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South Africa And The New Partnership For Africa'S Development: Economic Spin‐Offs And Linkages

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  • OLUDELE A AKINBOADE
  • PINKY LALTHAPERSAD‐PILLAY

Abstract

The New Partnership for Africa's Development (NEPAD) is a concerted effort by Africa's political leaders to develop a comprehensive and integrated strategic policy framework to raise current levels of socio‐economic development and reduce high levels of poverty across the African continent. The NEPAD framework recognises the need for African countries to pool their resources together in order to enhance regional development and economic integration. To this end, NEPAD emphasises capacity building and also seeks to solicit and disburse funds towards infrastructural development programmes and poverty alleviation projects, among others. South Africa's involvement with the rest of Africa has increased significantly since 1994. Trade exports, foreign direct investment (both market and resource‐seeking in nature) and public‐private partnerships have mushroomed in many parts of the continent. Many South African firms are providing the financial impetus for the infrastructural development and rehabilitation of African economies. This paper discusses salient economic linkages between South Africa and the rest of Africa within the framework of NEPAD. South Africa is the economic hub of sub‐Saharan Africa (and indeed of the African continent), with significant agricultural, manufacturing and services capacity. South African firms have invested in the development of a number of sectors in the rest of Africa, taking advantage of the new investment incentives offered by the NEPAD framework. The target sectors range from mining, the hospitality industry, engineering and construction, finance to telecommunications. These investments and economic involvements are crucial to the development of African countries and the relevant sectors that are important for the realisation of some of the objectives of NEPAD.

Suggested Citation

  • Oludele A Akinboade & Pinky Lalthapersad‐Pillay, 2005. "South Africa And The New Partnership For Africa'S Development: Economic Spin‐Offs And Linkages," South African Journal of Economics, Economic Society of South Africa, vol. 73(2), pages 243-268, June.
    • Handle: RePEc:bla:sajeco:v:73:y:2005:i:2:p:243-268
    DOI: 10.1111/j.1813-6982.2005.00016.x
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    References listed on IDEAS

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    1. Bjorvatn, K., 1999. "Infrastructure and Industrial Location in LDCs," Papers 11/99, Norwegian School of Economics and Business Administration-.
    2. World Bank, 2000. "Can Africa Claim the 21st Century?," World Bank Publications - Books, The World Bank Group, number 22962, April.
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