South Africa’s Formulation of an ODA Policy in Africa

Dr Martyn Davies

Faculty Member, University of Stellenbosch Business School

Senior Lecturer Extraordinaire, Department of Political Science

Executive Director, Centre for Chinese Studies

Stellenbosch UniversitySouth Africa

Beijing, China, 27th March 2008

Contents of Discussion

Enabling legislation

Encouragement from the EU

The position of the Treasury

Key issues

South Africa foreign policy in Africa

ANC Policy Conference June 2007

Summary

Enabling Legislation

• Shaped by an Apartheid past: Isolation to Inclusion• The African Renaissance and International Co-operation Fund Act (Act No. 51 of 2000) was promulgated on the 22nd January 2001

Enables the South African Government to:

Enhance co-operation between SA and other countries, particularly African countries

• The promotion of democracy, good governance

• The prevention and resolution of conflict

• Socio-economic development and integration

• Humanitarian assistance, and

• Human resource development

• Fund size: 2003 = R50m; 2008-09: R275m

Encouragement from the EU

A sense in South Africa Government circles that the EU is

seeking for SA to become an aid donor/coordinator

South Africa has the strongest institutional capacity for

coordination & delivery

Possibility of trilateral partnerships of traditional & emerging

donors utilizing South Africa as a coordinator

The Position of the Treasury

• MOF is key Government Department re ODA

• Conservative and slow approach

• Observing emerging power aid models – China, India, Brazil

• Commissioning a series of policy briefs

• Sustainability of funding?

• Increasing socio-economic demands at home

Key Issues

Four components of ODA:

i) African Renaissance Fund (ARF)

ii) AU-NEPAD Objectives

iii) Government Departments

iv) Parastatal bodies

Alignment to foreign policy – conflict resolution + enhancing

democratic institutions

SA’s ODA not affected by its role as an aid recipient

A call for a SAIDA…..

South African Foreign Policy in Africa

Alignment with NEPAD Secretariat

Foreign policy in the region floundering

Countering / alignment with emerging powers in Africa

Sensitivity of SA in Africa

Hence a multilateral approach to ODA

Preference toward the Indian developmental model

Shift in foreign policy in line with leadership change in the

African National Congress

ANC Policy Conference June 2007

Development Aid should be on three pillars:

i) Consolidation of the African Agenda

ii) South-South Co-operation

iii) North-South Co-operation

National budget process will commit resources to the

development aid fund

“Developmental partner”, not a donor

The fund will be located in the Department of Foreign Affairs

Summary

Legislation is in place as an enabler of an ODA policy

South Africa could play a pivotal role in region

Coordinator through a trilateral process

Combination of South-South + North-South

Political change in South Africa will influence the process

Increasing domestic socio-economic demands

Feeling of “Charity begins at home”

Discussion of SAIDA yes, but a slowly-slowly approach

Dr Martyn Davies

Faculty Member, University of Stellenbosch Business School

Senior Lecturer Extraordinaire, Department of Political Science

Executive Director, Centre for Chinese Studies

Stellenbosch University

South Africa

T +27 21 808 2840 F +27 21 808 2841

PO Box 3538, Matieland, Stellenbosch, 7602, South Africa

www.ccs.org.za

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