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South Africa
Last updated in October 2010
Political relations
Bilateral political relations with South Africa are good and close. There is wide agreement on a whole range of fundamental issues and trustful cooperation is practised. South Africa is Germany’s most important partner in sub-Saharan Africa. The German-South African Binational Commission, which has met every two years since 1996, provides the framework for bilateral cooperation. The most recent meeting of the Binational Commission was held in Pretoria in April 2010 and was presided over by Federal Foreign Minister Dr. Guido Westerwelle and South Africa’s Deputy President Kgalema Motlanthe.
The wide-ranging and intensive relations between the two countries are underlined by regular high-level mutual visits by politicians and parliamentarians. In October 2007, Federal Chancellor Merkel visited South Africa at the invitation of South African President Thabo Mbeki. In addition to holding talks with the President, the Chancellor met with the former President and Nobel Peace Prize winner Nelson Mandela. In 2006, then President Mbeki travelled to Germany for the handing over of the baton to South Africa as host of 2010 FIFA World Cup. During his visit, he also held political talks with the Federal President and the Federal Chancellor. Federal President Wulff and Federal Chancellor Merkel met with President Zuma during their most recent visits to South Africa in July 2010.
Several German federal states have established close contacts and partnerships with South African provinces and implement their own development cooperation and economic cooperation projects, e.g. Bavaria with Gauteng and Western Cape, Baden-Württemberg with Kwazulu-Natal, North-Rhine Westphalia with Mpumalanga, Saxony with the Free State and Lower Saxony with Eastern Cape.
Economic relations
The 2009 global economic crisis also had a considerable impact on trade between Germany and South Africa: in 2009 bilateral trade was worth EUR 9.6 billion (German exports: EUR 5.66 billion; German imports: EUR 3.94 billion), compared with EUR 12.6 billion in 2008. Germany thus slipped to second place among South Africa’s trading partners, behind China (volume of trade between South Africa and China: approximately EUR 12 billion). Third and fourth places were taken – as in 2008 – by the USA and Japan.
Of the total volume of trade in 2009 (EUR 9.6 billion), German imports from South Africa amounted to EUR 3.94 billion and German exports to South Africa Euro 5.66 billion.
There are, however, signs of a strong recovery in trade between the two countries in 2010. German exports to South Africa were worth EUR 3.76 billion in the first half of 2010, an increase of 46.5 per cent compared with the same period in 2009. German imports from South Africa also grew strongly, amounting to EUR 2.56 billion at the end of June 2010, an increase of 28 per cent compared with the first half of 2009.
With investments worth EUR 4.024 billion at the end of 2008, down from EUR 4.7 billion in 2007, Germany is a major direct investor in South Africa. The main investments are in the automotive, chemical and mechanical and electrical engineering sectors. Some 600 German companies have set up operations in South Africa and employ a total workforce of over 90,000. Some of these companies are among the country’s most important and most modern producers. While nearly all major German companies are engaged in South Africa, there are still new opportunities in a growing market, especially for small and medium-sized enterprises. But some large German companies, too, are considering further intensifying their activities in South Africa.
In addition, many German companies are demonstrating social engagement in the country as part of their policy of corporate social responsibility (CSR). Their aim is to improve the living standards and quality of life of their workers and the workers’ families in areas such as health care, education and social welfare.
In 1996, the Southern Africa Initiative of German Business (SAFRI) was established by the German-African Business Association, the Federation of German Industries (BDI) and the Association of German Chambers of Industry and Commerce (DIHT). Through its efforts, SAFRI is seeking to draw attention to the region’s great potential and to get German business to further step up its engagement in the region.
In development cooperation, German support for South Africa focuses on administrative reform and community development, environmental and climate protection, renewable energy and promoting health care (HIV/AIDS prevention and control). Germany is one of South Africa’s largest bilateral donors.
German companies were also involved in numerous infrastructure projects as part of preparations for the 2010 FIFA World Cup, in particular in building and equipping stadiums, supplying vehicles (cars and buses) and other similar projects.
Cultural relations
Cultural relations between Germany and South Africa are based on the agreement of 10 March 1998, which entered into force in January 2000. It was supplemented by an accord on joint audiovisual productions on 17 November 2004, which took effect on 7 January 2005.Cooperation focuses on the following areas:
- higher education and science
- cultural exchange (the 2010 highlights being the German Weeks held in Gauteng from May to August 2010 under the motto “Football Meets Culture” and the German Cultural Weeks being held in Cape Town from October 2010 to February 2011)
- sports, in particular football (training of coaches, football league cooperation)
- the four German Schools, whose globally unique new secondary-level programme aims to educate pupils from historically disadvantaged population groups (mostly from the townships)
- increased German instruction at state schools, e.g. under the “Schools: Partners for the Future” initiative (PASCH)
- cooperation between the Berlinale and the Durban International Film Festival (Talent Campus)
The German Academic Exchange Service (DAAD) has an information office/academic teaching post in Johannesburg, a Willy Brandt Professorship in Cape Town and a Chair for Automotive Engineering in Port Elizabeth. In 2009, two DAAD Centres of Excellence were set up at the University of the Western Cape. The Goethe Institute runs the regional institute for Sub-Saharan Africa in Johannesburg and supports a Goethe Centre in Cape Town.