SADC Regional integration, African Union initiatives, 2012 Summit preparations, South African Candidates for international organisation positions: Departmental briefings

Meeting report

Developments with regional integration within Southern African Development Community (SADC): Department of International Relations and Cooperation briefing
Ambassador Sonto Kudjoe, Deputy Director General: Africa Multilateral Branch, Department of International Relations and Cooperation (DIRCO), gave a presentation to the Committee on developments in economic regional integration within the Southern African Development Community (SADC). She highlighted that regional economic integration aimed to facilitate trade, investment, job creation, poverty alleviation and to achieve peace and security. The 1996 SADC Protocol, which had resulted in the Development of the SADC Free Trade Area in 2008, had played a role in informing economic integration. Integration had been undertaken in order to contribute towards the improvement of the climate for domestic, cross-border and foreign investment. It would ensure a collective approach in engaging other regional economic communities. It would enhance the economic development, diversification and industrialisation of the SADC region, and transform this region into a competitive and effective player on the global, political and economic stage.

Ambassador Kudjoe outlined the challenges to regional economic integration. There was a lack of commitment in the implementation of targets by member states – for instance, the Democratic Republic of Congo (DRC) and Angola were not implementing the SADC trade protocol.  There was overlapping membership with other regional economic communities, with Tanzania belonging to both the SADC and East African Community. There was a lack of funding and SADC programmes were financed mainly by donor agencies, which presented the challenge of ownership and foreign influence. The market was not diversified, since most countries in the region remained exporters of low-value raw materials and importers of high-value. There was lack of infrastructure development and different levels of economic development.

There had been a review of the status of certain SADC bodies prior to the economic integration being undertaken. The Southern African Customs Union (SACU) remained the oldest customs union in the world. Challenges facing the Union included the fact that the SACU Agreement of 2002 was not fully implemented, and this came to the fore when negotiating with third parties. Revenue had declined from the SACU revenue pool, which exposed over reliance on SACU receipts for national budget revenue by member states and lack of diversification. There was low intra- regional trade. In attempting to address the challenges SACU member states had agreed on five priorities:  namely, development of regional industrial policy, review of the revenue sharing formula, development of SACU institutions, and unified engagement of Member States in international trade negotiations.

The SADC Free Trade Area launched in 2008 provided an enabling platform to positively advance higher levels of regional economic integration and infrastructure development. The SADC Summit held in August 2010 adopted comprehensive work programmes with concrete actions and timelines aimed at consolidating the SADC Free Trade Areas (FTA) as a priority. SADC recorded significant trade integration progress. In 2008, 85% of goods were traded duty free but by 2012, 99% of goods traded would be duty free. The Regional Indicative Strategic Development Plan (RISDP) identified establishment of specific milestones in support of the regional economic integration agenda. She cited that this would include establishing the SADC Free Trade Area by 2008, the Customs Union by 2010; and Monetary Union by 2016. In March 2011 a Council of Ministers meeting mandated a decision that Member States undertake a review of national development aligned to RISDP.

The establishment of the SADC-COMESA-EAC Tripartite Free Trade Area (FTA) arose from the decision by Heads of State and Government at the Inaugural Tripartite Summit in Kampala, Uganda in October 2008. The COMESA-EAC-SADC Tripartite FTA represented 26 Countries with a combined population of nearly 600 million people and a total Gross Domestic Product (GDP) of approximately US$1.0 trillion. The Tripartite FTA addressed the issue of overlapping membership; it formed a building block towards eventual African economic integration as envisaged by the Abuja Treaty of the African Union and a better opportunity to expand market access for South African products on the continent.
The second Tripartite Alliance summit officially launched the COMESA-EAC-SADC Tripartite Free Trade Area (FTA) negotiations on 12 June 2011 in Johannesburg. The summit endorsed the pillars of tripartite integration, market integration, infrastructure development and industrial development. The summit endorsed the Tripartite FTA negotiating principles, processes and institutional framework.

The most important agreed principles were that the negotiations must be regional economic community and/or member state driven. The principle of variable geometry should apply, meaning that member States must enter negotiations at their level of development. Decisions were to be taken by consensus. The tripartite Free Trade Area roadmap for negotiations would include two phases. The preparatory phase would take 6 to 12 months, and Phase I, covering negotiations on trade in goods, would run over three years. Phase II, dealing with negotiations under the built- in agenda, and covering services, intellectual property and trade related issues, would be undertaken after the completion of Phase I.

Ambassador Kudjoe summarised that South Africa was thus advancing development integration in Southern Africa, by a combination of trade integration, infrastructure development and sector policy coordination, in support of building greater productive capacity across the region. That included strengthening a “real economy” cooperation agenda, of which industrial development was a critical component. South Africa needed to develop mechanisms to be more assertive as a key player in the SADC region, the African continent and beyond. There was a need to develop clear strategies of engagement within various groupings, and to ensure that they were in line with the interests of both the country and the region.

Discussion
The Chairperson said that the Committee was pleased with the new initiative. The advancement of Africa depended on the construction of regional blocs. He commented that regional integration was a matter of extreme importance and would form the cornerstone for the development of Africa. The Committee expected to hold a workshop in future, dealing with challenges that hindered regional integration.

Mr S Mokgalapa (DA) thanked the Department for the presentation. He commented that the principle of regional integration was sound, but there was a pervasive problem of a lack of cohesion between regional countries. There were divergent interests in each state, which presented a challenge for full integration. He asked how South Africa could transcend the issue of states acting in their own interests as opposed to respecting the regional integration tenets. He asked why dual membership was permitted, as it hindered progress in integration. The three pillars of good governance, democracy and accountability should form the foundation of the integration agreements. Human development should remain a key focus area of regional integration.

Ambassador Kudjoe replied that the pressure on some African member states to secure aid was so strong that they entered into bilateral agreements and shirked their regional bloc. National interests tended to transcend regional interests. It was hard to sometimes enforce the idea that the region should be more important than self-interest. The disparity in trading blocs had led to the idea of creating a Free Trade Area (FTA). She agreed that good governance was a key tenet for trade and development. The African Peer Review Mechanism (APRM) was an example of good governance practices that crossed African borders. She agreed that human development was important, but skills development was equally important.

Ms L Jacobus (ANC) agreed with the Chairperson’s suggestion to hold a workshop on regional integration. She asked how free trade within the region would affect the trade of counterfeit goods. She voiced concern over how regional integration would increase the free movement of people from other countries to South Africa.

Ambassador Kudjoe responded that it was impossible to conduct business whilst seeking to stifle the flow of goods, services and people. There was a threat of countries ‘dumping goods’ (by saturating a market and selling at a lower price than local producers) but coordinated efforts would be made to monitor that.  A group of regional security ministers was looking at ways of ensuring that illegal migration was checked. There had been a proposal for a “uni-visa” for regional countries and the viability of this was still being assessed.  

Ms C September (ANC) also added her support to having a workshop. She commented that the Committee should look into proposing legislation that could enhance integration. There was a need to undertake public diplomacy to get consensus at home for regional integration. Parliament should afford the public the opportunity of public hearings on integration, prior to this being formalised. She commented that she understood the challenges that faced regional integration, especially in finding cohesion in trade deals.

Ambassador Kudjoe replied that the idea of getting consensus on regional integration via public hearings might be useful. Input from the Department of Trade and Industry (dti) would also be needed.

The Chairperson asked whether dual memberships did not pose a dilemma to the Free Trade Area. He lamented the lack of formal commitment to the Economic Partnership Agreements (EPAs) and asked whether there was certainty on establishing a date for the formal commitment of states to the EPAs. He lamented the lack of effectiveness in the Southern African Customs Union (SACU) and questioned its relevance, because member states were circumventing it. The division of revenue in regional bodies was disparate and presented a problem.

Ambassador Kudjoe replied that the South African government had been steadfastly opposed to signing the EPAs, believing that they were not a good move, and would exacerbate the Continent’s problems rather than providing solutions. The EPAs provided no assistance in negotiations at the Doha round of the World Trade Organisation (WTO) conference. The EPAs also hindered the task of regional integration. Divergent State interests also made it difficult to finalise the EPAs. She said that the EPAs needed to be renegotiated, and more should be done to make these agreements equitable and achievable. South Africa contributed more to SACU than most other African countries. The revenue distribution system was disparate and some countries in the region used the funding provided by SACU as part of their national budgets. She commented that DIRCO would make recommendations on trade issues, which were shared between this Department and the dti.

The Chairperson commented that funding of the SADC programmes by foreign donors posed a potential problem. Some donors attached conditions to their funding, which could be used to promote the interests of the donors rather than the region. Parliamentary diplomacy was very important and would be useful in shaping agreements.

Ambassador Kudjoe said that South Africa contributed US $6 million to SADC. The contribution was worked out according to Gross Domestic Product (GDP) standing, and the contributions would rise in line with the growth of GDP. Five countries, including South Africa, contributed US $20 million to the African Union. This brought into question how sustainable the African Union (AU) and SADC really were, considering what contributions were necessary for their continuance. She suggested that the money sent to these bodies could usefully be used to address South Africa’s own challenges.

African Union Initiative on the African Diaspora, and preparations for the 2012 summit
Ambassador Kudjoe then briefed the Committee on the African Union (AU) Initiatives in the African Diaspora and preparations for the 2012 summit on that topic.
The African Diaspora dialogue was at the epicentre of the discourse around the search for strategies to decisively deal with the problems of poverty, underdevelopment and the marginalisation of the African continent. The 2^nd AU Assembly recognised the importance of the African Diaspora as an important tool in building and strengthening the African Union and dealing with prevalent problems on the continent. South Africa had formally proposed the African Diaspora as a standing item at other AU summits leading up to the 2012 African Diaspora Summit, in order to ensure coordination and endorsement for South Africa’s central role in articulating both content and logistical planning for the Summit.

The process was intended to foster a coordinated and unified approach, as well as to solicit buy-in and cooperation amongst all stakeholders. This was based on the engagement and participation of internal, regional and external stakeholders, to ensure that all role players were seized with and continuously briefed and debriefed on all issues.

DIRCO aimed to encompass different views from different spectres of the Diaspora and therefore was looking to include several regions in the summit. In Africa, the Department hoped to involve Ghana, Kenya, Tunisia, and Malawi. Nigeria could also be considered because of its large population, intellectual power and migratory power. In the Caribbean, consideration was being given to Cuba, Trinidad and Tobago and Jamaica. In Latin America the countries Brazil, Venezuela and Colombia were being assessed for the summit. In Europe, consideration was given to England, France, Belgium, Italy, Netherlands and Spain. In Asia and the Middle East, Thailand and Fiji were being considered and in North America both Canada and the USA were being assessed.

A Technical Committee of Experts Meeting (TCEM), hosted by South Africa in February 2011, had led to some decisions on how to improve the role of the Diaspora on the continent. The TCEM found that there needed to be urgent ratification of Protocol of Amendment to the Constitutive Act that enabled the effective participation of the African Diaspora in the affairs of the African Union, through its Article 3(q). It called for enhanced opportunities for Diaspora Participation in AU Affairs, and facilitation of Diaspora inclusion in AU structures and processes. The TCEM called for the needs of the Diaspora to be targeted, and for government action to develop integration mechanisms. The TCEM further called for the mobilisation of capital to ensure sustained economic cooperation, and involvement of government and business entities in Africa and the Diaspora.

There was a proposal that South Africa should host the Diaspora Summit on 25 May 2012, to coincide with Africa Day, and this would be confirmed by the African Diaspora at the end of June. Some of the objectives included the adoption of the Summit Declaration, adoption of a Diaspora Programme of Action, and launching of agreed projects. DIRCO intended to ensure a greater South African engagement and awareness on the African Diaspora and its importance towards developing the Continental agenda.

Discussion
The Chairperson voiced his pleasure at the progress made and the setting of a date for the Summit.

Mr Mokgalapa also thanked the presenters for the progress and the clear presentation. He said that public diplomacy was important, in order to inform people of issues and players in the Diaspora.

Ambassador Kudjoe said that it was clear, from the Department’s engagement with people in the Diaspora, that they mostly wanted to return to their home countries, but were prevented from doing so by issues in those countries.

Candidature of South African Citizens running for positions in International Organisations: Departmental briefing
Ambassador Kudjoe briefed the Committee on the list of candidates running for positions in international organisations. She highlighted the manner in which DIRCO would approach this issue in future, noting that a formally constituted Committee on Candidatures was to be set up to co-ordinate and synchronise activities in the Department. Recommendations and motivations for support or non support of candidates for positions in international organisations would be provided to Departmental principals, for decisions to be taken. This Committee would ensure fairness for South African candidates seeking positions in international organisations.

She noted that this Committee would be chaired by a person at the level of Chief Director in the Department, and other members would comprise Chief Directors or Directors from the Business Units within the Multilateral Branch, a Chief Director/Director from the Africa Multilateral Branch, and a representative of the Bilateral Branches. The business unit with direct responsibility for candidatures would serve as Secretariat. Representatives from other stakeholders could also be invited.

A detailed organogram was tabled (see attached presentation). Ambassador Kudjoe commented that some of the positions in international organisations did not offer pay packages that were competitive for South Africans, and this resulted in not many South African applicants applying.

Discussion
The Chairperson said that there appeared to be hope for the future on the issue of South African candidates for international organisations.

Mr Mokgalapa voiced his satisfaction with the presentation.

Ms W Newhoudt-Druchen (ANC) asked the Department to provide a detailed list of the international organisations for which South Africans were eligible to apply.

Ambassador Kudjoe replied that the response would be sent in writing.
 
The meeting was adjourned.