/ 23 February 2004

SA budgets for Africa

South African will continue to invest heavily in building political stability in Africa and in the reconstruction and development of the continent in the coming year.

The 2004 Budget significantly increases the government’s commitment to the New Partnership for Africa’s Development (Nepad) and the African Union. South Africa continues to pick up the tab for the Nepad secretariat in Midrand and it pays the lion’s share of the peacekeeping bill in Burundi. On Wednesday Minister of Finance Trevor Manuel announced a R1,1-billion increase in spending on peacekeeping.

South Africa has about 1 500 men in Burundi, where they form the largest unit in the three-nation African Mission. Peacekeepers from Mozambique and Ethiopia are sponsored by the United States and the European Union.

The finance minister allocated R496-million for Burundi peacekeeping in the current budget — up from R261-million last year. He projects expenditure of R367-million in the next year.

South Africa is supposed to be refunded by the AU for its Burundi expenditure, but the new organisation does not have the revenue to do this.

Diplomatic efforts in New York are focused on getting the United Nations to assume peacekeeping operations in Burundi. However, this is unlikely to happen until the National Liberation Forces of Agaton Rwasa can be drawn into signing a peace agreement.

UN ground rules prevent the deployment of blue helmets until there is a comprehensive peace.

A further 1 500 South African soldiers are deployed with Monuc, the UN force in the Democratic Republic of Congo (DRC). Although the world organisation is paying for this, Manuel has more than trebled the budget allocation for peacekeeping in the DRC to R255-million and pro-jects a further increase to R332-million next year.

The cost to taxpayers of Nepad and the AU is spread among the Presidency, the Department of Foreign Affairs and the Department of Defence. The Presidency will pay R74-million to African causes this year, up from R67-million last year. Foreign Affairs is expected to spend most of the R427-million allocated to enhancing foreign representation on missions in Africa. With its heavy reliance on foreign exchange, the department had a bonanza with the stronger rand, returning R282-million to the exchequer last year.

Spending on the AU continues to be heavy even though South Africa relinquished its chairmanship of the organisation in July last year. South Africa has assisted Mozambique, which assumed the seat. AU spending this year will be R30-million, up from R14,5-million last year. The department will funnel R25-million to Nepad projects, up from R19,2-million last year.

The African Renaissance Fund will cost the department R50-million this year. No provision has been made for hosting the Pan African Parliament that has its first meeting in Addis Ababa next month where South Africa is expected to pitch against Egypt and Libya to become the venue for this institution.

In its motivation of expenditure, the Department of Foreign Affairs says: “Priorities include facilitating the vision of the African renaissance by promoting regional and continental integration, good governance, sustainable socio-economic development and poverty eradication; participating in international efforts to seek lasting peace and stability in conflict areas, especially in Africa and the Middle East; and promoting the agenda of the South by strengthening solidarity with the developing world and building partnerships with the developed world to foster sustainable development, with special emphasis on the needs of Africa.

“Membership of the AU is currently the key issue in South Africa’s international relations. Core activities include developing AU policies and structures, continuing Nepad activities, and ensuring that AU and Nepad policies are harmonised with those of the regional economic communities.”

In an interview with e.tv on Wednesday night, Manuel insisted that money spent on building political stability in Africa was an investment and not simply out of altruistic motives. Manuel explained that a politically stable and secure continent would increase the size and attraction of the African market and encourage foreign investment, from which South Africa will benefit. South African companies have also been investing heavily in the continent.