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'Obama offers chance for SA'

Nov 18 2008 19:05 Evan Pickworth

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Johannesburg - An official from South Africa's Department of Foreign Affairs said during a political and economic conference on Tuesday that the incoming US administration offers an opportunity for a comprehensive review of US engagement with the international community, including Africa and South Africa.

Fadl Nacerodien, director in SA's Department of Foreign Affairs on US relations, said that US-Africa relations will always be complex and dynamic and he does not expect it to suddenly become an easy relationship.

But he notes that people have a hope the new administration will be more sensitive to the continental aspirations of others and be more inclusive in that sense.

"The expectation is trade links and aid links will continue, although there is no question aid will be under stress. But the US can't spend by insulating itself and it needs all other things to work, which is why the G-20 is important. It is explicit recognition that this interconnection needs to work and aid is an important part of that, for example in infrastructure," said Nacerodien.

"They are under stress, but they cannot hope to get out of their own recession that way," he added.

Nacerodien makes the point that mere stimulus, for example to the motor industry, is not going to solve the problem.

"The US has to come to the table as a partner with the rest of the world, because they cannot solve their problems alone."

"So despite the euphoria over the Obama phenomenon it comes with its difficult contradictions and difficult policy decisions - you please some and not others," said Nacerodien.

"The difficulty is going to be to get others to work together to establish mechanisms to get the US to engage differently," he said.

Nacerodien also highlighted the growing importance of the US as trade partner for SA.

His statistics showed total trade approaching the $100bn mark, with SA having a trade surplus in its favour of $20bn.

However, he noted that the risk factor to exports in light of the global crisis did not just affect US trade, as Europe and China were also affected.

He added that South Africa must also look domestically to grow its own consumption.

According to Nacerodien, the US is the second-largest portfolio investor in SA.

It is also the second-largest source of foreign investment, with health assistance commitment in 2008 amounting to $591m.

"The US is now the largest source of overseas arrivals - and according to research, for every eight tourists we create one job in SA. It is an important basis for our bilateral relationship," he added.

Nacerodien emphasised that while the Obama victory may usher in less of an iron fist and a more engaging superpower, it also needs to be juxtaposed against the domestic problems that need to be faced in the US.

"But whoever is US president has to multi-task," he concludes.

- I-Net Bridge

 
 
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