Canada risks falling behind with tepid approach to African trade: South Africa envoy

South Africa's High Commissioner Rieaz Shaik has criticized Canada's approach to expanding trade in Africa, arguing that the country's strategy is too cautious and risks falling behind other nations. Shaik says Ottawa still treats African countries as recipients of aid and security assistance, despite a Canadian strategy aimed at treating the continent as a series of dynamic markets with high growth potential.

He warns that being a second-mover in any market could lead to being left behind or facing market saturation. Shaik suggests that China, the United Arab Emirates, and other Western countries have formed closer ties on the continent that could yield long-term benefits. The Senate Foreign Affairs Committee echoed this view in a report last December, recommending that Canada bolster its foreign service to expand trade beyond mining sectors.

Shaik is working to secure a strategic partnership agreement with South Africa that would commit to working in five sectors — agribusiness, infrastructure, mining, energy, and advanced technologies — and be anchored in a foreign investment promotion and protection agreement. The talks hinge on investor-dispute tribunals, with Canada wanting an international resolution mechanism while South Africa requires domestic courts to handle such issues.

Shaik emphasizes that the new partnership would position South Africa as Canada's springboard into other southern African countries and eventually the African Continental Free Trade Area. He believes that Canadian firms like AGT Foods, McCain, and Hatch could expand across the continent with proper market access and support. Shaik urges Ottawa to decide whether to embrace early trade with Africa or wait for the market to develop further while focusing on Europe, China, and India.

He praises Alberta and Saskatchewan for their industry development ecosystems and notes that South Africa is studying how Nova Scotia has digitized health and drug records and how AI leaders could pilot programs in Africa. Shaik concludes that Canada's goal of doubling non-U.S. exports in the next decade will require convincing the corporate sector to look beyond Washington, emphasizing that Canadian society and elites in the financial world must adapt to avoid falling behind.