Over 600 U.S. companies operating in South Africa have called for a measured response to the escalating tensions with President Donald Trump. Kuseni Dlamini, President of the American Chamber of Commerce in South Africa (AmCham), stressed the need for “cool heads” to navigate the diplomatic fallout, urging South Africa to remain focused on maintaining its strategic relationship with the U.S.
The tensions arose after Trump banned U.S. aid to South Africa, citing false claims of rights violations linked to a new land-expropriation law and allegations of genocide against Israel. Pretoria, however, responded calmly, expressing its commitment to resolving disputes diplomatically.
A key concern is the potential impact on South Africa’s long-standing HIV program, which receives 7.5 billion rand ($407 million) in U.S. funding. The ban on aid threatens the future of this crucial initiative, which has been instrumental in combating the HIV epidemic.
Dlamini, who represents 600 U.S. companies that employ over 200,000 people in South Africa, warned that the consequences extend beyond the aid cut. South Africa serves as the U.S.’s largest trading partner in the region and a gateway for American firms into Africa.
Dlamini also highlighted the risk of jeopardizing the extension of the African Growth and Opportunity Act (AGOA), which provides South Africa and other African nations preferential access to the U.S. market. With AGOA set to expire in September, he emphasized the strong case for its renewal, given the significant benefits to South Africa and the wider region.
He concluded by emphasizing the importance of a positive, constructive relationship between South Africa and the U.S., advocating for continued diplomacy to avoid further strain on economic ties.
