Since its creation in 1996 by the Afrika-Verein (AV), the Federation of German Industries (BDI) and the Association of German Chambers of Industry and Commerce (DIHK), SAFRI – the Southern Africa Initiative of German Business – has supported many different initiatives aimed at focusing attention on the economic potential of the member states of the Southern African Development Community (SADC) and further promoting German business activities in the region.

In the early 1990s Southern Africa was still caught up in ruinous civil wars. Growth rates were marginal, national economies were isolated as a result of high customs tariffs and trade barriers, and resources in certain states were being plundered by despotic leaders.

Today the region is largely at peace and undergoing a period of rapid change. In political and economic terms the individual nations have united and grown as members of the Southern African Development Community (SADC). With the abolition of apartheid, the Republic of South Africa has been fully reintegrated into the international community and has used its economic power to create many new stimuli. Inflation for the region was just eight percent in 2006, while the annual growth rate climbed to a healthy four to five percent.

New successes have already been added to the well-documented stories of Botswana and Mauritius. Pragmatic economic policy-making has increasingly enabled states such as Mozambique and Zambia to attract foreign investors and develop resources. For the largest growth market, Angola, which has been posting annual growth rates in excess of 20%, where the Hermes export credit guarantees were stocked up and an investment protection agreement was signed.

Today, democracy and the rule of law are firmly anchored in most states. Nations that once gave cause for concern are now making progress – for example through the successful elections in the Democratic Republic of Congo. Good governance is gaining ground, and mechanisms to combat corruption are increasingly put in place.

International players such as the EU and the G8 nations have demonstrated support for the reforms in Southern Africa. Federal Chancellor Dr. Angela Merkel, for example, made promoting investment in Africa and the continent’s increased global economic integration into one of the topics of Germany’s presidency of the G8.

Generous debt cancellation has meant that a major obstacle to growth has been removed. Conditional development cooperation of this kind strategically promotes democracy, good governance and sustainable development.

HIV/AIDS and crime in urban conurbations, Southern Africa with its population of 250 million people is a market of great opportunities. China has recognized this fact and has already developed a strong presence in the region.

The 2010 FIFA World Cup flagship project will direct the world’s attention not just to South Africa but to the region as a whole. The country expects close to 400,000 visitors, with billions around the world following the tournament on television. Even when the global event’s final whistle has been blown, SADC-wide investment in infrastructure, logistics and tourism will continue to provide benefits for South Africa and her neighbours.

Together with my colleagues on the SAFRI executive committee and the supporting organisations, I am convinced that our commitment to this promising region will handsomely repay dividends – in political, economic and human terms. It is now up to us to play an active role in Southern Africa. If Africa’s problems cannot be solved, they will become our problems.

Prof. Dr. h.c. Jürgen E. Schrempp