Ramaphosa said 'South Africa is positioning itself as an investment destination.'
President Cyril Ramaphosa says South Africa will continue to advocate for the principle of reciprocity in investment and trade relations with the US, adding that business ties with the United States are “strong and expanding.”
This comes amid a South African delegation’s trip to the US, dispatched by Ramaphosa, to negotiate a deal with the Trump administration.
Tariffs
The South African team is optimistic about the prospects of success.
Minister of Trade, Industry and Competition, Parks Tau, says he believes a deal could be reached to cut the 30% tariff hike imposed on South Africa by US President Donald Trump.
Engagements
Writing in his weekly newsletter on Monday, Ramaphosa highlighted his address at a Trade and Investment Dialogue between South African and US businesses on the sidelines of the United Nations General Assembly in New York.
Ramaphosa said this was one of several engagements he had with US companies during his visit to 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,” Ramaphosa said.
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Optimism
Ramaphosa said 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.
“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,” Ramaphosa said.
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SA investment destination
The president stated that South Africa is positioning itself as an investment destination for critical minerals, with the digital transition and the global shift towards net zero driving increased 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.”
‘Deeply connected’
Ramaphosa added that the announcement of the establishment of the South Africa-United States Trade and Investment Forum, which will be inaugurated at next year’s South Africa Investment Conference, is a “vital bridge between the two countries.”
“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 a time,” Ramaphosa said.
Ramaphosa said their 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.”
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