South Africa’s Formulation of an ODA Policy in Africa

1. 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 University South Africa Beijing, China, 27th March 2008

2. 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

3. 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

4. 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

5. 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

6. Key Issues • Four components of ODA: • African Renaissance Fund (ARF) • AU-NEPAD Objectives • Government Departments • 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…..

7. 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

8. ANC Policy Conference June 2007 • Development Aid should be on three pillars: • Consolidation of the African Agenda • South-South Co-operation • 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

9. 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

10. 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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