the Russian State Duma and ministries are thinking of working out a bill to make state officials responsible for incorrect bills and false reforms." Unfortunately, this question remained unanswered. Finding no answer to this question, participants of the conference shared a single opinion that it was far easier and safer to invest in South Africa than in Russia. For this very reason our businessmen are tending to invest their money in this very country right now. At present, the mining industry and the development of infrastructure are among the most attractive spheres of cooperation. It is worth mentioning that South Africa boasts quite a well-developed manufacturing industry of value-added products.