US giant signs deal amid plans to open the floodgates for American companies to enter South Africa
United States technology giant Cisco has signed a major agreement with Johannesburg civic movement Jozi My Jozi to invest in the revitalisation of the important city.
This is the first major indication that Washington is moving ahead with plans to significantly expand the presence of American companies in South Africa.
The Memorandum of Understanding (MOU), signed under the Masibambisane initiative, makes Johannesburg the first city in Africa to join Cisco’s global 40 Communities programme.
The programme is a 10-year initiative focused on community development through technology, investment, and expertise.
Announcing the agreement on Friday, 17 July, the US Embassy in South Africa described it as an example of how American businesses are investing in the country’s future.
“Ambassador Bozell attended the signing of a new partnership between American technology leader Cisco and Jozi My Jozi, a civic movement dedicated to revitalising Johannesburg’s inner city,” the embassy said.
“Johannesburg joins Cisco’s 40 Communities initiative to invest in communities through technology, funding, and expertise.”
“US companies like Cisco are investing in South Africa’s future, building digital skills, strengthening infrastructure, and creating opportunities for young people,” the embassy added.
“As the United States marks 250 years of independence, partnerships like this show how American innovation and South African ingenuity can build a safer, stronger, and more prosperous future together.”
Cisco, headquartered in San Jose, California, is one of the world’s largest technology companies, specialising in networking equipment, software, telecommunications and cybersecurity.
Founded in 1984, the company generates annual revenue of more than $60 billion and has a market capitalisation of more than $440 billion (R7.2 trillion).
The partnership will see Cisco become Jozi My Jozi’s first US-based strategic partner, working alongside more than 140 public, private and academic organisations to support Johannesburg’s inner-city renewal.
The agreement also aligns with comments made earlier this year by United States Ambassador to South Africa Leo Brent Bozell III, who outlined his ambition to substantially increase American investment in the country.
Part of a bigger plan
Speaking at the BizNews Conference in Hermanus in March, Bozell said South Africa remains one of America’s most important economic partners on the continent.
“The United States values partners in South Africa. This country is Africa’s largest economy, and it’s the largest US trade and investment partner in sub-Saharan Africa,” he said.
Bozell noted that more than 500 American companies already operate in South Africa, collectively employing over 250,000 people.
However, he said he believes there is room for far greater investment if the right business environment exists.
He stressed that the United States wants to deepen its commercial footprint, saying there was no reason the current number of American businesses could not double.
“America is proud of the 500 companies already operating in South Africa,” Bozell said, adding that the US was “not done.”
He suggested there is no reason why this shouldn’t be 1,000 American companies and the employment that comes with it.
“That’s how Americans think. Nothing is beyond the pale for us. We want partners who also dream great dreams, and that’s South Africa’s signature. Let us do all in our power to make our relationship prosper and thrive.”
The Cisco agreement is the first significant investment announcement following those remarks and comes as South Africa and the United States seek to improve bilateral relations.
President Cyril Ramaphosa said in April that South Africa had received “several positive signals” from the United States.
He also confirmed that discussions were underway with US lawmakers and trade officials to improve support and trade between the US and eligible African countries.
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