Even though South Africa is Turkey’s largest trade and investment partner in sub-Saharan Africa, bilateral trade and investment stood at a paltry $2-billion and $100-million respectively in 2024, according to the Turkish Ministry of Foreign Affairs.
Last week, Deputy President Paul Mashatile, accompanied by a South African ministerial and business delegation, participated in the biennial Turkey-Africa Business and Economic Forum in Istanbul. He also used the visit to strengthen bilateral ties between South Africa and Turkey, culminating in the inaugural meeting of the Binational Commission between the two countries.     Â
The two nations established diplomatic relations in 1993. They are both middle powers, one situated at the southern tip of the African continent, and the other straddling Europe and Asia. Although there has been significant progress in terms of shoring up political and diplomatic engagements, little headway has been made in respect of advancing economic cooperation. Even though South Africa is Turkey’s largest trade and investment partner in sub-Saharan Africa, bilateral trade and investment stood at a paltry $2-billion and $100-million respectively in 2024, according to the Turkish Ministry of Foreign Affairs. Â
The limited trade and investment interaction between the two countries highlights the urgency of boosting economic collaboration. This includes, among others, reconfiguring trade and investment ties as well as identifying and capitalising on potential areas for growth. Currently, South African exports to Turkey include coal, gold, chrome and manganese, while the country’s imports from Turkey include petroleum products, machinery and textiles.      Â
To grow trade and investment volumes, both countries must seriously consider concluding a Free Trade Agreement (FTA). This is even more urgent in light of the rapidly changing global geopolitical conditions and shifting alliances, as well as the attendant changes in international trade. Â The idea of signing an FTA is not new. It was first mooted during a visit by the former Turkish Foreign Minister Ahmet DavutoÄŸlu to South Africa in 2011 and has resurfaced periodically.Â
By reducing tariff and non-tariff barriers, an FTA would:
- Foster increased trade and make it easier for the countries to trade with each other.
- Broaden market access, enabling South African and Turkish companies to expand their presence in each country’s market.
- Create conditions conducive to attracting foreign investment and creating new business and job opportunities.
- Spur economic competitiveness, productivity and innovation.
South Africa has previously voiced concerns about Turkish goods competing with local manufacturing. Also, the country is enjoined to take into account the views of its Southern African Customs Union countries — Botswana, Lesotho, Namibia and Swaziland — with which it shares a common external tariff.Â
In terms of the union’s agreement, South Africa is required to obtain the consent of these countries before entering into binding trade accords with third parties. These concerns are not insurmountable and can be addressed as part of the FTA negotiation process. There is also a need for the two countries to streamline bureaucratic processes and provide incentives that can attract investments. Furthermore, they must explore new trade and investment opportunities in various sectors that can help strengthen bilateral ties.    Â
South African and Turkish policymakers must prioritise areas where there is potential for growth. One of these is energy. There is enormous scope for Turkish firms to participate in South Africa’s infrastructure projects, such as green energy, transmission lines and transportation systems.
Moreover, South Africa’s industrial base and Turkey’s manufacturing capabilities can be harnessed to promote value-added production and industrialisation. Turkey’s growing appetite for critical raw materials in Africa provides opportunities for cooperation with South Africa in areas such as the extraction, refining, or recycling of rare earth elements.
The African Continental Free Trade Area — which comprises a population of 1.3 billion with a combined GDP of $3.4-trillion — provides another avenue for South Africa and Turkey to collaborate on the wider African continent. South Africa is a pivotal actor in Africa with an extensive diplomatic and economic footprint.   Â
Over the past three decades, the country has developed a strong economic presence in key regional markets, including southern, East and West Africa. It could serve as a vital partner for Turkey in navigating the African Continental Free Trade Area and in enabling South African and Turkish firms to jointly pursue cooperation in third markets.     Â
Strong institutional underpinnings
Effective economic collaboration cannot be attained in the absence of strong institutional underpinnings. For this reason, it is crucial for policymakers in both countries to revitalise the moribund Joint Economic Commission, which last met in 2017. The commission provides a platform for continuous technical engagement beyond high-level political meetings and, consequently, it is central to sustaining momentum in bilateral interactions.
The potential for heightened economic cooperation between South Africa and Turkey is vast and promising. However, policymakers need to cast a laser focus on concrete economic outcomes facilitated by an FTA, to realise this potential.Â
It demands that policymakers identify practical areas for collaboration and develop implementable plans. The emphasis must be on exploring new sectors and industries to enhance bilateral trade and investment; strengthening economic ties through joint ventures, partnerships and collaborative projects; sharing knowledge, expertise and technologies to drive innovation and entrepreneurship; and building on existing diplomatic relations to solidify economic bonds. DM
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