Cape Town – Trade relations between the US and South Africa hang in the balance after Washington accused the country of aiding Russia’s war effort in the year-long conflict with Ukraine.
US ambassador to South Africa, Reuben Brigety, on Thursday, accused SA of having covertly provided arms to Russia, a charge that drew an angry rebuke from Pretoria.
Brigety told a media briefing the US believed weapons and ammunition had been laden onto a Russian freighter that docked at a Cape Town naval base in December.
“We are confident that weapons were loaded onto that vessel and I would bet my life on the accuracy of that assertion,” Brigety said, according to a video of the remarks.
“The arming of Russia by South Africa… is fundamentally unacceptable.”
But South Africa slammed the charge, with President Cyril Ramaphosa’s spokesperson Vincent Magwenya saying in a statement: “The Ambassador’s remarks undermine the spirit of cooperation and partnership” between the two countries.
Magwenya said it was “disappointing” that the envoy had “adopted a counter-productive public posture”.
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“While no evidence has been provided to date to support these allegations, the government has undertaken to institute an independent enquiry to be led by a retired judge.”
According to EWN, traders and economists have been swift in their reaction – with general agreement that any withdrawal of US investment would be one step too far for South Africa.
“You know really, about 50% of our exports go to US, Europe and countries that have a strong position against the occupation of Ukraine,” the report quoted Investment expert Graeme Korner of the Korner Perspective as saying.
He added that this was an own goal by the government: “You just sort of feel that our economic and our political polices are really not aligned.”
Reports have indicated in the past that South Africa’s relations with Russia and its stance on the Ukraine invasion could harm bilateral trade between the two countries worth about R400 billion.
South Africa benefits from the lucrative Africa Growth and Opportunity Act (Agoa), which provides preferential access to US markets.
The rand reportedly went from R18.92 to the dollar to R19.32 soon after Brigety lashed out at SA for supplying arms to Russia, and SA’s non-response.
The significance of R19.32 is that it’s a record low for SA’s long-beleaguered currency.
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Source: AFP
Picture: Twitter/@CyrilRamaphosa
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Compiled by Betha Madhomu
Additional reporting by AFP
