AMBASSADOR MEETS WITH SOUTH AFRICAN HIGH

C O N F I D E N T I A L SECTION 01 OF 02 ACCRA 000486

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E.O. 12958: DECL: 02/23/2016
TAGS: PREL EINV EAIR GH
SUBJECT: AMBASSADOR MEETS WITH SOUTH AFRICAN HIGH
COMMISSIONER


Classified By: Ambassador Pamela Bridgewater for Reasons 1.5 b & d


1. (C) Summary. On February 21, Ambassador Bridgewater paid
a courtesy call on South African High Commissioner Rapulalne
Sydney Molekane. The broad-ranging discussion covered South
African investment in Ghana, the current state of Ghanaian
politics, Avian Influenza preparedness, civil aviation, and
South African - Ghanaian defense cooperation. Both agreed to
take action to strengthen common interests, especially in the
areas of Avian Influenza and civil aviation. End Summary.

SOUTH AFRICAN INVESTMENT IN GHANA
--------------

2. (C) In response to the Ambassador's question about the
experiences of South African investors in Ghana, the High
Commissioner said there were 23 registered South African
companies in Ghana. Most of these were concerned with
mining, but an increasing number of retail, import, and
export companies were investing or considering investing in
Ghana. He meets with these companies monthly to discuss the
investment climate. The High Commissioner said that many
South African companies were interested in Ghana because of
its proximity to Nigeria. He said, "South Africans fear
Nigeria, but cannot ignore the market," and added that the
relative calm of Accra made an attractive base of operations
for companies working in both Ghana and Nigeria.


3. (C) Molekane said South African firms place trade barriers
as their top concern in Ghana. Ghanaian barriers to South
African manufactured goods, processed foods, and produce were
making business difficult -- but not unprofitable -- for
several South African firms. Of greater concern, however,
were Nigerian barriers to goods produced in Ghana. He cited
the example of SAB Miller/Ghana, which had to import bottles
produced in Nigeria --Ghana has no significant bottle
manufacturing-- but was not permitted to export to Nigeria,
thus excluding them from Nigerian markets.

THE CURRENT POLITICAL LANDSCAPE
--------------

4. (C) Molekane saw Ghana as politically stable, adding that
the current row over the Representation of the People
Amendment Bill (to be reported septel) was political
grandstanding by the opposition. When the Ambassador asked
whether the High Commissioner had any contact with former
President Rawlings, he claimed that he had not had any
personal contact, but that his mission had contacted
Rawlings' staff to facilitate his South African visa in 2005
and during the election in 2004, when Rawlings alleged that
the Governments of South Africa and Nigeria were plotting to
assassinate him. Molekane added that these contacts were
informational in nature, and that the Government of South
Africa felt the accusations did not merit any official
response.


5. (C) Molekane said he had informal discussions with
opposition NDC officials while attending the installation of
a traditional chief in the NDC's traditional stronghold in
the Volta region. The Ambassador and Molekane agreed that
there appeared to be some merit to NDC complaints about
GoG-funded infrastructure development lagging behind in
regions traditionally loyal to the NDC.

AVIAN INFLUENZA PREPAREDNESS
--------------


6. (C) Molekane said the Government of South Africa had been
asked by the WHO to coordinate the overall African response
to the threat of Avian Influenza, and that he had been tasked
by his government to meet with Ghana's Minister of Health to
discuss GoG plans. The Ambassador briefly outlined USG
cooperation with the GoG on Avian Influenza preparedness, and
offered to have relevant USAID/Ghana officers brief the High
Commissioner, which he accepted. USAID/Ghana will follow up
with Molekane's office to schedule the briefing.

CIVIL AVIATION
--------------


7. (C) The Ambassador and High Commissioner discussed the
current status of the United Airlines/South African Airlines
code-share agreement, and its possible expansion to Accra in
March 2006. Both agreed to jointly demarche the GoG to
expedite approval of these flights after United completed the
application process.

DEFENSE COOPERATION
--------------


8. (C) South Africa and Ghana have a defense cooperation
agreement that provides for training and officer exchanges.
According to Molekane, however, there had been a lack of
activity in the program in recent years, and he expected a
high-level delegation to visit in March 2006 to revitalize
the program.
BRIDGEWATER