The government of national unity has begun efforts to unlock trade opportunities in Africa through a series of high-level engagements with big business and state-owned enterprises.
International relations and co-operation minister Ronald Lamola held discussions with business leaders at a Standard Bank round table last week. Insiders said Lamola gained insights from South Africa's captains of industry on some of the opportunities available and how South Africa could work with all governments, business and regulators on the continent to unlock “mutually beneficial partnerships”.
The opportunities identified, sources said, included infrastructure development, especially in rail, road, aviation, energy, communication technology and water and sanitation.
“It was revealed that Africa has an infrastructure backlog of more than $3-trillion (R53.3-trillion). In this regard, South African development finance institutions and the financial sector were identified as integral in providing the finance to tackle this,” Lamola’s spokesperson Chrispin Phiri said.
It is understood participants underscored the need for close co-operation between the government and the private sector in pursuing economic opportunities on the continent and fostering mutually beneficial relationships between South Africa and other African countries.
By co-ordinating with the departments in the economic cluster and the private sector, South Africa can use strategic diplomatic relations to achieve inclusive economic growth, industrialisation and job creation at home and throughout Africa
— International relations and co-operation minister Ronald Lamola
Lamola is also understood to have committed to strengthening the Co-ordination Mechanism for Economic Diplomacy (Comed), a dynamic partnership established between the government and the private sector, spearheaded by the department of international relations and co-operation and various departments in the economic cluster.
Comed focuses on co-ordinating efforts to advance South Africa's economic interests on the continent. This platform allows the government and the private sector to work together to shape economic diplomacy, driving growth and promoting prosperity.
Lamola added he was confident that, “by co-ordinating with the departments in the economic cluster and the private sector, South Africa can use strategic diplomatic relations to achieve inclusive economic growth, industrialisation and job creation, at home and throughout Africa”.
Political and economic analyst Frans Cronjé noted Lamola’s initiative was a good idea but South Africa had long said Africa was the solution to South Africa's economic problems but with little or no progress.
“Africa has [many] cities of more than one-million inhabitants. More than in Europe and the US. We need to target this concentrated consumer market,” Cronjé said.
South Africa needed a proper trade policy on Africa, far more than the African Continental Free Trade Area or preferential trade agreements with countries such as the US.
“Trade dollars flowing into Africa have long surpassed aid dollars. African children are also spending more time in school. That means there are opportunities for growth in small business,” Cronjé said.
He added South Africa had fallen behind other African countries in recent years in economic growth.
“In many respects other African countries have started to rival South Africa to position itself in spite of South Africa wanting to remain a heavyweight,” Cronjé said.
He had heard what President Cyril Ramaphosa’s government was saying before, but little had come of it in the president’s first five years in office.
“South Africa's foreign policy is not at all aware of its geostrategic importance to the West and China. Africa’s potential is exponential and relative to that, so little is exploited — and it’s an oddity,” Cronjé concluded.
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