On October 17th, the United Europe Working Group on BRICS+ convened to discuss South Africa – Perspectives on Trade and Geopolitics. The session was led by Ferdinand Pavel, Director of EY Strategy & Transactions, and graciously hosted by EY. We were honored to welcome H.E. Ambassador Stone Sizani, who addressed the participants during the session as a guest of honor.
Review: “A Focus on Trade and Partnerships from a South African Perspective”
Africa faces immense challenges, but it is time to place the continent high on the global agenda, as it also offers various opportunities for trade and investment.
South Africa’s journey, beginning with Mandela, showcases the complexity of international alliances. Despite Western skepticism of South Africa’s ties to figures like Gaddafi and Arafat, Mandela defended these relationships, noting that during apartheid, the West turned its back, while other nations, including countries in the Global South, supported South Africa’s liberation. Mandela emphasized that simply abandoning old allies for new ones would make the country untrustworthy.
South Africa’s post-apartheid development has been complicated. The rural population, marginalized and lacking education, feels increasingly disconnected from the country’s economic advances. Corruption and a mismatch between education and job opportunities have compounded the problem. Additionally, South Africa’s policy of black economic empowerment in businesses has had mixed results, creating discontent among certain groups.
Internationally, South Africa’s entry into the G20 and BRICS signaled its desire to strengthen global ties, particularly with institutions that work. South Africa aspires to improve education and address skill shortages, particularly in engineering, while continuing its efforts to find investment partners to foster growth.
Although China is South Africa’s biggest bilateral trading partner, South Africa’s strongest historical connections are with the UK and Germany. However, the country remains open to partnerships, including with BRICS in order to benefit from economic development. Renewable energy is a key focus, with wind and solar projects seen as crucial for future energy needs. South Africa welcomes collaborations with Europe and has a strategic partnership with the EU, a special relationship, considering that only 10 countries in the world have this type of cooperation.
While BRICS+ is often perceived as anti-Western, South Africa maintains that it is a means of addressing its developmental needs, while working with countries who have similar developmental challenges, to promote the interest of the global South. The country remains non-aligned in global conflicts but supports multilateral efforts for peace. The African Free Trade Area (AFT) makes South Africa a gateway for business into Africa, and the country is actively inviting investment in sectors like agriculture, hydrogen, and renewables.
South Africa is strongly promoting its industrial base and looking for investment partners to add value to its abundant natural resources, amongst others through its Special Economic Zones.
South Africa, with its rich legal framework protecting investor, remains open for business, striving to balance its historical ties with the West and its modern economic needs.