South African economic diplomacy: why the private sector matters

Economic diplomacy and peacebuilding are priorities for the SA government. This workshop discussed what is needed for this to work.

Date: 2014-10-21

Time: 09:30 to 09:30

Venue: Crowne Plaza , Rosebank , Johannesburg

The relationship between government and the private sector is a critical aspect of a successful economic diplomacy strategy. South Africa has prioritised both economic diplomacy and peacebuilding in its most recent White Paper on Foreign Policy, which has an overall focus on the African continent. However, state–business relations have had a complicated history with high levels of mistrust and few platforms for engagement. Presently, state-owned companies are at the forefront of economic diplomacy and can provide an important bridge between state and business interests.

To date, the South African government has had limited engagements with stakeholders, including the private sector, as noted in its five, ten and 15-year reviews. South Africa’s White Paper on Foreign Policy, the BRICS 2012 Policy, the National Development Plan and the New Growth Path all refer to economic diplomacy but have not yet been effective in addressing engagement with the private sector. This workshop stressed the importance of building trust between the South African government and the business sector. It was chaired by Andre Groenewald from the Department of International Relations and Cooperation in South Africa. The speakers were Catherine Grant Makokera and Dr Jolyon Ford, both of whom are independent consultants.

The policy risks associated with engaging the private sector are manageable but these need to be highlighted and dealt with pragmatically, including considering who is a relevant business to engage with.The creation of dialogue platforms is an important recommendation for South Africa’s Development Partnership Agency (SADPA). Awareness of government support mechanisms and services needs to be raised, and platforms created for private-public sector engagement.

The idea of private sector linkages to peacebuilding are increasingly recognised. SADPA can assist in bridging the gap between political values and economic interests. Innovation is key to getting private sector buy-in.