South Africa’s government has defended its economic transformation policies after summoning United States Ambassador, Leo Brent Bozell III, over controversial remarks. It also highlighted the scale of trade and investment between Pretoria and Washington.
International Relations and Cooperation Minister Ronald Lamola said South Africa had démarched the US envoy following his comments criticising aspects of the country’s policies, including broad-based Black Economic Empowerment (BEE).
‘BEE is a constitutional necessity’
Lamola rejected suggestions that BEE amounted to discrimination, describing the policy as a constitutional necessity designed to address the legacy of apartheid.
“We reiterate that broad-based Black Economic Empowerment is not reverse racism,” Lamola said.
“It is a fundamental instrument designed to address the structural imbalances of South Africa’s unique history. It is a constitutional imperative that the South African government can and will never abandon.”
‘All companies in SA are subject to BEE’
The minister emphasised that transformation policies applied equally to all companies operating in the country, including American firms.
“Approximately 500 US companies currently operate in South Africa, employing more than 250,000 people,” Lamola said.
“These companies operate in full compliance with our domestic laws, including legislation designed to address historical injustice.”
‘Bi-lateral trade is worth $15bn’
Lamola said the presence of American businesses illustrated the mutually beneficial nature of the relationship between the two countries.
“Bilateral trade between the two countries is valued at about $15-billion,” he said.
South Africa is among the largest importers of American goods on the African continent, he added.
The minister further stressed the importance of the country’s natural resources to the US economy.
“South Africa remains a leading supplier of critical minerals to the United States,” Lamola said.
He added that the government viewed these resources as part of a broader partnership between the two countries.
“We continue to emphasise that critical minerals must contribute to industrial development in South Africa and other African countries,” he said.\
Lamola defends government’s economic policy framework
Lamola also defended the government’s economic policy framework, saying localisation measures were widely used internationally to support domestic industries.
“We view this requirement as a form of localisation, a standard economic tool used globally to foster domestic growth,” he said.
He noted that similar policies existed in many countries, including the United States.
“As we cannot tell President Donald Trump how to deal with localisation in the United States, he also cannot tell us how to deal with our domestic issues of sovereignty,” Lamola said.
‘SA committed to constructive relations with US’
Despite the disagreement, the minister said South Africa remains committed to maintaining constructive relations with Washington.
“We believe that bilateral trade between our countries can grow further, and this relationship remains important for both economies.”
