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US seeks to double number of American firms in SA, but “five asks” strain diplomatic ties

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The United States (US) wants to double the number of American companies operating in South Africa (SA), a move Washington believes could help create around 250 000 jobs.

This is according to US Ambassador to SA, Brent Bozell III, who said expanding American commercial presence remains a core part of his mandate. But he warned that SA’s failure to act on a “list of five asks” submitted by Washington a year ago is testing patience in the US capital.

 

Bozell did not reveal the specifics of the five requests, but made clear that progress on them is essential for deepening bilateral cooperation. Speaking to Channel Africa on Wednesday, Dr Sizo Nkala of the Centre for Africa–China Studies at the University of Johannesburg said the push reflects SA’s strategic importance on the continent.

 

“SA is regarded as a gateway to Africa. That is why global powers, including the US, attach so much importance to it. They want their companies to base regional headquarters here before expanding into the rest of the continent,” Nkala said.

 

He added that the ambassador’s remarks appear to carry an element of geopolitical leverage. “It sounded like a carrot. The message is: align with our foreign policy positions and we will bring you investment. It is premised on a narrow geopolitical view from the US.”

 

Nkala said closer economic cooperation could either strengthen diplomatic ties or be used as a tool for pressure. “It goes both ways. It can help improve relations, but it can also be used by the US to force South Africa to toe its line,” he noted, adding that the most urgent issue is concluding stalled trade talks between the two countries. “If the ambassador is serious, he must help open the US market for South African businesses.”

 

Asked which sectors stand to benefit from increased US investment, Nkala pointed to technology, automotive manufacturing and renewable energy. But he cautioned that American companies ultimately make their own decisions.

 

“US firms are fiercely independent. They have invested in SA even when Washington advised otherwise. Some follow political signals, but many simply assess opportunities for themselves,” he said. Nkala said political goodwill from Washington could encourage more investment, but stressed that interest from US companies has remained strong despite diplomatic tensions.

 

–ChannelAfrica–