US companies urge South Africa to keep a cool head




© FAR

The head of the American Chamber of Commerce in South Africa said a feud with US President Donald Trump risks a strategically important relationship that benefits both nations.

“This is a time for cool heads,” said AmCham South Africa President Kuseni Dlamini. “We need a carefully thought-out response, especially from South Africa.”

Trump on Friday banned US aid to South Africa over what he falsely claimed were rights violations stemming from a new land-expropriation law, plus its allegations of genocide against Israel.

That drew a measured response from Pretoria, which said it “remains committed to finding diplomatic solutions to any misunderstandings or disputes.”

The biggest impact of Trump’s executive order will be on R7.5 billion of funding for South Africa’s longstanding HIV program, which now faces an uncertain future.

Dlamini, who represents 600 US companies operating in South Africa, employing over 200,000 workers, said the ramifications go deeper.

“What’s at stake here is much bigger than the withdrawal of aid,” he said, noting that South Africa is the US’s largest trading partner in the region and is used as a strategic gateway into Africa by several US companies.

In particular, he said the current spat should not thwart the extension of the African Growth and Opportunity Act, expiring in September, which grants South Africa and more than 20 other nations from the continent preferential access to the world’s biggest economy.

“The case for AGOA to be extended is very strong, and a lot of other countries in the region benefit from South Africa’s membership,” he said, adding there had been bipartisan support for the country when he visited Washington last year to advocate on its behalf.

“It’s very important that these two countries have a positive and constructive relationship,” Dlamini said.