South Africa’s recent hosting of military exercises with the People’s Republic of China and the Russian Federation on the first anniversary of Russia’s unprovoked attack on Ukraine could come back to bite where it hurts most – in the trade and investment relationship that South Africa and the US has enjoyed since 1994.
The US House of Representatives has called on the Biden administration to conduct a thorough review of this relationship, outlining the issues at hand and the way forward.
South Africa is the United States’ largest trade partner in Africa, with $21 000 000 000 of two-way goods trade in 2021, and in 2012, the countries signed a Trade and Investment Framework Agreement facilitating two-way trade.
In addition, the United States is the largest source of foreign direct investment in South Africa, valued at over $7 500 000 000 in 2021, while approximately 600 American businesses operate in South Africa.
The House has however raised several red flags that have motivated its decision to call for a review – many of them related to South Africa’s somewhat cosy relationship with China.
Chief of these was South Africa’s vote in alignment with the PRC within the United Nations General Assembly in 2022, especially in relation to votes condemning Russia’s unprovoked invasion of Ukraine.
South Africa, it points out, also reneged on its initial call for the Russian Federation to immediately withdraw its forces from Ukraine and has actively sought improved relations with Moscow in the last year.
Also of concern is the fact that South Africa is the PRC’s largest trading partner in Africa, with total trade valued at $54 000 000 000 in 2021, and has accepted $5 000 000 000 in PRC-provided power and transportation-sector loans since 2015.
South Africa’s scheduled hosting of the 15th leaders’ meeting of the informal Brazil, Russia, India, China grouping (Brics) in August is another point of contention – as is the ANC’s inability to provide electricity to the South African people due to its chronic mismanagement of the State-owned power company Eskom, and the declaration of a state of disaster earlier this month.
The House has called on South Africa to cancel all future military exercises with the People’s Republic of China and Russia and strengthen its political resilience to reject the Chinese Communist Party’s authoritarian vision for South Africa.
The Biden administration has been tasked with conducting a thorough review of the current and future status of the United States-South Africa bilateral relationship in light of the issues mentioned above, and the House has called on the United States Government to keep Congress apprised by providing regular and comprehensive briefings on subjects relating to South Africa – including a complete account of all known United States-sanctioned entities and transnational criminal organisations’ connections to illicit proceeds linked to wildlife trafficking; a detailed account of positive economic results stemming from South Africa’s inclusion in the African Growth and Opportunity Act and the United States-South Africa Trade and Investment Framework signed in 2012; and a timeline to end the Biden administration’s climate colonialism by including gas-to-power initiatives to counter the widespread and nationwide blackouts costing the South African economy an estimated $200 000 000 per day.
