State Visits as a Tool of Economic Diplomacy: Bandwagon or Business Sense?

This research paper by the South African Institute of International Affairs (SAIIA) examines the use of business delegations accompanying the South African president on state visits as a tool for economic diplomacy. It analyzes the benefits and challenges of this practice, particularly under President Zuma's administration starting in 2009, and proposes a new model to improve the coordination and effectiveness of private sector participation in foreign policy.

• Economic diplomacy is a priority for South Africa's foreign policy, aiming to increase foreign direct investment, improve market access and trade with bilateral partners, and market South Africa as a preferred tourism destination.
• Since President Zuma took office in 2009, business delegations on state visits have become more prominent, with approximately 12 delegations participating in bilateral visits by the end of 2010. These delegations are jointly organized by the Department of Trade and Industry (dti) and Business Unity South Africa (BUSA).
• Between August 2009 and October 2010, state visits led by President Zuma saw varying levels of business participation, ranging from 22 delegates in Lesotho to 371 in China. Key sectors involved across these visits included agriculture, energy, ICT, infrastructure, and mining.
• The use of business delegations provides several benefits, including giving government officials a deeper understanding of the practical realities of doing business abroad, creating networking opportunities for South African business leaders, and providing access to a wider selection of trade partners in the host country.
• Significant challenges hinder the effectiveness of these delegations, including a lack of dedicated budgets or staff at BUSA and the dti, a lack of strategic planning and pre-visit briefings, and public criticism regarding the representivity of delegates and potential political interference.
• The author identifies various international models for business involvement in diplomacy, such as the Russian Federation including senior business leaders in the official delegation, Brazil using small targeted delegations, and the US setting clear objectives to enable concrete deal announcements.
• The paper recommends a new model for South Africa that includes clear delineation of roles—with BUSA taking overall responsibility for the business delegation—the establishment of a comprehensive participant database, the use of reconnaissance visits one month prior to state visits, and the implementation of a monitoring system to assess impact.

APA

Grant, C. (2011). State Visits as a Tool of Economic Diplomacy: Bandwagon or Business Sense? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2011/07/Occasional-Paper-87.pdf

Chicago

Grant, Catherine. State Visits as a Tool of Economic Diplomacy: Bandwagon or Business Sense? South African Institute of International Affairs, 2011. https://saiia.org.za/wp-content/uploads/2011/07/Occasional-Paper-87.pdf.

Wikipedia

{{cite report |last1=Grant |first1=Catherine |title=State Visits as a Tool of Economic Diplomacy: Bandwagon or Business Sense? |publisher=South African Institute of International Affairs |date=July 2011 |url=https://saiia.org.za/wp-content/uploads/2011/07/Occasional-Paper-87.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{grant2011state, author = {Grant, Catherine}, title = {{State Visits as a Tool of Economic Diplomacy: Bandwagon or Business Sense?}}, institution = {South African Institute of International Affairs}, year = {2011}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2011/07/Occasional-Paper-87.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }