VZCZCXRO6004
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHLG #0109/01 0560532
ZNR UUUUU ZZH
R 250532Z FEB 08
FM AMEMBASSY LILONGWE
TO RUEHC/SECSTATE WASHDC 5056
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE

UNCLAS SECTION 01 OF 02 LILONGWE 000109 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL SF MI
SUBJECT: MALAWI - INDIFFERENCE AND JEALOUSY COLOR ATTITUDES TOWARD 
SOUTH AFRICA 
 
 
¶1. (SBU) Summary: Malawi's relationship with South Africa is colored 
largely by indifference, due to South Africa's lack of an aid 
program and jealousy of South Africa's economic and political 
position in the region.  While Malawi once enjoyed close relations 
with -- and derived many economic benefits from -- the apartheid-era 
government of South Africa, the relationship grew chillier from 1994 
until 2002.  In the past five years, Malawi and South Africa have 
returned to more cordial relations, although most in Malawi view 
South Africa as a growing regional hegemon.  Despite these 
attitudes, many in the government are content to follow the lead of 
South Africa on international issues and use regional bodies such as 
SADC to shield Malawi from external bilateral pressure. 
Economically, South Africa dominates trade with Malawi, accounting 
for almost 50% of imports and over 30% of exports.  Although trade 
agreements are in Malawi's favor, imports from South Africa are 
three times larger than exports and many in Malawi feel South Africa 
still must do more to level the playing field. End summary. 
 
Apartheid-Era Relationship Shapes Recent History 
--------------------------------------------- --- 
 
¶2.  (U) Malawi was the only country in Africa to recognize the 
apartheid-era government of South Africa when Banda established 
bilateral ties in 1967.  Malawi extracted many economic benefits 
from the relationship.  Much as was done in the colonial days when 
Malawi was a source of labor for Zambian mines and Zimbabwean 
plantations, thousands of Malawians went to South Africa to work in 
the mines in the 1960s and 70s.  Remittances from South Africa were 
one of the largest sources of foreign exchange for Malawi and 
extensive commercial enterprises existed to recruit, train, and 
transport workers to the mines. 
 
¶3.  (SBU) South Africa also contributed to Malawi, through 
large-scale public works projects such as the Capital Hill complex 
of government buildings, completed in 1974, that enabled the 
relocation of the national capital from Zomba to Lilongwe in 1975. 
Additionally, the National Food Reserve silos, still dominating the 
Kanengo area outside Lilongwe, were built by South Africa in the 
late 1970s.  Foreign aid from South Africa peaked at over 30% of 
total aid to Malawi, making the country Malawi's biggest donor 
throughout much of the 1970s.  South Africa's influence diminished 
beginning in 1976 when then Life President Hastings Kamuzu Banda 
suspected South African involvement in a coup attempt against him. 
In 1980, Malawi joined the Southern African Development Community 
(SADC) and completed its move away from apartheid South Africa as 
Dr. Banda's influence on day-to-day politics diminished and senior 
civil servants exercised more power. 
 
¶4. (SBU) 1994 marked the end of apartheid in South Africa and the 
beginning of multi-party democracy in Malawi.  By this time, labor 
migration to the mines had dwindled as closer labor sources such as 
Botswana and Mozambique became better options.  Due to Malawi's past 
recognition of the apartheid-era government, the new South African 
government, while maintaining formal relations, did little economic 
or political business with Malawi.  During this period, Malawi 
turned inward to concentrate on its own new democracy and 
increasingly sought foreign assistance from Western Europe and the 
United States.  It was not until 2002 that the relationship began to 
improve, with the arrival of the first High Commissioner and 
diplomatic staff representing the "new" South Africa.  The present 
High Commissioner is a senior ANC member. In 2006 Malawi and South 
Africa began to explore ways to strengthen their relationship, 
signing a strategic cooperation agreement that identified several 
potential areas of mutual benefit.  This agreement has paved the way 
for a likely Ministerial visit by the Minister of Foreign Affairs in 
2008 and a possible State visit to Malawi in 2009. 
 
Politicians Indifferent about Current Relationship 
--------------------------------------------- ----- 
 
¶5. (U) Despite the moves to improve relations, South Africa is 
currently viewed by most politicians and government staff with 
ambivalence.  Relations with the donor nations and organizations of 
Europe and North America are elevated in priority above South Africa 
despite the latter's proximity and regional importance.  Relations 
with the border countries of Mozambique and Zambia are usually 
viewed as more important as well.  Some officials also cite colonial 
links to Zimbabwe (including the large number of Zimbabweans of 
Malawian origin) to describe that relationship as more crucial to 
Malawi despite Zimbabwe's current situation. 
 
Interacting with the Reluctant Regional Hegemon 
--------------------------------------------- -- 
 
¶6. (SBU) Many Malawian officials describe South Africa as a 
reluctant regional hegemon.  They say South Africa is usually 
deferential during SADC and other multi-lateral meetings, often 
offering up its positions but then framing them as the ideas of a 
young democracy that could learn from its neighbors' experiences. 
South African diplomats admit that when dealing with its neighbors 
 
LILONGWE 00000109  002 OF 002 
 
 
they often bring up the fact that South Africa has only a 14-year 
history of democracy.  Ministry of Foreign Affairs contacts say that 
despite this approach, with few exceptions, the South African 
position usually becomes that which is adopted by SADC. 
 
Why Won't South Africa Become a Donor? 
-------------------------------------- 
 
¶7. (U) Members of Parliament express a desire for South Africa to 
step up to the levels of foreign assistance that Europe and the U.S. 
do, and hope as well for preferential trade agreements and massive 
foreign investment.  At the same time they do not want South Africa 
to meddle with Malawi's internal politics nor displace Malawians 
from jobs here.  Jealousy-tinged complaints about the influx of 
South African retailers like Shop-Rite and Game are common, even as 
government officials enjoy the broader range of products and reduced 
prices these outlets offer.  Most officials insist South Africa must 
do more to level the playing field with Malawi, but offer no 
concrete methods to do so other than through financial infusions 
resembling those of other donors. 
 
¶8. (SBU) According to South African political officer Zwai Jiphetu, 
South Africa still considers itself a developing nation with limited 
capacity to provide foreign aid.  The South African aid strategy is 
to fund development through multi-lateral organizations such as the 
UN and not give direct bilateral assistance so that the nation does 
not anger any of its many needier neighbors.  This, of course, is in 
sharp contrast to the Malawian perception that South Africa is rich 
and should share what it has. 
 
South Africa, a Military Afterthought 
------------------------------------- 
 
¶9. (SBU) Discussions with top Malawi Defense Force (MDF) officials 
reveal that South Africa is a military afterthought.  In its current 
search for equipment assistance donations for a proposed UN 
deployment to Darfur the military has canvassed the United States, 
Taiwan, European nations, and even approached sparsely-represented 
Japan and Canada, but have not sought assistance from South Africa, 
though much of Malawi's hardware is purchased from South Africa, 
reflecting relationships going back to the 1970s.  MDF officials 
describe South Africa as a regional military power but interactions 
between the two are limited to annual SADC training exercises and 
regional defense cooperation conferences usually sponsored on by the 
United States, Canada, or the United Kingdom. 
 
Dominating the Economic Landscape 
--------------------------------- 
 
¶10. (U) South Africa is Malawi's dominant trading partner, 
accounting for 48.5% of all imports and 30.2% of all exports in 
¶2006. Despite trade agreements with South Africa that favor Malawi, 
Malawi still imported 59,118.48 million MK (439.2 million USD) while 
exporting only 20,104.95 million MK (149.4 million USD) to South 
Africa in 2006.  While most exports to South Africa are commodities 
and basic apparel, imports from South Africa consist of a wide range 
of consumer and capital goods.  While ports in Mozambique are 
closer, much of Malawi's trade is still moved by truck to the port 
of Durban because of South Africa's better infrastructure. 
 
¶11. (SBU) Comment:  As with much of Southern Africa, Malawi cannot 
escape the pull of South Africa's growing economic and political 
importance.  South Africa's manufacturing base feeds an increasingly 
large portion of Malawi's import-dependent economy.  Even South 
Africa's internal problems can adversely affect Malawi, as in the 
case of South Africa's power shortages, which will likely affect 
Malawi's ability import power from Mozambique through a planned 
interconnection with its grid.  Despite Malawi's concerns about 
South Africa's growing regional influence, the government of Malawi 
is often happy to use SADC, and thereby South Africa, as a shield 
from international pressure on multilateral issues.  As South Africa 
continues to grow in regional and international stature, Malawi's 
relationship with South Africa will only grow in importance. 
However, most Malawians will still eye South Africa with a bit of 
wariness until it joins the ranks of donor nations, and even then 
will maintain a jealousy-tinged attitude toward their neighbor to 
the south. 
 
EASTHAM