Business Leadership South Africa’s (BLSA) chief executive officer (CEO), Busisiwe Mavuso said they welcomed the news that Ebrahim Rasool will be South Africa’s next ambassador to the United States.
“South Africa’s relationship with the US is important and in need of repair,” Mavuso said.
She added that the Trump presidency is set to change how the US engages with the rest of the world with far more emphasis on bilateralism and SA needs to be ready for it.
The head of business leadership said that the US and South Africa have had a strained relationship over the last two years.
“Our actions have been perceived by our US counterparts as threatening their foreign security interests. Many in Washington have been angered by our engagements with Russia and China, as well as our position on the Israel/Palestine conflict,” Mavuso noted.
“That has put our trading relationship at risk, despite the US being arguably our most important trading partner. While the US is our second largest trading partner after China, the trade balance is in our favour and includes a high proportion of manufactured goods.”
She said that vehicles and machinery form a large part of SA’s export basket alongside foodstuffs and minerals. In contrast, South Africa’s trade with China is characterised by high volumes of raw material exports and an even higher volume of manufactured goods imports.
Mavuso emphasised that the US relationship supports deep value chains in SA’s economy and far more jobs as a result.
Rasool understands the assignment
“I was pleased to join several business leaders for dinner with Rasool last week as he prepares for the task. I was taken aback by how well he came across as someone who understands the mission,” she explained.
“He has walked the streets of Washington before, having served as ambassador in the first Zuma administration while Barack Obama was president. He has a strong network in Washington as a result.”
Mavuso said that President Cyril Ramaphosa has given Rasool a mandate to help reset the relationship.
“Few are under any illusion that the Trump approach to foreign relations will be far more transactional as he seeks to deliver on his ‘America first’ policy focus.”
“The trade relationship is also important for the US, particularly since the Russia/Ukraine conflict, which has resulted in greater US dependency on South Africa for raw materials like platinum group metals and chrome,” she added.
She said it will take considerable diplomatic skill to find the right balance of interests to ensure that SA continues to benefit from its relationship with the US.
“Rasool gives me great confidence that he will be able to navigate the path,” Mavuso said.
IOL BUSINESS