Markets Update with TreasuryONE

Ramaphosa’s lesson in consequence management


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Key points

  • Many of SA’s failings were highlighted publicly when President Ramaphosa and his SA delegation flew to the US to meet with President Trump to correct any misinformation and repair relations with the US. Relations have frayed for many reasons, and it would be a mistake to think it was only due to recent events. They have not helped, but SA’s relations with the US have deteriorated steadily over the past twenty years, and it is worthwhile recapping how that occurred for context.
  • SA may have recovered from a very awkward position and pushed back against the misinformation of genocide but no longer has the latitude to operate at will without suffering consequences. SA’s politicians will now be acutely aware of the consequences of their policies and actions and should treat this as an opportunity to focus on and address failed outcomes.

 

Baseline view:

Ramaphosa’s US visit may have turned into a blessing in disguise. If SA responds appropriately, it can limit any economic damage that frayed relations may have caused and re-establish itself as a stable trade partner with the US. SA has much more to lose than the US and cannot afford any further missteps.

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Markets Update with TreasuryONEBy Markets Update with TreasuryONE