{"id":814657,"date":"2025-02-28T09:48:17","date_gmt":"2025-02-28T07:48:17","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=814657"},"modified":"2025-02-28T10:18:34","modified_gmt":"2025-02-28T08:18:34","slug":"very-serious-threat-to-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/814657\/very-serious-threat-to-south-africa\/","title":{"rendered":"Very serious threat to South Africa"},"content":{"rendered":"\n<p>President Cyril Ramaphosa\u2019s attack on the United States can have severe consequences for South Africa, including sanctions against Americans holding South African government debt.<\/p>\n\n\n\n<p>On Tuesday, 25 February 2025, President Cyril Ramaphosa and others published an article in Foreign Policy Magazine.<\/p>\n\n\n\n<p>His co-authors were Malaysia Prime Minister Anwar Ibrahim, Colombia President Gustavo Petro, and Hague Group Chair Varsha Gandikota-Nellutla.<\/p>\n\n\n\n<p>The Hague Group is a coalition between South Africa, Bolivia, Colombia, Honduras, and Namibia.<\/p>\n\n\n\n<p>The article focuses heavily on Israel\u2019s war in Gaza, calling it an assault against the Palestinian people, echoing dark chapters in their own countries\u2019 histories.<\/p>\n\n\n\n<p>Ramaphosa promised severe action against Israel and its leaders, including arresting Israeli leaders and preventing vessels carrying military supplies to Israel from using South Africca\u2019s ports.<\/p>\n\n\n\n<p>The authors also took aim at United States President Donald Trump, saying his proposal to \u2018take over\u2019 Gaza strikes at the very foundations of international law.<\/p>\n\n\n\n<p>They argued that it meant \u201cannexation followed by ethnic cleansing of the Palestinian population, who Trump has suggested should be deported to Egypt and Jordan\u201d.<\/p>\n\n\n\n<p>\u201cSuch actions, if pursued, would constitute a grave violation of international law and the fundamental principles enshrined in the UN Charter,\u201d they said.<\/p>\n\n\n\n<p>This article will further increase tensions between South Africa and the United States and deteriorate the relationship further.<\/p>\n\n\n\n<p>In February, Trump froze all United States aid to South Africa over rights violations stemming from the new land expropriation law.<\/p>\n\n\n\n<p>The impact will primarily affect the more than $400 million annual funding for the country\u2019s longstanding AIDS prevention and treatment program.<\/p>\n\n\n\n<p>After Ramaphosa\u2019s article on 25 February 2025, Trump ordered an immediate end to USAID funding for HIV organisations in South Africa.<\/p>\n\n\n\n<p>It is not only Trump who is taking a hard line. Four US Congress members \u2013 Andrew Ogles, Tom Tiffany, Joe Wilson, and Don Bacon \u2013 wrote to Trump about South Africa.<\/p>\n\n\n\n<p>They urged him to revoke South Africa\u2019s trade benefits under the African Growth and Opportunity Act (AGOA) and consider suspending diplomatic ties.<\/p>\n\n\n\n<p>The members argued that South Africa has repeatedly undermined US interests and violated AGOA\u2019s eligibility requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Serious threat to South Africa<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Frans-Cronje.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Frans-Cronje-1024x576.jpg\" alt=\"\" class=\"wp-image-814658\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Frans-Cronje-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Frans-Cronje-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Frans-Cronje-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Frans-Cronje.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Frans Cronje<\/figcaption><\/figure>\n\n\n\n<p>Joel Pollak, the frontrunner to become the United States&#8217; next ambassador to South Africa, <a href=\"https:\/\/www.youtube.com\/watch?v=995c-zHJwo4\">told Biznews<\/a> that sanctions against South Africa are definitely on the table.<\/p>\n\n\n\n<p>He said Ramaphosa\u2019s article significantly raises the stakes and gives the Trump administration reason to kick South Africa out of the AGOA.<\/p>\n\n\n\n<p>There can also be sanctions against South Africa and specific politicians and groups for their conduct and anti-United States stance.<\/p>\n\n\n\n<p>Renowned political and economic analyst Frans Cronje also suggested that sanctions could be imposed against South Africa.<\/p>\n\n\n\n<p>He said sanctions could hurt numerous big South African industries, including the automotive manufacturing sector.<\/p>\n\n\n\n<p>Losing the AGOA benefits will also hurt a group of South African businesses. However, this is not the biggest threat.<\/p>\n\n\n\n<p>Cronje said the most critical thing financial institutions and citizens should watch is sanctions on holding South African government debt.<\/p>\n\n\n\n<p>\u201cIf that step is taken, the consequences inside the South African economy and for anyone who does business in the country is very serious,\u201d he said.<\/p>\n\n\n\n<p>He said the South African government&#8217;s current actions are suicidal for the country\u2019s economy and trade relations.<\/p>\n\n\n\n<p>Efficient Group chief economist Dawie Roodt <a href=\"https:\/\/www.youtube.com\/watch?v=6vLJe52i1I0\">also highlighted<\/a> that the United States and Europe are the biggest investors in South Africa.<\/p>\n\n\n\n<p>He said South Africa\u2019s markets, especially the capital markets, are liquid and easy for foreigners to access.<\/p>\n\n\n\n<p>\u201cThe South African capital market offers a good yield to investors from the United States and Europe,\u201d he said.<\/p>\n\n\n\n<p>He warned that if President Trump decides to ban Americans from investing in the South African markets, it would be far more damaging to the economy than a trade embargo.<\/p>\n\n\n\n<p>Roodt said South Africa must realise that President Donald Trump is the most powerful man in the world and act accordingly.<\/p>\n\n\n\n<p>\u201cHe is in charge of the biggest economy in the world. Whatever he says or does will have a huge impact on South Africa,\u201d Roodt said.<\/p>\n\n\n\n<p>\u201cWe must understand that if we don\u2019t polish Trump\u2019s ego, we will pay a very dear price. South Africa cannot afford that.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Cyril Ramaphosa\u2019s attack on United States President Donald Trump could have severe consequences for South Africa, including one which would seriously hurt the economy.<\/p>\n","protected":false},"author":10,"featured_media":814678,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[21858,21860,1459,10849,21863,21861,21859,20266,21862,10022],"class_list":["post-814657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-bolivia","tag-colombia","tag-dawie-roodt","tag-donald-trump","tag-frans-cronje","tag-hague-group","tag-honduras","tag-president-cyril-ramaphosa","tag-south-african-government-debt","tag-united-states"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/814657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=814657"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/814657\/revisions"}],"predecessor-version":[{"id":814661,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/814657\/revisions\/814661"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/814678"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=814657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=814657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=814657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}