Dear Fellow South African,
Last week I addressed a Trade and Investment Dialogue between South African and US businesses on the sidelines of the United Nations General Assembly in New York.
This was one of a number of engagements we had with US companies while in the city. Some of these companies already have business operations in South Africa, while others are interested in investing. All of the companies commended the reforms being undertaken by the government and the prospects for growth in our economy.
As part of strengthening ties with the United States, we also used the opportunity to meet with members of the US Congress and Senate. Some of our ministers and officials also held meetings with representatives of the US administration.
The Trade and Investment Dialogue was convened by the US Chamber of Commerce, the world’s largest business advocacy organisation with representation in more than 120 countries, including South Africa. A number of government officials and representatives from business and industry from both countries were present.
The optimistic, future-focused tone of this important engagement underscored how, beyond the headlines and debates around trade policy and political frictions, US and South African businesses are forging ahead.
Addressing the dialogue, the President of the US-Africa Business Center of the US Chamber of Commerce Kendra Gaither said that there was “no economic relationship more foundational than the ties that the US and South Africa have”. She said it was a vital relationship that merits dedicated attention.
As further testimony to the strength of this relationship, later this year the US Chamber of Commerce will be sending a high-powered delegation, led by its CEO, to the B20 Summit, the official dialogue forum of the G20 for the global business community.
Commercial ties between South Africa and the US have proven to be both durable and resilient. There are more than 600 US companies in South Africa. Our country is the second-largest African destination for US exports. Both South African and US businesses can see the clear opportunities and commercial gains of investing in the other’s respective markets.
South Africa is positioning itself as an investment destination for critical minerals, with the digital transition and the global move towards net zero driving global demand. We also had the opportunity to engage with US industry around investment opportunities in agriculture, pharmaceuticals, healthcare, advanced manufacturing, technology and other key sectors.
We announced the establishment of the South Africa-United States Trade and Investment Forum, which will be inaugurated at next year’s South Africa Investment Conference as a vital bridge between the two countries.
These engagements with business take place alongside discussions with the US administration around a reciprocal trade agreement. Our Department of Trade, Industry and Competition has been meeting with the US Trade Representative to finalise an agreement that benefits both our countries.
We are also encouraged that the US Chamber of Commerce supports the reauthorisation of the African Growth and Opportunity Act (AGOA), describing it as “the cornerstone of US-Africa commerce”. Predictable, preferential access to the US market isn’t just vital to South Africa’s own exports, but also to US companies that depend on reliable imports. We are also prioritising the African Continental Free Trade Area as a vital tool for strengthening US-South Africa trade and investment.
As a country we will continue to advocate for the principle of reciprocity in investment and trade relations with the US. As the presence of US companies on South African soil continues to grow, we want to expand the number of South African companies operating in the US market, thereby creating more jobs for Americans.
As the official talks around trade tariffs continue, we take to heart the words of the US Chamber of Commerce representative at the recent dialogue, that expanding commercial partnerships “happens one deal, one investment at time”.
Our engagements in the US show that South African and US businesses remain deeply connected and are committed to mutually beneficial partnerships well into the future.
With best regards,
#GovZAUpdates
