While trade relations between South Africa and the United States face several challenges, President Cyril Ramaphosa says the government is committed to rebuilding political and diplomatic relations with the US.
Speaking at the American Chamber of Commerce South Africa Annual General Meeting on Thursday, the President said he has been engaging the new US Ambassador to South Africa, Ambassador Bozell, on efforts to repair the strained diplomatic relations.
“Yesterday, I had the pleasure of receiving the credentials of the new US Ambassador to South Africa, Ambassador Bozell.
“Through the engagements that have taken place since his arrival in the country, I believe we have made progress in developing a common understanding of the issues that continue for the moment to define our relationship,” the President said in Johannesburg.
He added that Ambassador Bozell has made deepening commercial trade between the two countries a priority.
“I understand that the Ambassador wants to double the amount of US companies operating in South Africa. This is an ambition that we wholeheartedly support and that we hope to work together to achieve,” Ramaphosa said.
The President emphasised that South Africa is committed to working with United States businesses to deepen cooperation and open up new opportunities as the government pursues the strategic priority of driving inclusive growth and creating employment.
The United States is a major source of foreign direct investment in South Africa, with more than 600 American companies operating in the country. It is estimated that these companies employ over 250,000 South Africans.
“The US administration has been forthright in its assessment of our trade relations, and we welcome its willingness to engage with South Africa to address concerns. Recently we have had several positive signals from the United States.
“We recently held a critical minerals forum in Washington, with key US government departments and business,” President Ramaphosa said.
South Africa is actively engaged with various committees, both in the House and the Senate, on the renewal of African Growth and Opportunity Act (AGOA).
AGOA is a piece of legislation that was passed by the US Congress in May 2000 to provide eligible sub-Saharan African countries with duty-free access to the US market.
“At the same time, the Department of Trade, Industry and Competition remains engaged with the US trade representative.
“We are committed to working together more closely and with greater focus to achieve a trade agreement that is mutually beneficial.
“There is a great deal that we can offer each other and there is no reason why we can’t reach agreement on areas of difference,” he said.
South Africa recenlty held a critical minerals forum in Washington, with key US government departments and business.
“We will continue work to develop a critical minerals framework that can ensure that we continue to be a strategic supplier of critical minerals to the US.
“At the same time, we want to develop collaborative programmes that increase investment in this important sector in our economy,” he said.
Economic renewal
South Africa stands at a juncture of economic renewal as government implements structural reforms to rebuild the economy.
The President said these efforts are bearing fruit.
“Electricity supply has stabilised and Eskom has been returned to operational viability. Together with market reforms and substantial private investment in renewable energy, we are laying the foundation for a competitive energy market that will reduce costs for households and businesses.
“Through Operation Vulindlela, we have seen improvements in the efficiency of our ports, and we are enabling access to our freight rail for private operators,” Ramaphosa said.
There has been a decline in the cost of broadband data alongside an improvement in access.
“Far-reaching changes to our visa regime will enable the country to attract greater investment, skills and tourism. We have embarked on a second phase of Operation Vulindlela, focusing on local government, digital transformation and reducing spatial inequality.
“A particular area of focus now is on ensuring reliable access to water for households, businesses and agriculture,” the President said.
Through a National Water Crisis Committee, government is undertaking interventions to transform the provision and management of water services across the country.
“Our commitment to macroeconomic stability and prudent fiscal management has resulted in the stabilisation of public finances and has seen our sovereign risk profile improve.
“We are reforming our criminal justice system and tackling crime and corruption, so that businesses can invest and operate without fear.
“We are establishing a new criminal justice reform initiative modelled on the success of Operation Vulindlela, which will focus on combating organised crime, corruption, the illicit economy and illegal firearms,” he said.
Furthermore, government has allocated more than R3 trillion over the next three years to modernise and expand public infrastructure across South Africa.
This includes massive investment in roads, railways, ports, dams, energy generation and transmission, as well as housing.
“We remain committed to the transformation of our economy to drive sustained growth, reduce inequality and correct the injustices of the past,” the President said. -SAnews.gov.za
