West Africa Developments: Department briefing

FOREIGN AFFAIRS PORTFOLIO COMMITTEE
14 September 2007
WEST AFRICA DEVELOPMENTS: DEPARTMENT BRIEFING

Chairperson: Ms F Hajaig (ANC)

Documents handed out:
West Africa Presentation

Audio recording of meeting

SUMMARY
The committee was briefed by the Department on developments in West Africa. The conflicts in Cote d’Ivoire and the Niger Delta were mentioned as well as the ongoing peace processes in both areas. The relatively stable political climate was alluded to as being an incentive for foreign direct investment, especially in primary industries, most notably oil. The Gulf of Guinea was cited as a possible area of conflict due to the large oil reserves in the area. American and Chinese needs for oil could lead to possible exploitation of the region. Trade problems included over-reliance on primary exports, with a lack of reinvestment leading to increased secondary goods production. It was noted that infrastructure in the region was lacking, and social challenges included integration of former child soldiers, and empowerment of females. The regional integration bloc of Economic Community of West Africa States was described, which was an important step to continental integration. South Africa’s foreign policy in this region followed the broader African policy, with allowance for regional nuances. The foreign policy was guided by cooperation agreements and North-South dialogue. General Cooperation Agreements existed with 13 out of 15 West African nations. Nigeria was the most important trading partner. South African companies were encouraged to invest in skills transfers in order to promote sustainable development in the region. Priorities for 2007 included strengthening bilateral agreements, increasing trade and better co-operation in the science, technology and social fields.

Members questioned whether the change of government in France would alter foreign policy, region to region trade, the need to address the causes of the Niger Delta conflicts, and harmonisation of South African business practices with foreign policy. Further questions related to the MTN issue in Benin, reliability of banking systems in West Africa, the role of the telecommunications industry and Eskom in West Africa. The position in Cote d’Ivoire was discussed. The Committee expressed its concern with skewed trade in the region, and with the American presence in Sahel and Angola.

MINUTES
Developments in West Africa: Briefing by Department of Foreign Affairs (DFA)
The Committee was briefed by Mr Mxolisi Nkosi, Deputy Director General: Africa Bilateral – DFA, on current development in the West African region. Noteworthy security challenges included the integration of nomadic communities into the various states in the region, especially in the light of United Sates identifying the Sahel region as a breeding ground for terrorist activities and adopting counter-terrorist strategies in this area. The nomadic lifestyle of the Touareg (especially in Northern Niger) posed a problem in terms of cross-border movement. The porous nature of the borders provided opportunities for small arms trafficking and drug running. With the assistance of Interpol, the authorities in Mauritania, Senegal and Guinea Bissou had intercepted significant quantities of drugs. The problem of ongoing instability in the Niger Delta region was mentioned and was being dealt with by Nigeria as a security threat, with marginal measures to address the root concern of this resource dispute.

Economic conditions had improved in the region due to oil deposits. The Gulf of Guinea was cited as a possible area of conflict due to the large oil reserves in the area. American and Chinese needs for oil could lead to possible exploitation of the region. A problem with trade in the region was identified as over-reliance on primary exports, with a lack of reinvestment in human skills transfers and subsequent scope for increased secondary goods production. This increase in investment in the oil sector could be seen as a result of increasing stability in the region, due to holding of regular democratic processes.

Despite these economic developments, infrastructure in the region was lacking, especially in sanitation. Social challenges faced by the region included the integration of former child soldiers and traumatised youths into mainstream society, as well as the empowerment of females.

The Economic Community of West African States (ECOWAS) was cited as being one of the most advanced regional integration blocs in the African Union (AU), with a standing peacekeeping brigade. Francophone countries in the region belonged to the West African Economic and Monetary Union (WAEMU) and had a common currency, central bank and visa arrangement. This far surpassed the Southern African Development Community (SADC) levels, and was of importance as the AU had underscored regional integration as a building block towards total continental integration.

South Africa’s foreign policy in the region was no different from its broader African policy. However, the special nuances of the region were taken into consideration. An important sphere was the consolidation of the African agenda, the pursuance of mutually beneficial friendly relations, peace and stability as well as redevelopment and reconstruction. South Africa’s foreign policy was guided by Southern hemisphere co-operation agreements and North –South dialogue, in order to advance the African agenda. Instruments of foreign policy included General Co-operation Agreements (GCAs). South Africa had GCAs with 13 out of the 15 West African nations. Bilateral agreements existed with Nigeria, Ghana, Mali, Senegal and The Republic of Guinea Conakry. Nigeria was the most important trading partner, especially in terms of oil. Joint Commissions of Co-operation (JCCs) were in various stages of implementation with these countries.

Trade relations were dominated by the import of oil from Nigeria. South Africa enjoyed a trade surplus with every other partner except Nigeria. Of note was South Africa’s export of secondary goods. South African Foreign Direct Investment (FDI) was dominated by the mining sector. South African companies were encouraged to invest in skills transfers in order to promote sustainable development in the region.

Priorities for 2007 included the strengthening of bilateral agreements, increase in trade and the strengthening of co-operation in the science, technology and social fields.

Discussion
Adv Z Madasa (ANC) stated that most troubles were generated from trade, and he asked what the changing of the government in France meant for Africa.

Mr Nkosi replied that the Department was still assessing the current administration, and that it did not seem likely that French foreign policy towards Africa would change despite Mr Sarkozy stressing the need for a new partnership on development with Africa.

Adv Madasa asked about region to region trade.

Mr Nkosi responded that SADC was in the process of implementing a Free Trade Agreement (FTA) and that as soon as this had been implemented it would put SADC in good stead to engage other regional organisations.

Adv Madasa stated that the conflict in the Niger Delta had a global impact and that the causes needed to be dealt with, as Nigeria was treating the situation as a security threat when it was more a matter of economic empowerment.

Mr Nkosi agreed that the situation in the Niger Delta fell under human security and not normal security and that a long term solution needed to be found.

Adv Madasa asked about the harmonisation of labour laws to prevent allegations of mistreatment by South African businesses. He stressed the need for the Department of Trade and Industry (dti) and DFA to work on a code of conduct that harmonised South African business practices with South African foreign policy.

Mr Nkosi replied that the Department did impress upon businesses that they should adopt practices that were consistent with South African foreign policy, as well as engaging with the Department of Trade and Industry to ensure this.

Ms S Camerer (DA) stated that the presentation had indicated that all countries were ranked below 120 on the Human Development Index (HDI). She asked for a list of countries that ranked higher.

Mr Nkosi replied that he could not provide precise HDI figures for the region, but stated that Senegal did fairly well as it did not have preponderance of absolute poverty or high mortality rates, and enjoyed relatively high education rates. The worst were ranked as Guinea Conakry, Niger and Guinea Bissou.

Ms C Nkuna (ANC) asked about the reliability of West African banking systems and for clarity on the MTN issue in Benin.

Mr Nkosi replied that there was a challenge in terms of regulating frameworks and that owing to coups and conflicts there was a lack of instruments ensuring good governance in these countries, many of which were now enjoying periods of sustained peace for the first time. However South Africa had reciprocal protection of investment agreements with most of these countries. The MTN issue would hopefully be resolved soon as the two Presidents were currently engaged in discussion. The problem revolved around licensing.

Ms Nkuna asked whether South Africa operated full scale embassies in smaller countries.

Mr Nkosi stated that South Africa could not deal with smaller countries as junior partners, and as such needed to maintain full embassies in countries such as Sao Tome and Principe, albeit with a significantly reduced staff complement in accordance with required operational duties.

Mr M Ramgobin (ANC) stated that the briefing focused too heavily on trade, and neglected issues such as water, soil conservation, and disease control.

Mr Nkosi agreed with Mr Ramgobin about the focus, but stressed that he was fulfilling the brief requirements he received from the Committee.

Mr Ramgobin asked whether the success of the South African telecommunications industry rested on West Africa. He asked about networking in the spheres of health and education - including the role of civil society and non government organisations (NGOs) in enhancing these spheres. He requested information on the pro-active roles that needed to be played in the sphere of human interest. He asked that the response
be linked to Eskom’s presence in the region.

Mr Nkosi replied that Eskom had a fair presence in the region and that it was currently engaged in a project that would benefit Mauritania, Senegal and Mali. A generator had been installed in Freetown, and Eskom hoped to become operational in Guinea Conakry as well. There were ongoing negotiations between Eskom and other West African electricity companies. The consolidation of AngloGold Ashanti was cited as having economic benefits for Ghana as well as South Africa. Mr Nkosi stated that the issue of NGO interaction was an issue that needed to be worked on, as civil society needed to be engendered in these fledgling democratic states.

The Chairperson stated that since independence Cote d’Ivoire had enjoyed relative stability and development, despite a large French military presence, as the largest grower of cocoa. She found it anomalous that despite the fertile soil, French vegetables were in proliferation in stores. She cited this as an example of the French not providing the ambit for secondary production even to begin in the country. She asked about the progress amongst the rebel movement in the north and Laurence Bagbo at the coast, especially with regard to economic development. She highlighted that Africa had always had porous borders and that colonisers had created arbitrary borders without taking into consideration kinship ties. The issue at stake in Cote d’Ivoire was that Ivorite (of Cote d’Ivorean identity), as developers of the economy, (i.e. cocoa farmers) were being accused of being Burkina Fason or Ghanaian and hence were being denied rights in the country. She asked how far the peace process had progressed.

Mr Nkosi agreed with the genesis of the problem in Cote d’Ivoire and stated that the peace process was being mediated by the President of Burkina Faso. A key issue was that of Ivorite, and this was being dealt with by public hearings in order to establish Ivorite. This process was occurring as a matter of priority as elections could not take place until resolution of this issue. Northern rebels argued that millions had been disenfranchised due to the policy of Ivorite. Furthermore the issue of demobilisation of rebel forces and reintegration with regular army was stifled by rank disputes. The spreading of resources around the country was another issue.

The Chairperson stated that currency was pegged to the French Franc in the past and asked if it was now pegged to the Euro.

Mr Nkosi confirmed that it was now pegged to the Euro.

The Chairperson expressed her dismay that trade with the region was skewed and asked what could be done to address this imbalance in order to prevent South Africa from being as bad as former colonial exploiters.

Mr Nkosi acknowledged that the skewed trade needed to be addressed and that South Africa did try to engender skills transfers and sustainable development practices in its business dealings with the rest of Africa.

Ms Nkuna stressed the need for South African businesses in Africa to engage local supply chains.

Mr Ramgobin stated that post-1994 most Western countries felt more comfortable investing in the rest of Africa through South Africa, and hence added a dubious aspect to FDI.

Adv Madasa stated that there was a suspicion that South Africa was the pawn of big business.

The Chairperson stated that she was concerned about the American presence in the Sahel, as well as Angola. She questioned whether their presence was really linked to terrorism or was actually about oil. She stated the need for South Africa to engage with its counterparts and fulfil its duty to help these countries to ensure that their backs were not up against the wall, and that they did have other economic options besides the U.S.A.

The meeting was adjourned.