South Africa’s Minister of Trade, Industry, and Competition Ebrahim Patel has commended the business communities of South Africa and United States for taking steps to co-operate to boost trade and investment between the two countries.
Minister Patel led a high-level South African business delegation that met representatives of the U.S. Chamber of Commerce on the sidelines of the 78th session of the UN General Assembly (UNGA) in New York, where the U.S.-South Africa Business Council (USSABC) proposed establishment of a bilateral forum that is convened annually by the U.S. Chamber of Commerce and Business Unity South Africa (BUSA).
The business roundtable, known as the U.S.-South Africa Trade and Investment Executive Dialogue, was also addressed by President Cyril Ramaphosa, who is in New York for this year’s UNGA.
President Ramaphosa said: “Over 600 U.S. businesses are operating in South Africa, the most industrialised and diversified economy in Africa. I’m glad that the U.S. Chamber of Commerce convened today’s productive discussions on the U.S.-South Africa economic relationship. I invite more US companies to invest and build manufacturing and other productive facilities in South Africa and share in the opportunities in our economy and the fast-growing African market.”
President Ramphosa added that he wished the partnership between the U.S. Chamber of Commerce and BUSA will grow from strength to strength and help deepen economic bonds between the two countries and expanding South Africa’s role as an economic hub in Africa.
Minister Patel urged South African and U.S. companies to maximise trade and investment opportunities that are presented by the African Growth and Opportunity Act (AGOA) and the African Continental Free Trade Area (AfCFTA).
AGOA, which grants duty-free preferential access to the US market for more than 1,800 products from sub-Saharan African exporters, is beneficial to both the U.S. and South Africa in terms of promoting economic development, industrialisation, and employment creation.
AGOA has created over 62, 000 in South Africa and more than 100, 000 jobs in the U.S. The value of trade between South Africa and U.S. reached $17.8 billion in 2019, with U.S. imports amounting to $8 billion while South African exports to the U.S. totalled $9.8 billion.
AfCFTA, launched two years ago, provides an opportunity for US multinationals that are looking to set up shop in South Africa to access this aggregated continental market, which has eliminated import tariffs on 88.3% of 5,000 goods that are currently being traded in Africa.
It is the world’s largest free trade are spanning 47 countries with a combined gross domestic product (GDP) of $3.4 trillion and 1.3 billion people that include 300 million middle-class consumers.
“South Africa is re-aligning its industrial policy to support key growth sectors covering green economy, smart agriculture, automotives, iron and steel, organic chemicals, retail, and jewellery to name just a few. We are inviting U.S. companies to participate in these sectors,” explained Minister Patel.
South Africa is also making considerable progress in implementing economic reforms aimed at attracting new investment and eliminating red tape. These reforms are also aimed at improving the country’s industrial competitiveness, support post-covid economic recovery, and reduce the cost of doing business, particularly costs related to use of energy, water, telecommunications, ports, and rail.
ENDS
Issued by Brand South Africa
Notes to the Editor
Contact: Phindi Mathebula
Email:phindilem@brandsouthafrica.com
Mobile number: +27 64 890 7414
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