As Malta strengthens its outward-facing economic strategy, its relationship with South Africa is gaining new strategic relevance. At SiGMA Africa 2025, Maltese officials outlined an ambitious roadmap for collaboration spanning iGaming, pharmaceuticals, tourism, and workforce mobility.

The SiGMA Africa 2025 conference in Cape Town served as a timely platform for Malta to articulate its evolving international outlook, with particular focus on strengthening ties with South Africa. In a joint session led by H.E. Dennis Vella, Malta’s Non-Resident Ambassador to South Africa, and Jurgen Zammit, Head of External Relations at Malta Enterprise, stakeholders from both countries were presented with a compelling framework for cooperation underpinned by regulatory maturity, complementary strengths, and shared ambitions.

Moderated by Shirley Pulis Xerxen, Head of News at SiGMA Group, the session provided a comprehensive overview of the opportunities and enablers that could define the Malta–South Africa partnership in the years ahead.

A new model for economic cooperation

Ambassador Vella initiated the discussion by highlighting the foundational relationship that already exists between the two countries. While acknowledging that Malta and South Africa differ in geographic scale and regional context, he stressed that both are strategically located and globally connected, offering natural complementarities. More importantly, he challenged the traditional parameters of bilateral trade, asserting that “business cooperation is not just importation, exportation and foreign direct investment, but there could be opportunities in strategic alliances, technology transfer, franchising, licensing, joint ventures, and distribution agreements.”

He further underscored the importance of connectivity in fostering trade and tourism, noting that “Malta counted over 3 million tourists, of which around 6,000 came from South Africa,” adding that “around 2,000 South African passengers either transited or arrived on cruise liners,” a trend that is “further strengthening the increasing connectivity between our two countries.”

The ambassador also pointed to a growing cohort of South African professionals working in Malta, which, in his words, “contributes their skills and expertise across various industries.” This movement, he observed, represents more than just labour market utility; rather, “this exchange of talent not only enriches Malta’s labour market, but also fosters deeper cultural and economic ties between our nations.”

Beyond the movement of people, Ambassador Vella touched on Malta’s exports to South Africa, particularly pharmaceuticals and machinery, as well as its imports of South African wine, fruits, and essential oils, with total trade valued at approximately €11 million in 2024. These figures, while modest, suggest a scalable base upon which to build.

Malta: regulatory foresight and competitive resilience

Following the ambassador’s remarks, Jurgen Zammit provided a granular analysis of Malta’s economic structure and the mechanics behind its investor appeal. Emphasising Malta’s geographic location “at the southern tip of Sicily and very at the crossroads of North Africa and the Middle East,” he positioned the country as an ideal access point to both the European Union and the Mediterranean basin.

He noted Malta’s economic resilience, citing its position as “first in Europe with regards to economic growth with 5.7%” and its ranking as second in terms of low unemployment, at just 2.9%. Zammit underscored the government’s substantial investment in innovation ecosystems, referencing a diversified economy supported by advanced manufacturing, pharmaceuticals, ICT, life sciences, and education.

Malta’s strong export performance is underpinned by advanced electronics, medical devices, security printing, and premium packaging, many of which are produced by global brands such as STMicroelectronics, Baxter, and Cardinal Health. The pharmaceutical sector, in particular, has benefited from Malta’s regulatory agility. Zammit emphasised the country’s role in generic pharmaceutical production and pointed to the Malta Medicines Authority as “an agile regulator… recognised not only by its European counterparts, but also by the US FDA.”

He also highlighted the country’s growing digital infrastructure, stating that Malta is fostering innovation across a wide array of fields, including “blockchain to business, robotics and smart manufacturing, bioinformatics and new pharmaceutical streams such as medical cannabis.” These developments are complemented by a supportive business climate that includes favourable tax frameworks, streamlined investment procedures, and access to European structural funds.

Gaming and digital collaboration: a shared growth horizon

A recurring theme throughout the session was the potential for cooperation in the gaming industry, where Malta has long been a pioneer. During the Q&A segment, Zammit traced the country’s legacy in this space, explaining that “Malta was the first EU member state to regulate what was at that time the gambling industry,” which has since matured into a globally respected iGaming ecosystem.

He stated that “one in ten of all multinational companies have either their headquarters in Malta or a subsidiary,” attributing this to Malta’s robust regulatory environment and its proactive government stance. Zammit expressed strong optimism about South Africa’s trajectory in this space, remarking that “we strongly believe that South Africa can be the hub in terms of iGaming and remote gaming for the whole of Africa,” and predicted that “with the right regulatory regime, South Africa will see an exponential increase in its iGaming sector.”

In addition to digital games and remote betting platforms, Malta has become a centre for complementary sectors such as FinTech, cybersecurity, and behavioural analytics. Zammit outlined how South African firms could partner with Malta-based operators not only to access the European market but also to co-develop solutions for African digital ecosystems.

Talent mobility and fiscal competitiveness

Malta’s appeal as a destination for talent was also explored. Zammit drew attention to the country’s tailored tax incentives for senior professionals in regulated sectors, explaining that “for CEOs, CFOs, CIOs… working in Malta with a regular employment contract, they are entitled to a 15% final withholding tax up to an income of €5 million per year.” This, he noted, was explicitly designed to “keep talent” in competitive global sectors like iGaming and cybersecurity.

The Highly Qualified Persons Programme and the Malta Startup Residence Programme, among others, are supported by Malta Enterprise through grant schemes, startup financing, interest subsidies, and EU co-funding mechanisms for training and development. These measures, said Zammit, enable Malta to “help them in the setting up, development, and growth of the company in Malta,” providing tangible support from ideation through to expansion.

Foundations for a long-term partnership

In their closing comments, both speakers conveyed a unified message: the foundation for bilateral cooperation is solid, but must now be scaled through formal agreements and sustained institutional dialogue. Ambassador Vella confirmed that discussions are underway regarding partnerships in education, research, and hospitality training, with the aim of establishing joint programmes and professional pathways.

He remarked, “We are reaching advanced stages in another agreement on research and innovation,” and highlighted efforts to develop “educational programmes in the hospitality sector” with South African institutions. These engagements, he said, would be enhanced by improved air connectivity, which could further position Malta as a gateway to Europe for South African tourists and professionals alike.

Zammit echoed this optimism and extended a call to action: “We are collaborating to find common niches where we can increase growth for both countries.”

The sentiment was clear: Malta and South Africa are not merely trading partners, but strategic allies capable of shaping a modern, resilient, and innovation-driven relationship. As the curtain fell on the SiGMA Africa 2025 session, it was evident that what began as a dialogue had laid the groundwork for a long-term partnership rooted in shared values and mutual economic ambition.