Discovery Ltd.\u2019s top executive has sounded the alarm that South Africa risks losing its preferential access to US markets, saying there will be major repercussions for the economy if it does.<\/p>\n\n\n\n
Pretoria\u2019s relations with Washington have deteriorated since February, when President Donald Trump froze most aid after claiming that land was being expropriated from White Afrikaner farmers. <\/p>\n\n\n\n
The South African authorities haven\u2019t confiscated any private land since apartheid ended in 1994.<\/p>\n\n\n\n
Trump has also taken President Cyril Ramaphosa\u2019s administration to task over its relations with Iran and its proxy Hamas, and for filing a case in the International Court of Justice in which it alleges that Israel\u2019s actions in the Gaza Strip were an act of genocide. <\/p>\n\n\n\n
His criticism has stoked fears over the fate of trade arrangements such as the African Growth and Opportunity Act, through which thousands of South African goods enter the US duty-free.<\/p>\n\n\n\n
If AGOA goes \u2014 \u201cand that looks very, very possible<\/strong> \u2014 that has a detrimental effect on jobs, on growth,\u201d Discovery Chief Executive Officer Adrian Gore told Bloomberg TV\u2019s Jennifer Zabasajja. <\/p>\n\n\n\n Being at cross-hairs with the Trump administration is \u201cvery concerning,\u201d said Gore, who serves as chairman of lobby group Business Unity South Africa in addition to running the company that owns the country\u2019s biggest health-insurance provider.<\/p>\n\n\n\n While AGOA is set to expire in September, US senators introduced a bill last year to extend the trade program that includes more than 30 sub-Saharan African nations until 2041. <\/p>\n\n\n\n To qualify, countries must not engage in activities purported to undermine US national security or foreign-policy interests, grossly violate internationally recognized human rights, or support acts of terror.<\/p>\n\n\n\n South Africa is preparing to pitch a bilateral trade agreement to the US should it lose access to American markets, people familiar with the matter said last month. <\/p>\n\n\n\n Ramaphosa has also announced plans to send delegations worldwide to explain Pretoria\u2019s position on i its land-expropriation law and other issues.<\/p>\n\n\n\n South Africa\u2019s economy expanded 0.6% in 2024, the slowest pace in four years, hindered by logistical constraints, weak consumer spending, a drought and poor fixed investment.<\/p>\n\n\n\n \u201cIronically, I think that is precisely the time not to be distracted,\u201d Gore said in the interview. \u201cWe have to actually focus hard on delivering key growth, key opportunities, or levers for growth.\u201d<\/p>\n\n\n\n Gore wants the government to redouble its efforts to institute reforms, including addressing infrastructure bottlenecks, to unlock potential for growth of as much as 3%.<\/p>\n\n\n\n While South Africa is unable to shield itself from Trump\u2019s escalation of global trade wars and will likely be \u201cdirectly affected,\u201d the business community needs to focus on \u201cdoing the right thing,\u201d he said.<\/p>\n\n\n\n This includes \u201cbeing transactional, offering value to trading partners, doing whatever we can that\u2019s good for growth, good for relationships, and do as much as we can,\u201d Gore said. <\/p>\n\n\n\n \u201cWe certainly can\u2019t insulate ourselves from them, but there are a lot of things we can do, and the private sector and business community is remarkably resilient.\u201d<\/p>\n\n\n\n