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South Africa and the US have much to gain from working together


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South Africa and the US have much to gain from working together

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South Africa and the US have much to gain from working together

President Cyril Ramaphosa and US President Donald Trump
President Cyril Ramaphosa and US President Donald Trump

26th May 2025

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Dear Fellow South African,

Last week, I undertook a successful working visit to the United States at the invitation of President Donald Trump to strengthen relations between our two countries.

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The delegation that accompanied me included a diverse range of South Africans, with representatives from Government, business, labour and the sporting fraternity, all united in advancing our country’s interests.

South Africa has always regarded the United States as a strong investment and trading partner. Our countries and our economies are bound together in many ways. We went to Washington to establish a basis for greater economic cooperation and to address some of the challenges that have recently arisen in relations between our two countries.

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Our visit came at a time when US-SA relations have come under increasing strain, largely as a result of misinformation peddled by fringe groups in our two countries, including a false narrative about a so-called genocide and an orchestrated campaign of violence against white farmers.

In this context, it was critical for us to engage directly with the US administration to correct misinformation and provide a true account of the progress we have made as a democracy and the many and complex challenges we still face.

While this was a necessary conversation, the overarching aim of our visit was to deepen our strategic economic partnership with the US as our second-largest trading partner.

The US is a key export market for South African goods, products and services, including motor vehicles, agricultural products and, increasingly, critical minerals. At the same time we buy many goods and services from the US.

There is potential to increase and diversify trade between our two countries in areas such as gas, mining and critical minerals, agriculture and nuclear products.

The US is a major source of investment in South Africa. There are over 600 US companies, many with a long-established presence here, who continue to expand their investments.

By way of example, earlier this year tech giant Microsoft announced plans to invest an additional R5.4 billion in expanding its cloud and AI infrastructure in South Africa over the next two years. Last week, there was a strong showing of US companies at an important energy conference in Cape Town.

According to data from the US Department of Commerce, these South Africa-based US companies employ around 148,000 South Africans. South Africa continues to be a tourist destination to many US citizens. Last year close to 400,000 American tourists visited South Africa.

South Africa and the US have for many years had a longstanding development partnership in critical areas such as health, education and environmental conservation and protection.

One of the key outcomes of the substantive discussions we had with President Trump was agreement on an economic cooperation channel between the US administration and South Africa to engage further on tariffs and a broad range of trade matters.

President Trump agreed that the US should continue playing a key role in the G20, including attending the G20 Leaders’ Summit in Johannesburg later this year, where South Africa will hand over the presidency of the G20 to the US.

We also discussed exploring new opportunities for companies from South Africa and the US in each other’s markets. We were able to update US officials on the ongoing structural reform process underway to improve the ease of doing business and facilitate a favourable investment climate.

We are operating from a firm base. Last year’s country Investment Climate Summit published by the US State Department highlights South Africa being an attractive investment hub, citing key factors such as deep and well-regulated capital markets, strengths in manufacturing stable institutions, an independent judiciary and robust legal sector, respect for the rule of law, a mature financial and services sector, and experienced local partners.

We have extended an invitation to President Trump to send a government and business delegation to South Africa to explore opportunities for deepening investment and trade.

In 1990, soon after his release from prison, Nelson Mandela addressed the US Congress. He spoke of the envisaged economic cooperation between a democratic South Africa and the US as “not a relationship between donor and recipient, between a dependent and a benefactor”, but one of mutual benefit.

This spirit of cooperation remains firmly in place more than 30 years later. 

Our successful working visit to the US reaffirmed the importance of keeping the channels of dialogue open. The willingness of the US to engage with South Africa on resetting our relationship is testament to the strength of the bilateral relationship.

We need to work together as Government, business, labour and all of society to overcome our domestic challenges, including the high rate of crime, if we are to attract investment that advances economic growth and creates jobs.

As South Africans, as a sovereign and independent nation, we are always ready to acknowledge and address our problems, just as we are always ready to engage our critics in meaningful discussion.

We are pleased that our visit to Washington established a basis for greater engagement and cooperation. Our two countries have everything to gain from working more closely together.

With best regards,

 

Issued by the Presidency 

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