SA Strengthens Ties with the USA and Global Partners for Economic Growth

Deputy President Paul Mashatile reaffirmed this commitment while addressing the 7th BizNews Conference (BNC#7) at the Hermanus Municipal Auditorium in the Western Cape on Thursday.

South Africa is actively working on stabilizing and reinforcing its diplomatic and economic relationship with the United States of America (USA), recognizing the historical and strategic significance of this partnership. Deputy President Paul Mashatile reaffirmed this commitment while addressing the 7th BizNews Conference (BNC#7) at the Hermanus Municipal Auditorium in the Western Cape on Thursday.

Strengthening Economic and Diplomatic Relations

Mashatile emphasized that maintaining strong bilateral ties with the USA remains a priority, particularly in light of recent funding cuts to key health programs, such as the President's Emergency Plan for AIDS Relief (PEPFAR). The Deputy President acknowledged the importance of bolstering South Africa's own healthcare systems and ensuring uninterrupted services to vulnerable populations.

"The withdrawal of PEPFAR funding highlights the urgency for South Africa to strengthen its internal healthcare interventions. We have been investing heavily in healthcare reforms, specifically targeting the dual epidemics of HIV/AIDS and TB. Measures have been put in place to ensure that patients receiving treatment continue to do so without disruption," said Mashatile.

Furthermore, he urged stakeholders to collaborate with the government in advocating for South Africa's interests in the USA, particularly through trade agreements such as the African Growth and Opportunity Act (AGOA).

"The loss of AGOA benefits would be devastating for our agricultural and manufacturing sectors. Currently, AGOA facilitates around $21 billion in trade with the United States. It is in South Africa's best interest to maintain strong diplomatic, trade, and economic ties with the USA," he added.

Diversifying Trade and Strengthening Economic Prospects

Mashatile also underscored the importance of diversifying export markets and strengthening economic engagement with global partners, including China, Russia, India, and various European countries. President Cyril Ramaphosa's co-chairing of the EU-South Africa Summit further signals the country's commitment to fostering trade, security, and sustainable development collaborations.

The Deputy President highlighted intra-African trade and financial cooperation as key strategies for reducing reliance on volatile global markets. He pointed to the African Continental Free Trade Area (AfCFTA) as a major step in creating economic resilience and expanding intra-continental trade.

"South Africa possesses significant natural resources and agricultural potential, making it an attractive destination for investment. We are committed to lifting economic expansion above 3% in the medium-term by eliminating growth barriers and promoting innovation," he stated.

To achieve this vision, Mashatile emphasized skills development as a crucial component of economic transformation. The National Digital and Future Skills Strategy, alongside the newly approved Reconceptualized Human Resource Development Strategy, aims to enhance educational outcomes, increase youth employability, and align higher education programs with market demands.

Progress on Financial Action Task Force (FATF) Grey List Removal

Addressing South Africa's presence on the Financial Action Task Force (FATF) grey list, Mashatile assured that significant progress is being made to combat financial crimes and secure the country's removal from the list.

"Through new legislation, we have strengthened our ability to prevent money laundering and fraud. Of the 22 action items required for grey list removal, we have already addressed 20. The remaining items will be resolved by June, paving the way for our removal by October 2025," he said.

The Deputy President reiterated that these efforts are part of a broader initiative to curb corruption and financial crimes, fostering a more stable economic environment for all South Africans.

South Africa's Leadership on the Global Stage

Looking ahead, Mashatile stated that South Africa will leverage its presidency of the Group of 20 (G20) to prioritize Africa's development. He reaffirmed the nation's commitment to driving policies that advance economic growth, investment, and cooperation both on the continent and globally.

With a focus on strengthening international partnerships, stabilizing trade agreements, and driving economic reforms, South Africa is positioning itself as a key player in global economic and political affairs.