US allegations that South Africa shipped arms to Russia puts AGOA at risk
The United States (US) has accused the South African government of supplying ammunition to the Russian Federation through a ship that docked at a naval base in Simon’s Town in South Africa’s Western Cape province late last year. This shock allegation highlights the increasingly strained relations between the US and South Africa and places billions of Rand worth of preferential trade between the countries at risk.
“We are confident that weapons were loaded onto that vessel,” said US Ambassador to South Africa, Reuben Brigety, during a press briefing in the country yesterday, May 11, adding, “I would bet my life on the accuracy of that assertion.”
The accusations are in stark contrast to the South African government’s denial of supplying any arms to Russia since the beginning of the conflict in Ukraine, asserted in January 2023.
South African President Cyril Ramaphosa, in response to Brigety’s allegations, announced that a retired judge would be appointed to probe the vessel’s visit, and his spokesperson slammed the comments by the United States Ambassador as against the cooperative spirit of the relationship between the two countries.
“In recent engagements between the South African delegation and US officials, the Lady R matter was discussed…” said Ramaphosa’s spokesperson Vincent Magwenya, “It is therefore disappointing that the US ambassador has adopted a counter-productive public posture that undermines the understanding reached on the matter and the very positive and constructive engagements between the two delegations.”
Relations between the US and South Africa have already reportedly been tense, with Ambassador Brigety writing to Defence Minister Thandi Modise to criticize the docking of the vessel last December, questioning South Africa’s alleged non-aligned status. The Lady R, a Russian registered vessel, sailed into Simon’s Town naval base and loaded cargo with its transponder beacon switched off.
South Africa’s participation in naval military exercises with Russia and China this year, as well as the public confusion surrounding the country’s attempt to withdraw from the International Criminal Court (ICC) in an apparent attempt to avoid having to enforce an arrest warrant against Russian President Vladimir Putin should he visit, have further burdened relations.
This led to US Chairman of the House Foreign Affairs panel, John James, introducing legislation condemning the maritime exercises and requesting President Joe Biden to review bilateral relations between the US and South Africa.
The US Ambassador’s allegations caused the Rand to plummet when markets opened today, with the Rand currently at R19.47 to the USD, a record low. South African markets were already volatile given the country’s continued electricity woes and recent greylisting, with the weakening trend likely to continue.
Opposition parties as well as representatives of Ukrainian interests in South Africa have also critiqued South Africa’s position, with leader of the Democratic Alliance (DA), John Steenhuisen, saying in a press statement: “Confirmation by US intelligence in South Africa that the Lady R vessel departed Simon’s Town after having been loaded with war materials now brings into question the transparency of the ANC national government with the South African people and our international partners.”
The apparent continuing deterioration of relations between South Africa and the US puts a highly lucrative trading relationship at risk for South Africa, with deals relating to the African Growth and Opportunity Act (AGOA) valued at more than R50 billion ($2.58 billion) annually. This relationship and the economic benefits to South Africans seem to be precariously placed.
“South Africa has already made a dangerous compromise of the status of non-alignment,” said the Ukrainian Association of South Africa in a statement to FORBES AFRICA. “[We] call on all South Africans, human rights and civil society organizations to stand against the potential move of the South African government towards Russian autocracy.”
While the appointment of a judge to probe the Lady R’s visit appears to be a step toward mending relations between the two nations, economic fallout has been immediate, with the bulk of the burden to be met by ordinary South Africans.
View related news articles
The Lady R and AGOA — take a lesson from Warren Buffet and make a case for the intrinsic value of SA Inc
Our agricultural sector’s relationship with the US is a two-way stream that is mutually beneficial based on intrinsic value. When preparing for the Agoa summit, this is the narrative we should be pushing. The comments by US Ambassador Reuben Brigety regarding theLady R shipments sent the South African currency plummeting and inflamed fears about South Africa’s future trade relations with the US. This is a high-stakes issue for...
24 May 2023
Trade minister says South Africa values trade with US ‘enormously’ amid AGOA fears
Amid diplomatic tensions with the US over an alleged sale of arms to Russia, South Africa is continuing to make the case for its ongoing designation as a beneficiary of the Africa Growth and Opportunity Act (AGOA), which extends preferential trade access to the giant American market on certain goods and is due to expire in 2025. In a briefing ahead of his Budget Vote, Trade, Industry and Competition Minister Ebrahim Patel said that...
24 May 2023
Without AGOA South African citrus loses its edge in the US
South Africa’s citrus exports to the United States have over recent years grown to a value of $132m (2022), a consistent performer during the past few turbulent seasons – but it is at risk if the United States decides not to extend their free trade agreement with South Africa due to the latter’s recent closeness to President Putin.During the Clinton administration the United States introduced AGOA, the African Growth and Opportunity Act,...
23 May 2023
South Africa says it is in its ‘own interest’ to probe Russia arms claim
The national security adviser to South Africa’s president Cyril Ramaphosa said it was in his country’s “own interest” to investigate a US accusation that arms were covertly transported to Russia from a Cape Town naval base, as Pretoria tried to calm a diplomatic storm. In an attempt to emphasise South Africa’s neutrality in the conflict between Russia and Ukraine, its foreign ministry said that Ramaphosa would speak to Ukraine’s...
13 May 2023
Ramaphosa delegation in the US to persuade Washington not to drop South Africa’s trade benefits
President Cyril Ramaphosa’s national security adviser Sydney Mufamadi is in Washington at the head of a delegation lobbying the Biden administration and congressional leaders. This comes amid concerns that South Africa’s controversial stance on Russia’s war against Ukraine is jeopardising SA’s economic and political relations with America. Sydney Mufamadi’s team is likely to focus its efforts on trying to ensure that South Africa...
27 April 2023
South African fruit exporters will closely watch discussion on AGOA
South Africa’s citrus sector in the western parts of the country has always retained a keen interest in US political views over promoting African trade to the US Promoting better access for Africa into the US is done mainly under the AGOA (African Growth and Opportunities ACT) which have benefited exporters from Africa since 2000. It will now be under review and perhaps re-negotiated during the next year if a new act has to come into...
25 April 2023
Opinon: 'Is it worth antagonising the US with Russia and China relations?
In the middle of an energy crisis and greylisting, SA could do without antagonising one of its biggest trade and investment partners. When SA welcomed the Russian warship Admiral Gorshkov — with the Kremlin’s pro-war symbol, the letter “Z”, on prominent display — it sparked a new diplomatic crisis with the US that could have profound economic consequences. This past week the US Congress introduced a resolution to...
26 February 2023
US treasury secretary Janet Yellen touts deeper ties with South Africa to help boost trade
The US is seeking to deepen its economic integration with South Africa in pursuit of policies to diversify global supply chains, US Treasury Secretary Janet Yellen said. Closer ties with nations that share the US’s economic values will help promote so-called friendshoring, in which allies cooperate on manufacturing and sourcing raw materials, Yellen said at a meeting with South African Finance Minister Enoch Godongwana on...
25 January 2023
Ramaphosa vows to improve investment environment for US companies after talks with Biden
There was agreement on the need to create a more attractive environment for American companies to invest in South Africa. These are just some of the sentiments echoed by President Cyril Ramaphosa as he concluded his official working visit to the United States at the invitation of US President Joe Biden. Ramaphosa landed on Thursday in Washington DC, in the United States of America. The two leaders deliberated on a range of critical...
18 September 2022
'The renewal of AGOA is vital' - SA President Ramaphosa
Address by President Cyril Ramaphosa during the meeting with the congressional black caucus and anti-apartheid veterans during his visit to the United States: Minister of International Relations and Cooperation of South Africa, Dr Naledi Pandor South Africa’s Ambassador to the United States, Ms Nomaindia Mfeketo Chair of the Congressional Black Caucus, Ms Joyce Beatty Spokesperson of the Rainbow Push Coalition, Prof Jonathan Jackson...
16 September 2022