An enormous well of goodwill, and a great deal of interest in South Africa and the opportunities it offers – but great concerns about the path it is taking.
These are the impressions we at the IRR have been left with after a week in Berlin. In a busy schedule of interviews and engagements, we have spoken to a range of decision-makers politics, academia, business and the media. High on the list of concerns, probably topping it, is the question of the South African government’s apparent determination to introduce a policy of Expropriation without Compensation (EWC).
“Dies ist ja ein äuβerst wichtiges Thema”, as one of our German interlocutors put it – “This is an extremely important issue”. Indeed.
Germany has investments upwards of R140bn in South Africa, much of it in highly productive, value-adding industries. Germany also accounts for a little over 7% of our exports, a large proportion of which are manufactured goods. (Not only do we produce German cars in South Africa, we export cars to Germany.) This is precisely the sort of economic relationship that South Africa needs, not least if it is to have a chance of achieving the industrial development that is so close to the hearts of government policy makers.
South Africa is also very much in the public eye. Aside from the considerable economic stake, South Africa is a popular destination for German tourists. Many Germans have long-standing personal relationships with South Africans, and thousands of German citizens call South Africa home. As emerged in more than one of our discussions, someone who ‘follows the news’ in the German media would have a reasonable handle on South Africa and would know about EWC.
There is a prominent view in Germany of South Africa as a partner country. A stable, prosperous South Africa is good for Germany. Aside from the obvious stake that Germany has in the country (and for that matter, the stake that South Africa has in its relationship with Germany), the two countries share some important challenges, as well as perspectives on the world.