It is more important than ever for South Africa to diversify its trade and investment relationships with other countries. The government’s recent visit to Southeast Asia was therefore aimed at strengthening trade ties with countries such as Indonesia, Vietnam and Malaysia.

By Nico van Burick, senior journalist at African Farming and Landbouweekblad

“In the midst of global economic uncertainty, it has become more important than ever for South Africa to diversify its trade and investment relations. As we continue to expand trade with traditional partners, we see great value in strengthening links with other countries of the Global South,” President Cyril Ramaphosa said in his newsletter of 3 November.

South Africa already exports agricultural products to all three countries, and during the visit discussions were held on expanding both the range and quantity of products currently being exported. Exports include beef, soya beans and fruit. Ramaphosa says it was agreed, among other things, to look into regulatory barriers that hinder market access.

During the visit, he says, they met with businesses that were keen to invest in South Africa. “Some of these companies already have a presence in our country. All of them recognised the great potential of our economy, our well-developed infrastructure, our world-class financial sector, our independent judiciary and stable institutions.”

Also read: President focuses on unlocking new agricultural export markets in Southeast Asia

Long-Standing Relations

Ramaphosa says a number of companies indicated plans to establish manufacturing plants in South Africa to serve both our domestic market and markets in the Southern African region and across the rest of the continent. They want to set up operations in South Africa to take advantage of the African Continental Free Trade Area.

South Africa and these three countries share a similar approach to international matters such as multilateralism and international law, he says. He also refers to long-standing relations with all three countries, and ties with Indonesia and Malaysia that go back more than 300 years to the time when the Dutch East India Company brought people from those countries to South Africa as slaves, laying the foundation for the Cape Malay community. Along with Vietnam, these three nations also supported South Africa in the struggle against apartheid.

“Although we are separated by the Indian Ocean, South Africa and Southeast Asia are closer now than we have been before. We share a determination to build a common future of development and inclusive growth from which all our people benefit.”