Nurturing the New South Africa : Mandela’s U.S. trip stirs still more economic help for the fledgling democracy

Nelson Mandela, triumphant in his first trip to the United States since being elected South Africa’s first black president, is getting American help--through both donations and business investment--for his nascent democracy. That’s gratifying and significant.

During Mandela’s visit to Washington this week President Clinton promised $50 million, part of a federal Southern Africa Development Fund, on top of a previously announced $600-million foreign aid package for fiscal 1994 through 1996.

The bulk of that $600 million is earmarked for business development, job creation, housing, health care, education, electrification, the restoration of an independent judiciary and training for disadvantaged owners of small businesses.

The U.S. assistance also includes funds to train marginalized youths who live in the poor, black townships. These angry and desperate youngsters want a better life now. If they take to the streets in violence they will threaten the stability of the new South Africa. Their patience must be rewarded.

U.S. businesses are increasingly interested in investing in South Africa’s new market, which potentially has 41.6 million customers. Two companies announced plans recently to market products in South Africa--Duracell International Inc., the battery manufacturer, and Subway Corp., the sandwich maker. PepsiCo, Chrysler, General Motors and other large companies already are investing there.

To reduce their risk, many firms are obtaining insurance, information and financing from the federally funded Overseas Private Investment Corp., which supports private American investment in Russia and other developing countries in addition to South Africa.

Mandela’s invitation to invest in South Africa should put to rest fears that a victorious African National Congress would espouse communism or socialism. The new president is clearly a capitalist intent on reaping something much more substantive than standing ovations. He seeks foreign investment as he continues to craft a non-racial, democratic, peaceful and, perhaps, prosperous future for the new South Africa.