The Power Table: South Africa’s love affair with Russia? Counting the cost
South Africa’s attempt to find a place in a fractured geopolitical world is proving to be costly if the rand's plunge to historic lows and the intense sell-off of local bonds and stocks is anything to go by. In this week’s Power Table we attempt to count the costs of our desired neutrality in the ongoing Russia-Ukraine war from political, economic and financial perspective? CNBC Africa is joined by Dr Nicholas Westcott, Professor of Practice in Diplomacy in the School of Oriental and African Studies at the University of London, Dr Adrian Saville, Professor of Economics, Finance and Strategy at the Gordon Institute of Business Studies and Leonard Mbulle-Nziege, Polital Economist and Doctoral Candidate at the University of Cape Town.
Wed, 07 Jun 2023 12:27:30 GMT
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AI Generated Summary
- South Africa faces economic losses due to its perceived neutrality in the Russia-Ukraine conflict, evidenced by missed opportunities like hosting the Formula One event.
- The conflicting views within the ruling party and historical ties to Russia complicate South Africa's positioning on the global stage.
- The upcoming BRICS summit presents a critical juncture for South Africa, with tough decisions on aligning with economic partners or political allies looming large.
South Africa's attempt to find a place in a fractured geopolitical world is proving to be costly for the country as the rand plunged to historic lows recently and the intense sell-off of the local bond market and stocks paints a grim picture. In this week's Power Table discussion, the focus is on counting the costs of South Africa's desired neutrality in the ongoing Russia-Ukraine war. The political, economic, and financial perspectives are scrutinized as experts weigh in on the implications of the country's diplomatic stance. Dr. Nicholas Westcott, Professor of Practice in Diplomacy at the University of London, Dr. Adrian Saville, Professor of Economics, Finance, and Strategy at the Gordon Institute of Business Studies, and Leonard Bulentig, Political Economist and Doctoral Candidate at the University of Cape Town share their insights.
Dr. Saville addressed the missed opportunity of hosting the Formula One due to perceived allegiance to Russia, reflecting on the economic losses in infrastructure spend, tourism, and job creation. While the official government stance emphasizes neutrality, there are conflicting views within the ruling party, complicating the perception of South Africa's diplomatic position. Dr. Westcott highlighted the balancing act South Africa faces between maintaining historical ties to Russia and the economic interests tied to Western partnerships.
The debate intensified as the discussion turned to the upcoming BRICS summit in August and the potential repercussions of siding with Russia. The experts pointed out the economic risks and the need for decisive diplomatic actions to mitigate the impact of sanctions from the US and other Western partners. Dr. Westcott emphasized the importance of maintaining a delicate balance between political friendships and economic partnerships.
Dr. Saville echoed the sentiment that tough decisions lie ahead for South Africa's leadership, emphasizing the need for clear communication and strategic positioning in a time of increased fragility. The struggle to navigate the diplomatic field without alienating key economic allies poses a significant challenge for the country.
As South Africa's diplomatic neutrality continues to be put to the test, the cost of maintaining this delicate balance is becoming increasingly evident. The country's future hinges on its ability to make informed and decisive choices that safeguard both its political relationships and economic interests.
