Business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso says the appointment of Ebrahim Rasool as the next ambassador of South Africa to the US is good news because South Africa's relationship with the US is important and in need of repair.

“The Trump presidency is set to change how the US engages with the rest of the world, with far more emphasis on bilateralism and we need to be ready for it,” she wrote in her weekly newsletter.

The US is arguably South Africa's most important trading partner. While China is South Africa's largest trade partner, the US is its second largest trading partner.

The trade balance with the US is in South Africa's favour and includes a high proportion of manufactured goods, with vehicles and machinery forming a large part of South Africa's export basket alongside foodstuffs and minerals.

“In contrast, our trade with China is characterised by high volumes of raw material exports and an even higher volume of manufactured goods imports.

“The US relationship supports deep value chains in our economy and far more jobs as a result,” she emphasised.

The trade relationship is also important for the US, particularly since Russia's invasion of Ukraine, which has resulted in greater US dependency on South Africa for raw materials like platinum-group metals and chrome.

The Trump approach to foreign relations will be far more transactional, as he seeks to deliver on his “America first” policy focus, she highlighted.

“It will take considerable diplomatic skill to find the right balance of interests to ensure that South Africa continues to benefit from the relationship the way it now does. My recent meeting with Rasool gives me great confidence that he will be able to navigate the path,” said Mavuso.

The two countries’ relationship has been strained over the past two years as some of South Africa's actions have been perceived by US counterparts as threatening their foreign security interests.

Many in Washington have been angered by South Africa's engagements with Russia and China, as well as its position on the Israel/Palestine conflict. This has put South Africa's trading relationship with the US at risk.

The US-Africa trade framework the African Growth and Opportunity Act supports African countries’ duty-free access to US markets for certain kinds of goods. It is set to expire in September 2025 and Trump has not yet provided any indication on whether he intends to renew it and continue to include South Africa among the nations that benefit from it.

“Rasool is under no illusions that we face a pivotal moment in the relationship. His focus is very much on South Africa’s trade relationship and the jobs that it supports,” Mavuso reported.

Additionally, driven by concerns over US national security and foreign policy interests, the US House of Representatives passed a Bill in March requiring a complete review of the US and South Africa relationship.

This Bill must still be passed by the Senate, but, with the Republicans set to control both houses, the party’s views will be critical to the future of the relationship, she emphasised.

South Africa will assume the chair of the G20 next month, with the US due to take over in December 2025.

It is, therefore, an important time for the relationship on the global stage, while bilateral issues, including the future of the countries' trading relationship, will be far more direct between the two sides, she added.