Trading lives for loyalties: Our economy will pay for ANC's Russian alignment
12 May 2023
"South Africa households are already battling a government induced cost of living crisis and destroying our economic relationship with the US will make that crisis look like a picnic." - Dr Dion George MP
Yesterday, the United States Ambassador revealed how the ANC has recklessly pulled the pin on a geopolitical grenade. By supplying weapons and ammunition to Russia, the ANC is threatening to devastate South Africa's already vulnerable economy. The Africa Growth and Opportunity Act (AGOA) is up for renewal in 2025 and billions of dollars in aid is also at risk.
AGOA, a lifeline for our economic survival, underpins trade worth approximately R50 billion annually, supporting substantial economic activity across critical sectors including automotive, manufacturing, and agriculture industries.
A carve-out of South Africa from AGOA's preferential trade terms would unleash a domino effect on our economy. South African exporters would grapple with heightened barriers to entry in the US market, causing a sharp contraction in export volumes, diminishing investment, and triggering a devastating loss of between 62 000 and 100 000 direct and indirect South African jobs.