South Africa as a Development Partner: An Empirical Analysis of the African Renaissance and International Cooperation Fund

Philani Mthembu

doi:10.1007/978-3-030-57938-8_26

Abstract

AbstractAs South Africa looks to consolidate its role as a development partner, it remains an open question whether it can maintain a strong presence in Africa while facing significant challenges at home. With the economy struggling to grow and the government increasingly cutting back on expenditure, one has to wonder whether these cuts are translating into a reduction of its role as a development partner in Africa. With the eagerly awaited South African Development Partnership Agency in mind, this chapter examines data from the African Renaissance and International Cooperation Fund (ARF) between 2003 and 2015. It shows empirically that, despite increasing allocations and disbursements in the years following its inception, the global financial crisis and domestic challenges have taken their toll on the ARF’s activities.

Highlights

An intriguing dynamic within the contemporary global political and economic landscape involves the growing role of Southern powers, which have increasingly important roles within their own regions, while expanding their influence in various international jurisdictions
This chapter assesses empirically what insights can be learnt from South Africa’s African Renaissance and International Cooperation Fund (ARF) and whether the budget allocations and disbursements over a period of 12 years show a Southern power allocating a growing amount of resources in line with its rhetoric or one that is increasingly learning to live within its means under tough economic times
This allows for assessing whether spending has been on an upward trajectory or whether less funding has been allocated in previous years, especially with the onset of the global financial crisis as well as challenges in the South African economy

Summary

26.1 Introduction

An intriguing dynamic within the contemporary global political and economic landscape involves the growing role of Southern powers, which have increasingly important roles within their own regions, while expanding their influence in various international jurisdictions. This chapter assesses empirically what insights can be learnt from South Africa’s African Renaissance and International Cooperation Fund (ARF) and whether the budget allocations and disbursements over a period of 12 years show a Southern power allocating a growing amount of resources in line with its rhetoric or one that is increasingly learning to live within its means under tough economic times. If allocations and disbursements have consistently grown, one can conclude that the country’s financial contributions on the African continent have increased in line with its policy of promoting the African agenda; if the disbursements are shrinking, it is arguable that South Africa’s development cooperation architecture is still working out its own capabilities while learning to live within its means Both scenarios have an impact on the manner in which scholars can interpret South Africa’s development diplomacy, especially in the context of the SDGs. the findings may open a small window into South Africa’s broader international development activities, they only apply to the ARF, which— it is among the country’s most visible tool for disbursing its development cooperation—still accounts for less than 5 per cent of the country’s overall activities. Despite increasing allocations and disbursements in the initial years following its inception, the global financial crisis, domestic challenges, and uncertainly over the operationalisation of SADPA

26 SOUTH AFRICA AS A DEVELOPMENT PARTNER

26.2 Methodology

26.3 Contextualising South Africa’s Role as a Development Partner

26.5 Conclusion

Findings