A story in The Economist entitled “Drawbridges Up” discusses geopolitical openness in a post-Brexit world facing a continuing refugee crisis, along with the possibility of Donald Trump’s presidency. Immigration lawyer Gary Eisenberg sees similar barriers going up in South Africa.

From Rand Daily Mail. Story by Claire van den Heever

The new divide in rich countries, The Economist article says, is not between the political left and right, but “open” versus “closed.”

Is South Africa raising its drawbridges, or is it as open for business as President Jacob Zuma would have us believe?

Immigration lawyer Gary Eisenberg has watched for two decades as South Africa emerged from an era of enforced isolation, only to erect the same barriers to trade and capital flows that restricted the economy pre-1994.

“Barriers to trade and foreign direct investment are not always immediately visible,” says Eisenberg, recalling the U.S. and Japan’s strained economic relationship in the 1980s. “What the U.S. found particularly worrying was that, while Japan ascribed to low quotas and tariffs for the purposes of trade, its bureaucratic and cultural manner of transacting business constituted barriers to the importation of U.S. goods, services and capital.”

Eisenberg detects many of these same barriers today in South Africa – to foreigners’ entry, imports, and the personnel accompanying foreign direct investment.

Eisenberg challenged the government in High Court when it denied the Dalai Lama’s visa application ahead of Archbishop Desmond Tutu’s 80th birthday party in 2011. The Tibetan leader-in-exile was forced to cancel his trip. For Eisenberg, the case represented a flagrant disregard of the constitution and Bill of Rights. The blatant kowtow to China would not be easily forgotten on the international stage.

“The president flies around the world proclaiming that South Africa is open for business,” says Eisenberg. In reality, this openness has fizzled with Zuma’s ascension.

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The Department of Home Affairs‚ together with the European Union and the United Nations Office on Drugs and Crime (UNODC)‚ on Thursday launched a system that seeks to strengthen the criminal justice response to human trafficking and the smuggling of migrants.

South Africa was one of them. The project‚ initiated last year but launched in South Africa on Thursday‚ will be implemented in partnership with the International Organisation for Migration (IOM) and the United Nations Children’s Fund (Unicef) until 2019.

“We welcome this partnership with the EU and the UN Office on Drugs and Crime under the Action to Prevent and Address Trafficking in Persons and the Smuggling of Migrants. The UNODC is well placed to assist countries in addressing and combating these challenges‚” said Home Affairs Minister Malusi Gigaba at the launch.

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Availability in Cape Town, along the Garden Route, and in the Kruger National Park is hard to find as many operators face a record year, with some even having to turn business away.

In a recent poll on Tourism Update, 42% of readers said they had experienced record bookings for the 2016/2017 Southern African summer season, however operators are struggling to accommodate bookings in areas affected by capacity issues.

Thompsons Africa is experiencing a record year. “We are going to have a very busy summer, a record year,” said Craig Drysdale, General Manager: Global Sales at Thompsons Africa. He said capacity and availability had become an issue in Cape Town, along the Garden Route, and the Kruger National Park. “We are turning away a lot of business as a destination.” Drysdale said, to accommodate bookings, they had been trying to move dates and find alternative accommodation outside the main hubs and hot spots.

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The natural resource discussion in sub-Saharan Africa can be pessimistic and fatalistic at times. Some struggle to see the upside, basing fears on challenges with infrastructure, local content and skills shortages. Others are fatalistic, suggesting that natural resources are a curse for the continent and its economies.

The reality is that much of sub-Saharan Africa’s abundant natural resources are still undiscovered.

Exploration in a number of countries will boost output and reserves for some already big producers as well as create a few first-time producers in the near term. That said, fund managers have struggled in 2016 to raise capital for sub-Saharan Africa-focused natural resource funds.

Let’s say you’ve raised a $1 billion fund to chase after the lucrative opportunities in the sub-Saharan Africa natural resources space. Here’s a look at the African market through that lens.

End of a commodity super cycle

Commodity prices started skyrocketing in 2000. Slowed temporarily by the global financial crisis of 2008 and a slight decline in 2011, the boom nevertheless persisted nearly 14 years. By the end of 2011, average prices for energy and base metals were three times as high as the previous decade. In some cases, some commodities – such as gold, iron ore and oil –were near the highest levels in 110 years.

 If this was still 2013, there would be little discussion of potential decline or drastic downturn. But it is 2016 and we know what happened during the end of 2014 and throughout 2015. Slowing Chinese growth – not too far from the slower days of the late ’80s – has lowered the expectations on commodity prices.

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