German president urges patience ahead of SA visit
SA’s policymakers need to overcome the gap between massive expectations of rapid change and an effective long-term strategy.
German President Frank-Walter Steinmeier, who will be on a state visit to SA this week, says President Cyril Ramaphosa’s campaign to win trust will yield greater engagement from countries such as his, the largest economy in Europe.
“I have nothing but support for the new leadership’s systematic efforts to win trust. When that is in place, enterprises, not only from Germany, will increase their engagement. But that requires patience and staying power,” Steinmeier said in an interview ahead of his arrival in SA.
Ramaphosa met Steinmeier as well as German Chancellor Angela Merkel in Berlin at the end of October when he attended the G20 investment summit.
Steinmeier will be accompanied by a high-powered German business delegation, including the CEOs of Siemens, Bauer and KfW Bank, and a board member from the BMW group. He will address a roundtable of South African and German business leaders in Johannesburg on Monday.
“Economically, the country needs prospects in the labour market for its young, ambitious population. That also requires investment, of course. We want to make a contribution in this area.”
With an economy bereft of foreign direct investment over the past decade, Ramaphosa has appointed a team to scour the globe in search of $100bn (R1.4-trillion) in investment.
Steinmeier said Germany was keen to participate in SA’s aggressive investment drive as it was a highly developed economy “with considerable business opportunities”.
“Many German companies have been investing in SA for a long time. I hope that more will join them.”
He said that, during his visit, he wanted to discuss what role the state should play in the economic system and how SA could attract more foreign investment.
Steinmeier said Europe was in a process of changing its approach to relations with Africa, moving away from conventional development assistance and towards more effective mobilisation of public and private investment.
A particular area of co-operation could be vocational training, in which Germany had vast experience. Steinmeier said this was an important starting point for tackling the shortage of skilled workers in SA.
“These months are seeing the opening of a new political chapter in SA that harbours considerable potential. The time is ripe for a new start, also in relations between Germany and SA,” said Steinmeier.
SA was Germany’s most important trading partner in Sub-Saharan Africa, but there was more potential that could be tapped.
“I intend to propose to SA’s new leadership that we adopt a joint approach in the current difficult political situation in the world, whether in climate, trade or migration policy. If we shape the future together, we have much to gain,” he said.
“Our countries each bear special responsibility in their respective continents — Africa and Europe — not least because of their economic clout. We both can and should contribute to building a better, fairer and more peaceful world beyond our national borders.”
He said that, during his visit to Germany, Ramaphosa had emphasised that SA provided refuge to many people.
The discussion on migration and displacement was very different in SA to what it was in Europe, Steinmeier said.
Addressing the European parliament this week, Ramaphosa said the countries of Europe and Africa had to develop sustainable and humane responses to the challenge of irregular migration.
He also expressed his appreciation for the EU and the European parliament’s contribution to the development of SA and towards the achievement of progress across the African continent.
“Without opportunity, without investment, without thriving economies that enable us all to enjoy a place in the sun, we cannot hope to have political and social stability on the African continent,” Ramaphosa said.
Steinmeier, meanwhile, said there should be more dialogue between Africa and Europe as both sides could learn from each other.
“SA and Germany can play a crucial part in helping to improve this understanding of our common future.”
He said they should consider how to strengthen international co-operation through, among other things, membership of the UN Security Council over the next two years.
“We do not hold the same opinion on everything, but our two countries depend on a rules-based international order and the security of global public goods,” said Steinmeier.
“For example, SA played a constructive role in the international negotiations on the Paris Agreement [on climate].
“We want to support SA in actively advancing efforts to reduce greenhouse gas emissions, for example, by promoting renewable energies and developing the energy infrastructure.”