US President Donald Trump’s threat this week to withdraw aid to South Africa over the recently promulgated Expropriation Act unleashed a heated national and international debate between supporters and opponents of the act.
More importantly, it spotlighted the significance of the economic and trade relations between these two great nations. The US and South Africa need to forge a strategic partnership based on collaboration, co-operation and co-ordination of their collective power to be a positive force for good in Africa and the world.
South Africa is the most industrialised and developed economy in Africa and, therefore, of strategic geoeconomic and geopolitical importance to the US. The US is the largest economy in North America and the world at large. The stakes are much higher in the bilateral economic and trade relationship than the mere termination of aid. That is partly why cool heads are required.
South Africa is the US’s largest trading partner in Africa and supplies minerals, precious metals, chemicals, pharmaceuticals, automobiles, citrus and wine to the US market. Its sophisticated financial services, judiciary, infrastructure and universities position it as a trusted and dependable gateway to the rest of Africa for most US companies. The US is strategically and systemically important to South Africa's economy as it is the second largest trading partner after China.
More than 600 US companies operate in South Africa, employing over 200,000 South Africans. One only has to think about the multiplier effect in relation to these direct job numbers to recognise and appreciate the value and contribution of US multinationals to South Africa's economy and society at large.
Combined, US companies contribute about 10% to GDP. South Africa also benefits from duty-free access to the lucrative US market through the Africa Growth and Opportunity Act (Agoa). In 2022, Agoa accounted for 21% of total exports to the US, which surpassed $3bn (R55bn) for the first time. AGOA utilisation is much higher for value added sectors such as agriculture and manufacturing where it is at 75% and 59% respectively. These sectors are labour intensive and contribute to job creation and retention.
The strategic and business case for a positive and constructive relationship between the two countries is clear and compelling. How then should the current standoff be viewed?
This week’s war of words on the Expropriation Act between Washington and Pretoria is indicative of the strategic imperative for countries to manage their relationships based on facts, not misinformation or disinformation.
We are where we are partly, if not mainly, because of a failure to proactively engage and communicate better with Trump’s administration
As many inside and outside government have observed, certain role players seem to have been successful in wrongly portraying the Expropriation Act as a confiscation instrument. It is not.
President Cyril Ramaphosa has rightly clarified that the act is “... a constitutionally mandated legal process that ensures public access to land in an equitable and just manner as guided by the constitution”. At its core it strikes a balance between the need for public use of land and the rights of private land owners.
There is therefore no need to press the panic button. Land expropriation will always be done within the framework of the constitution, which protects property rights. The caricature of land grabs as seen in Zimbabwe a few years ago is as unhelpful as it is grossly misleading.
We are where we are partly, if not mainly, because of a failure to proactively engage and communicate better with Trump’s administration. Trump worked on the basis of a narrative that was fed to him. That narrative is his only reference point. Who is to blame for that? The right wing forces in South Africa and the US managed to propagate their viewpoint on the Expropriation Act. Where were we when they did that? What communication campaign or messaging was done by the government to inform key role players in Washington and Trump’s team of advisers about the rationale and implications of the Expropriation Act?
This requires a combination of engaging through formal diplomatic channels but also, equally important, through back channels and informal networks with strategic influencers, (not our social media influencers!), who are part of Trump’s inner circle. This has to happen on an ongoing basis.
Three things are worth highlighting as part of a strategy to turn this lemon into lemonade. First, given the strategic significance of South Africa’s role as the president and host of the G20 summit this year, a well-considered and mature response is strongly advisable. Shooting from the hip pronouncements from politicians won’t help.
Second, South Africa’s embassy in Washington DC needs good financial, operational, human and intellectual resources. The ambassador to the US, Ebrahim Rasool, is a competent and highly esteemed diplomat. However, for him to succeed in doing the heavy lifting to win hearts and minds in the Trump administration requires appropriate support from the government, business and civil society.
Third, South Africa needs to be more creative and proactive in driving fact-based and accurate narratives about the country. Targeted and sustained campaigns to shape views are required.
In light of secretary of state Marco Rubio’s decision not to attend the forthcoming G20 foreign affairs ministers meeting in South Africa, Ramaphosa needs to consider sending a multiparty ministerial delegation, along with leaders from AfriForum and the agribusiness sector, to Washington to set the record straight.
Now is the time to engage, connect and communicate effectively to position South Africa as a trusted strategic partner to the US and the world. It is time to be deliberate and intentional in putting South Africa and Africa first for current and future generations.
• Dlamini is the president of the American Chamber of Commerce in South Africa. He writes in his personal capacity
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