Pretoria must be relieved at the recently published review of the SA economy by the US state department. But more work needs to be done to address mostly politically inspired tense trade relations between SA and the US.
Trade diplomats have been negotiating a reciprocal trade agreement. This was after President Donald Trump slapped 30% tariffs on many SA exports to the US. The rationale for this punitive action was largely political and misinformation about SA’s domestic policies.
The talks, shrouded in secrecy, have been delayed by toxic relations in recent times. Tensions flared up from unguarded remarks by SA’s then ambassador to the US Ebrahim Rasool, who was later expelled after his criticism of Trump. Mcebisi Jonas, a special SA envoy to the US, has not set foot in the US since his appointment earlier this year.
Last week, the state department published a review of SA’s economy, pointing to its strengths and challenges. The report paints a balanced picture of the local economy.
Tellingly, as this paper reported on Monday, there is no mention of the so-called white genocide, a reference to purported mass killings of white people by the ANC-led government. This claim, which Trump appeared to have accepted without evidence, heightened tensions between the two long-standing trading partners.
The report also acknowledged the strengths of SA’s economy. These include SA’s independent judiciary, well-regulated debt capital markets, a world-class banking system and a free press. Today’s SA doesn’t have political prisoners or journalists in jail.
The report also acknowledged the strengths of SA’s economy. These include SA’s independent judiciary, well-regulated debt capital markets, a world-class banking system and a free press.
The report’s authors took a nuanced approach to the divisive issue of land expropriation with nil compensation. This is a helpful distinction of the law passed prior to the 2024 general elections from the failed process to amend section 25 of the constitution. The debate about the latter caused divisions among political parties. A moderate version, modernising a previous law, was signed into law a year ago.
SA’s obvious and known challenges were pointed out. These include crime, corruption and the collapse of basic services and infrastructure. These do not uniquely affect foreign or US companies; they affect ordinary South Africans and economic operators.
It is up to South Africans and their government to address them. The business-government partnership is the latest effort by SA’s private sector to address, among other issues, crime and corruption.
The report’s measured tone suggests daylight between the US political class and the civil service and America’s well-regarded foreign service. This is to be commended.
The report moves the dial as far as reclaiming facts and evidence is concerned. But it will take much more to reverse the tide of negativity of the political elite such as Trump and his cabinet.
Proof points for Trump
Cyril Ramaphosa, SA’s president, now has proof points to rely on in his conversations with Trump in the coming weeks ahead of the G20. So do the trade negotiators.
What SA needs to do now is to redouble efforts to address crime and corruption and service delivery challenges that the report reminds it of. Among others, Ramaphosa must instruct his ministers to apply themselves more seriously in the partnership with business.
The partnership requires fresh impetus to make up for lost ground. A successful hosting of the G20, which is almost certain, is important, but so too is the business-government partnership. Similarly, SA urgently needs to link its foreign policy to its domestic priorities and must expedite the process of naming its ambassador to Washington. A positive assessment of its economy alone cannot improve relations.
The US is in no rush to send its ambassador to Pretoria. But SA desperately needs to fill this diplomatic post if it is serious about restoring good relations with the US. Until their rejection by Washington, both Rasool and Jonas were inspired choices for filling the vacant post. But it is now time to move on and make an appointment.
The trade talks need a man or woman on the ground to be taken over the line.
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