PARKS TAU: Message to US is that SA is open for business

This past week, I addressed the SA-US Business Forum at the New York Stock Exchange (NYSE) held on the sidelines of the UN General Assembly. Standing alongside President Cyril Ramaphosa and industry leaders, I was reminded of the vital partnership between SA and the US and the immense potential we hold to drive mutual economic growth.

Under Ramaphosa’s leadership, SA has prioritised creating an environment in which investments can flourish. Our economic strategy is anchored on several key pillars aimed at building a resilient, inclusive economy for the future.

SA is realigning its industrial strategy to focus on high-growth sectors that promise significant returns. These include the green economy; smart agriculture and agro-processing; automotives; iron and steel; organic chemicals; and the digital economy.

By focusing on these sectors, we aim to stimulate growth, create jobs and position SA as a global leader in these industries. This reorientation towards sustainable and hi-tech industries aligns well with global trends and presents exciting opportunities for US investors.

Recognising the challenges that can stifle investment, we are also working to reduce the cost of doing business by eliminating red tape. Our aim is to make SA a more attractive destination for both domestic and international investors. The US business community, represented by NYSE-listed companies, stands to benefit from a streamlined and competitive environment.

Macroeconomic reforms

Our economic reforms are designed to address the pressing issues of poverty, unemployment and inequality. By fostering economic growth through sound fiscal policies we aim to create jobs and uplift vulnerable communities. The US has been a steadfast partner in our development and we look forward to deepening this relationship.

In today’s global economy, fair competition is essential for success. We are committed to ensuring that local companies and international businesses can compete on an equal footing in our market. This will create a healthier business environment for NYSE-listed companies seeking to expand their operations in SA.

Addressing SA’s infrastructure gaps is a top priority. To this end, we have established a specialist infrastructure fund to channel investments into critical sectors such as energy, transport and digital infrastructure. For US businesses there are opportunities to co-invest and collaborate in these vital sectors, which will support the long-term stability of the SA economy.

We recognise the crucial role that small businesses play in the economy. As part of our economic recovery efforts, we have instituted measures to support small enterprises, enabling them to participate meaningfully in our economic growth. This will create a vibrant, diverse economy where all can thrive, including US firms looking to engage with local businesses.

Export growth 

In addition to building a robust domestic economy, SA is seeking new markets for its products, with a special focus on agriculture, automotives and technology. We are implementing policies and incentives aimed at facilitating exports and trade. US businesses are encouraged to explore partnerships that can help open North American markets to SA goods and services.

One of the cornerstones of SA’s trade relationship with the US has been the African Growth and Opportunity Act (Agoa). This vital programme has facilitated the growth of SA exports to the US, contributing to our economic development. We strongly advocate for its continued support and renewal as it remains an essential instrument for promoting trade, economic growth and regional integration across Africa.

We understand that US investors have concerns, particularly about visas and skills development, especially in the context of digital transformation. SA is taking steps to address these issues and ensure a smoother experience for investors. Our commitment is to make SA a welcoming, dynamic hub for international investment, with a focus on modernising our workforce to meet the demands of the 21st century.

As we look to the future, our message is clear: SA is open for business. By building on our successes and embracing new opportunities, we are confident that US-SA trade relations can flourish to the benefit of both nations. Together, through investment, trade and co-operation, we can achieve extraordinary outcomes and pave the way for a more prosperous and sustainable future.

• Tau is minister of trade, industry & competition. These remarks were delivered at the SA-US Business Forum.