South Africa as Partner in Africa

1. South Africa as Partner in Africa A Review of South Africa’s Development Assistance To Africa Commissioned by National Treasury 2006

2. Overview • Background • Study • Findings

3. Background • SA increasingly provides assistance in supporting the critical priority development needs of primarily African countries. • Assistance channeled through African Renaissance Fund, and directly through Line Function / Para-Statals / SACU in the form of grants, goods and services. • Increasingly working in Tri-Lateral partnerships.

4. Background • Currently no systematic database tracking support being provided, no Government Strategy directing the provision of Aid by SA to other Partner Countries, no official Government system and operation guidelines facilitating the total provision of Aid to the Continent. • Due to a lack of codified institutional memory on the subject - no way to determine the implications and impact of assistance provided by South Africa. • Lack of uniform policy and process directing Tri-Partite Co-operation

5. Study :Background • Study launched (Dec 2005) to: • Prepare database on contents & procedure of RSA support 2002 – 2005, • Ensure support targeted on strategic issues agreed by Government, • Improve alignment & coordination of RSA as a development partner in Region, • Propose model for an improved RSA Development Management Authority. • Study monitored & guided by a Reference Group, chaired by Shaheed Rajie : NT.Other members of the Reference Group were: International Economics & TAU:NT, the Presidency, DFA, Police, Health, S&T, Education. • Study completed-end March 2006 Even though only 35% of the Government Departments responded, the data captured was substantial as it reflects most of the interventions in Africa by major Line Function stakeholders.

6. Findings: SA’s Comparative Advantage • Geographic : African Country – understanding of Regional needs / “more acceptable”, SA articulates approach based on partnership and solidarity, • Vision : African Renaissance vision is core component of SA and rest of Africa development approach, • Capacity : SA has shown ability to mobilize both human and to lesser extent financial resources in response to specific African needs, & based on shared African identity SA’s human resource mobilization • Resources : SA one of few African Countries to provide human and financial resource support • Willingness : SA has shown its total commitment to support Region

7. Findings • Aid to Africa increased approximately with 26% per annum for the period 2002 (R9.5 Billion) – 2004(R15.2 Billion), and already with only partial information available, our support to Africa has for the period 2005 – 2007 increased with 25%. These figures include SACU. • The quality - variable: excellent data from Treasury, SAPS, Defence, Education, ARF, Agriculture. The figures for Health and DTI only comprise information supplied for financial transfers on their behalf by Treasury; no further data was received from these ministries so the data is undoubtedly incomplete –Limited if any responses from Departments such as Social Development, Justice, etc. • SACU and CMA financial transfers account for some 87% of this support. The inclusion of such transfers is normal practice amongst international donors in reporting on the quantum of international aid . If however these are excluded, Defence ( 55%) and Education (on average 36%) account for the bulk of the remaining expenditure

8. Findings

9. Findings What does emerge is that the rate of increase is being maintained. Should data become available for this period from ministries with a substantial African support programme (Education, Trade and Industry, Minerals and Energy for example), the picture would doubtless reveal even more massive growth in scale and diversity.

10. Findings The clear beneficiary is the SADC region with an average 96% share of resources when SACU transfers are included, and about 70% when not. The inclusion of a non-SACU country, the DRC, in SADC does complicate the picture somewhat; peace-keeping and training are the main areas of support here. Training and Technical Assistance comprise by far the highest number of discrete projects - particularly for SAPS - even though measured in quantitative terms these do not stand out

11. Findings

12. Findings: Challenges • Lack of strategic focus and Coordination between Ministries, Parastatals, • No Systematic Procedures, Inadequate Data Capture, • No formal budget lines • Reactive, not Planned • No proper planning and project designs • Lack of DFA development support in recipient countries

13. Findings:Recommendations • It is recommended that we develop a White Paper which will inter alia include a strategic approach and development support guidelines, • A specific budget line for Development in Line Function Departments be created, • SA be referred to as that of a Partner, and not as that of an emerging donor. This is partly because of our relationship with countries on the continent, and partly because of the fact that we are also a recipient of Aid, • That a central clearing house / body be established (or an existing structure expanded), to authorize all SA developmental interventions on the Continent. • It is proposed that training in the field of development become part of the curriculum of future DFA diplomats, and that special attention is given to those Diplomats that are placed in countries of priority to SA. • With regards to the capturing and management of data, it is proposed that an upgraded electronic data handling facility is established. The Reference Group suggested that this Facility could be linked with the existing ODA facility, namely the DCIS, housed within Treasury. • That a formal approach be established to facilitate Tri-Partite Co-operation, and that it is coordinated at a central point.

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