South Africas Role In Southern Africa

1530 words - 7 pages

South Africa’s role in Southern Africa after 1994 will be discussed by involving themes such as the prospects for external capital flows to Southern Africa and there are three categories of external resources, namely, direct investments, long term non-concessional loans and development assistance (ODA). Anti-apartheid will also be looked at as well as South Africa’s regional policy since 1994.
As a starting point, some brief facts will be discussed surrounding the development of Southern Africa during the 1980’s. During the mid 1980’s, international sanctions strengthened due to South Africa’s apartheid policy and the United States of America (USA), the EC, the Nordic countries and the ...view middle of the document...

Some of the major SADCC countries such as Tanzania, Mozambique and Zambia were in a serious debt crisis during this time and could not pay scheduled debt service (Oden, 1993: 224). Normally they would only pay such commercial loans if it opens the way of new loans from that current source (Oden, 1993: 225). According to Oden (1993: 225) non-concessional loans were made available to Mozambique and Zambia, in the case Zambia there was reason to, due to the copper mining company, ZCCM, who may receive loans due to its economically semi-autonomous position in the Zambian economy. The main borrowing country during this period was Angola who took 95% of the total net flow despite of the ongoing war during the time, and this could be due and related to its oil exploration which is carried out as a cooperative economy (Oden, 1993: 225).
With regard to Aid, during the latter half of the 1980’s, the SADCC has been very “aid intensive” and the inflow of aid per capita to the region is more or less three times the average of the third world and its aid intensity could be related to additional aid which was given to support structural adjustment programmes (Oden, 1993: 226).Some of the main donors to the SADCC and the SADCC countries are Sweden, Japan, Italy, UK, EC, Nordic countries, etc (Oden, 1993: 226).
Now moving on from the 1980’s to the 1990’s, factors influencing future or prospective development in Southern Africa with regards to South Africa’s specific role in its development will be discussed. There are three factors, they occur at the global, regional and national level. With regards to the global level, we have learnt, Southern Africa plays a marginal role in the global economy (Oden, 1993: 226). According to Oden (1993: 230) structural trends due to technological breakthroughs as well as continued low economic growth in the core countries, namely, Japan, Germany and the USA (economic trilaterisation) will reduce their interests in new mineral investments, but the exception to this trend will be Japan who are the fastest growing of the three economic regions (Oden, 1993: 230). During the period of sanctions, economic links between South Africa were increased with Japan, Taiwan, Honk Kong and South Korea and these countries are reliant on the imports of mineral and raw material for their economic growth as this could give a certain economic pull effect in South Africa as well as possibly the Southern African region (Oden, 1993: 230). This will also continue after 1994 and thus explaining a prospective role of South Africa in the Southern African region.
With regard to factors at the regional and national level, paying attention to direct investments. South Africa’s gradual dismantling of sanctions and thus its reduced isolation increased the scope for South African companies to invest in neighbouring countries and interest was especially evident in Mozambique and Angola (Oden, 1993: 230-231). Thus it can be thought of that once...

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