Big reality check for South Africa

South Africa needs to accept its new reality when dealing with the United States, which includes pivoting and reframing some of its investment goals to align with the US government’s agendas.

This does not mean shifting South Africa’s priorities to fit US President Donald Trump’s objectives but rather adopting a different approach when dealing with the administration.

Business Leadership South Africa (BLSA) chief executive Busi Mavuso said that this is the reality that South Africa has to work with.

Her comments follow the latest fiasco in South Africa’s declining relationship with the United States, where US Secretary of State Marco Rubio expelled South Africa’s ambassador, Ebrahim Rasool.

The expulsion was over comments made by Rasool when addressing a webinar last week, where he accused US President Donald Trump of leading a global white supremacist movement.

Rubio declared the ambassador “persona non grata”, saying he was no longer welcome in the United States.

South Africa has been in the direct firing line of the new Trump administration since it took up seat in Washington in late January.

The administration has taken aim at the country over what it sees as anti-American stances and alignments with America’s enemies.

This includes standing against the US and Israel at the International Criminal Court over the Israel-Hamas war and aligning with Russia, China and Iran.

Trump has also taken exception to South Africa’s local policies and race-based laws, such as BEE requirements for foreign companies and the recently-signed Expropriation Act, which allows the government to expropriate land for zero compensation under specific circumstances.

The fallout has had a direct impact on South Africa’s finances. The Trump administration pulled billions of rands in funding, leaving the country with an even bigger hole to plug in its strained budget.

It also places South Africa’s participation in the African Growth and Opportunity Act (AGOA) at risk.

Losing access to AGOA would result in the loss of preferential access to American markets, costing local producers billions.

South Africa must face its new reality

According to Mavuso, while South Africa’s fallout with the United States is “regrettable”, it does not mean the end of relationships with the world’s biggest economy.

She said the country’s priority should be growing the local economy and boosting investment. South Africa’s battle for growth is clearly at risk with its strained relationship with the United States.

However, despite the last few months of diplomatic missteps, getting a foot in the door is still possible.

“The US is open for businesses; it’s just a different kind of business. There is still opportunity to work with the US government, where it makes sense.”

Mavuso noted that South Africans and American companies still have strong relationships that will weather the storm and stay strong.

She added there are still US organisations that are investing in the region, recently reaffirming as much.

However, when it comes to working directly with the US government and the Trump administration, South Africa will have to pivot and advance projects that will fit the US agenda, she said.

The BLSA CEO said engaging in tit-for-tat politics or “decrying the actions of counterparts” is not beneficial to anyone.

Instead, South Africa has to be ready to manoeuvre and adapt to the kind of businesses that is possible in the world as it is in reality, not as it wishes it was, she said.

President Cyril Ramaphosa and the Department of International Relations and Cooperation have both expressed a willingness and desire to engage with the United States to repair diplomatic ties.

DIRCO minister Ronald Lamola said that he hopes by sending a new ambassador to the United States the countries will be able to ‘reset’ their relationship.