By Lehlohonolo Lehana.
Business Unity South Africa (BUSA) says government should provide urgent clarity and certainty on allegations that arms may have been supplied to Russia, which is at war with Ukraine.
The claims have been made by US Ambassador to South Africa, Reuben Brigety II, who has since admitted that he crossed a line” and “apologised unreservedly” after he said a Russian ship had picked up weapons in South Africa.
The presence of the mysterious ‘Lady R’ cargo vessel caused significant speculation when it docked at the naval base in Simon’s Town near Cape Town in December last year. Cargo vessels routinely dock at Cape Town’s civilian harbor, not the naval base.
The US Treasury Office of Foreign Assets Control added the Lady R to its sanctions list in May last year for alleged weapons shipments, along with a host of other Russian-flagged cargo vessels.
The presidency called the explosive allegations “disappointing” and warned that the remarks “undermine the spirit of cooperation and partnership” between the US and South African government officials who had been discussing the matter.
In a statement, presidency said that no evidence had been provided to support these allegations and that the government planned to form an independent inquiry into the matter.
Busa pointed out that the immediate market reaction to the accusation was the dramatic fall of the rand against the dollar, which indicated how seriously the markets consider the allegations.
“Our economy is already buckling under the severe impact of loadshedding which is expected to shave off as much as 2% from the gross domestic product growth forecast for 2023, and any further negative developments will sink us even deeper,” said Busa CEO Cas Coovadia.
If proven true, he believes the allegations will jeopardise SouthAfrica’s trade relations, specifically the continued access to US markets created under the Africa Growth Opportunity Act (Agoa) which South Africa desperately needs.
Coovadia stressed that as a beneficiary of Agoa, South Africa would soon be up for review, and warned that this development threatened the country’s ongoing participation in this critical trade agreement.
Busa noted the inquiry to investigate the claims against South Africa but it appealed to president Cyril Ramaphosa to provide urgent clarity and certainty on the allegations.
Coovadia said the market response made South Africa less attractive to investors.
“Ordinarily, we do not concern ourselves with geo-political issues and South Africa’s position on its foreign relations. However, we are concerned that the current foreign policy stance of the South African government is having a negative impact on the economy and inhibits our ability, as a country, to address the socioeconomic crises we face,” he explained.
Meanwhile the American official version of what was said at the highest level of communication so far – between cabinet members – is oddly devoid of anything even remotely approaching an apology.
This is what the US state department put on record about yesterday’s call in full: “Secretary of State Antony J. Blinken spoke with South African Minister of International Relations and Cooperation Naledi Pandor today. Secretary Blinken underscored the importance of the US-South Africa strategic partnership and reiterated cooperation on shared priorities, including health, trade, and energy.”
One former diplomat points out that it lacks even the word “regret” or similar, which is typical in sorry-not-sorry situations of this sort.
In other words, Blinken, at least, felt no need to publicly walk back on either the substance or the method by which the USA accused South Africa of arming Russia.