1

Parliamentary Portfolio Committee

WEST AFRICA PRESENTATION

Cape Town

14 September 2007

2

COLONIAL LEGACY

• The colonial heritage of the region is divided between Anglophone, Francophone and Lusophone countries

• Most of the Francophone countries retain a strong French influence

• Colonial powers still have a towering presence in the region

3

POLITICAL CONDITIONS

• West Africa is currently undergoing major political and economic changes

• There are countries transitioning from conflict

• There are countries in a post-conflict reconstruction phase

• The countries face similar challenges in respect of economic development

4

POLITICAL CONDITIONS

• Important strides towards democratic consolidation

• 2006 and 2007 marked by elections

• Elections were held in The Gambia, Senegal, Mali, Nigeria.

• Despite problems experienced during the Nigerian elections, the elections were historic as they resulted in a peaceful transfer of power from one democratically elected government to another.

5

SECURITY CONDITIONS IN WEST AFRICA

• Challenge of integrating the Sahelian communities

• Stabilising the Niger Delta region

• Challenge of monitoring unguarded, porous borders

• Proliferation of small arms

• Drug trafficking

6

OVERVIEW OF ECONOMIC CONDITIONS

• The region is endowed with natural resources

• It has arguably the most fertile land on the continent

• Despite this, the region continues to be an exporter of primary products, losing a substantial amount on the true value of the commodities

• Trade still structured on colonial lines i.e. former French colonies are the biggest trading partners of France, the same goes for Anglophone countries

7

ECONOMIC CONDITIONS

• Lack of manufacturing capacity

• The region faces massive infrastructure backlogs, which inhibits investment

• All countries ranked below 120 on the Human Development Index

• There is currently a spike in the volume of Foreign Direct Investment flowing to the region

• Investment mainly focused on the primary sector, i.e. crude oil

8

SOCIAL CONDITIONS

• Challenges around sanitation, clean water, opportunistic diseases, malaria, waterborne diseases etc.

• Challenges in integration of youth into the mainstream, especially of young people affected by wars and conflict

• Challenges on the empowerment of women

9

REGIONAL INTEGRATION• ECOWAS is one of the most advanced Regional Economic

Communities of the African Union

• It has a standing peacekeeping brigade (ECOMOG).

• Successfully intervened in Liberia and Sierra Leone

• French speaking countries belong to West African Economic Monetary Union (WAEMU) with a common currency, the CFA Franc, controlled by a regional central bank, the Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO)

• WAEMU is a also a Customs Union

• Currently in FTA negotiations with North African countries

10

REGIONAL INTEGRATION• The region also has a regional development bank, the Banque

Ouest Africaine de Dévelopement (BOAD)

• BOAD finances projects in rural development, road infrastructure, telecommunications, energy, industry,

transport, and tourism. • Protocol on Free Movement of Persons and the Right of

Residence and Established signed in 1979 and ratified in 1980

• These are good building blocks towards full integration of the African continent

11

SA FOREIGN POLICY TOWARDS WEST AFRICA

• SA policy towards West Africa is guided by the Consolidation of the African Agenda

• This includes:

– The pursuance of friendly, mutually beneficial relations

– The promotion of peace, security and stability

– Post-conflict reconstruction and development

– Close co-operation on issues of development

12

SA FOREIGN POLICY TOWARDS WEST AFRICA

• South African policy is also guided by:

1. The need to use South-South Co-operation and North-South Dialogue to advance the African Agenda

2. Reforming institutions of global governance so that they place African development at the centre of their agenda.

13

INSTRUMENTS OF FOREIGN POLICY IMPLEMENTATION

• Since 1994, South Africa has concluded a number of General Co-operation Agreements with countries of West Africa

• The GCA’s provide for structured bilateral engagement mechanisms such as Bi-National Commissions, Joint Commissions of Co-operation and Joint Commissions of Bilateral Co-operation.

14

STRUCTURED BILATERALS• SA has structured bilateral mechanisms with following

countries:– Federal Republic of Nigeria (Bi-National

Commission)– Republic of Ghana (Joint Commission of Co-

operation)– Republic of Mali (Joint Commission of Co-

operation)– Republic of Guinea (Joint Commission of Co-

operation)– Republic of Senegal (Joint Commission of Bilateral

Co-operation)

15

TRADE RELATIONS

• SA Trade relations with region dominated by import of crude oil from Nigeria.

• South Africa has a trade surplus with most countries in the region.

• SA exporting value-added goods, and importing primary products.

• Regions’ dependence on primary products limits basket of tradeable goods.

16

FOREIGN DIRECT INVESTMENT

• South Africa provides large volumes of Foreign Direct Investment into the sub-region i.e. SA mining companies account for 60% of FDI Mali

• Investment dominated by mining sector

• SA companies present in Nigeria, Ghana, Guinea-Conakry, Senegal, Cote d’Ivoire, Benin, Niger, Guinea-Bissau

• SA companies encouraged to transfer skills and technology to indigenous companies for sustainable development

• SA companies also encouraged to engage in strategic partnerships with local partners

17

PRIORITIES FOR 2007

• Strengthen bilateral relations

• Strengthen co-operation in various technical, social and scientific fields

• Support efforts towards post-conflict reconstruction and development

• Encourage closer co-operation on global governance

• Intensify bilateral trade

18

THANK YOU!