Business in focus on Sarkozy S.Africa visit

By Serena Chaudhry and Emmanuel Jarry

CAPE TOWN (Reuters) - French President Nicolas Sarkozy began a two-day visit to South Africa on Thursday expected to focus on seizing business opportunities in Africa's biggest economy and improving his image on the continent.

France has long been the top foreign business partner for many of its former African colonies and a big player elsewhere in Africa, but now faces the prospect of losing out to new investors from India and China.

Sarkozy was met by President Thabo Mbeki in a red carpet ceremony outside the South African leader's office in Cape Town before they went into bilateral discussions.

Sarkozy is bringing with him 40 CEOs of French companies, including power giant EDF, industrial group Alstom and nuclear firm Areva. Several energy, transport and tourism accords are expected to be signed.

Areva has submitted a multi-billion dollar offer to develop and build nuclear power plants in South Africa after power utility Eskom, unable to meet rising demand for power, invited international companies to submit bids.

The French leader caused outrage in sub-Saharan Africa last year on his first visit as president, when he suggested the continent had failed to embrace progress.

Mbeki was among the few on the continent who appeared to show some sympathy for Sarkozy's comments about the lack of progress. Sarkozy will also meet anti-apartheid icon and former President Nelson Mandela.

On his way to South Africa, Sarkozy stopped off in Chad where he met President Idriss Deby in an attempt to clarify the fate of missing opposition politicians there and to push for cross-party talks.