South Africa must shift to a “free trade approach,” away from its current focus on investment treaties, the country’s special envoy told Semafor.
Mcebisi Jonas, a former deputy finance minister and current chair of telecoms company MTN, also said Africa’s largest economy should diversify its commercial ties to protect itself from the impact of the “weaponization of trade.”
Speaking at Semafor’s Next 3 Billion event in Johannesburg, he said South Africa must strengthen trade with the US and EU, “but also begin to look at markets where we could be stronger,” such as Canada and “parts of the east.”
The US this year imposed a 30% tariff on South African imports over laws the Trump administration claims unjustly discriminate against white South Africans.
President Cyril Ramaphosa said that the move — which could cost South Africa up to 100,000 jobs — was a “wake up call.” Washington’s increasingly tense relationship with Pretoria has led the US to boycott the G20 summit, which will take place in Johannesburg this weekend.