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The overall potential implications for the SA economy are overwhelmingly negative, says the writer. Picture: REUTERS/PIROSCHKA VAN DE WOUW
The overall potential implications for the SA economy are overwhelmingly negative, says the writer. Picture: REUTERS/PIROSCHKA VAN DE WOUW

The need for SA to expand and diversify its international economic partnerships assumes new urgency in light of the turbulence in the multipolar global context, much of which is increasingly affecting SA.

Of special note are recent troubles in the SA-US relationship taking place simultaneously with new uncertainties in the relationships between the US and many other countries, these having ripple effects internationally.

Many new broader uncertainties affect SA, especially because a lot negatively affect SA’s major trading partners China and the EU. The overall potential implications for the SA economy are overwhelmingly negative.

An expected end to preferential access for SA, and possibly Africa, to the US markets through the African Growth & Opportunity Act (Agoa) and possible harsher measures, is especially worrying.

It is essential that SA and Africa accelerate moves towards greater self-reliance, on a national and regional basis, to help isolate them to a greater extent from any negative effects emanating from the broader international context, while remaining strongly involved in multilateral structures.

In this, international partnerships remain particularly important, with trade and investment flows being critically relevant driving factors. SA must urgently craft and implement improved diplomatic strategies to expand and diversify its economy, with international interaction being a vital catalytic factor.

To improve its international position it is imperative for SA to best use the excellent range of events available to it this year, as well as improve mechanisms for doing so in terms of policy and structures. Especially important is for SA to take advantage of the African Continental Free Trade Area (AfCFTA). 

Though SA’s presidency of the G20 this year comes at an inopportune time for the country, largely due to the current global situation and SA’s position in it, the event nevertheless offers unprecedented opportunities for promoting the required results.

Deputy trade, industry & competition minister Andrew Whitfield recently said that with the G20 being a forum for the world’s largest economies, it has unique multisector economic opportunities for SA and Africa. He especially related this theme to the Green Economy, which has special relevance for developing economies in Africa.

Also of special importance was the recent EU-SA summit, held for the first time since 2018, which has helped revitalise the relationship, with the EU pledging €4.7bn for physical and social infrastructure development as well as other items.

The annual AfriCanada Economic Summit in March and the ninth Tokyo International Conference on African Development (Ticad 9) in August, with the focus on innovative solutions, are among other great events this year. 

In expanding its international relationships — apart from Africa which remains of key relevance — it seems particularly important for SA to double down on strengthening its existing partnerships with its main economic partners while growing others that might offer quick gains.

This helps underline the importance of the EU, SA’s largest economic and developmental support partner, and the above-mentioned summit as well as the EU-AU summit later this year. Here SA, the EU’s only institutionalised strategic partner in Africa, can play a major role. 

The EU remains a stable, reliable partner and offers an especially diverse range of options for collaboration, including the bio-economy and sustainable clean energy, in which the EU is a world leader. These sectors have especially important potential for Africa.

The success of the African commercial forestry sector well illustrates what can be achieved in developing downstream differentiated value-add supply chains. This is something the African sugar sector would like to duplicate, and the challenged energy sector hopes to be associated with, alongside growing its challenged supply capacities.

Apart from the EU and China, key economic partners also include the UK and Japan, to which deputy president Paul Mashatile has just been on a working visit. As with the EU, the current profile of the latter two can be described as being particularly diverse, with trade linked to differentiated value-add supply chains opening many options.

Other important partners that are possibly underutilised include many on the Indian Ocean littoral. The lack of any meaningful economic agreements by SA with Japan and South Korea are among those possibly especially needing urgent attention at this time.

Especially underutilised by SA are those with India and the Southeast Asia (Asean) bloc. While SA has no economic agreements with them, they are establishing close institutionalised arrangements with the EU, thereby also opening up possibilities for trilateral co-operation with SA as a key anchor. 

A new SA overall strategy, inclusive of all stakeholders and especially business, to better access these opportunities and others, seems urgently needed.

A new SA overall strategy, inclusive of all stakeholders and especially business, to better access these opportunities and others, seems urgently needed.

SA is reportedly working on strategies to improve access to other markets, and sending multistakeholder delegations to key partners, especially the US, but these actions are long overdue. They should become regular, not only in times of crisis, possibly upgraded to a broader permanent national level that can be regularly reviewed. All of this should be co-ordinated with a redesigned foreign policy in which practicalities and emerging economic realities are taken into account continually.

There is an urgent need for more outreach activities, especially given weakened commercial capacities at many SA missions abroad, as exemplified by them no longer having representatives from the department of trade, industry & competition. The luxury no longer exists of SA business being represented abroad by offices of the former SA Foundation, which did outstanding work that included facilitating the peaceful move to a full democracy in 1994.

Its successor, Business Leadership SA, has a different mandate, and Business Unity SA generally lacks capacity, as illustrated by it hiring help to handle business activities during SA’s G20 presidency. 

The business sectors of SA competitors such as Brazil are well equipped for international outreach in key global markets, both at diplomatic offices and with representational offices of institutional business. The economic interests of SA, and indeed most of Africa, are underrepresented at government and business levels.   

It is imperative that improved action is taken by SA for itself and in support of Africa, supported by relevant diplomacy, to better use international partnerships. This can have internal as well as international dimensions involving various stakeholders, but must have business among its key participants. 

• Dr Maré, a former SA diplomat, is an adviser on international public affairs and diplomacy. 

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