Africa-EU talk trade after Brexit

The two-day G20 Compact with Africa Conference that wraps up today in Berlin is of great significance in ironing out some details on how African countries will relate to the European Union (EU) after Brexit, says political analyst Ralph Mathekga.

In his capacity as co-chairperson of the G20 Africa Advisory Group, President Cyril Ramaphosa arrived in Germany yesterday and will deliver a keynote address at the G20 Investment Summit.

The conference will discuss progress made with the G20 Partnership with Africa and the Compact with Africa.

The compact was launched during the 2017 G20 Hamburg summit and comprises Benin, Ivory Coast, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Tunisia, Togo and Burkina Faso.

Mathekga said Brexit was of such significance to global trade that African countries “have to renegotiate the terms of trade with European economic powerhouses like Germany”.

“The G20 summit in Berlin ... would offer a platform for such talks to begin to take shape, given the impending commotion that would be caused by the eventual exit of Britain from the European block. There is a lot of anxiety how Brexit will affect countries such as South Africa as emerging markets,” said Mathekga.

The Presidency said the compact initiative was “based on the premise that significant economic development can be achieved when African countries, G20 members, development partner countries and international organisations work together to create a better environment for private investment”.

“This conference will therefore also focus on ways in which the G20, African countries and development banks can cooperate to promote private investment and economic participation in Africa, while reflecting on the achievements and gains made since the Hamburg summit of 2017,” said the Presidency.

During the summit, German investors will present flagship projects currently undertaken in the African countries.

While there, Ramaphosa will meet German Chancellor Angela Merkel.

Germany and South Africa enjoy a robust and growing trade relationship.

In 2017, Germany remained South Africa’s third-largest global trading partner. South African exports to Germany amounted to R84 198 billion and imports amounted to R127 543 billion.

There are more than 600 German companies in South Africa that sustain about 100 000 jobs.

Ramaphosa was accompanied by Finance Minister Tito Mboweni.