South Africa’s business ties with the US ‘strong and expanding’ – Ramaphosa

President Cyril Ramaphosa stresses that business links between the United States (US) and South Africa are expanding, despite political frictions and ongoing trade negotiations.

In his weekly letter on Monday, Ramaphosa reflected on his participation in a Trade and Investment Dialogue between South African and US businesses held on the sidelines of the United Nations General Assembly in New York.

“All of the companies commended the reforms being undertaken by the government and the prospects for growth in our economy,” he said, adding that there is progress “beyond the headlines and debates around trade policy.”

The dialogue was convened by the US Chamber of Commerce, which represents businesses in more than 120 countries, including South Africa.

Kendra Gaither, president of the US-Africa Business Center at the Chamber said that “there is no economic relationship more foundational than the ties that the US and South Africa have,” and emphasising that it “merits dedicated attention.”

In 2024, two-way trade between the US and South Africa reached approximately $21.6 billion, with South Africa enjoying a trade surplus of about $7.7 billion.

Despite this overall volume, South Africa experienced disruptions in its exports to the U.S., particularly in the automotive sector, due to recent tariffs. 

In his letter, Ramaphosa pointed to the existing depth of commercial ties, noting that over 600 US companies operate in South Africa and that the country is the continent’s second-largest destination for US exports.

He also highlighted opportunities for investment in sectors such as critical minerals, agriculture, pharmaceuticals, healthcare, advanced manufacturing, and technology.

The president announced the creation of the South Africa-United States Trade and Investment Forum, which will be inaugurated at next year’s South Africa Investment Conference, as a formal platform to strengthen bilateral commercial relations.

He also referenced ongoing discussions on a reciprocal trade agreement and the importance of frameworks like the African Growth and Opportunity Act (AGOA) and the African Continental Free Trade Area.

“Expanding commercial partnerships happens one deal, one investment at a time,” Ramaphosa said, noting that both governments and the private sector remain focused on building mutually beneficial ties.

A tense relationship

South Africa’s relationship with the US has significantly deteriorated since US President Donald Trump came back into office, with clashes over international and domestic policy.

In May, Ramaphosa visited Washington in an effort to negotiate a trade deal, offering to buy US liquefied natural gas and invest $3.3 billion in a “framework deal” proposed by Pretoria.

Despite last-minute improvements to the offer, the negotiations failed, and on 8 August 2025, a 30% US tariff on South African exports took effect.

Officials warn the tariff could cost tens of thousands of jobs, especially in agriculture and auto manufacturing.

The US claimed some trading partners had made sufficient commitments, while others, including South Africa, had not adequately addressed trade imbalances or aligned on economic policies and national-security matters.

Pretoria rejected claims that its Black Economic Empowerment policies contributed to the failed negotiations.

The Department of Trade, Industry, and Competition listed the diversification of exports to alternative markets as one of the five key measures the country is implementing in response. 

This is in addition to continued efforts to secure a deal with the US to reduce the tariffs, providing vulnerable companies and workers with an economic response package, trade defense against import surge and dumping, and demand side interventions. 

South Africa submitted a revised offer to the US, responding to issues the US administration has raised. 

This included granting the US market access to export poultry, pork and blueberries to South Africa. 

The department added that diversification is a strategic imperative to ensure South Africa’s resilience against such economic shocks. “This is not a plan B; it is a plan A for long-term resilience and competitiveness.”

Of the tariffs being introduced by the Trump administration, South Africa faces the highest rate in sub-Saharan Africa. 

Previously, South Africa’s automobile, farming, and textile sectors enjoyed duty-free access to the US market.

Trump introduced the tariffs citing the protection of American businesses from foreign competition and boost domestic manufacturing and job creation.