Ambassador Rasool addresses the crowd at Boston University 17 Feb 2012 |
This
afternoon I attended a presentation by Ambassador Ebrahim Rasool, the South
African ambassador to the United States entitled "South Africa
Rising." Ambassador. Rasool has visited a couple US universities to
promote trade and investment in South Africa and spoke at length about South
Africa joining the BRIC group (Brazil, Russia, India, and China) of emerging
economic powers and how that can help Africans and investors. South Africa doesn't compare favorably
to the other BRICS countries since it is smaller in terms of population, size
of economy, and growth rate but it is the gateway to SubSaharan Africa. Ambassador Rasool also touted the ease
of doing business in South Africa as it has good banks and legal system, as
well as manufacturing capacity to use the abundant resources of Africa and the
infrastructure (roads, rail, ports, and airports) to move both raw materials
and manufactured products. Another
advantage to doing business in South Africa is that there is no debate over state
regulation of the markets. The
South African Ambassador said that both the state and private sector have
learned to play the violin, or work together to make good music.
The
recent creation of the African free trade area consolidates and opens a huge
part of the continent for trade and investment, making South Africa more
compatible with the other BRICS.
26 countries from central, eastern, and southern Africa now compose a
market of 600 million customers and $1 trillion that can be accessed through
South Africa. Ambassador Rasool
stated that South Africa has no special love of China, but they are the ones
who want to do business now, and it would be foolish to walk away from them. The ambassador then encouraged American
legislators to expand the African Growth and Opportunity Act (AGOA) and to
create more opportunities for trade.
New infrastructure, such as the planned North-South railway into central
Africa, would split open the new market that the BRICS and the rest of the
world could access through South Africa.
One
comment that struck me was that through their years of working with the
IMF, World Bank, and other finance
institutions, South Africa and other developing countries were forced to give
up subsidies for many of their products in the name of free trade. However, western powers have not been
required to do the same. For
example, the French protect their Champagne and are the only ones allowed to
sell their sparkling wine as Champagne (the ambassador said South African
champagne was better).
Ambassador
Rasool also responded to several questions from the audience on Angola,
corruption, South African opinion on action in Libya, and apartheid. In response to Angola the ambassador
first spoke about how Angola has become more stable since the death of Savimbi
and UNITA. Ambassador Rasool then
expounded on the importance of having a diversified market not based on just
one commodity like oil, because relying on a single source of income creates
elites linked to the resource who do not want to give up power. In response to the question on
corruption the ambassador remarked that there are two parties to a bribe and
both should be prosecuted, however many of the western bribers are not being
held accountable. The ambassador
also explained how South Africa is upset about the UN Security Council
Resolution on Libya. The South Africans thought that they were voting to
protect civilians, not to provide an Air Force to clear the way for the rebel advance. Regarding apartheid, the ambassador mentioned
that the younger generation have no idea what it was like to live under
apartheid and are now more influenced by Hollywood and want their BMWs and
Nikes. Malema (former ANC Youth
Party Leader) spoke about nationalization and redistribution of lands because
there was an audience that wants to see that happen. However, the ambassador stated, South Africa will not do
that because the government of South Africa will honor its agreements with its
own people, but the whites need to reward the patience of the poor with their
generosity. Ambassador Rasool then spoke about the social programs the
government provides for all South Africans such as limited amounts of free
water and electricity as well as retirement and other social programs in order
to benefit the poor.
The
reoccurring theme throughout the ambassador's presentation was that Africa has
become more stable, democratic, and free and now was the time to reward the
progress in Africa with economic investment and development. Ambassador Rasool repeatedly emphasized
that South Africa is the gateway to the huge African market and offered huge
returns on investment. It was a
good sales pitch and it will be interesting to see how the new African free
trade area develops.