South Africa wakes up to neighbours as Europe struggles
JOHANNESBURG |
JOHANNESBURG (Reuters) – South Africa prides itself as a first world country in a third world continent, trading mostly overseas, but is starting to train its sights on its poor but fast-growing African cousins as turmoil in Europe slashes exports to its traditional markets.
President Jacob Zuma’s government said this month it was looking to African oil producers such as Nigeria after bowing to Western pressure to cut imports from Iran – historically its biggest supplier – in compliance with sanctions over Tehran’s nuclear programme.
South Africa’s crude imports from Iran fell 43 percent to 286,072 tonnes in April from the previous month, while imports from Nigeria rose nearly five-fold to 615,834 tonnes in March against 127,376 tonnes in the same month last year.
While trade with the rest of the continent has increased gradually in the past decade, Africa’s economic powerhouse still playing lags Asian giants China and India which have established firm footings in mining, construction and clothing.
One reason is the legacy of apartheid, an era when South Africa’s white-minority government eschewed trade ties with Africa in favour of Europe.
“We missed an opportunity to our own detriment,” said Dawie Roodt, chief economist at research house Efficient Group. “Only recently has business in South Africa become part of Africa.”
EUROPEAN ALTERNATIVE
Besides Iran, the turmoil in Europe, South Africa’s biggest trading partner, is providing another lesson on the need to shift focus to more dynamic growth spots from the debt-ridden region where a 2008/09 slowdown triggered the first recession in South Africa in 18 years.
This year, the impact of the euro crisis has manifested
Category: Africa News
