ANC considers teaming up with Zim to challenge US sanctions

The Zimbabwe Anti-Sanctions Movement (ZASM), which last month sued the US government in the Gauteng High Court in an effort to have sanctions declared unlawful in South Africa, looks like it has found an ally in the ANC.

Papers were served earlier this month on US President Joe Biden, President of the US Senate, Speaker of the House, Treasury Secretary and several US and South African banking groups.

The US banks cited in the case are Citigroup, Bank of America, Goldman Sachs, Morgan Stanley and Wells Fargo.

Also cited are South African banks Absa, Standard Bank and FirstRand.

The case was brought in the Gauteng High Court rather than the US court because US sanctions imposed on Zimbabwe since 2001 are applied by South African financial services providers within the high court’s jurisdiction, and South Africa is Zimbabwe’s biggest trading partner.

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The US sanctions are deemed to be inconsistent with the Africa Free Trade Agreement, to which South Africa is a signatory, and the Bilateral Investment Promotion and Protection Agreement (Bippa) between SA and Zimbabwe.

Timing fortuitous?

A victory in a South African court would pressure South African banks to reopen banking facilities to Zimbabwe, and may in turn pressure the US to reconsider its ongoing sanctions.

The timing of the court case, coming as the US is trying to build an international coalition against Russia over its invasion of Ukraine, may be fortuitous for Zimbabwe.

SA has remained neutral over the Ukraine conflict and has refused to join the West in imposing sanctions on Russia.

“I can confirm that the president of the United States, and his government, received the court papers against unlawful sanctions via the South African Department of International Relations diplomatic bag. We are awaiting his response,” says Advocate Simba Chitando, who is representing the ZASM, in a statement.

“I can also confirm that a director of the ZASM met Bishop Azwihangwi Maumela, who is a PEC [provincial executive committee] member of the ANC in Limpopo, and was told that the ANC opposes unlawful sanctions against Zimbabwe, and is considering joining the court proceedings as a friend of the court.”

Sanctions have done more harm than good

The court filings detail the extent of misery inflicted on ordinary Zimbabweans by US sanctions.

The sanctions were introduced in 2001 under the Zimbabwe Democracy and Recovery Act (Zidera) with the purpose of restoring order in the country after state-sanctioned land invasions and human rights abuses.

The sanctions snuffed out Zimbabwe’s ability to meet its international financial obligations and buckled the country’s balance of payments, which in turn contributed to currency collapse.

A 2019 report by Zimbabwe’s Ministry of Foreign Affairs and International Trade says sanctions force Zimbabwean importers to pay cash upfront, while loan inflows to Zimbabwean companies have dropped, and the country’s agricultural output has fallen due to an inability to import farming equipment.

Zimbabweans of various political stripes have called for the lifting of sanctions, which have done little if anything to alter the political landscape.

Some 20 years after sanctions were imposed, many have pointed to their futility in restoring order or assisting in improving human rights.

Chitando says the respondent banks have hired the most expensive legal guns in the business to fight the case.

“We’ve certainly got a fight on our hands, but with the ANC coming on board, I think we have won an important ally.”

By Ciaran Ryan

This article first appeared on Moneyweb and was republished with permission. Read the originals article here.