Business Report

Why international diplomacy matters for South Africa’s economic growth

Linah Ledwaba|Updated
Chery's investment in its Rosslyn manufacturing plant in Pretoria is a clear example of the benefits of strategic economic diplomacy, reflecting Deputy President Paul Mashatile's efforts to attract foreign investment that drives industrial growth, creates jobs and strengthens South Africa's manufacturing sector.

Chery's investment in its Rosslyn manufacturing plant in Pretoria is a clear example of the benefits of strategic economic diplomacy, reflecting Deputy President Paul Mashatile's efforts to attract foreign investment that drives industrial growth, creates jobs and strengthens South Africa's manufacturing sector.

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International travel by public officials is often subject to scrutiny, particularly because it is funded by taxpayers. South Africans are justified in expecting clear evidence that official visits abroad deliver tangible benefits and advance the country's development objectives. South African Government has a responsibility to ensure that every international engagement contributes to national priorities, strengthens strategic partnerships and creates opportunities for economic growth.

In recent years, Deputy President Paul Mashatile has undertaken official working visits to key international partners, including China in 2023 and the United Arab Emirates (UAE) in 2024. These engagements aimed to strengthen political, economic and diplomatic relations while advancing South Africa’s long-term vision of a resilient, self-reliant economy. Central to this approach is an independent foreign policy that prioritises South Africa’s national interests and supports sustainable development.

As Ghana’s first President, Kwame Nkrumah, famously stated, “We face neither East nor West; we face forward.” This principle continues to guide South Africa’s efforts to build an inclusive economy that creates sustainable jobs, attracts investment and expands opportunities for local communities. The deputy president has been a vocal proponent of South Africa as an investment destination, urging foreign direct investment while at the same time stressing the importance of local participation, skills development and broad-based economic growth.

His focus has been to create long-term investment opportunities in high-growth sectors such as manufacturing, technology and renewable energy. The benefits of these international engagements are increasingly becoming visible.

A notable example is the recent launch of BrainSAT Satellite Services and Thuraya satellite connectivity solutions in Johannesburg. This is a direct result of the Deputy President’s working visit to the UAE in April 2024, where meetings with Space42 and BrainSAT Technologies led to the signing of a Memorandum of Understanding with the Department of Communications and Digital Technologies.

What began as a diplomatic engagement has since matured into a partnership that is supportive of South Africa’s digital transformation agenda. It shows how strategic international co-operation can be turned into investment, technological development and better services for citizens. The partnership brings advanced satellite communications technology closer to South Africans while strengthening the country’s digital infrastructure.

It further supports the government’s goal to provide reliable connectivity to unserved communities, and to eliminate location as a barrier to access to opportunity. Improved satellite connectivity could revolutionise education, business, healthcare and access to public services, especially in remote areas. It will also improve disaster response capabilities and create opportunities for small enterprises to participate more fully in the digital economy.

As the deputy president noted, “This launch is more than the unveiling of devices. It is about preserving dignity and ensuring that every child, whether in a rural village or a bustling city, has equal opportunities to learn, to dream, and to succeed. This vision aligns with initiatives such as SA Connect, the Digital Transformation Roadmap, and the National Satellite Communications Strategy, all of which seek to close South Africa’s digital divide.

The BrainSAT partnership strengthens these efforts by extending connectivity beyond the reach of traditional broadband infrastructure. In the same vein, the establishment of the Chery Rosslyn Manufacturing Plant demonstrates the value of strategic economic diplomacy and effective collaboration between government and the private sector.

The project, which gained momentum following the deputy president's working visit to China in 2023, reflects South Africa’s commitment to attracting investment, expanding industrial capacity, and creating jobs. The plant is much more than just a big investment.

It is a demonstration of South Africa's ambition to develop a competitive and self-sustaining manufacturing sector that creates employment, develops skills and delivers long-term economic growth. The project also highlights the importance of coordinated action across government. The Gauteng Provincial Government, under Premier Panyaza Lesufi, and the Department of Trade, Industry, and Competition played important roles in supporting investment discussions, strengthening economic cooperation, and advancing industrial development.

These partnerships illustrate how international engagement can deliver concrete outcomes when aligned to national priorities. Diplomacy should not be measured by the number of visits made, but by the investments won, the opportunities created and the long-term value delivered to citizens. Equally important is ensuring that foreign investment contributes to inclusive economic development.

The deputy president has consistently emphasised the importance of integrating local suppliers, supporting emerging enterprises, and creating opportunities for young entrepreneurs. The deputy president urged Chery to work closely with the government to identify, support, and integrate local suppliers into its value chain, with a special focus on youth-owned enterprises. As he observed, “For it is in the strength of our supply chains that the resilience of our industry is secured, and it is in the creativity of our young entrepreneurs that the future of our economy is written.”

This call reflects the government's broader commitment to ensuring that foreign direct investment serves as a catalyst for broad-based economic transformation, skills development, and sustainable job creation. International companies bring advanced technologies, technical know-how and best practices from around the world.

Yet sustainable and impactful development will only be possible when such investments are embedded in strong partnerships with local businesses and communities. Initiatives such as the BrainSAT partnership and the Chery Rosslyn Manufacturing Plant demonstrate how international cooperation can support South Africa’s development goals while empowering local communities. The impact of the Deputy President’s visits to China and the UAE did not end when the delegations returned home.

Their value is evident today in investments and partnerships that are strengthening South Africa’s digital and industrial future. Ultimately, the true measure of international engagement is not the distance travelled, but the lasting benefits it delivers for the people of South Africa.

(Ledwaba, is Communications Specialist in the Office of the Deputy President of South Africa. The views expressed here do not necessarily reflect those of the Sunday Tribune or IOL)

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Linah Ledwaba, Communications Specialist in the Office of the Deputy President of South Africa

Linah Ledwaba, Communications Specialist in the Office of the Deputy President of South Africa

Image: Supplied