Africa’s superpower

Also: South Africa’s International Relations and Cooperation Minister, Maite Nkoana-Mashabane, gives an exclusive interview to Making It

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Very much Africa’s superpower, South Africa has the continent’s biggest economy. Since the end of apartheid and the first all-race elections in 1994, the country has experienced robust economic growth. The global economic downturn in 2009 triggered South Africa’s first recession in 17 years but, by the end of 2010, there was a broad-based upturn, driven primarily by renewed global demand for commodities, spending related to the 2010 World Cup, a revival in the automobile industry, and increased demand for chemical products.

Best known for its precious metals, fruit, and wine, in recent decades, South Africa’s economy has undergone a transition from one dominated by mining and agriculture to one in which manufacturing and financial services contribute the larger share of Gross Domestic Product (GDP).

South Africa manufactures a wide range of consumer goods, including foodstuffs, textiles and clothing, footwear, and metal, chemical and paper products. However, this sector contracted when the ending of the protective trade regime applied during the apartheid era left some consumer goods industries unable to compete in the global market. At the same time, since 1994, the output of capital goods – objects that are used to produce other goods and services – has increased. Metals and engineering, particularly steel-related products and the automotive industry, are key elements of this sector. During the first decade of the 21st century, an infrastructure-driven construction boom created high demand for related goods, such as electrical machinery, iron and steel, non-ferrous metal products, metal products, and machinery.

Today, manufacturing contributes 15% of GDP, and is a crucial employer and source of exports. Some sub-sectors, such as textiles, will continue to suffer from competition from cheap Asian suppliers, but the vital vehicle segment, which is the country’s biggest manufacturing industry, is poised for further growth, thanks to new investment from key multinationals.

The growth of the economy in recent years has enabled a measurable decline in income poverty. Notable development achievements include an increase in net secondary school enrolment from 45% to 72% between 1991 and 2008; the construction of 1.6 million free housing units for low-income families since 1994; an increase in access to electricity from 34% in 1993 to 81% in 2007, with similar improvements recorded for water and sanitation; and an expanded coverage of the social grant system, which primarily supports children, from 2.5 million beneficiaries in 1999 to over 13 million in 2009.

Despite these advances, South Africa continues to grapple with extreme differences in incomes and wealth. Inequality has increased, and the poor continue to have limited access to economic opportunities and basic services. Human development challenges loom large. Life expectancy is just 51 years, and South Africa has the largest number of people living with HIV/AIDS in the world (over 5.5 million). Current health problems are rooted in the apartheid legacy, with the migrant labour system responsible for social changes that have led to the destruction of family life, alcohol abuse, and violence – particularly gender-based violence. The health delivery system remains heavily skewed in favor of the elite.

One of the key challenges for the economy is the high level of unemployment. South Africa has one of the world’s lowest labour-participation rates and one of its highest unemployment rates. According to a recent report by the Organization for Economic Cooperation and Development (OECD), out of the 32 million working-age population, only about 13 million people (40%) have jobs, compared with around 60-75% in other middle-income emerging markets. One in three South Africans in the labour force, including half of young black people aged 15-24, is unemployed.

Recognizing the gravity of the situation, the authorities made job creation the top priority in the 2010 and 2011 budgets. The New Growth Path (NGP) sets an ambitious target of creating five million more jobs in the next decade, so as to reduce the unemployment rate by 10%. The NGP strategy is based on enhanced investment in five key sectors, skills development, improved public service delivery, and enhanced regional economic integration. Pravin Gordhan, the finance minister, recently estimated that it would require economic growth of 6% a year for the next 20-30 years to make significant inroads into the ranks of the unemployed. As critics have pointed out, that level of sustained growth has not been seen since the mid-1960s, and looks unlikely to return now.

President Jacob Zuma has made outreach to emerging economies and alliances a priority for his presidency, and, in April 2011, South Africa was formally inducted into the BRIC group (henceforth, BRICS), alongside economic giants, Brazil, Russia, India, and China. South Africa is also according more importance to its membership of the IBSA Dialogue Forum, an international grouping for promoting international cooperation between India, Brazil, and South Africa. IBSA represents three important poles for galvanizing South-South cooperation, and provides the three countries with a platform to engage in discussions for cooperation in the fields of agriculture, trade, culture, and defence, among others.

Another significant challenge is climate change and carbon emissions, especially given the country’s carbon-intensive economy. South Africa meets 77% of its power needs with coal, and has the highest carbon emissions per capita of any developing country – even though many people have no access to electricity. Work on a formal climate change policy, based on renewables, energy efficiency, and low-carbon green industries, is continuing. Speaking at UNIDO’s Vienna Energy Forum in June 2011, Dipuo Peters, the energy minister, said that solar and wind are fine as energy sources for small energy needs like household lighting, but not for the baseload power needed for heavy industry. She said South Africa has large power needs and abundant reserves of coal, so will proceed with construction of two huge 4,500 MW coal power plants. Responding to criticism of the carbon emissions, Peters said the new coal plants would use carbon capture and storage technology. ■

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Agents of change

Ahead of the UNFCCC climate change conference that will take place in Durban from November 28 to December 9, 2011, Making It spoke to South Africa’s International Relations and Cooperation Minister, Maite Nkoana-Mashabane

You recently said that climate challenges cannot be solved without empowering and educating women. Can you explain why?

Women in developing countries are highly dependent on local natural resources for their livelihood, because it is their responsibility to secure water, food, and energy for cooking and heating for their families. The effects of climate change, including drought, uncertain rainfall, and deforestation, make it harder to secure these resources. Therefore, any efforts to address the threat posed by climate change will be insufficient if they do not include empowering and educating women.

Internationally, women are well-positioned to be agents of change through mitigation and adaptation activities in their households, workplaces, communities and governments. Global efforts to address the challenges of climate change cannot afford to ignore them. Empowered and educated women can make wiser environment choices, especially when securing natural resources for their livelihoods. They can also select greener options for heating, cooking and energy.

Women produce up to 80% of the food in the developing world, as they do here in South Africa. Knowledge will assist women to farm in a smarter way with seeds and products which are better suited for the world’s current changing environment. Only when women have equal access to training, information, credit and skills-development programmes will they be able to fully participate in climate change initiatives.

What are the climate change adaptation measures and actions that will help advance the emancipation of Africa’s women?

A global effort is required to ensure not only support for women as they deal with disasters, but also to make meaningful interventions to address climate change. I believe adaptation and mitigation policies that fail to consider gender equity will be inefficient, and will increase poverty and food insecurity.

A coherent approach is required to address the particular challenges faced by women and their role in advancing sustainable development. Such an approach should include climate change adaptation which responds and successfully reduces the vulnerability of natural and human systems to climate change effects.

For Africa to adapt in a manner that creates a climate conducive to the advancement of the emancipation of its women, the international agreements reached on climate change must, as a key element, have support for adaptation in all its forms, be it technology, capacity-building or finance. Africa is one of the most vulnerable continents because of the range of projected impacts and the low adaptive capacity of the region. Adaptation must therefore be central to the Durban climate change conference (COP17/CMP7) outcome, with an urgent need for immediate and adequate support for measures and actions, including the provision of substantial new and additional public financial resources, environmentally sound technologies, and capacity-building in a reliable and prompt manner.

Africa’s priorities are to implement climate change programmes and projects to attain development goals, including the Millennium Development Goals. In this regard, it is important that developed countries and partners provide full support for adaptation strategies in Africa, in particular the implementation of national adaptation programmes of action prepared the least developed countries in Africa. As incoming president of COP17/CMP7, one of my primary objectives is to ensure the package of agreements adopted in Durban will build on this. In this regard, I am supported by the African Union whose heads of state have already prioritized adaptation in climate change.

What can be done to ensure that the financing mechanisms for adaptation will be flexible enough to reflect women’s priorities and needs?

We know that climate change impacts and mitigation and adaptation responses affect women and men differently. Women are more dependent on the natural resources most threatened by climate change, but also have more restricted access to credit, technology, and information.

A transitional committee made up of representatives from 25 developing and 15 developed countries was commissioned to design the Green Climate Fund. It was asked to submit its recommendations for approval at COP17/CMP7 in Durban in November 2011. Women leaders in Durban should therefore scrutinize these recommendations to ensure that it reflects the priorities and needs of women.

You have stated that the participation of women in climate change initiatives must be ensured. Given that women are currently under-represented in the decision-making process of environmental governance, how can the role of women’s groups and networks be strengthened?

Women are under-represented in the decision-making process on environmental governance which is a major concern to me and other women leaders. I, along with many other world leaders, believe women should be equally represented in decision-making structures to allow them to contribute their unique and valuable perspectives and expertise on climate change.

As incoming COP17/CMP7 president, I call on all relevant stakeholders to facilitate and increase the participation of women, particularly at grass roots levels, as decision-makers. It is vital that, before implementing climate change policies, governments, United Nations programmes, funds and agencies and other relevant bodies take the necessary measures to enable women to participate fully in all levels of decision-making relevant to climate change.

As part of the work we do to prepare for the COP17/CMP7, the South African government will be engaging widely with the various communities in South Africa, and women should be part of these dialogues. We want to encourage the women from every part of South Africa to become part of the dialogue and share their ideas and concerns with us.

I will do everything in my power to ensure women have a strong voice in Durban.

The BASIC group of countries (Brazil, South Africa, India and China) are some of the fastest industrializing countries in the world, and, as such, have a pivotal role to play addressing climate change challenges. How can the BASIC group call on other countries to limit their GHG emissions, while increasing their own?

The BASIC group appeals for an inclusive, fair and effective climate change deal, which is favourable to both developed and developing countries. This group of developing economies calls for an agreement that recognizes the common responsibility of all countries to commit to the reduction of emissions, including themselves, while not inhibiting the development of developing countries.

South Africa is implementing nationally appropriate mitigation actions, which will result in the reduction of emissions by 34% by 2020, and by 42% by 2025. We are also in the process of completing our White Paper on National Climate Change Response Policy, which will outline the country’s leadership in response to climate change. ■