Source: President of South Africa –
Programme Director;
President of the Board of the American Chamber of Commerce, Mr Kuseni Dlamini;
Members of the Board of Directors;
CEO of the Chamber, Ms Michelle Constant;
Representatives of US and South African business;
Distinguished guests;
Ladies and gentlemen.
Thank you to the American Chamber of Commerce South Africa for this invitation.
I welcome this opportunity for engagement as we work together to strengthen economic ties between South Africa and the United States.
The American Chamber of Commerce in South Africa has been a constructive, committed and valued partner for close to half a century.
It remains a credible voice for US business in South Africa.
Importantly, it is a firm advocate for strengthening trade, investment and commercial ties between South Africa and the United States.
Since the Government of National Unity came into office, we have been focused on our apex strategic priority to drive inclusive growth and create employment.
We see US business as integral to achieving this priority.
At the same time, the growth of our economy and the creation of jobs is good for US companies doing business in South Africa.
It creates more opportunities, expands potential markets, introduces more suppliers and expands the pool of talent from which companies can draw.
The United States has long been a major source of foreign direct investment in South Africa.
There are more than 600 American companies operating here.
It is estimated that US companies employ more than 250,000 South Africans.
These companies invest in South Africa because they achieve valuable returns.
They invest because South Africa has significant resources. We have large reserves of critical minerals, abundant renewable energy sources and a young and capable workforce.
This is underpinned by stable institutions, the rule of law, advanced infrastructure and deep capital markets.
Not only do these companies have access to the South African market, but they see great potential for expansion into the vast African market.
There are a number of South African companies operating in the US market, which create jobs for Americans and contribute to the US economy.
Both sides see the clear gains to be made from investing in each other’s markets.
We were encouraged by the presence of more than 600 US business leaders at the B20 Summit in Johannesburg in November last year.
This show of force on the part of US business was a resounding signal of confidence, trust and friendship.
We also see significant opportunities for expanding bilateral trade between South Africa and the United States.
Our trade relations have historically been complementary in nature.
South Africa’s exports to the United States support the development of US industries and provide American consumers with choice.
The goods and services we import from the US in turn support the development of our economy and are helping to equip South Africa for a changing global economy.
We recently held a critical minerals forum in Washington, with key US government departments and business.
We will continue work to develop a critical minerals framework that can ensure that we continue to be a strategic supplier of critical minerals to the US.
At the same time, we want to develop collaborative programmes that increase investment in this important sector in our economy.
We appreciate that our trade relations face several challenges.
The US administration has been forthright in its assessment of our trade relations and we welcome its willingness to engage with South Africa to address concerns.
Recently we have had several positive signals from the United States.
We are actively engaged with various committees both in the House and the Senate on the renewal of AGOA.
At the same time, the Department of Trade, Industry and Competition remains engaged with the US Trade Representative.
We are committed to working together more closely and with greater focus to achieve a trade agreement that is mutually beneficial.
There is a great deal that we can offer each other and there is no reason why we can’t reach agreement on areas of difference.
As we continue the work to strengthen economic ties, we are committed to rebuild political and diplomatic relations between our two countries.
Yesterday, I had the pleasure of receiving the credentials of the new US Ambassador to South Africa, Ambassador Bozell.
Through the engagements that have taken place since his arrival in the country, I believe we have made progress in developing a common understanding of the issues that continue for the moment to define our relationship.
Ambassador Bozell has made deepening our commercial trade a priority.
I understand that the Ambassador wants to double the amount of US companies operating in South Africa.
This is an ambition that we wholeheartedly support and that we hope to work together to achieve.
South Africa is at an important moment of economic renewal.
The measures we have undertaken over the last few years to rebuild our economy are bearing fruit.
Electricity supply has stabilised and Eskom has been returned to operational viability.
Together with market reforms and substantial private investment in renewable energy, we are laying the foundation for a competitive energy market that will reduce costs for households and businesses.
Through Operation Vulindlela, we have seen improvements in the efficiency of our ports and we are enabling access to our freight rail for private operators.
We have seen a decline in the cost of broadband data alongside an improvement in access.
Far-reaching changes to our visa regime will enable the country to attract greater investment, skills and tourism.
We have embarked on a second phase of Operation Vulindlela, focusing on local government, digital transformation and reducing spatial inequality.
A particular area of focus now is on ensuring reliable access to water for households, businesses and agriculture.
Through a National Water Crisis Committee, we are undertaking interventions to transform the provision and management of water services across the country.
Our commitment to macroeconomic stability and prudent fiscal management has resulted in the stabilisation of public finances and has seen our sovereign risk profile improve.
We are reforming our criminal justice system and tackling crime and corruption, so that businesses can invest and operate without fear.
We are establishing a new criminal justice reform initiative modelled on the success of Operation Vulindlela, which will focus on combating organised crime, corruption, the illicit economy and illegal firearms.
We have allocated more than R3 trillion over the next three years to modernise and expand public infrastructure across South Africa. This includes massive investment in roads, railways, ports, dams, energy generation and transmission, and housing.
We remain committed to the transformation of our economy to drive sustained growth, reduce inequality and correct the injustices of the past.
We appreciate the contribution that US companies continue to make to the transformation effort.
The many US companies that have been in our country for decades and the many companies that are now coming here to invest not only respect and adhere to our broad-based black economic empowerment laws.
They have also invested substantially in developing local black and women suppliers, provided training to young black South Africans and invested in social development programmes.
We are grateful for the frank and constructive engagements that we have had over the years to ensure that we advance the constitutional imperative of empowerment while ensuring that companies can effectively operate.
Through working together, we have developed innovative and practical mechanisms such as the Equity Equivalent Investment Programme.
This has enabled multinationals whose global policies prevent them from complying with the ownership element of broad-based black economic empowerment to invest in socio-economic, skills and enterprise development.
The US companies that are investing in South Africa – many of them well-known Blue Chip companies – do not see transformation as an impediment to investment.
They are not deterred by the scare tactics that are often used by our country’s detractors.
Nor are they deterred by the false claims that black economic empowerment imposes onerous costs on companies while delivering no value.
As is the case in other markets where they invest, these US companies understand our need to promote local production, to build an inclusive economy and to create economic opportunities for all our people.
We look forward to continued engagement with US companies as we work to strengthen the policies that support transformation while at the same time enabling investment and growth.
Last week, we held our sixth South Africa Investment Conference, at which companies made investment commitments worth a cumulative total of more than R889 billion.
This is more than what was raised at any of the previous Investment Conferences.
It is significant that around three-quarters of the value of private sector commitments is domestic capital.
This shows the confidence of South African investors in their economy.
The fact that the business people who understand our country the best are now starting to invest here at a greater scale should give encouragement to international investors.
These investments should also provide direction to where the potential lies in our economy.
South Africa offers great opportunities for multinational seeking to diversify their supply chains, especially in the midst of geopolitical uncertainty.
South Africa provides a stable, rules-based operating environment at the southern tip of a continent with the world’s fastest-growing labour force and some of its most underexploited mineral wealth.
We have the infrastructure, skills and growing capabilities to seize the opportunities presented by the profound technological changes that are reshaping our world.
In conclusion, and on behalf of all South Africans, I thank you for your unwavering confidence in our country.
Despite a difficult global environment, trade and investment relations between South Africa and the United States are strong.
We are committed to deepening cooperation and opening up new opportunities.
I wish the American Chamber of Commerce all the best in its ongoing work to champion the interests of US companies in South Africa and to champion the growth and development of our economy.
I thank you.