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The Bulrushes > Business > AGOA: Sanctions Threat Against South Africa Sparks Debate
BusinessfeaturedNewsPoliticsWorld

AGOA: Sanctions Threat Against South Africa Sparks Debate

Moses Mudzwiti
Moses Mudzwiti
Published: June 13, 2023
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7 Min Read
SPOTLIGHT ON AGOA: Presidency Spokesperson Vincent Magwenya says South Africa has taken a non-aligned stance on the conflict in Ukraine. On Monday Magwenya dismissed talk of sanctions as alarmist
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Johannesburg – Suggestions from the United States of America that South Africa should lose its privilege of hosting the African Growth and Opportunity Act (AGOA) because of its perceived support for Russia in the conflict in Ukraine have split local opinions.

The Congressional Bipartisan letter appealing for U.S.A. action against SA, seen by The Bulrushes, was addressed to Secretary of State Antony J. Blinken.

In the letter, the Congress of the United States calls for punitive action against South Africa over its stance on “Russia’s unlawful invasion of Ukraine”.

The move proposed by the Congress of the United States has sparked debate in South Africa.

Some South African observers who feel beholden to the U.S.A. are raising fears of possible sanctions over the neutral stance South Africa has adopted.

Other commentators insist that South Africa must reject any bully tactics by the U.S.A. because trade is a two-way stream and any sanctions would bite both countries.

The South African Presidency has, however, slammed talk of sanctions as “reckless and alarmist”.

During Monday’s media briefing, South Africa Presidency Spokesperson Vincent Magwenya reiterated that: “South Africa has taken a non-aligned stance on the conflict in Ukraine.

“South Africa has not participated in arming any of the parties that are involved in that conflict,” Magwenya said.

“On the contrary, South Africa has taken upon itself to mobilise support and to mobilise engagement that will result in a peaceful resolution to this conflict.”

South Africa President Cyril Ramaphosa and other African heads of state are preparing to embark on a peace mission to Kyiv (Kiev) and Moscow.

Other leaders involved in the “African Peace Initiative” include the President of the Comoros Islands and current President of the African Union Othman Ghazali, Egypt’s President Abdel Fattah El-Sisi, Senegal President Macky Sall, Uganda President Yoweri Museveni, and Zambia President Hakainde Hichilema.

Last month, Minister in the Presidency Khumbudzo Ntshavheni warned there was a “false impression that is created that this government has adopted an anti-U.S.A. posture.”

However, a letter written by the Congress of the United States, dated 9 June 2023, urges 80-year-old President Joe Biden – through Blinken – take punitive action against South Africa.

The AGOA Forum scheduled to take place in South Africa later this year offers an important opportunity for U.S.A. and African leaders to bolster economic and diplomatic relations.

“We support your continued work to convene a forum in Africa this year,” said the letter signed by Christopher A. Coons Chairman, Subcommittee on State, Foreign Operations, and Related Senate Committee on Appropriations, James E. Risch Ranking Member of the Senate Foreign Relations Committee, Gregory W. Meeks Ranking Member of the House Foreign Affairs and Micheal T. McCaul Chairman of the House Foreign Affairs Committee.

“However, we wish to express serious concerns with current plans to host this year’s AGOA Forum in South Africa.”

The letter continues: “We are seriously concerned that hosting the 2023 AGOA Forum in South Africa would serve as an implicit endorsement of South Africa’s damaging support for Russia’s invasion of Ukraine and possible violation of U.S. sanctions law”.

In the letter, the congressmen cite the docking of Russia’s Lady R cargo ship that docked at Simons Town and the recent joint SA-Russia military exercises as proof of South Africa’s support for Putin.

“Further, these actions by South Africa call into question its eligibility for trade benefits under AGOA due to the statutory requirement that beneficiary countries do not engage in activities that undermine United States national security or foreign policy interests,” the letter adds.

“While we understand that the AGOA eligibility review process for 2024 is underway and that decisions have not yet been made, we question whether a country in danger of losing AGOA benefits should have the privilege of hosting the 2023 AGOA Forum.

“Our concerns are shared by many South African citizens and businesses, who are increasingly vocal about deteriorating conditions in the country.

“We encourage you to explore other possible locations to host this year’s forum: we believe it is important that the forum takes place this year and that it be held in Africa, continuing the tradition of alternating the forum’s location between the United States and an AGOA- eligible country.”

Commenting on the matter on Tuesday, Clayson Monyela, SA Department of International Relations and Cooperation’s Spokesperson said: “I’ve received calls asking for a comment on this. This letter by the four US Congress members to Secretary Blinken is noted”. 

I've received calls asking for a comment on this. This letter by the four US Congress members to Secretary Blinken is noted. There is no decision by the State department/Whitehouse to move the AGOA Forum from SA🇿🇦. President Cyril Ramaphosa 'special envoys recently visited the US… pic.twitter.com/bQnvLxA7Ds

— Clayson Monyela (@ClaysonMonyela) June 13, 2023

Monyela added: “There is no decision by the State Department/Whitehouse to move the AGOA Forum from SA.” 

He said President Cyril Ramaphosa’s special envoys recently visited the US to meet and explain South Africa’s active non-aligned position on the Russia/Ukraine conflict to key stakeholders and decision-makers. 

“Our diplomats in Washington continue to engage on these matters. President Cyril Ramaphosa is leading an African Peace Mission (in the coming days) to Russia and Ukraine,” said Monyela.

“South Africa enjoys the support of the US government, the Africa Group & Business in hosting the AGOA Forum which is planned for November.  

“The relations between South Africa & the United States of America are mutually beneficial…even in the context of AGOA.”

Meanwhile, South Africa is continuing with preparations for the BRICS summit in August, which Putin is expected to attend even though the ICC has issued a warrant for his arrest.

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