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The South African Institute of International Affairs


Relations with Angola & Mozambique Janus face of perceptions of SA. ... Different approaches to conflict resolution (Angola & DRC) ... – PowerPoint PPT presentation

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Title: The South African Institute of International Affairs

South Africas Engagement with Angola Mozambique
  • 27-28 March 2006, Lisbon
  • Organised by Instituto de Estudos Estratégicos e

  • South Africas Africa Policy
  • Historical context of relationship
  • Angola
  • Mozambique
  • Key challenges

SAs Africa policy
  • Past history as a determinant of SA diplomacy
  • Big brother fears hence multilateralism
  • Domestic apartheid eliminate global
    apartheid, and focus on democracy human rights
    in Africa
  • Conviction of relevance of SA miracle
  • Africa key pillar
  • Key drivers SAs future linked to Africa. Role
    in addressing Africas challenges
    politically-economically. African ownership

SAs Africa Policy (2)
  • Political and economic tools
  • Conflict resolution (informed by own experience)
  • Economic development investment and capacity
  • Work with progressive leaders/countries on
    continent to achieve this.
  • Africa on global agenda (G8)
  • Restructuring continental architecture
  • Shift in discourse (state sovereignty vs
    democratic governance)

SAs role in Africa
  • Benevolent/malevolent? Perceptions vary
  • Emerging middle power
  • SA in international arena admirable (landmines
    NPT conflict diamonds)
  • SAs acceptability as regional leader not always
  • or hegemon?
  • hesitance to lead esp. in Southern Africa.
  • Regarded as more aggressive in commercial terrain.

Politics, Economics Cooperation
  • Schizophrenic approach
  • Govt sensitivity to big brother. Not seen to
    giving SA business advantage in investment.
  • Ambiguous about profit motive of business codes
    of conduct???
  • SA business entry into post-conflict
  • SA not a donor.
  • Capacity building and logistical support etc in
    DRC, Southern Sudan systems of monitoring
    evaluation not developed yet.
  • Trilateral cooperation training/logistics e.g.
  • Tools for funding IDC, DBSA.

Historical context of relationship
  • Relations with Angola Mozambique ? Janus face
    of perceptions of SA.
  • Apartheid SA supported UNITA and Renamo. It had
    troops in Angola, and both states were targets of
    its destabilisation strategy.
  • Both provided support to ANC.
  • Different relationships post-1994.

Angola-SA Political
  • Could be better.
  • Different political value systems
  • Traditional militaristic understanding of
    threats security cooperation to bolster regime
    security against internal/external military
    challenges. (DRC)
  • Angola key regional power militarily,
    politically. Primary sphere of influence, ROC,

Angola-SA Political (2)
  • Resentment towards SA
  • New kid on the block, Seniority FLS
    contribution. (Zimbabwe too)
  • SAs attempt to mediate in mid-1990s. Different
    approaches to conflict resolution (Angola DRC)
  • Sense that SA does not give government respect it
    should be accorded. (SA officials flying in
    quickly Rwanda-DRC accord, no credit)
  • SA probably ranks below US, Brazil, Portugal and
    China in importance.

Angola-SA Political (3)
  • Several high-level visits number of bilateral
  • Angola-SA Joint Commission February 2003. Next
    due in Luanda in 2005. Not happened.
  • Many of these not implemented with enthusiasm.
    Reflects approach of both sides to the
  • February 2005 PM visit. Signed 4 agreements

Angola-SA Political (4)
  • SA offered logistical support for Angolan
    election. Not taken up.
  • But, cooperating on training of brigades for DRC
    army recently joint training for the regional
    stand-by brigade.

Angola-SA Business linkages
  • Relationship strengthened since 2003
    establishment of chamber of commerce.
  • SA companies ABSA Bank, SA Breweries, Protea
    Hotels, Shoprite, Murray Roberts, De Beers.
  • Opportunities in infrastructural development and
    spatial development projects (SA dti)
  • West African Corridor (Wesgro)

Angola-SA Business Difficulties
  • Absence of concerted strategy between govt and
  • Bribery, corruption and poor governance practices
    on both sides.
  • SA business difficult environment delays, red
    tape. Ranked 135/155 in World Banks Doing
    Business in 2006.
  • Angolans suspicious of SA business contacts who
    seem to have BEE credentials.

Trade with Angola
Mozambique-SA Political
  • Excellent. Joint Permanent Commission for
    Cooperation and Heads of State Bilateral
    Economic Forum
  • Common approach to regional politics (negotiated
    solutions to regional conflicts). Key ally of SA
    in various forums, SADC, Nepad)
  • Policing Fighting cross-border crime (vehicle
    theft, drug, arm smuggling). Support of SA
    business community and SAPS.

Mozambique-SA Political (2)
  • Home affairs Cooperating on border controls with
    Swaziland. Visas scrapped
  • Humanitarian Floods
  • Naval cooperation SAN helps to patrol coastline.
  • Numerous agreements in place Business success
    due to govt support in implementation of
    projects with problems taken up at govt-to-govt

Trade with Mozambique
SA FDI in Mozambique
  • SA largest investor (49 of total foreign FDI
    1997-2002, value 1.3bn).
  • In 2005 single largest investor 58. (93.7 m,
    52 large infrastructure construction projects.
  • Followed by UK, Zimbabwe, Portugal. China in 6th.
  • Leading sector Industry (Mozal aluminium
    smelter, Sasol, development of gas fields and
    pipeline to SA)
  • ABSA Bank, SABMiller, Shoprite Checkers, Illovo
  • Individual outlays small (85 of projects gt 1m)

  • Investments by state-owned enterprises in Africa.
    Perceived to be politically driven. Eskom,
    Spoornet, Telkom.
  • Yet, political will is critical Maputo
    Development Corridor.

Positive impact of SA FDI
  • Trade balance, economic growth, revenue Mozal in
    2002 contr 2.1 to GDP growth, 53 to
    exports/SABMillers purchase of 3 breweries
    increased tax by 700 - operation provide 5 of
    total tax revenue.
  • Technology transfer Industrys contribution grew
    from 16 in 1996 to 30.9 in 2002 (agriculture
    decreased from 30.5 to 19.5)
  • Mozal smelter highest pot efficiency for AP30
    technology in the world (set two records, phase 1
    completed in 31 months (100 million under
    budget) and phase 2 completed in 26 months (195
    million under budget)

Positive impacts of SA FDI
  • Increase in consumer choice, price stability
  • Bolstering foreign business confidence in
  • Labour market Wage levels, skills levels,
    productivity, good corporate practice, job
    creation (SA FDI created 24,000 jobs in a
    country where 12 of population was in paid
    employment in 1999)

Negative impacts of SA FDI
  • Limited linkages between investing companies and
    local business community (some exceptions)
  • High import dependency of SA companies (source
    less than 10 locally)
  • Spikes in Mozambican trade deficit (import
    dependency of mega projects in construction
    phase) difficult to sustain high growth levels
    between mega projects

Key challenges
  • Clarity on objectives of diplomacy (pol-eco).
    Nexus btwn self-interest and broader goals.
  • What is possible bilaterally and what
    multilaterally. EU, SADC?
  • In SA context Africas regeneration can lead to
    new consumer markets, well-functioning states,
    greater confidence in Africa. Islands of wealth
    cannot survive in oceans of poverty.

Key challenges
  • Role of innovative self-grown mechanisms for
    improving governance (APRM)
  • Conflict resolution and stability
  • Chinese entry
  • Resource demand, revenue boon for states
  • Growing awareness of sense of threat Policy
    paper. Elites versus ordinary people
  • Interests of local actors should not be
  • International trend Codes of conduct for
    business and sustainability reporting.
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