2023-05-19 16:06:22
Since US Ambassador to South Africa Reuben Brigety accused Pretoria of loading weapons onto a Russian ship, South Africa’s currency, the rand, has tumbled once morest the dollar to an all-time low. while bonds also lose value. Clearly, the clouds are gathering over the South African economy.
Less than a week following the revelations of the American ambassador, the South African rand plunged to 19.51 once morest 1 dollar. For the South African think tank ISS Africa, the government of Cyril Ramaphosa “played Russian roulette” by supplying arms to Moscow.
To its problems of growth and electricity supply, South Africa has just added a major diplomatic crisis with a commercial partner and a leading direct investor. In 2021, the United States invested no less than 7.5 billion dollars in the country, recalls the think tank. For ISS Africa, this diplomatic conflict risks exacerbating tensions linked to rising inflation and making South Africa’s access to international capital more expensive.
Cyril Ramaphosa and the ANC are driving South Africa to its doom
A complicity that risks damaging the South African economy
A possible suspension of AGOA (note: the trade facilitation treaty between the United States and African countries) would seriously affect its industries such as the automobile, chemicals, citrus fruits and wine. It would lead to job losses and reduced export earnings. Furthermore, the financing of the Investment Plan for a “Just Energy Transition” might also be called into question.
In addition, potential sanctions targeting individuals and companies that support Russia’s war action are already under consideration in Washington. They would have a devastating impact on the South African economy, warns think tank ISS Africa. Added to this is the explosive question of possible Russian financing of the ANC, less than a year from the next elections. Cyril Ramaphosa and the ANC are leading South Africa to ruin.
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