The global trading environment is changing rapidly due to disruptions in global supply chains caused by the COVID-19 pandemic and the Russia-Ukraine war. This combined crisis, accompanied by inflation, tight monetary policies, and a consequent decline in investment, is changing the trade paradigm. The emphasis on participating in the Global Value Chain(GVC) and maximizing efficiency through a global division of labor is shifting to reducing the length of the value chain and developing the Regional Value Chain(RVC). In Addition, the pace of digital and green transformation is accelerating to build economic resilience for inclusive and sustainable growth.

As the global market becomes more fragmented, Africa, with its 54 countries, is attracting attention for its potential for market growth, abundant resources, and geopolitical influence in the international community. Major powers such as the U.S., EU, China, and Russia are moving to strengthen their cooperation with Africa. Korea is facing demands to diversify economic partnerships in order to achieve economic security. Therefore, it is high time to consider expanding its relations with Africa as an emerging economic partner.

Korea and Africa can establish a mutually beneficial cooperative relationship and become complementary partners in economic cooperation by combining Africa’s natural resources, labor force, and market potential with Korea’s experience in economic development and technological innovation. In the face of the increasing uncertainties in both the domestic and international economic and trade environment, Korea is seeking to diversify its export partners, secure its supply chains, and identify new growth drivers. On the other hand, Africa, in the midst of a green transition, needs to achieve industrialization and export diversification. This would enable it to expand its participation in GVC while developing RVC.

In this regard, this study aims to develop medium to long-term strategies for economic cooperation between Korea and South Africa. As a member of both BRICS and G20, South Africa occupies a significant position in the African economy, ranking first in trade volume and second in foreign direct investment within the region. It serves as a strategic gateway to entering the sub-Saharan African market and is a leader in the economic integration process of the Southern African Development Community (SADC), the Southern African Customs Union(SACU), and the the African Continental Free Trade Area(AfCFTA) agreement. In particular, as a beneficiary of the United States’ African Growth and Opportunity Act(AGOA) and the European Union’s Economic Partnership Agreements(EPA), the country can serve as a manufacturing hub for the U.S. and EU markets.

In Chapter 2, the study examines the supply chains in South Africa and Africa, and offers suggestions on how Korea can cooperate with South Africa in the automotive and critical minerals sectors, where South Africa is internationally competitive. In the African region, economic integration has been pursued, with AfCFTA, launched in 2021, serving as the flagship. AfCFTA aims to create a single market encompassing 54 countries and a population of 1.3 billion, with the goal of increasing both intra- and extra-African trade, promoting industrialization, and enhancing the capabilities of the manufacturing and services sectors. However, the successful implementation of AfCFTA depends on the development of infrastructure such as transportation, ICT, and energy.

The Southern Africa participates significantly in the global mining value chain and is engaged in downstream manufacturing activities . To enhance the regional value chain, it is necessary to expand the high value-added manufacturing sector and improve the value chain in the mining sector. Despite its advanced economic structure, South Africa relies on minerals like platinum, gold, manganese, nickel, and copper for more than half of its exports. As a result, the government is pursuing strategies to diversify exports by enhancing the competitiveness of the manufacturing sector, including automotive, clothing, agro-processing, pharmaceuticals, and electronics.

South Africa, the largest automotive producer and consumer in Africa, has a long history in the automotive industry dating back to the 1920s. The government has strategically implemented protectionist policies to boost the global competitiveness of the automotive industry, resulting in its growth to become the largest manufacturing sector. Major automotive companies have made their way into South Africa to produce cars through outsourcing. With the stable establishment of the South African automotive industry ecosystem, Japanese, European, American, and Korean automotive companies have expanded their investments in South Africa. European companies mainly export cars produced in South Africa to Europe, while Japanese companies use South Africa as a base to penetrate the sub-Saharan African market. With the implementation of AfCFTA, South Africa could potentially become a regional hub for automotive manufacturing.

Korea can view South Africa as a gateway to sub-Saharan Africa and a detour to markets in Europe and the United States. As demand grows, the prospect of cooperation in electric vehicle production becomes increasingly viable. In the long term, Korea can support the development of the regional value chain with a hub-and-spoke model, where South Africa becomes a center of finished vehicle production, while neighboring countries manufacture and supply automotive components.

As the green transition gains momentum, the demand for green minerals is predicted to soar. A stable mineral supply chain has never been more critical, prompting the US and the EU to develop strategies to reduce their dependence on specific countries and to internalize their mineral supply chains. The US established the Mineral Security Partnership(MSP) to underline supply chain diversification and stabilization, investments in the supply chain, ESG compliance, and recycling of core minerals. For Korea, active participation in multilateral organizations such as the Indian-Pacific Economic Framework(IPEF) and MSP is necessary. In addition, the establishment of industry-specific channels for technology cooperation, information sharing, and research and development is crucial to ensure a stable supply of critical minerals. Korea can support the improvement of value chains in African mineral-producing countries. South Africa, as a major producer of critical minerals, is a crucial partner for Korea. Korean companies should proactively engage in overseas resource development, and the government should formulate policies to promote investment in the mineral sector. Companies venturing into the local market should take responsibility for the entire spectrum of the critical mineral supply chain to avoid problems such as environmental pollution, human casualties, labor exploitation, and human rights violations.

In Chapter 3, the analysis focuses on the cooperation between Korea and South Africa in the area of digital trade. Globally, the demand for contactless services has surged in the wake of the COVID-19 pandemic, spurring a parallel increase in the demand for digital transformation across Africa. As a result, digital trade, encompassing the trade in goods and services using digital technology and trade in ICT services , has grown in importance. The volume of the ICT services trade in South Africa has been on a steady upward trajectory, with Europe and Asia emerging as key partners. AfCFTA is poised to expand digital trade within the African region in the future. However, hurdles such as digital taxation, consumer protection, cybersecurity, regulation, and infrastructure need to be addressed to facilitate the expansion of digital trade in the region. Korea can support the the establishment of digital trade standards and systems during the implementation of AfCFTA and help expand digital trade within Africa.

The South African government’s Integrated ICT Policy White Paper underscores the importance of digital accessibility, digital security, digital infrastructure development, digitization of government services, and digital inclusion. South Africa, home to the highest number of e-commerce companies in Africa, is witnessing rapid market growth. Among South Africa’s digital technology start-ups, the proportion of e-commerce/retail companies(10.2%) is second only to fintech(30%). South Africa has recently enacted legislation such as the Consumer Protection Act, the Electronic Communications and Transactions Act, and the Protection of Personal Information Act, in line with these strengthened regulatory policies.

The United States announced the Digital Transformation with Africa Initiative(DTA) in 2022 with the aim of broadening cooperation in the digital economy, infrastructure, human resource development, and the digital environment. The U.S. exports ICT services from global technology giants to South Africa, while primarily investing in the establishment of data centers. India boasts significant ICT service exports to South Africa in the telecommunications, finance, retail, manufacturing, and healthcare sectors, mainly to small and medium-sized enterprises. Although the volume of China’s trade in ICT services with South Africa is not substantial, Chinese telecommunications companies have recently made considerable investments in ICT infrastructure, including the construction of 5G networks and data centers in South Africa. trade in ICT services between the EU and South Africa is active, with Ireland being South Africa’s largest trading partner in ICT services and the Netherlands being the largest investor in South Africa. The EU has announced the Global Gateway Strategy, which includes projects for enhancing infrastructure in developing countries, and for digital inclusion and sustainable network development in the African region. Korea should enhance its cooperation with South Africa in areas such as technology transfer, infrastructure development, digital convergence such as e-government and smart cities, digital trade regulations, and digital skills development.

Chapter 4 analyzes cooperation in tackling climate change, a pressing issue that significantly influences economic growth in Africa. Although Africa contributes a mere 4% of global greenhouse gas emissions, it bears the brunt of climate change impacts, including increased precipitation, temperature fluctuations, and natural disasters. Given the region’s heavy reliance on fossil fuels for economic growth, the transition to a low-carbon economy is pivotal. South Africa, in particular, ranks among the world’s top 20 carbon emitters, with annual emissions exceeding 430 million tons. The 2022 floods in the KwaZulu-Natal region underscore the escalating risks of climate-related natural disasters.

The Southern African Development Community(SADC) has adopted a Green Economy Strategy that addresses sustainable resource management, energy efficiency, climate change technologies, green infrastructure, and waste management. South Africa is aligning with the Paris Agreement through its Nationally Determined Contributions(NDC) and a Low-Emission Development Strategy 2050, aiming to halve coal-fired power generation from 88% in 2020 to 44% by 2030.

In light of the burgeoning global cooperation on climate change, Korea needs to identify its comparative advantages to carve out a unique position in the South African market. China, dominating 70-80% of the global solar value chain, is actively partnering with South Africa in green energy development. China has established solar panel factories and energy storage systems in South Africa. The UK is bolstering ties with South Africa in solar energy and green hydrogen, participating in the construction of Africa’s largest green hydrogen and green ammonia plant, and supporting technology transfer and workforce training.

South Africa’s growing demand for small-scale self-generation and improved power transmission efficiency presents opportunities for collaboration in energy storage systems. In the wind and solar energy sectors, Korea should capitalize on its technological prowess and competitive pricing. With over 80% of Korea’s hydrogen demand projected to come from overseas by 2050, South Africa’s abundant renewable energy sources offer potential for green hydrogen production. Initial collaboration could focus on hydrogenpowered vehicles and hydrogen transportation, and eventually expand to renewable energy and electrolysis technology for long-term cooperation. Furthermore, Korea could consider collaboration in the nuclear power sector, considering South Africa’s emphasis on nuclear power for a balanced energy mix.

Chapter 5 delves into the potential for cooperation in South Africa’s health sector. Despite improvements in health-related Sustainable Development Goals(SDG) indicators, South Africa grapples with challenges such as a growing elderly population, a gap in health services coverage relative to the escalating incidence of non-communicable diseases, and pronounced disparities between public and private healthcare services. South Africa is striving to enhance access to medical services, boost transparency and effectiveness of these services, and broaden universal health coverage. South Africa has the largest medical device market in sub-Saharan Africa, and the market size is projected to grow by over 20% over the next five years. However, the country relies heavily on imports for medical devices, with a 90% import dependence rate, mainly from Germany, the United States, and China. The pharmaceutical industry is also substantial, but it imports over 80% of pharmaceuticals.

In Africa’s health sector, the U.S. is working to develop the health workforce, fortify pharmaceutical capacity, and construct medical infrastructure, while Japan concentrates on enhancing public health and sanitation, and establishing sustainable medical resource and disease management systems. The EU has established a Global Health Strategy to aid developing countries with integrated health services and universal health coverage(UHC). Its major projects in Africa underscore local pharmaceutical development, strengthening public health facilities, and building digital health systems.

In South Africa, the healthcare sector offers growing opportunities for Korea to collaborate in areas such as universal health coverage, medical devices, pharmaceuticals, digital health, and healthcare service management. To begin with, Korea can share its experience and best practices in economic development and policies in the health sector. Policy advice projects can be funded through ODA, while private sector participation is essential for the other sub-sectors. Anticipating the growth of South Africa’s healthcare industry and the demand for high-quality medical equipment, Korea can strategically expand exports of medical equipment. In pharmaceuticals, establishing joint ventures with local companies may be a viable option given the highly competitive market and stringent regulations. Furthermore, collaboration in digital healthcare and hospital management systems can be intensified.

In the medium to long term, it is crucial to enhance collaboration between Korea and South Africa in areas such as supply chain restructuring, digital trade, climate change response, and healthcare. Formulating a unified strategy for South Africa and sub-Saharan Africa is vital, and this should be complemented by establishing regular channels for discussion on economic cooperation. Trade agreements can serve as a catalyst for a long-term and stable economic relations. There is a growing need for the private sector to expand its presence into core sectors such as mining, manufacturing, and the digital economy. To create a stable investment environment for Korean companies, it is necessary to establish an integrated market information system, provide assistance in the initial stages of market research and feasibility studies, and expand financial support to mitigate the risks associated with entering new markets. Korea should strive to establish itself as a reliable partner that provides high-quality products and services, thereby expanding economic cooperation with South Africa. 

국문요약

제1장 서론

1. 연구의 필요성 및 목적

2. 연구의 구성

제2장 공급망 재편

1. AfCFTA 출범에 따른 아프리카 내 공급망 재편

2. 남아프리카공화국의 공급망 현황

3. 자동차 산업

4. 핵심 광물

5. 한·남아공 공급망 관련 협력 방안

제3장 디지털 무역

1. 남아공의 디지털 전환 및 디지털 무역 현황

2. 남아공의 디지털 전환 및 디지털 무역 정책

3. 주요국의 디지털 무역 협력 현황

4. 한·남아공 디지털 무역 협력 방안

제4장 기후변화 대응

1. 남아공의 탄소 배출 현황

2. 남아공의 기후변화 대응 정책

3. 주요국의 기후변화 대응 협력 현황

4. 한·남아공 기후변화 대응 협력 방안

제5장 보건 협력

1. 남아공의 보건 분야 현황

2. 남아공의 보건 분야 정책

3. 주요국 및 기관의 보건 분야 협력 현황

4. 한·남아공 보건 분야 협력 방안

제6장 결론 및 시사점

1. 연구 내용 요약

2. 협력 방안 및 시사점

참고문헌

Executive Summary