How Africa can foster sustainable diplomacy amidst global trade tensions

Ashraf Patel

The abrupt exit of Donald Trump from the G7 Summit in Canada, without having side meetings with Global South leaders from South Africa, India et al, and this week’s NATO Summit where  core nations committed to a 5% of GDP spending on Defence amidst Trump tariffs  has cemented ‘nationalism as the new normal.’

Meanwhile, 9 July is a key date when Trump tariffs kick in and will further erode  African nations  - who face high costs of capital and many face social conflicts amidst multiple cost of living crises facing the continent.  In this context, South Africa should develop a smart agile and sustainable diplomacy rooted in both national interest and continental solidarity. 

Traditional blocks and alliances are no longer viable for middle powers.  It is thus imperative that South Africa needs to craft a more nuanced trade and investment-people partnership to address its sagging economy and deep-seated structural problems such as unemployment, inequality, hunger and digital deficits. 

The recent announcement by China to accept duty-free access for 53 African nations is a huge boost that can promote exports and preserve jobs - but trade facilitation and meeting product standards will be crucial to leverage these opportunities. Both China and India offer a market of hundreds of millions of consumers that African exporters can tap into. 

Russia and the St Petersburg Economic Forum

In early June Deputy President attended the 28th St. Petersburg International Economic Forum (SPIEF) in Russia's second-largest city.

This year's forum, "Shared Values: The Foundation of Growth in a Multipolar World attracted nearly 20,000 representatives from 140 countries and regions and heads of several international organizations. Russia has managed GDP growth and currency reserves despite sanctions and war and is the Gateway to Eurasia. This forum is held when the global economy is facing severe challenges. It is a platform for issues ranging from accelerating digitalization to addressing climate change and formulating specific, practical solutions that can adapt the global economy to new conditions.

The forum included more than 150 events, with entrepreneurs from Russia, China, the United States, Türkiye, Brazil, Vietnam, India, Iran, the United Arab Emirates and Africa. 

Southern Africa, SACU and AFCFTA expansion 

Our Southern African region comprises over 300 million citizens with huge trade and development potential. AFCFTA has been operational for five years but trade is negligible. Trade facilitation capacity and product quality support are needed as well as tech transfer.  As the G20 host nation South Africa needs a new trade and investment package rooted in SADC industrialisation and energy plans. Smart tariffs would be needed with SACU nations Lesotho, Swaziland and Botswana. However, South Africa Inc.'s story in Africa has been that of a ‘regional hegemon exploiting the rest of Africa’, especially in mining and retail.

Can a new AFCFTA be possible? One rooted in fair trade, solidarity and the SDG model with smaller nations? Here responsible diplomacy is needed beyond rhetoric. 

France  and its commitments to Multilateralism and SDGs agenda

In the current geopolitical situation, France is ensuring multilateralism and UN norms are adhered to. President Macron's stated position on advancing the two-state solution for Palestine will go a long way in ensuring a peaceful settlement.  The Paris AI Safety Summit in February with France committing to a progressive vision for AI rooted in sustainability, inclusion and addressing inequality is progressive and aligned to UN and G20 commitments. 

The annual  Paris Peace Conference is a global platform providing the world with a plethora of progressive ideas -and solutions on a range of key global issues for dialogue. 

At a bilateral level, a visit to France in early June saw Deputy President Paul Mashile deepen partnerships in areas of investment, development infrastructure, energy and technology.  

Indonesia, Malaysia  and the ASEAN bloc

ASEAN nations Indonesia and Malaysia nations offer enormous opportunities. With a population of 250 million, this is a major opportunity in trade especially in small business developments, exports, tourism and culture.

Canada and Australia - progressive Commonwealth nations with common values 

Canada and Australia are fellow Commonwealth nations that currently have progressive governments in power with a deep commitment to multilateralism.  Australia’s Labour leader and Prime Minister Albanese is an example of smart diplomacy and managing a ‘strategic autonomy’ balance with major powers in the Asia Pacific region, China and the EU. His domestic agenda is rooted in progressive social policies from climate change to social cohesion. For example, the smartphone ban in Australian schools is seen as a game-changer in regulating social media and youth, a policy Africans can learn from.

Canada too has a range of commitments to development aid and investments in skills development across Africa.  Both nations are major investors in mining in Africa and committed to the sustainable mining agenda, although much more can be done in terms of human rights and mining. 

Solidarity and Sustainability in Latin America 

In Colombia President  Gustavo Petro has showed the way of solidarity and banned coal exports to Isreal.  The city of Bogota is known to be a model city in terms of urban transport and spatial transformation, something South African metros can draw upon. 

Chile a progressive social democracy and once a poster child of Chicago-style neoliberalism, now has a solid social democracy increasing well-being and wealth social safety nets, and higher education access.

Here South Africa can learn much on how to manage the headwinds of neoliberalism and ensure our eroding social agenda is preserved. 

Bolivia’s socialist government is maturing and learning to be in government. South Africa has cordial relations for two decades.  With large reserves in lithium and being in the headwinds of large power competition for resource extractions, South Africa and African nations can better engage Bolivia and Latin American nations in the big development ideas on resource governance and the beneficiation of critical minerals for development, trade and the UN SDG sustainable agenda. 

While Trump 2.0 tariffs have severely disrupted African nations, neighbours Canada and Mexico, we can learn from Cuba, who for decades have endured the illegal US blockade yet managed to maintain their sovereignty and continue to advance their historical mission and revolution.

By contrast, our current tariff challenges are merely a ‘walk in the park’. Hence, internationalism and solidarity should still be a core feature of foreign policy while also being smart in navigating partnerships with a diverse range of nations across continents regardless of ideological blocs.

However, in order to navigate the ‘new nationalist normal’ in this chaotic trade geopolitics nexus calls for a new generation of smart and agile diplomats.  Smart and sustainable diplomacy and outreach are required by our embassies,  chambers of commerce as well as academic institutes and civil society towards a more calibrated trade, investment, solidarity and people-to-people partnerships. We may do well to establish Bi-National Commissions with some of these nations.

* Ashraf Patel is a Senior Research Associate at the Institute for Global Dialogue, UNISA.

** The views expressed do not necessarily reflect the views of IOL, Independent Media or The African.