Reference News, July 8 report: The German magazine "Wirtschaftswoche" published an article titled "Why South Africa May Become a Partner of the EU" on its website on July 5. The author is Zelin Yimen Sefu. The following is a translated version of the article:

The South African aluminum cab company has long phased out diesel generators and installed electrolyzers - this device has been producing green hydrogen using water and electricity from photovoltaic systems for two years. When there is insufficient sunlight or the power grid is cut off, fuel cells will start up. The pilot project, called HyTrA, is led by the Fraunhofer Institute for Mould and Forming Technology and a technical textile consulting company located in Chemnitz. Most of the core technologies also come from Germany.

Green hydrogen is just one of the areas where South Africa may attract Germany's attention in the future. Many crisis regions around the world and the United States' isolationist policies are forcing Germany and Europe to seek new allies and deepen existing partnerships. At the upcoming BRICS summit in Rio de Janeiro, India and South Africa, the largest economy on the African continent, will become the focus. South Africa hopes to play a more important role in the BRICS and will host the G20 summit in November.

German Chancellor Friedrich Merz stated in his government declaration that Africa "has received too little attention from us and Europe," and the new government hopes to "actively shape this neighboring relationship." Therefore, the ruling coalition agreement announced a new German strategy toward Africa.

In the future, South Africa may become Germany's "anchor country" in Africa. This country at the Cape has already been Germany's most important partner in Africa, with bilateral trade reaching 20 billion euros. Stefan Ruhnhoff, a specialist in African issues and Parliamentary State Secretary at the German Federal Ministry for Economic Affairs, said: "For German companies hoping to expand their economic activities in sub-Saharan Africa, South Africa is a potential hub." This is consistent with the findings of a survey by KPMG. The survey found that 44% of German companies plan to increase investments in Africa within the next three years.

Economists are also optimistic about South Africa's economic prospects. Tobias Heidlan, a development economist at the Kiel Institute for the World Economy, said: "The country has a lot to offer in the coming years." A recent study by the institute shows that South Africa already has about 10 million middle-class people with purchasing power.

So far, Germany has only partially utilized this potential.

Under the shadow of tariff conflicts, South Africa's interest in strengthening its economic relations with Germany and the EU may also grow. The US's "Africa Growth and Opportunity Act" allows 35 African countries to export goods to the US duty-free. This free trade agreement will expire in September. Given the trade protectionism of US President Donald Trump, it is unlikely to be extended. So far, South Africa has benefited the most from this program. The US is the second-largest buyer of South African products globally, after China.

Now, South Africa must open up new markets for minerals, steel, and food - especially after US President Donald Trump directly accused South African President Ramaphosa of "persecuting white farmers" in the White House, which has cooled political relations between the two countries.

However, Germany's relationship with Africa is positive. Since the 1990s, every German government has advocated for reform of the UN Security Council and encouraged greater participation of African countries. Former Chancellor Olaf Scholz also supported the African Union joining the G20. The union became a G20 member since September 2023. Economist Heidlan said: "This is an asset in diplomacy."

South Africa's current macroeconomic data undoubtedly has room for improvement. Experts predict the country's economic growth rate will be about 1% in 2025, while a near 33% unemployment rate is worrying. In addition, there are problems such as corruption, high crime rates, and inadequate energy security.

A positive aspect is that the inflation rate is under control at 3.8%, and foreign direct investment in the fourth quarter of 2024 was slightly higher than 410 million dollars. Power supply has also made progress. The South African government is working to improve the operations of the state-owned power company, which is known for inefficiency.

Another advantage of South Africa is its relatively diversified economic structure. It is the largest automotive industry base in Africa and is active in other sectors as well.

Jenny Thara, representative of the German Foreign Trade and Investment Agency in South Africa, said: "South Africa has strategically significant raw materials, especially for the chemical industry." (Translated by Nie Litao)

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