The more SA’s position as the gateway to Africa for foreign investors is eroded by a changing global order that includes changes in Africa itself, the more the debate in support of it seems to be aired in public forums locally.

The issue has come back onto the agenda as the BRICS (Brazil, Russia, India, China and SA) summit in India approaches. SA’s membership of the group has lent credence to the country’s perception of itself as not just the gateway to Africa but also the representative of Africa. Critics would argue that it qualifies on neither count in any definitive way.

Officially, SA has been slow off the mark to capitalise on its natural advantages as the traditional Africa gateway that has been exploited by western multinationals for years.

Only in the past few years has the government has started to discuss ways to formalise this historical advantage and ensure that SA remains the gateway of choice.  

Since 2008, the Treasury has been discussing how to position SA as a financial gateway. This has led to some exchange control concessions for Africa-specific investments, for example. Since 2009, the Department of Trade and Industry has also been discussing ways to better position SA as a gateway but nearly three years later, this is still a work in progress.

While the bureaucrats mull over the issues, Africa is already moving on. The continent is awash with international investors flying directly into Lagos, Nairobi, Kigali, Maputo and Luanda in search of deals, opportunities and partners. Global hotel brands are popping up across the continent and new shiny office blocks housing myriad foreign companies are changing the skylines of African cities.

These developments undermine the notion of a single gateway to Africa as the debate in SA presupposes.

SA will undoubtedly remain a destination of choice – it is still continent’s biggest and most diverse economy and its infrastructure and services industries are still well above its gateway “competitors” in Africa.  It is also attractive to new emerging market investors looking for companies and managers with pan-African experience and footprint. 

But the notion of a single gateway is losing ground. As the global order changes, so business models and investor considerations of Africa are also changing.  

Logistics and geography are playing a greater role in international business. Improving transport links between African countries and international markets is obviating the need for SA to be a key part of the supply chain for goods that do not originate there.

Business decisions are increasingly based on regional and sector-specific considerations, which is influencing the choice of location for companies. South African companies are benefiting from this given their strong presence in many key African markets that are becoming gateway economies.

The potential scale of operations and increasing competition for business opportunities in Africa means multinationals need a presence in multiple markets rather than trying to run far-flung and difficult markets from Johannesburg.  

Hundreds of companies operating in the biggest areas of new investment and growth – mining, oil and gas – view strategic conferences such as the annual Mining Indaba and Africa Oil Week as their “gateway” to Africa’s opportunities.

Transport corridors, the rehabilitation of transport infrastructure and improving performance of ports such as Beira, Maputo and Walvis Bay are providing alternatives to Durban and changing trade patterns in southern Africa.

While China’s diplomats constantly refer to SA as the economic giant’s gateway to Africa, its companies – and politicians – tend to deal with Africa directly from Beijing.  

The premise in international forums that SA speaks on behalf of all Africans and has significant influence over continental debates and agendas is not unanimously embraced within Africa. The assumption that one country would speak for the whole continent is in any case flawed and diminishes the diversity of the continent and capabilities of other players.

Nevertheless, SA’s role in Africa is vital and it needs to maintain its relevance as a pivotal economy. It needs to do this by focusing on its competitive advantages – doing better what it does best.

It also needs develop a compelling “SA Inc” investment case and strategically link its interests to other African gateways to realise greater benefits for SA in the new scramble for Africa.