Thursday, February 15, 2018

German Businesses React to Zuma's Resignation

The news of South African President Jacob Zuma's resignation has had an impact in places as far afield as Germany. South Africa is Germany's biggest trading partner on the African continent, as well as an important destination for German investment. German businesses are hoping for stronger ties in the post-Zuma era.

Ira Spitzer reports from Berlin.

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VO#1 Just three years ago, Jacob Zuma made his first - and only - state visit to Berlin. He and German chancellor Angela Merkel had important things to discuss. Over 600 German companies are active in the South Africa including large players like the carmakers Volkswagen and BMW. Here's Zuma speaking after that meeting.

SOT, Jacob Zuma, Ex-President, South Africa
"Any economy to grow will either look at itself but also link it with other important and meaningful investors. And this is what we are looking for"

VO#2 Despite some friction over an investment protection treaty, Zuma's tenure was largely viewed as a period of growth by German businesses even in times of political instability. Still, Christoph Kannengiesser, the CEO of the German-African Business Association, says many were hoping for a deeper relationship.

SOT, Christoph Kannengiesser, CEO, German-African Business Association
"We had the impression that Zuma wasn't so interested in the relationship to European countries in general, and Germany."

VO#3 Germany is South Africa's second largest trading partner after China, and German companies employ more than 90,000 people in the country. The German business community now sees an opportunity to revisit areas of concern, such as better protection for German investors, and making it easier to obtain visas for skilled workers. Many are eager to work with the new country's new leaders.

SOT, Christoph Kannengiesser, CEO, German-African Business Association
"All those who know South Africa and South African politics quite well are very optimistic that under the leadership of Cyril Ramaphosa, the country will take up speed in terms of growth and will be more open for international companies and international investors"

VO#4 Despite the optimism, much remains unknown about how exactly the relationship will develop. However, one thing is certain. Whenever the next official visit happens, there will be a different set of leaders shaking hands. Ira Spitzer, Berlin. 

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