Issued by: Office of the President
PRESIDENT MANDELA'S VISIT TO THE FEDERAL REPUBLIC OF GERMANY 21-23 MAY 1996
A BACKGROUND BRIEFING
Introduction
1. The visit is an opportunity to strengthen relations between South Africa and Germany, our major trading partner and one of the leading foreign investors in South Africa. In addition it should have a positive impact on relations between the regions to which our two countries belong.
2. Germany has committed substantial resources, manpower, skills, technology and financial support towards growth and development in South Africa, and they are ready to do more. Germany is also the driving force behind closer relations between the EU and SADC states.
The program for the visit
1. During the three days of the visit the President will be holding talks with government as well as meeting business leaders and opposition parties. Broader engagement with the people of Germany will include an address to the Bundestag; meetings with civic leaders Bonn and Berlin; media events and the opening of a cultural exhibition on South Africa in Berlin.
2. The formation of a high-level intergovernmental Binational Commission, to co-ordinate and deepen bilateral relations, will be a matter discussed with government. The focus of a meeting with business and investment leaders will be the launch of a "Southern Africa Initiative".
German policy towards south africa and southern africa
1. Central to current German policy towards Africa is a commitment to assist in promoting sustainable development within a context of democracy ad human rights. Nearly two thirds of all development aid channeled to Africa is of German origin.
2. Both government and opposition in Germany are committed to help prevent the marginalisation of South Africa and Southern Africa take root.
3. The Southern Africa Initiative, to be launched during the President's visit, will promote German private sector involveent in the region's economic growth ad development through trade, investment and joint ventures.
4. Relations between South Africa and the European Union are strongly influenced by Germany's leading role in the EU, and Germany has been the driving force behind encouraging closer co-operation between the EU and SADC states. Half of Germany's development assistance for South Africa is in the form of its share - the biggest - of the EU's budget for South Africa.
South Africa's relations with Germany
1. The consideration being given to a Binational Commission reflects the dramatic increase in bilateral relations between South Africa and Germany over the past two years.
Economy relations
1. Germany's stake in the South African economy makes it an important partner. Over 300 German firms employ 59 000 people in South Africa, and a survey by the German/South African Chamber of Commerce in late 1994 found that more than half were considering increasing their investments in South Africa. The German government is also positive about South Africa's long-term potential and the contribution it can make to the region and the continent.
2. The main thrust of continued investment in South Africa originates from German firms already here, principally in the automotive and chemical industries. Most new investment enquiries also relate to the automotive industry or to tourism - reflecting South Africa's position as a principal destination for German tourists. An Investment Protection Agreement, signed when Chancellor Kohl visited South Africa last year; is expected to encourage small and medium firms to invest in South Africa.
3. Trade between Germany and South Africa is imbalanced. German exports to SA are twice the volume of goods going the other way, and they consist primarily of high value capital equipment and finished products compared with the raw materials and semi-manufactured goods we export to Germany.
German development assistance
1. German development assistance to South Africa, bilateral and via the EU, amounted to some DM 170m during 1995. Previously channeled through NGOs before South Africa had democratic government, it has now been put on a government-to-government basis through agreements signed when Chancellor Kohl visited South Africa.
2. The assistance is concentrated mainly on, vocational and further training; rural housing and development; small business; democracy; provincial administration; unemployment. It includes as an objective the development of Southern Africa as a region.
Bilateral relations
1. The rapid growth in bilateral relations in the past two years is reflected in the agreements that have been signed recently or soon will be. Already agreed are provisions for investment protection and for co-operation in development; mineral and energy affairs; posts and telecommunications; and air services. Expected soon are agreements relating to culture; science and technology; financial matters; sport; and merchant shipping.
2. At another level, co-operation takes place through the twinning of our Provinces and German federal states. Western Cape, Gauteng and Eastern Cape have already formed such partnerships and more are being explored.