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In line with other Commonwealth countries, New Zealand lifted trade, investment and financial sanctions against South Africa on 1 October 1993. Following the inauguration of the first fully democratic South African government on 10 May 1994, all remaining restrictions against South Africa were removed. There is a New Zealand South Africa Parliamentary Friendship Group, which has 12 members, and is co-chaired by Hon Chris Carter and Hon Judith Tizard.
Since 1994 political, economic and social links between the two countries have improved significantly. In 1996, President Mandela and Prime Minister Bolger signed the Cape Town Communiqué, which sought in general terms to strengthen cooperation between the two countries. The political relationship has been further strengthened by numerous high-level delegations that have visited New Zealand to gain expertise in their different fields and exchange knowledge with the view to enhancing capacity building in central, provincial and local government structures. New Zealand is also engaged in Foreign Ministry consultations on an annual basis.
South Africa is New Zealand’s largest market in sub-Saharan Africa. It has the unique combination of a highly developed first-world economic infrastructure and a huge emergent market economy. The gradual opening of the South African economy to international competition and the stable and well-managed political and macroeconomic environment is offering traders and investors a profitable base from which to launch their southern Africa operations.
As a result of sanctions, trade declined greatly during the apartheid years. Since 1990, however, bilateral trade has increased nine-fold to the point where South Africa is now New Zealand’s 31st most important export market. In the year to December 2008 New Zealand exported goods worth NZ$250.7 million to South Africa, and purchased NZ$197.2 million worth of South African products. The main exports from New Zealand were unidentified items, fish, sheep meat, cheese and curd. Major imports were paper, motor cars and wine.
New Zealand Trade and Enterprise (NZTE) has identified specific opportunities for New Zealand business which exist in the following areas: speciality foods and beverages, telecommunications and marine. NZTE engages local representation in Johannesburg as required. A New Zealand/South Africa Business Council was established in New Zealand to promote trade and economic linkages with South Africa but is currently inactive. Fonterra has a major joint venture with local dairy company Clover.
There are now some 50,000 South Africans resident in New Zealand, some of whom are actively looking to generate business activities with their former home.
On 6 February 2002 a Double Tax Agreement between New Zealand and South Africa was signed. This agreement represents a step forward for mutual trade and investment between the two countries.
On 30 March 2007 a fisheries co-operation arrangement was signed during the visit to New Zealand by the South African Minister of Environment and Tourism. This arrangement aims to enhance co-operation between our two countries with regard to fisheries policy and management.
The NZAID relationship with South Africa is moving from one of ‘donor-recipient’ to ‘partnership’. Although the New Zealand Agency for International Development continues to provide modest development assistance to South Africa (amounting to around $1.2m in 2006/07), the focus has shifted towards closer co-operation in areas of common interest. Current activities include assistance with primary and non-formal education in rural KwaZulu Natal; Volunteer Service Abroad (VSA) capacity building in the areas of local government reform, policy and planning, and water supply development; and a range of community initiatives in areas such as civil society leadership development, conflict resolution, fair trade in tourism, literacy, and HIV/AIDS. The change of focus reflects South Africa’s increased capacity to meet its own needs, coupled with the NZ Government’s directive that NZAID focus upon poverty elimination in a more limited range of particularly needy countries. A recent review of New Zealand’s aid strategy concluded that future engagement focus upon Zimbabwe and Zambia. However, South Africa will continue to be an important dialogue partner, and New Zealand will also continue to monitor, and support as appropriate, South Africa’s broader role in regional development.
There is warmth in the political relationship with South Africa, historically due to New Zealand’s support for the anti-apartheid movement. Multilateral co-operation is in good shape. Our ties with South Africa range from trade and tourism to agriculture, disarmament; fisheries, environment, and indigenous and human rights issues, through to traditional sporting ties. A fisheries co-operation arrangement was concluded in March 2007, and an Air services agreement and a Film co-production Agreement have been negotiated in 2008. Increasingly, these ties are not just at national level but also at local level, with South Africa looking to the “New Zealand model” as instructive as it reforms its public sector. South Africa is our largest trading partner in sub-Saharan Africa. Since 1990 bilateral trade has increased nine fold and is the most diversified of any in the region.
Official Name - Republic of South Africa - Land Area - 1,219,080 km2 - Population - 47.6 million (2007 estimate) - Capital Cities - Pretoria - Religion - Christianity (80%), Hinduism, Islam, Judaism and traditional African beliefs - Languages - Afrikaans, English, isiNdebele, Sesotho sa Leboa, Sesotho, siSwati, Xitsonga, Setswana, Tshivenda, isiXhosa and isiZulu - Currency - 1 Rand (ZAR) = 100 cents - Exchange Rate - ZAR8.26 = US$1 (average for 2008)
Political system - Federal state, consisting of a central government and nine provincial governments - National government - The African National Congress (ANC). The cabinet is drawn from the majority party and all other parties achieving over 5% of the national vote - National legislature - Bicameral parliament elected every five years, comprising the 400-seat National Assembly (elected by proportional representation, based equally on national and regional vote) and the 90-seat National Council of Provinces (elected by regional assemblies) - Last election - 22 April 2009 - Next election due- 2014 - Head of State - Jacob Zuma (ANC) - Vice President - Kgalema Motlanthe (ANC) Key Ministers - International Relations and Co-operation: Maite Nkoana-Mashabane - Defence: Lindiwe Sisulu - Minister in the Presidency (National Planning Commission): Trevor Manuel - Trade; Industry: Rob Davies - Economic Development: Ebrahim Patel - Home Affairs: Nkosazana Dlamini-Zuma - Agriculture; Forestry and Fisheries: Tina Joemat-Petterson - Finance: Pravin Gordhan - Health: Aaron Motsoaledi - Justice and Constitutional Development: Jeff Radeb - Water and Environmental Affairs: Buyelwa Sonjica - Social Development: Bathabile Dlamini - Public Enterprises: Barbara Hogan - Rural Development and Land Reform: Gugile Nkwinti - Tourism: Marthinus van Schalkwyk - Transport: Sbusiso Joel Ndebele - Science and Technology: Naledi Pandor Main political parties - African National Congress (ANC), South African Communist Party, Congress of South African Trade Unions, Inkatha Freedom Party, Democratic Alliance, Congress of the People (formed Dec 2008), United Democratic Movement, Freedom Front Plus, Pan-African Congress, African Christian Democratic Party, National Democratic Convention.
GDP - US$ 283.679 Billion (EIU estimate 2008) - Real GDP growth - 3.1% (2008 estimate) - Exports - US$82,4 billion (2008 EIU estimate) - Imports - US$87.7 billion (2008 EIU estimate) - Current account balance - US$-21.2 billion (2008 EIU estimate) - Gross external debt - US$39.3 billion (2008 EIU estimate)
NZ Exports (FOB) - NZ$250.738 million (Statistics NZ estimate, year ended December 2008) - Main Exports - Unidentified exports not over $10,000 (27.8%); sheep meat (5.16%); fish (4.67%); cheese and curd (4.09%) - NZ Imports (CIF) - NZ$197.228 million (year ended December 2008) - Main Imports - Paper (16.7%); motor cars (14.47%); wine and grape must nesoi (7.93%).
The new South Africa has a relatively young political system where policy directions are still being identified. The struggle to develop a successful and inclusive economy and society remains fundamental to the governance agenda facing the country. Since 2004, the government has focused on reform and the economy has enjoyed consistent growth. However, South Africa continues to face immense problems, particularly high levels of crime and HIV/AIDS, and poor social service delivery.
Effectively addressing regional issues, including the unstable political situation in Zimbabwe, is a prime focus of foreign policy and remains an ongoing challenge. South Africa works to promote the economic, political and cultural regeneration of Africa through its key role in regional institutions such as the Southern African Development Community (SADC) and the New Partnership for Africa’s Development (NEPAD).
The last two years have brought significant changes in the internal politics of South Africa’s ruling African National Congress party (ANC). The emergence of Jacob Zuma as successor to Thabo Mbeki as President of the ANC, the resignation of Mbeki as President of South Africa last September, and the formation of an interim government under Kgalema Motlanthe created considerable uncertainty over the country’s future political direction in the lead-up to the national elections held on 22 April. The elections passed smoothly and although opposition parties were still unable to seriously rival the ANC, increased competition nonetheless made the contest the most interesting since 1994. The appointment of Jacob Zuma as President of South Africa heralds a new phase in South Africa’s transition from the post-apartheid politics of the Mandela and Mbeki era to a robust and increasingly contested democracy.
People have inhabited southern Africa for thousands of years. The first Europeans (Portuguese) arrived in 1488, but it was not until 1652 that the first permanent white settlement established itself at the Cape of Good Hope. In subsequent decades Dutch, Germans, and French Huguenot refugees began to settle at the Cape, forming the bases for the Afrikaner settlement of today’s population. The British took control of the Cape by the end of the 18th Century marking the beginning of a long conflict between the Afrikaners and the English, culminating in the Anglo-Boer Wars of 1880-81, and 1899-1902. British forces prevailed in the conflict and in 1910 the two Afrikaner republics of Transvaal and Orange Free State, together with the British colonies of the Cape and Natal were combined to form the Union of South Africa, a self-governing dominion of the British Empire. The Union’s constitution kept all the political power in the hands of the whites
In 1948 the National Party (NP) Government came to power, and began to introduce a series of laws aimed at separating the races under its policy of apartheid. Facing international pressure over its apartheid polices, South Africa withdrew from the Commonwealth in 1961. UN sanctions were imposed on South Africa, and by the end of the 1980s the economy was in ruins from the effects of being shut-off from the international community. A series of violent uprisings and demonstrations forced the Government to declare a state of emergency in 1985 that was to last for five years. In response to a growing recognition within the NP that apartheid would not be sustainable in the long run, South African President P W Botha introduced a series of reforms. Critics of apartheid and the black majority, however, did not view the changes as sufficient.
In 1989 F W de Klerk became President and began the process of dismantling apartheid. He accepted the African National Congress (ANC) as a negotiating partner. In February 1990 a ban on the ANC, Pan African Congress (PAC) and the South African Communist Party (SACP) was lifted, and Nelson Mandela was released from prison. The Government and ANC met in May 1990 to discuss conditions for the opening of full constitutional negotiations and in December 1991 negotiations began. The result was an interim constitution, which provided for the election of Government of National Unity (GNU). Non-racial elections were held on 27 April 1994 and were won convincingly by Nelson Mandela, leader of the ANC.
During Mandela’s 5-year term as President of South Africa, the government committed itself to reforming the country, focusing on social issues that were neglected during the apartheid era such as unemployment, housing shortages, and crime. Mandela also reintroduced South Africa into the global economy. In order to heal the wounds created by apartheid, the government created the Truth and Reconciliation Commission. Mandela stepped down as President after fives years, handing over leadership of the ANC to Thabo Mbeki in 1997. When Mbeki took over the leadership of the ANC and South Africa, he shifted the focus of government from reconciliation to transformation, particularly on the economic front. The ANC, with Mbeki at the helm, won the 1999 elections by a wide margin and again in 2004, obtaining nearly 70% of the national vote. In his 2004 State of the Nation address, Mbeki promised his government would reduce poverty, stimulate economic growth, and fight crime. However, a large proportion of South Africans, particularly the poor black population, became discontent over a perceived lack of progress by the government in addressing these issues.
These misgivings were reflected in the contest for the ANC party presidency in December 2007. The election marked the first contested ballot for the position in over 50 years and produced a bitter race between Mbeki and Jacob Zuma, a Zulu who had been a lead figure in the armed part of the anti-apartheid struggle. Zuma won in a landslide, based on a populist campaign which outmanoeuvred Mbeki, who is regarded by many as aloof and autocratic. According to party tradition, as ANC President, Zuma would normally have become the ANC’s candidate for the South African Presidency in the next election. However, less than a month after his election to the ANC presidency, Zuma was served an indictment to stand trial in the High Court on various charges of racketeering, money laundering, corruption and fraud. A conviction and a sentence to a term of imprisonment would have rendered Zuma ineligible for election to the South African Parliament and consequently ineligible to serve as President of South Africa.
The longstanding legal action against Zuma for corruption was brought to a halt in September 2008. The judge hearing the enquiry indicated that there may have been political interference in the matter and directly implicated the (then) President Mbeki. On 22 September 2008, Mbeki announced that he would step down. Following Mbeki’s resignation, Deputy President of the ANC, Kgalema Motlanthe, was voted into office as President of South Africa and a new cabinet was appointed until full general elections could be held.
South Africa held its fourth national and provincial elections on 22 April this year. The ANC has returned to power with a resounding victory of 65.48% of the votes. The ANC’s electoral victory was unsurprising as the ANC’s liberation credentials still carry significant weight, particularly amongst older voters. Despite some minor disruptions, election violence was lower than expected and the Independent Electoral Commission (IEC) declared the elections to be “free and fair.” At over 77%, voter turnout was good by South African standards and an excellent by the standards of many Western democracies.
Although the ANC has retained a significant majority as it embarks on its next term in office, its mandate has been weakened. The party has fallen back from the nearly 70% of the vote it achieved in 2004. The ANC has also fallen just short of the two-thirds majority of seats in parliament that would enable it to change the constitution. The ANC lost some supporters to the newly formed breakaway party Congress of the People (COPE), which won over 7% on its first turnout at national level. The Democratic Alliance (DA), South Africa’s most significant opposition party, also lifted its nationwide vote to almost 17%, up from 12%, as a result of widespread support from minority communities. Many see the increased support for opposition parties as a positive development, as it is a sign of increased real competition in South African politics as the country makes its transition away from being a single party democracy to a fully-fledged multi-party state.
The ANC leader Jacob Zuma has now become President of South Africa. It is likely that President Zuma’s government will begin its term with a strong internal focus, concentrating on the economic and social challenges South Africa faces domestically. The focus is likely to be on improving the government’s performance in the ANC’s traditional priority areas – crime reduction, rural development, education, health (in particular HIV/AIDS) and job creation. To this end, Zuma has announced the establishment of a National Planning Committee that will oversee strategic planning and government co-ordination from within the Presidency. The appointment of Trevor Manuel, the experienced former Minister of Finance, to head the new commission emphasises Zuma’s resolve to improve government performance.
South Africa is Africa’s largest economy, but has one of the most unequal distributions of income in the world. The economy ranges from the affluence and sophistication of gleaming shopping centres to levels of poverty associated with developing countries. GDP per capita is US$10,094 (2008 EIU estimate). The dominant sources of economic activity are centred around minerals and energy; much manufacturing is based on mining activity and exports are led by minerals, including gold and diamonds. Agriculture contributes little directly to GDP but is linked to significant agro-industrial activities. The most important crop is maize, but there is increasing concentration on wine and on high-value fruit, such as mangoes. Services are the most important contributor to GDP, ranging from an advanced financial sector to a developing tourism industry and an important retail sector. For many South Africans, however, informal services are the main source of employment.
Since the end of the apartheid era, much progress has been made in the rehabilitation of the economy. Fiscal discipline has been restored, the budget deficit cut, debt reduced, trade barriers lifted and sound macroeconomic management entrenched. The outcome of this good economic management is that South Africa has recently enjoyed the longest period of growth in its history (now in its ninth year). Most sectors, including finance, real estate and business services, are performing strongly. This has had a flow-on effect on the unemployment rate, which although still high has fallen from 30% in 2002 to 22.9% in 2008. However, continued high levels of unemployment, a low skills base, low savings levels, inequality and the need to expand public infrastructure will continue to present challenges to this growth effort. To address some of these issues, the ANC government has followed a broad based black economic empowerment strategy (BEE) since 2003, which aims to accelerate growth and stimulate job creation. Over the longer term, HIV/AIDS is expected to have a significant impact on productivity levels and labour costs.
South Africa, as Africa’s largest economy, is feeling the pinch of the global economic crisis. Although the banking and financial sectors have been relatively well insulated, falls in commodity prices have affected the key sectors of mining, manufacturing and retail. Growth forecasts have been revised downwards to 3.7% for the current year and 3% for the next. The downturn has sharpened vigorous debates about the economic policy direction of the new Zuma administration. Those opposing trade-liberalisation have been gaining traction. Furthermore, an increase in unemployment, which is already very high, is extremely likely. The implications of this for South Africa’s social stability are stark – increased unemployment is likely to heighten existing tensions in the townships. A weak economy in South Africa will also flow on into neighbouring economies, which will reinforce economic migration flows into South Africa and further increase job competition. The newly competitive electoral climate, combined with these new economic stresses, means that an increase in crime and violence is likely throughout 2009.
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South Africa has become a leading international actor since its re-emergence on the world scene after being isolated during the apartheid era. The country’s focus has been to promote the economic, political, and cultural regeneration of Africa. South Africa’s membership of the Southern African Development Community (SADC) is a significant determinant of the country’s foreign and trade position, in which South Africa places importance on ensuring its policy decisions are consistent with SADC views.
Along with other African leaders, former President Mbeki was instrumental in the drawing up of the pan-African New Partnership for African Development (NEPAD) - formerly known as the New Africa Initiative (NAI). NEPAD was adopted by the AU in July 2001 and continues to be promoted by members as a means of promoting the interests of poor African countries in global trade negotiations. South Africa rejoined the Commonwealth on 1 June 1994 after an absence of 33 years, and took a seat in the UN General Assembly on 24 June 1994. It is also a member of the African Union (formerly the Organisation of African Unity).
In addition to membership of international organisations, South Africa has forged relationships with a number of specific countries and regions, including the Middle East and Asia where it has taken a leading role in initiatives such as the New Asian-African Strategic Partnership (set up in April 2005). A trade agreement with the European Union in 2000 gave South Africa a privileged position in the EU market. South African trade also benefits from the US African Growth and Opportunities Act (AGOA).
South Africa will also continue to have a strong interest in seeing a return to political, economic and social stability in Zimbabwe. South Africa has been deeply engaged in efforts to find a solution to the political crisis in Zimbabwe that followed disputed elections in 2008. The Southern African Development Community (SADC), led by former President Mbeki, brokered both the September 11 Agreement and the formation of a unity government on 30 January that includes both Mr Mugabe’s ZANU-PF and the opposition MDC. South Africa is now supporting the unity government’s calls for the international donor community to provide development aid to Zimbabwe. SADC has just approved an $8.5 billion reconstruction plan aimed at resuscitating Zimbabwe’s economy.
South Africa became a member of the Cairns Group (a group of WTO members which have agricultural based economies - New Zealand is also a member), at the Ministerial meeting held in Sydney, 1-3 April 1998. We have since worked closely with South Africa in multilateral trade negotiations at the WTO.
New Zealand and South Africa have traditionally had a close working relationship within the context of the Antarctic Treaty (South Africa is also a consultative party), Commission on the Conservation of Antarctic Marine Living Resources (CCAMLR), Indian Ocean fisheries; and disarmament (as members of the New Agenda Group). The two countries also share similar positions on a wide range of other international environmental issues. South Africa and New Zealand work together on Commonwealth and UN issues, particularly as they affect Africa.
Prime Minister Bolger attended Mr Mandela's presidential inauguration in 1994 and visited again in 1996. 1995 saw visits to New Zealand from President Mandela and the then Deputy President Thabo Mbeki.
In 2002, high level visits to South Africa were undertaken by the Minister of Foreign Affairs and Trade Phil Goff; and Prime Minister Helen Clark who undertook a separate bilateral programme to Johannesburg and Cape Town following her attendance at the World Summit on Sustainable Development hosted by South Africa. Conservation Minister Chris Carter visited in 2003.
In April 2004, Minister for Trade Negotiations Jim Sutton represented New Zealand at President Mbeki’s inauguration and celebrations marking ten years of democracy in South Africa. In February 2006 Prime Minister Helen Clark attended the Progressive Governance Summit hosted by South Africa, and undertook a bilateral visit. In October 2006 the South African Foreign Ministry sent a delegation to New Zealand for consultations with the New Zealand Ministry of Foreign Affairs and Trade, which included Deputy President Mlambo-Ngcuka. In December 2006 Hon Steve Maharey conducted a separate bilateral programme in conjunction with attendance at the 16th Commonwealth Conference for Education Ministers in Cape Town. The South African Minister of Environment and Tourism, Martinus van Schalkwyk, undertook a bilateral visit to New Zealand for three days in March 2007. The New Zealand Minister of Transport, Hon Annette King, visited South Africa in June where she met with her counterpart Minister of Transport, the Minister of Safety and Security and the Deputy President.
Most recently, the Minister of Foreign Affairs, Rt Hon Winston Peters made a two day visit to South Africa in February 2008. He met with the Deputy President, the Minister of Foreign Affairs and the Minister of Trade to discuss the programme of bilateral work which is currently being developed to deepen political, cultural and trade links between our two countries.
There was a South African Consulate-General in Wellington from 1962 until 1984, but full diplomatic relations were not established until 19 January 1994. New Zealand opened a High Commission in Pretoria in August 1996. In addition, New Zealand has an Honorary Consul in Cape Town. South Africa opened a High Commission in Wellington in April 2009.
For comprehensive travel information including advice on the safety of travel to various countries please visit www.safetravel.govt.nz. Enquiries may be directed to Consular Division at the following numbers: telephone: +64 4 439 8000; fax: +64 4 439 8532.
