‘We will survive,’ says economist on threats to exclude SA from Agoa

Economist Makwe Masilela says the Africa Growth and Opportunity Act (Agoa) is an important pathway to accessing US markets, and there will be short-term problems if South Africa is excluded.

Masilela was responding to letters from four Republican Members of Congress to US President Donald Trump, compelling him to exclude South Africa from Agoa.

The Republicans described the South African government as an “ethnonationalist gangster regime” working against the global interests of the US.

“We would also suggest that you consider suspending diplomatic ties unless that government is prepared to engage constructively with our own.”

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This is despite International Relations and Cooperation Minister Ronald Lamola saying earlier this year that the Trump administration had not responded to the South African government’s attempts to engage with them.

Agoa allows access to the US markets and affords eligible sub-Saharan African countries duty-free access to most exports in return for prioritising free markets and the rule of law.

Agoa renewal: SA ‘will survive’

Speaking to The Citizen on Wednesday, Masilela said that if a decision is reached not to renew Agoa, South Africa will survive.

“In the long term, we will survive, but short to medium term, we’ll experience disruptions which have the potential to impact businesses and the economy negatively, and it all depends on how long will it take businesses to discover new markets,” he said.

While South African politicians scramble to fix relations with the US, Masilela said the US is a big player in the business world and cutting relations with this powerhouse may not be wise.

“We do need every market, including the US, and noting that the US is a very big market for any business,” he said.

Some politicians have been saying South Africa should look to the east for better beneficial business and diplomatic relations.

However, Makwe said this also has its downside.

“Our relationship with China continues to be positive but trade-wise, China is benefitting more than us,” he said.

AfriForum’s lobbying in the US

Over the last few years, AfriForum has been lobbying for US support in dealing with farm murders and other government policies it claims have been marginalising those it represents.

In one of the tours in 2019, AfriForum said its meetings with US representatives had been successful.

“It is our aim to get the American government, politicians and influential voices in the media to take a public stand about the situation in South Africa and to place diplomatic pressure on the South African government to protect property rights and act consistently against violent crime. The tour has been a huge success to date,” it said at the time.

The organisation’s latest tour in the US was in July last year.

AfriForum spokesperson Ernst Van Zyl said AfriForum maintains that the US administration should punish senior ANC politicians and not South African citizens who are likely to be affected by any sanctions.

“AfriForum’s stance and message internationally is and has always been that if someone is punished in South Africa by sanctions, these sanctions should target the politicians pushing through extremist policies and rhetoric. The citizens of South Africa are already punished by the destructive policies of the government; they do not deserve double punishment,” he said.

SA ‘should not be kicked off Agoa’

The organisation, however, dismisses suggestions that their meetings culminated in the executive orders signed by Trump earlier this month.

Van Zyl said the organisation does not believe South Africa should be kicked from Agoa.

“The ANC’s policies that attack private property rights and discriminate based on race violate the Agoa terms and are thus pushing us towards that outcome,” he told The Citizen.

“[The US] are in their full right to respond firmly and harshly, even though AfriForum does not advocate for steps that punish ordinary South Africans.

“At the end of the day, what action the Trump administration takes will be based on their own discretion.”

Envoys to the US ‘must act urgently’

Meanwhile, in an interview with Newzrom Afrika on Wednesday morning, former international relations minister Naledi Pandor urged the South African government to move quickly to repair relations with the US.

Pandor said she believes South Africa has more friends than enemies in the US.

“My feeling is that we need to look at moving much faster. We are dealing with a situation that requires urgent attention. I would have liked to see those envoys that President Ramaphosa mentioned departing 48 hours after he referred to them,” she said.

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