South Africa
South Africa is a priority country for SECO's economic cooperation and development efforts. As one of the continent's largest economies and strongest democracies, the country has made significant progress since 1994. However, challenges remain, including high youth unemployment, enduring economic and social inequalities, vulnerability to climate change, and issues with corruption. SECO's cooperation programme 2025–2028 aims to support South Africa in tackling these issues and advancing a more competitive, sustainable, and inclusive urban economy. It focuses on fostering an attractive business and investment environment, strengthening resilient urban areas, and promoting a competitive, green private sector.
Towards a sustainable, competitive and inclusive urban economy
South Africa faces social and economic challenges, including high unemployment, especially among youth, and persistent poverty, leading to widespread inequality. The legacy of Apartheid-era spatial planning continues to hinder urban development, resulting in inadequate service delivery, high transportation costs, and limited access to opportunities, particularly in sprawling townships. Urban areas, which contribute about 70% of the national economic output, are crucial for job creation and growth, highlighting the urgent need for targeted interventions to foster sustainable and inclusive development. While urban areas also contribute significantly more to greenhouse gas emissions, these areas are at the same time very vulnerable to the effects of climate change and related natural disasters.
In response to the pressing needs, the Cooperation Programme South Africa 2025-2028 aims to support decentralized and local government spheres, focusing on urban and municipal economic development. Recognizing the critical make or break role that urban spaces play, the program seeks to enhance their economic growth, sustainability, and resilience. By creating favorable economic conditions and promoting well-governed, integrated urban areas, Switzerland aims to empower local governments to foster a competitive and environmentally friendly private sector. This is essential for building an inclusive urban economy that addresses the challenges of service delivery and spatial inequality.
Three thematic areas
Switzerland and South Africa enjoy strong bilateral relations and foster an open and mutually respectful dialogue. Switzerland's development cooperation with South Africa, its largest trading partner in Africa, is also vital for advancing Swiss economic interests. South Africa's diversified economy, strong financial sector and youthful population offer significant opportunities for Swiss companies, while support for urban economies and services also creates a productive and competitive environment for these business investments. Political and economic dialogue, such as through South Africa's presidency of the G20 in 2025, will strengthen ties between the countries, building on strong existing relationships with entities such as the National Treasury and the South African Reserve Bank. Key issues include advancing urban development and infrastructure financing, while promoting shared values of stability and human rights.