R1.4 billion Cuban bailout:  President Zuma neglects country's strategic priorities

The Democratic Alliance (DA) is concerned by the presidency's announcement of financial support to Cuba. The DA is in favour of building strong ties with other countries, but this enormous financial injection raises questions about the policy priorities of the Zuma administration.

At the beginning of the next session, the DA will request that the Minister of International Relations and Cooperation, Maite Nkoana Mashabane, appear before Parliament next year to explain what foreign policy objectives are served by supporting Cuba in this manner.

We are certainly not furthering our trade objectives when one considers that Cuba is not a major trading partner and lacks the capacity to develop into one in the future. We are also not serving our ostensible principled foreign policy objectives by supporting a regime that relies on nepotistic promotion for national leadership instead of open and democratic participation.

Yesterday, President Zuma announced that, in an attempt to improve relations with Cuba, South Africa would grant the failing Cuban state financial support in excess of R1.4 billion. The gift consisted of R170 million in extra credit for Cuban imports from South Africa, R100 million in export assistance, R40 million in aid and the cancellation of R1.1 billion in debt Cuba owes South Africa for previous imports.

One has to wonder what the Zuma administration wishes to achieve by buying better relations with Cuba. South Africa's total export volume to Cuba amounted to a grand total of R1 million so far this year and it is well documented that Cuba possesses a failing economy. Surely it is clear that a R1.4 billion investment in this island nation will not bear much fruit. In short, improved Cuban relations have little to offer South Africa.

Government should be investing time and resources in building strong trade relations with economies that can actually benefit South African industry and create jobs for regular South Africans. Indeed, considering that we are currently trying to become a member of the BRIC nations, the Zuma administration would do well to focus on strategic foreign priorities where such a massive allocation of resources is concerned.

It is disheartening that the Zuma administration has all but ignored the growing crisis in Cote d'Ivoire, where our efforts might actually make a difference and where democracy is being subverted. Instead, we are providing active support to a regime that has never held democratic elections. Even more worrying is that this aid is something of a wasted opportunity as it is not currently tied to any conditions for democratic reform, a common tool in foreign aid deals.

With massive service delivery backlogs and constrained domestic budgets, the wisdom of this "investment" in Cuban relations seems somewhat questionable. As such, it behoves the minister and the president to explain to South Africans what this aid hopes to achieve, either for Cubans striving for democracy or for ordinary citizens back home.

Statement issued by Kenneth Mubu MP, Democratic Alliance Shadow Minister of International Relations and Cooperation, December 8 2010

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