There is definitely a pattern in Islamabad’s initiative to reach out in search of new trade and investment markets. Russia, India, Australia and now South Africa. We seem to have developed a special liking for emerging economies, and it helps if they are commodity plays. The latest move – to reach out to South Africa – builds on earlier momentum. Not only does it (potentially) tap a vibrant emerging market, it also makes inroads to the entire continent. As it turns out, South Africa is truly the gateway to greater Africa, both in diplomatic terms (its position and influence in continental bodies) and in logistical matters (it borders or leads to most important countries).
Then South Africa is also a commodity heavyweight. Even if markets are jittery now, its gold muscle brought rare advantages right through the long recent months when international finance went through one of its most bitter bouts with risk aversion. More importantly, its post ’94 trajectory notes remarkable and continuous improvement in manufacturing and industry, hence its stable production base and healthy earning.
Good advances all in all. Yet, as we always point out, such adventures lack necessary punch so long as our own production base (read value added exports) is not up to the mark. Despite breakthroughs, our exports are miniscule, and our investment potential lacking by global standards. So, while the impressive outreach continues, it is just as important, if not more so, to make sure we have sellable items to take to diverse markets driven by value addition. And in most countries this effort is taking us closer to, we find this lesson well learnt and implemented.
