Merkel’s visit to SA set to boost trade with Germany

The visit to South Africa by German Chancellor Angela Merkel – the first by the most senior politician from the Federal Republic of Germany in 10 years – is set to significantly boost the current multibillion-rand trade between the two countries, according to Matthias Boddenberg, chief executive officer (CEO) of the 630-member strong German Chamber of Commerce and Industry in Southern Africa.

Accompanied by a high-profile delegation of German captains of industry, including such heavyweights as Siemens AG president and CEO Joe Kaeser, Merkel’s two-day visit will see her being officially welcomed by host President Cyril Ramaphosa at a media briefing on Thursday morning to be held at the Union Buildings.

Both Merkel and Ramaphosa will later chair the South Africa-Germany business roundtable at the Sheraton Hotel, before the German chancellor addresses University of Pretoria students.

About 600 German companies are based in South Africa, with the total trade between the two countries having reached R235 billion in 12 months by the end of last November, while South African exports stood at R108 billion – for the first time in excess of R100 billion.

“This visit signifies a fresh wind blowing in propelling trade relations between the two countries to greater heights,” said Boddenberg. “The chamber also foresees strengthening of relations in such areas as training, education and digitalisation.”

While conceding that Merkel’s visit was bound to have positive trade and investment spinoffs for South Africa, SA Institute of International Affairs CEO Elizabeth Sidiropoulos, who is an expert on Europe-Africa relations, called for policy certainty in South Africa.

“A consistent and actionable policy message is what potential investors are looking for, especially in such areas as land reform and mining,” she said. “The sooner President Ramaphosa addresses policy unpredictability, the better.

“Overall, South Africa enjoys very good relations on the economic and political fronts with Germany.

“Germany is a significant investment and trading partner for South Africa. South Africa has long-standing investments with German industries and the visit could be an opportunity to encourage existing German companies to invest more, while others should be inspired to come to South Africa.”

The two countries, said Sidiropoulos, enjoyed mutual co-operation at the United Nations Security Council, where both serve as non-permanent members.

“Both countries have worked on important issues at the UN Security Council, like the resolution on women and conflict,” she said.

South Africa is Germany’s largest trading partner in Africa, with Germany being the third largest source of overseas visitors to South Africa.

German companies with corporate and manufacturing presence in the country include BASF, Bayer, Bilfinger Berger, BMW, DHL, Deutsche Bank, Lanxess, Mercedes Benz, MTU, SAP, Siemens, ThyssenKrupp and Volkswagen.

They have created over 100,000 local jobs in energy, infrastructure, automotive, information and telecommunication industries.

Presidential spokesperson Khusela Diko said the South Africa-German strategic relationship was “substantiated by 72 bilateral agreements between the two nations, providing a legal framework for cooperation in several areas”.
These, said Diko, were further enhanced through a binational commission, focusing on such areas as foreign and security policy; migration and humanitarian assistance; economy and energy cooperation, environment, science, technology and vocational education.

This week’s engagement between Ramaphosa and Merkel is also expected to strengthen cooperation between South Africa and Germany at the UN.

“The two countries are committed to advocating for world peace, security, multilateralism and climate change,” said Diko.

The state visit follows that of German president Frank-Walter Steinmeier ton Cape Town in 2018.

Kindred spirits

South Africa and Germany could be seas apart, but the two countries have much in common.

This year sees both countries taking over as leaders in their respective continents: Germany becomes European Union Council chair South Africa takes over the leadership of the African Union.

As if that is not enough, another common feature is that Germany and South Africa are non-permanent members of the powerful United Nations Security Council – sharing a similar approach on how to deal with issues, which include migration and economic development.

These are matters very close to the heart of visiting German Chancellor Angela Merkel.

Siemens South Africa CEO Sabine Dall’Omo, who is leading a locally-based German-owned company that has contributed R 6.1billion in the country’s gross value add – about 0.1% of the country’s gross domestic product – has every reason to be upbeat about Merkel’s visit.

Said Dall’Omo: “We at Siemens, expect that the visit will emphasises on the crucial importance of trade relations between both countries.

“German Government should support South Africa in theses challenging times, especially regarding support regarding the current energy crisis, as well as the transition of South Africa towards a fourth industrial revolution-driven economy.

“German core competencies include industry, technical and vocational training – something to share with our South African counterparts.”

Siemens, said Dall’Omo, “has been present and contributing to the economy of South Africa for over 150 years”.

“As an international company, we have been investing in South Africa’s economy by introducing our latest technologies into the industries we operate in, purchasing goods in South Africa and investing in local manufacturing facilities,” she added.

brians@citizen.co.za

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