The government's failure to take action and mend fences with the US could be detrimental to the economy of the country. Load shedding and crime have done serious damage to South Africa's economy.
Reuben Brigety, the US ambassador to South Africa, stated that the US was sure that SA had armed Vladimir Putin's army despite SA's assurances that it takes a non-aligned stance on Russia's invasion of Ukraine. On a continent divided following its invasion of Ukraine in February 2022, South Africa is one of Russia's most significant supporters. However, the country claims to be impartial.
Guest: Dawie Roodt, Director and Chief Economist of the Efficient Group
South African officials on Friday hit back at U.S. accusations that a Russian ship had collected weapons from a naval base near Cape Town late last year, a move investors fear could lead Washington to impose sanctions.
The U.S. ambassador to South Africa Reuben Brigety said on Thursday he was confident that a Russian ship under U.S. sanctions took aboard weapons from the Simon's Town base in December, suggesting the transfer was not in line with Pretoria's stance of neutrality in Russia's war against Ukraine.
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Western diplomats were alarmed at South Africa carrying out naval exercises with Russia and China this year, and at the timing of a visit by Russian Foreign Minister Sergei Lavrov.
South Africa is one of Russia's most important allies on a continent divided over its February 2022 invasion of Ukraine, but says it is impartial and has abstained from voting on U.N. resolutions on the war.
Russian President Vladimir Putin on Friday had discussed the conflict in Ukraine in a phone call with South African President Cyril Ramaphosa, the Kremlin said.
Ramaphosa's office said on Thursday that an inquiry led by a retired judge would look into the U.S. allegation. On Friday, a minister responsible for arms control and a foreign ministry spokesman said South Africa had not approved any arms shipment to Russia in December.
"We didn't approve any arms to Russia ... it wasn't sanctioned or approved by us," Communications Minister Mondli Gungubele, who chaired the National Conventional Arms Control Committee when the purported shipment took place, told 702 radio.
He did not say whether or not an unapproved shipment had left South Africa.
South Africa's defence department said on Friday it would give its side of the story to the government's inquiry.
AMBASSADOR SUMMONED
Brigety was summoned on Friday to meet South African foreign minister Naledi Pandor. The ministry "expressed the government's utter displeasure with his conduct and statements made yesterday," a statement said.
It said Brigety "admitted that he crossed the line and apologised unreservedly to the government and the people of South Africa."
Brigety said on Twitter: "I was grateful for the opportunity to speak with Foreign Minister Pandor this evening and correct any misimpressions left by my public remarks."
The U.S. State Department said Secretary of State Antony Blinken had a phone call with Pandor "and reiterated cooperation on shared priorities, including health, trade, and energy."
After leaving Simon's Town, Refinitiv shipping data showed the vessel, the "Lady R", sailed north to Mozambique, spending Jan. 7 to 11 in the port of Beira before continuing to Port Sudan on the Red Sea.
It arrived in the Russian port of Novorossiysk on the Black Sea on Feb. 16, the data showed.
The United States placed the Lady R and Transmorflot LLC, the shipping company it is linked to, under sanctions in May 2022 on the grounds the company "transports weaponsfor the (government of Russia)".
SANCTIONS FEAR
Washington has warned that countries providing material support to Russia may be denied access to U.S. markets.
"This is not just a verbal warning, this is something that the Biden administration has shown through its actions that it is willing to do, including by sanctioning companies in places like China and Turkey," said Edward Fishman, a foreign policy expert who worked on Russia sanctions during President Barack Obama's administration.
Cameron Hudson, a former CIA analyst and now at the Center for Strategic and International Studies, said he thought it was unlikely that Washington would impose sanctions or suspend South Africa from AGOA, a major U.S. trade preference programme for Sub-Saharan Africa, although he said there were grounds to.
Authorities in South Africa's opposition-run Western Cape province said they feared losing a market for exports such as oranges, macademia nuts and wine.
The U.S. allegation over the weapons has heaped pressure on the rand currency , already weighed down by concerns over a power crisis. It struck an all-time low early on Friday before regaining some ground, but remained at its weakest in three years.
Seeing that the country’s economy has been severely damaged by loadshedding and crime, Business Leadership South Africa (BLSA) CEO Busi Mavuso noted on Monday that a concerted effort to restore positive relations with the US is needed.
Mavuso wrote in her weekly letter that a loss of critical trading relationships would further set back the effort to create a conducive environment to growing businesses and the economy.
“It could be the final straw that breaks the back of our fragile economy,” said Mavuso.
Last week the US ambassador made serious allegations that arms destined for Russia were loaded onto a Russian ship in Simon’s Town, in Cape Town.
Last week the Presidency announced an inquiry into the matter, which will be headed by a retired judge.
Following the news, BLSA urged government to make clear whether an export permit had been granted to supply arms to Russia. The Department of International Relations and Cooperation said that the National Conventional Arms Control Committee had “no record” of an approved arms sale to Russia.
Mavuso said if arms were loaded it was done so illegally and pointed out that the relevant legislation allowed for a fine and imprisonment of up to 25 years for exporting arms without a permit.
BLSA wants government to take a clear position on arms trade with Russia, as other non-aligned countries such as China have done (it will supply to neither Russia nor Ukraine).
Mavuso said supplying arms to Russia would leave the country afoul of the US’s Africa Growth and Opportunity Act.
“It probably wouldn’t stop there – we also have a free trade agreement with the European Union that could be at risk and trade relations would also be affected with the United Kingdom,” she added.
Mavuso highlighted that the Simon’s Town episode needs an explanation.
Even if arms were not loaded onto the ship, the fact that it docked at all, particularly in a military facility with its transponder turned off, was ill-advised, she said.
She went on to say that it was now imperative that government cleared up the mess.
“We need a clear explanation of who authorised the docking and what was offloaded and loaded. We need to understand the full chain of command. If laws were broken, there should be arrests and prosecutions. This needs to happen immediately, before irreversible damage is done, and not months down the line when an enquiry concludes,” she added.
GLOBAL POWERS
Meanwhile, President Cyril Ramaphosa noted that South Africahad not been, and would not be, drawn into a contest between global powers.
He said the experience of reaching out across political divides and building relations with very different countries had helped to shape the country’s foreign policy. This had been coupled with a firm belief in the value of an inclusive multilateral world order and the peaceful resolution of conflict through dialogue, he added.
“That does not mean that we do not have a position on the Russia-Ukraine conflict. Consistent with our stance on conflicts in other parts of the world, South Africa’s view is that the international community needs to work together to urgently achieve a cessation of hostilities and to prevent further loss of life and displacement of civilians in Ukraine. It needs to support meaningful dialogue towards a lasting peace, which ensures the security and stability of all nations,” Ramaphosa explained.
He said South Africa supported that members refrain from the threat or use of force against the territorial integrity or political independence of otherStates, adding that South Africa’s position sought to contribute to the creation of conditions that made the achievement of a durable resolution of the conflict possible.
The reality was that the Russia-Ukraine conflict – and the tensions that underlined it – would not be resolved through military means, it needed to be resolved politically, Ramaphosa noted.
“We do not accept that our non-aligned position favours Russia above other countries. Nor do we accept that it should imperil our relations with other countries,” he said.
