South Africa: Current Issues, Economy, and
July 30, 2020
U.S. Relations
Nicolas Cook
South Africa, a majority black, multiracial country of nearly 60 million people, has cordial
Specialist in African Affairs
relations with the United States, notwithstanding periodic strains, and is the largest U.S. trade

partner in Africa. President Cyril Ramaphosa took office in 2018, after a series of corruption
scandals under the administration of his predecessor, Jacob Zuma. Zuma, elected in 2009,

resigned under intense pressure in early 2018, shortly after then-Vice President Ramaphosa was
elected to replace Zuma as leader of the African National Congress (ANC), South Africa’s dominant party. The ANC has
held a parliamentary majority since the first universal suffrage elections in 1994, which marked the end of apartheid, a system
of codified state racial bias favoring whites, but is facing headwinds. In the last general elections, in May 2019, it earned
57.5% of the vote—its lowest margin ever.
South Africa has Africa’s largest Coronavirus Disease 2019 (COVID-19) caseload and a rapidly accelerating outbreak, which
has devastated the economy and sharply intensified prior challenges facing the government. Notable among these are years of
anemic economic growth and corruption linked to Zuma and a network of business and political associates tied to him. Such
graft was so systematic that it was dubbed “state capture.” Multiple efforts to address this problem are underway, including a
high-profile commission of judicial inquiry. Zuma also is being tried on charges linked to a 1990s-era arms purchasing
scandal.
South Africa has the most diversified and industrialized economy in Africa, but has suffered several years of low growth
attributable to such factors as low prices for commodity exports, weak investor confidence, policy uncertainty, and rigid local
labor markets. The impacts of COVID-19 may further contribute to this low growth pattern. Key socioeconomic challenges
include high rates of poverty, social inequality, unemployment, and public service access disparities—problems that
disproportionately affect blacks. Unequal access to land is a notably sensitive issue. State land redistribution efforts have
aimed to ensure greater access to land by blacks and other historically disadvantaged groups, but progress has been slow.
Other key challenges include violent crime, periodic anti-immigrant violence, labor unrest, and protests over public service
delivery and corruption.
The Ramaphosa administration has made economic growth a priority, and is pursuing efforts to reduce unemployment,
poverty, and socioeconomic inequality; improve public service delivery; and unite a socioeconomically, geographically, and
racially divided society. It also is seeking to attract $100 billion in new investment over five years, and has elicited more than
$55 billion in pledges to date. The government also is pursuing an ongoing but controversial effort to amend the constitution
to permit uncompensated land expropriation.
U.S.-South African ties are cordial, based on shared democratic values and often-concordant views on regional development
goals. The two countries maintain a bilateral strategic dialogue, and the United States provides substantial aid to South
Africa, primarily to combat the country’s HIV/AIDS epidemic. U.S.-South African views nevertheless regularly diverge on
international policy matters, such as Palestinian statehood, and stances on Iran and Venezuela. Some South African officials
also appear to harbor abiding resentments toward the United States, likely attributable to the Reagan Administration’s
hostility toward the ANC, which that Administration designated a terrorist group. There also has been periodic friction on a
variety of trade issues, including South African eligibility for U.S. duty-free benefits and Trump Administration trade
restrictions affecting certain South African exports. The Trump Administration has not pursued any other major changes in
the bilateral relationship, and is providing South Africa with COVID-19 assistance. A 2018 tweet by President Trump
alleging that South Africa’s government was seizing white-owned farmland and that large numbers of farmers were being
killed drew criticism; it was questioned on factual and other grounds by a range of commentators and South Africa’s
government.
In recent years, bilateral congressional activity has mainly focused on U.S. healthcare assistance, trade issues, and
consultations during periodic congressional travel to the country. U.S.-South African relations arguably have the potential to
deepen, particularly given President Ramaphosa's prioritization of efforts to reassert the rule of law and turn around the ailing
economy, following substantial deterioration in these areas under former President Zuma.
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South Africa: Current Issues, Economy, and U.S. Relations

Introduction
South Africa, a majority black, multiracial country of nearly 60 million people, has the most
diversified and industrialized economy in Africa, but has suffered years of low growth and is
burdened by deeply embedded socioeconomic inequalities. President is Cyril Ramaphosa (rah-
mah-POH-sah), of the majority African National Congress (ANC) party, is leading a reform
agenda aimed at improving the economy and public service delivery, and addressing corruption.
Coronavirus Disease 2019 (COVID-19) has sharply intensified the already formidable economic
and health challenges facing South Africa, which include a high HIV/AIDS prevalence rate.
The National Assembly elected then-Vice President Ramaphosa as president in early 2018,
following the resignation of his predecessor, Jacob Zuma. Zuma stepped down in the face of a
threat of a parliamentary no confidence vote after defying a decision by ANC leaders to recall
him as the party’s national presidential nominee—in large part as a result of multiple corruption
scandals. Discontent with Zuma had helped cement Ramaphosa’s victory in a bruising late 2017
ANC election to lead the party, which has suffered a gradual loss of electoral support in recent
years. While the ANC was able to retain a parliamentary majority in the last general elections,
held in May 2019—a majority it has held since the country’s first universal suffrage polls in
1994—it earned 57.5% of votes, its lowest share to date. After the election, the parliament, under
the country’s indirect presidential election system, voted to re-elect Ramaphosa as president.
U.S. Relations
U.S.-South Africa ties are cordial, based in part on shared democratic values and broad bilateral
accord on African development goals. There is a large U.S. diplomatic presence in South Africa,
which has periodically hosted high-level U.S. leadership visits, including two presidential visits
by former President Barack Obama. While South Africa is a U.S. strategic partner—as reflected
in a bilateral U.S.-South African Strategic Partnership launched in 2010 during the Obama
Administration—high-level bilateral engagement is not as frequent or as multifaceted as it is with
some other U.S. strategic partners.1 South Africa-related congressional activity, which has been
limited in recent years, has centered mostly on U.S. healthcare assistance, notably regarding
HIV/AIDS, and trade issues, including during periodic congressional travel to the country. Given
South Africa’s economic and political influence in Africa and diplomatic sway among developing
countries in multilateral institutions, some Members of Congress may see a scope for increased
U.S. engagement with South Africa, a top African recipient of U.S. assistance for years.2
The United States and South African differ on a range of foreign policy issues, and South Africa
periodically criticizes U.S. positions on such matters, but these differences have historically
played a limited role in bilateral relations. South Africa is critical of Israel’s policies toward the
Palestinians and maintains cordial relations with U.S. adversary Iran, and there has been
divergence on other issues, such as responses to Venezuela’s crisis and sanctions on Zimbabwean
officials. South Africa also strongly opposed the Trump Administration’s withdrawal from the

1 The last full biennial Strategic Partnership dialogue was held in 2015. Subsidiary “bilateral forums” were held in 2016
and 2017 to review cooperation, which has centered on such areas as health, education, food security, law enforcement,
trade, investment, and energy, among other issues. State Department, “Joint Statement: 8th South African-United States
Annual Bilateral Forum, 8 June 2017,” June 13, 2017, and “U.S. Relations with South Africa,” January 14, 2020.
2 Senators and Foreign Relations Committee (SFRC), “Bipartisan Foreign Relations Committee Senators’ Statement on
Election Results in South Africa,” May 14, 2019, and “Chairman Risch and South Africa’s Foreign Minister Meet to
Discuss Strategic Partnership,” August 21, 2019.
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U.N. Framework Convention on Climate Change. South Africa’s U.N. General Assembly votes
often differ from U.S. ones—though the two countries’ U.N. Security Council (UNSC) votes
during South Africa’s current UNSC tenure have been congruent.3 Some South African officials
also have periodically made remarks suggesting that they hold anti-U.S. biases.4 Such views may
be influenced by historic grievances among some South Africans over Reagan Administration
policy toward the ANC during the apartheid era.5 Apartheid was a codified, state-enforced system
of racial segregation and socioeconomic and legal discrimination favoring the white minority. It
ended with South Africa’s transition to universal suffrage in the early 1990s.
South Africa also is a key regional export and investment destination for U.S. firms—hundreds
operate in the country, often via local subsidiaries—and has been the largest U.S. trade partner in
Africa since 2014. The United States, which enjoys a services trade surplus with South Africa but
has long had a trade deficit in goods with the country, also is South Africa’s largest overall source
of foreign investment.6 While U.S.-South African economic ties are generally positive, trade has
been a source of occasional friction—notably during the Trump Administration. It has imposed or
signaled a willingness to potentially levy tariffs applicable to selected South African metal and
manufactured exports, as well as to review South Africa’s eligibility for trade preferences (see
“U.S. Trade and Investment”).
Apart from trade matters, there has been limited new or top-level bilateral engagement under the
Trump Administration. In 2017, President Trump and then-President Zuma spoke by telephone on
“ways to expand” trade and advance bilateral cooperation on trade and in other areas, including
counter-terrorism and multilateral and African peace and stability issues.7 In an April 2020 phone
conversation, Presidents Trump and Ramaphosa also discussed South Africa’s efforts to combat
COVID-19, for which the United States is providing assistance.
There has been some bilateral friction over social media statements made by President Trump. In
early 2018, the South African government summoned the U.S. chargé d’affaires to explain
President Trump’s alleged use of an obscenity to refer to several African countries.8 In August
2018, President Trump sparked controversy by posting a tweet on land expropriation and reform
in South Africa, drawing South African government criticism (see “Land Issue” below). Despite
differences on land issues, in October 2019, the Trump Administration signaled support for the

3 In 2019, South African votes in the U.N. General Assembly coincided with those of the United States 22% of the
time, but the two countries’ votes have aligned 91% of the time within the Security Council during South Africa current
non-permanent UNSC membership, which ends in 2021. State Department, Voting Practices in the United Nations
2019, May 21, 2020.
4 J. Brooks Spector, “Analysis: Mantashe’s Conspiracy Theories,” Daily Maverick, February 23, 2016; and J. Peter
Pham, “South Africa’s Bizarro-World Foreign Policy,” Atlantic Council blog, August 24, 2015, among others.
5 During the anti-apartheid struggle, the Reagan Administration categorized the ANC as a terrorist organization. The
Reagan Administration, in contrast to many in Congress, sought to promote change within the apartheid regime, with
which it shared anti-communist goals, by pursuing a so-called “constructive engagement” with that regime.
6 As of late 2018 (latest data), the United States was the country’s largest source of portfolio investment and the fourth
largest source of foreign direct investment. South African Reserve Bank, Quarterly Bulletin. No. 295, March 2020; and
U.S. Bureau of Economic Analysis (BEA), South Africa - International Trade and Investment Country Facts.
7 White House, “Readout of the President’s Call with President Jacob Zuma of South Africa,” February 15, 2017; and
Government of South Africa (GOSA) “President Zuma had Telephonic Discussions with President Trump of the
USA,” February 13, 2017.
8 Kutullo Madisha, “Explanations wanted for ‘shithole’ remarks,” New Age, January 15, 2018; Krista Mahr, “South
Africa summons US diplomat to explain Trump comment,” AP, January 15, 2018; Peter Fabricius, “US, SA agree not
to step in the by-product of Trump’s racist statement,” Daily Maverick, January 16, 2018; and GOSA, “Meeting with
United Sates Embassy and United States Chargé d'Affaires,” January 15, 2018.
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Ramaphosa administration’s efforts to seek accountability for the embedded pattern of public
corruption under the Zuma administration by sanctioning actors alleged to have been involved in
such activity.9 Administration officials also have expressed optimism over prospects for bilateral
trade and investment expansion and support for South African engagement in fostering peace and
stability in Africa.10
Recently, South African views of racial inequality and violence in the United States also have
featured in bilateral relations. In June 2020, the South African government condemned violence
during mass U.S. protests triggered by the killing of George Floyd and other African Americans
by local U.S. police. The government did so despite recently having faced its own protests about
South African national police use of violence during the COVID-19 pandemic.11 Administration
officials identified South Africa as a prominent backer of a U.S.-opposed draft resolution in the
U.N. Human Rights Council (UNHRC) aimed at addressing U.S. racial issues. It was proposed by
the UNHRC Africa Group and debated and amended at a June 17/18 UNHRC meeting.12
Luxury handbag designer Lana Marks has been U.S. ambassador to South Africa since late 2019,
when she filled a post that had been vacant since 2016. She reportedly has proactively sought to
foster renewed bilateral engagement and cooperation, notably regarding trade and efforts to
counter HIV/AIDS. She also has emphasized efforts to address gender-based violence and
women’s socioeconomic empowerment. Marks has said that she aspires to make South Africa a
U.S. top-twenty trade partner—a tall order, given that South Africa was the 40th-largest U.S. trade
partner in 2019. She reportedly suggested to President Ramaphosa that he and President Trump
co-host a U.S.-Africa investment summit in Washington, DC featuring leaders from across
Africa.13 Marks has drawn some congressional concern over “management and ethics practices”
relating to her leadership of the embassy14 and for not self-isolating after potentially being
exposed to COVID-19 during a presidential dinner in the United States. 15

9 U.S. Treasury, “Treasury Sanctions Members of a Significant Corruption Network in South Africa,” October 10,
2019.
10 State Department, “The Enduring Partnership Between the United States and South Africa,” June 21, 2019; and U.S.
Export-Import Bank, “Statement by EXIM Chairman Kimberly Reed upon the Inauguration of South African President
Cyril Ramaphosa,” May 25, 2019.
11 The South African government also called for “practical action to address” U.S. policy “inadequacies” relating to
racial inequity in the observation of human rights in the United States and called on U.S. security forces “to exercise
maximum restraint in responding to the anger and frustration felt” by the protesters. GOSA, “South Africa’s Statement
regarding protests in America following the death of Mr. George Floyd,” June 2, 2020.
12 The United States did not participate in the debate, as the Trump Administration had withdrawn from the UNHRC in
2018. As first proposed, the resolution would have established an international commission of inquiry on systemic
racism in U.S. law enforcement, but it was amended to require a report on law enforcement racism and human rights
violations targeting Africans and people of African descent, in the United States and elsewhere. Stephanie Nebehay,
“Exclusive: African nations seek U.N. inquiry into U.S. racism, ‘police brutality’-text,” Reuters, June 16, 2020; Agence
France Presse (AFP), “UN Racism Probe Would Be ‘Ridiculous,’ US Official Says,” June 16, 2020; and CRS Report
RL33608, The United Nations Human Rights Council: Background and Policy Issues, by Luisa Blanchfield and
Michael A. Weber; and text of resolution.
13 Peter Fabricius, “US Ambassador’s Ambition: Lift SA Into Top 20 of US Trade Partners,” Business Maverick,
January 31, 2020 and “It’s All About Trade and Investment-Trump’s Ambassador to South Africa, Lana Marks, Daily
Maverick, November 14, 2019; Lana Marks, “Count US In: Helping Young South African Women Reach Their
Dreams,” Mail & Guardian, December 11, 2019 and “Lana Marks: The US and South Africa are Stronger Together,”
News24, November 13, 2019; and U.S. International Trade Commission (USITC), Trade Data Web.
14 Robbie Gramer, “At Embassies Abroad, Trump Envoys Are Quietly Pushing Out Career Diplomats,” February 5,
2020, and “State Stonewalls Congress on Embassy Oversight,” February 7, 2020, both in Foreignpolicy.com; and Sarah
Smit, “Trump’s Ambassador to SA Under Fire for Nepotism Allegations,” Mail & Guardian, February 10, 2020.
15 Anne Gearan and Carol Morello, “U.S. Envoy to S. Africa at Trump Dinner with Infected Brazilians,” Washington
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Congressional Role. Congress has long played an active role in U.S.-South African relations.
This was particularly true during the struggle against apartheid, from the late 1960s until the first
universal franchise vote in 1994. Starting in the 1960s, Congress sought to help spur a democratic
transition by repeatedly imposing conditions and restrictions on U.S. relations with the apartheid
regime. These efforts culminated in Congress’s enactment of the Comprehensive Anti-Apartheid
Act of 1986 (P.L. 99-440), passed over a veto by then-President Reagan. Congressional attention
toward South Africa remained strong during the decade after its post-1994 transition.
In recent years, congressional engagement with South Africa has focused on oversight of foreign
aid programs, notably health programs funded under the U.S. President’s Emergency Plan for
AIDS Relief (PEPFAR) initiative.16 Trade and investment relations also have drawn attention in
recent congresses.17 In 2015 and 2016, Congress helped to resolve a meat-related trade dispute,
including by mandating of a special review of South Africa’s eligibility for U.S. trade benefits.
More recently, several Members sought to reverse the Trump Administration’s 2018 application
of steel and aluminum tariffs to South Africa. Renewed trade discord could arise, and potentially
draw congressional attention, as a result of South Africa’s recent imposition of new poultry
import tariffs and the eventual outcome of an ongoing U.S. Trade Representative (USTR)
assessment of the country’s eligibility for U.S. trade benefits (see below).
Non-COVID-19 U.S. Assistance18
Since 1994, South Africa has been a top African recipient of U.S. aid programs, most focused on
health programs and funded by State Department and USAID-administered appropriations. These
agencies often collaborate with and transfer funds to other specialized U.S. agencies, notably the
U.S. Centers for Disease Control and Prevention (CDC), which plays a key technical role in
PEPFAR implementation. Following PEPFAR’s authorization in 2003 (in P.L. 108-25), U.S.
funding for South Africa rose from $29 million in FY2003 to nearly $580 million in FY2010. Aid
levels then declined before rising again to a peak of almost $735 million in FY2019. Cumulative
PEPFAR funding for South Africa, which is drawn primarily from the Global Health Programs
(GHP)-State and GHP-USAID accounts, has totaled $7.25 billion to date. State Department and
USAID-administered assistance totaled $482.5 million in FY2020 (see Table 1). The Trump
Administration requested $242 million for FY2021. While Congress’s response to the request has
yet to be determined, in recent years, Congress and the Administration have jointly allocated
bilateral aid in excess of levels requested by the Administration (see Figure 1, below).19

Post, March 22, 2020; and Arshad Mohammed, “U.S. Envoy to South Africa Draws Fire after Possible Virus
Exposure,” Reuters, March 20, 2020, inter alia.
16 A key focus of interest has been South Africa’s relative progress in controlling its HIV/AIDS epidemic and assuming
responsibility for such efforts, which are key PEPFAR goals. The Consolidated Appropriations Act of 2014 (P.L. 113-
76) required a report to Congress on projected levels and types of U.S. assistance to be provided under PEPFAR. The
report was subsequently submitted to Congress.
17 Senate Foreign Relations Committee, “Chairman Risch and South Africa’s Foreign Minister Meet to Discuss
Strategic Partnership,” August 21, 2019; Voice of America (VOA), “Senators Seek to Reaffirm Value of US-Africa
Relations,” April 12, 2018; and City Press, “US Senators Eye Local Investment,” April 8, 2018, among others.
18 This section does not address COVID-19 assistance, which is discussed later in this report.
19 State Department, Congressional Budget Justification Foreign Operations (CBJ), various years, and State
Department response to CRS query May 7, 2020.
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Figure 1. South Africa: State Department/USAID Aid Trends, FY2012-FY2021

Note & Sources: Amounts rounded to nearest $ mil ion. State Department congressional budget justifications.
FY2020 “actual” amount reflects initial estimated al ocation.
Table 1. South Africa: State Department/USAID Aid by Account, FY2017-FY2021
(Current $ in millions, actual or requested. Numbers may not sum due to rounding)
FY2017
FY2018
FY2019
FY2020
FY2021
Account
Actual
Actual
Actual
Est.
Request
Total
471.0
586.6
735.0
482.5
241.7
Development Assistance (DA)
6.5
5
3.0
3.0
-
Economic Support and Development Fund
(ESDF)
-
-
-
-
2.0
Global Health Programs–State (GHP-State)
450.1
560.1
668.3
414.4
225.0
Global Health Programs–USAID (GHP-USAID)
13.0
20.8
63.0
65
14.0
International Military Education & Training (IMET)
0.9
0.7
0.7
0.7
0.7
International Narcotics Control & Law
Enforcement (INCLE)
0.2
-
-
-
-
Nonproliferation, Antiterrorism, Demining &
0.3
-
-
-
-
Related Programs (NADR)
Source: State Department annual foreign aid budget justifications and FY2020 initial allocation report.
In recent years, the South Africa PEPFAR program has been the object of criticism by top
Washington, DC-based officials with the Office of the U.S. Global AIDS Coordinator and Health
Diplomacy (S/GAC), which manages PEPFAR. In a FY2019 PEPFAR South Africa program
guidance memo, Dr. Deborah Birx, head of S/GAC, commended a number of program successes
and improvements in U.S.-South African PEPFAR partnership efforts, but said that there were
several basic problems with its core treatment programs. Despite significant U.S. funding
infusions, she stated, HIV testing, treatment, and treatment retention progress had been “grossly
sub-optimal and insufficient to reach epidemic control” over the prior year. She said that a net
decline in the number of patients on treatment under the program “demonstrated extremely poor
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performance.” She also cited program overspending and poor performance,” which she attributed
to program management shortcomings that she called an “unacceptable… serious, continued
problem.” 20 In an analogous FY2020 memo, Birx cited evidence of a range of corrective actions
and progress, but noted some continuing challenges. These included underperformance across the
program’s clinical functions and in its HIV/AIDS prevention portfolio, which she said might
prevent South Africa and PEPFAR from achieving a key shared HIV/AIDS epidemic control of
attaining and maintaining 6.1 million or more people on treatment by 2021.21
Economic growth is another focus of U.S. assistance in South Africa. In FY2021, $2 million in
assistance would seek to “strengthen regional market systems, expand competitiveness and open
new markets to improve trading systems in South Africa.” It also would promote South Africa’s
use of U.S. trade preferences, and promote employment, job training, and small- and medium-
sized firm activity.22 Other recent U.S. development aid for South Africa has supported programs
focused on basic education, public service delivery, public-private development cooperation, civil
society capacity-building and accountable governance support for the office of the Public
Protector (a public ombudsman; see below). It also has provided support for survivors of sexual
assault and gender-based-violence. The USAID-led Power Africa initiative also supports energy
projects in South Africa and USAID provides indirect credit for small enterprise activity. Through
its Africa Private Capital Group, USAID has facilitated development financing, including efforts
to tap local municipal bond and pension fund investment in public goods and services.
USAID also administers the Trilateral Assistance Program (TAP), launched in 2005, under which
the United States supports South African foreign aid efforts in Africa. TAP seeks to promote U.S.
regional goals by leveraging South Africa’s “democratic systems, regulatory practices, and
innovative scientific research” to tackle development, natural disaster, and security challenges in
Africa. It provides training, exchange programs, and funding to support South Africa’s provision
of technical development assistance to other African countries.23 South Africa has served as a
“Strategic Partner” under Feed the Future, a U.S. global food security/agricultural development
initiative, by providing technical aid to other African countries. South Africans participate in the
joint State Department/USAID Young African Leaders Initiative (YALI), which helps develop the
leadership skills of young business, civic, and public sector professionals, and South Africa hosts
a YALI Regional Leadership Center.
In addition to bilateral aid, South Africa periodically benefits from U.S. regional programs
focused on such issues as environmental management and trade capacity-building, and U.S.
agencies other than the State Department and USAID periodically fund targeted, generally small
programs. U.S. trade and export promotion agencies are active in South Africa and provide loans,
credit guarantees, or other financial services aimed at boosting U.S. exports and/or development
and economic growth outcomes in South Africa. A longstanding Peace Corps program has been
suspended due to COVID-19, as have all such programs globally.

20 State Department, “FY 2019 PEPFAR Planned Allocation and Strategic Direction,” Information Memo For Chargé
Lapenn, South Africa from Ambassador Deborah L. Birx, MD, January 16, 2019.
21 State Department, “FY 2020 PEPFAR Planned Country Allocation and Strategic Direction,” Information Memo for
Ambassador Lana Marks, South Africa, January 14, 2020.
22 State Department, Congressional Budget Justification Foreign Operations (CBJ), Appendix 2, FY2021.
23 TAP projects have addressed such issues as constitution drafting in South Sudan, food security in Mozambique,
gender-based violence in Malawi and Angola, and climate change responses and water conservation in southern Africa.
Quotes from USAID, Country Development Cooperation Strategy South Africa, FY 2013-2019. See also USAID,
“Trilateral Assistance,” October 15, 2019, and Fact Sheet: Trilateral Assistance Program, June 2013.
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Security cooperation efforts have been limited in recent years, apart from a longstanding
International Military Education and Training (IMET) program. Past U.S. assistance supported
the South African military in responding to regional crises and participating in peacekeeping, and
included technical support and training on U.S.-sourced C-130 aircraft. Since 2005, South Africa
has received peacekeeping training under the State Department’s Africa Contingency Operations
Training and Assistance program, a component of the Department’s Global Peace Operations
Initiative. South African troops also have benefitted from other U.S. military professionalization
programs, and regularly join their U.S counterparts in military training exercises. There is a South
Africa-New York National Guard State Partnership Program. The U.S. Department of Defense
(DOD) regularly supports South Africa’s biennial African Aerospace Defense Exhibition, and a
long-standing U.S.-South Africa Defense Committee meets annually.24
In the 2010s, South Africa also benefitted from International Narcotics Control and Law
Enforcement (INCLE)-funded law enforcement and criminal justice capacity building as well as
Nonproliferation, Antiterrorism, Demining and Related Programs (NADR)-funded training to
improve trade and border controls, notably of military and dual-use technologies.
Country Overview
South Africa is influential on the African continent due to its investment and trade relations and
political engagement in the region, notably through its active role in the inter-governmental
African Union (AU). It also has one of the largest, most diverse, and developed economies in
Africa and has made substantial progress in spurring post-apartheid socioeconomic
transformation—though many negative socioeconomic effects of apartheid persist and the
country has experienced a multi-year period of low economic growth.
Transition from Apartheid to Universal Suffrage
Apartheid ended after a tumultuous negotiated transition, between 1990 and 1994, when South Africa introduced
a system of universal suffrage and multi-party democracy fol owing a decades-long struggle by the ANC and other
anti-apartheid groups. After the release of long-imprisoned ANC leader Nelson Mandela and the ANC’s
legalization in 1990, political dialogue led to an interim constitution in 1993 and elections in 1994, in which
Mandela was elected president. Further post-election negotiations led to the adoption in 1996 of a new
constitution and the creation of the Truth and Reconciliation Commission (TRC, in operation until 2002). The
TRC documented crimes and human rights abuses by the apartheid regime and anti-apartheid forces from 1960
until 1994, and oversaw processes of restorative justice, accountability, and assistance for victims. It has since
served as a model for similar efforts around the world, though observers have criticized the government’s
arguably lackluster efforts to prosecute apartheid-era human rights offenders and provide TRC-endorsed
reparations.25 Mandela died in 2013.26
The ANC, which currently holds 57.5% of National Assembly seats, has held a parliamentary
majority and controlled the executive branch—as the National Assembly elects the president—
since the first post-apartheid elections in 1994. Successive ANC-led governments have sought to
redress the effects of apartheid, notably through efforts to improve the social welfare of the black
majority and public goods and services, and by promoting a pan-racial, multiethnic national

24 DOD, “Readout of the Annual Defense Committee Meeting With the Republic of South Africa,” November 7, 2019.
25 Christopher Clark, “South Africa’s ‘Moral Compromise’: Why More Than 300 Apartheid-Era Atrocities Remain
Unsolved,” Washington Post, August 7, 2019.
26 Then-President Obama attended Mandela’s funeral. U.S. House and Senate resolutions commemorated his death, and
several House resolutions have since honored Mandela’s lifetime of work to advance social justice.
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identity. While racial relations have improved, divisions remain; references to race in politics and
social media spur heated debate, and racially motivated criminal acts periodically occur.
Post-apartheid socioeconomic transformation efforts pursued by the ANC-led state have been
substantial, but have fallen short of public expectations for more rapid change.27 These unmet
expectations likely have contributed to falling electoral support for the ANC and arguably are a
major factor motivating frequent, sometimes violent demonstrations known as service protests.
These demonstrations, which also address other issues, such as local government corruption and
cronyism, are politically sensitive.28 In 2018, President Ramaphosa cut short an overseas trip to
address a spate of unrest featuring service delivery protests, attacks on foreigners, anger over
alleged corruption, and clashes between local rival ANC members.29 In the mid-2010s, there also
was a wave of mass student protests, some violent, over tuition costs and alleged institutional
racism in higher education. Smaller protests have periodically occurred since.30 Labor strikes and
unrest, notably in the mining and government sectors, also are common.
The abiding socioeconomic effects of apartheid play a role in a range of enduring development
and governance challenges. Despite often-large investments and concerted policy efforts to
improve housing, public services, infrastructure, and state technical capacities, delivery of public
goods and services remains inadequate and unequally distributed. Such problems
disproportionately affect the black population, which also suffers from particularly high rates of
unemployment and low educational attainment. While racial disparities have gradually declined,
most black South Africans live in poverty and their average per capita incomes are roughly one-
sixth those of the historically privileged white minority.31
Income and consumption distribution are notably unequal. South Africa’s GINI coefficient—a
measure of income inequality—is consistently highest or among the highest globally. There are
also significant regional, rural-urban, and racial socioeconomic and infrastructure disparities.32
Large segments of the poor majority lack access to decent housing and adequate infrastructure
services (e.g., electricity and water), especially in rural areas and in the vast, high-density
settlements surrounding most cities. Known as townships, they are mostly populated by poor
black and mixed race “coloured” inhabitants.33 Many residents in these areas live in informal
housing and often lack legal property ownership, and local governments periodically evict
recently settled squatters and destroy their homes.

27 Ronelle Burger, et al., “The Capability Threshold: Re-examining the Definition of the Middle Class in an Unequal
Developing Country,” Journal of Human Development and Capabilities (18:1), 2017; and Palmer, Ian, et al., Building
a Capable State: Service Delivery In Post-Apartheid South Africa, Zed, 2017, among others.
28 Judith February, “Local Government in South Africa-Mostly Corrupt, Largely Dysfunctional,” Daily Maverick, April
26, 2018; and Al Jazeera, “Thousands March Against Corruption in South Africa,” September 27, 2017.
29 See, for instance, ISS, “Public Protest and Violence Map,” Crimehub database; and Selam Gebrekidan, “Big Protests
in South Africa Force Ramaphosa to End London Visit,” New York Times, April 19, 2018.
30 The current government is implementing a pledge, made at the end of the Zuma administration, to fund free higher
education for the poor and freeze certain education fees. Mfuneko Toyana, “South Africa Ready to Fund Free
University Education: Finance Minister,” Reuters, January 16, 2018; and GOSA, “Remarks by President Cyril
Ramaphosa at the NYDA Youth Dialogue, Cape Town International Convention Centre,” February 12, 2020, inter alia.
31 Statistics South Africa (StatsSA), Living Conditions of Households in South Africa, P0310, 2017, and Inequality
Trends in South Africa: A multidimensional diagnostic of inequality, Report No. 03-10-19, 2019, and GOSA/World
Bank, An Incomplete Transition Overcoming the Legacy of Exclusion in South Africa, 2018.
32 World Bank/GOSA, Overcoming Poverty and Inequality in South Africa: An Assessment of Drivers, Constraints and
Opportunities, March 2018; and StatsSA), Inequality Trends…, op cit., inter alia.
33 “Coloureds” are a multi-racial group of varying black, white, Khoisan, Malagasy, and other ancestry.
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Figure 2. South Africa at a Glance

Population (Total/Growth): 59.6 mil ion/1.4% (2020)
Youth Population (ages 0-24): 45% (2020)
Religions: Christian, 86%; traditional and related
Under-5 Mortality Rate: 34 per 1,000 live births
African religions, 5.4%; Muslim, 1.9%; other 1.5%,
(2018)
none/unspecified 5.2% (2015)
Life Expectancy (years): 62.5 (male); 68.5 (female)
Literacy Rate (% of adults): 95% (2017)
(2020)
Urban Population (% of total): 66% (2018)
HIV Prevalence (% of population): 13.01 (total
National Poverty Rate (population %): 55.5 (2014)
population); 19.7 (adults aged 15–49 years) (2020)
Median Age: 28 years
Racial composition: Black (multiple ethnic groups), 80.8%; “coloured” 8.8%; white, 7.8%; and Asian, 2.6%. Blacks
are mostly members of Bantu-based language groups. “Coloureds” are a multi-racial group of varying black, white,
Khoisan, Malagasy, and other ancestry. Whites include Afrikaans speakers of Dutch, German, and French
Huguenot ancestry and native English-speakers. Asians are of East and South Asian descent, but mostly the latter.
Languages (All official except “other”): Major black indigenous: isiZulu, 24.7%; isiXhosa,15.6%; Sepedi,
9.8%; Setswana, 8.9%; Sesotho, 8.0%; Xitsonga, 4.0%; siSwati, 2.6%; Tshivenda, 2.5%; isiNdebele,1.6%; other (Khoi,
Nama, and San), 1.9%. Non-Africa Origin: Afrikaans, 12.1%; English, 8.4%. (2017)
Gross Domestic Product (GDP): $359 bil ion (2019) Key Exports: Platinum, gold, and other metals and
GDP Growth: 0.15% & -5.8% (2019 & 2020, projected; minerals; diamonds; machinery and equipment.
local constant prices)
Key Imports: Machinery and equipment, chemicals,
GDP Per Capita: $ 6,100 (2019)
petroleum products, scientific instruments, foodstuffs
National Unemployment Rates, Current and Long-term:* 30.1% & 39.7% (2020, Quarter 1)
●For Blacks: 33.8% & 44.1%
●For Young Adults (15-24 years): 59.0% & 70.0%
* The current rate includes persons unemployed for at least a week who are available for work and have actively
sought work over the past four weeks. The long-term rate includes those who meet all but the last of these
criteria (i.e., discouraged workers, or workers who often have repeatedly tried but failed to secure employment).

Sources: Map by CRS. Data: CIA World Factbook, World Bank World Development Indicators, IMF World Economic
Outlook (October 2019 and May 2020); Statistics South Africa, Mid-Year Population Estimates 2020 (P0302), July 9,
2020; Quarterly Labour Force Survey Quarter 1: 2020 (P0211), June 23, 2020, and Inequality Trends in South Africa: A
multidimensional diagnostic of inequality in 2017, 2019; and U.S. Census Bureau, International Data Base (2020).
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There also are extreme racial disparities in access to land, despite the continuous implementation
of land redistribution and restitution initiatives since 1994. Under such programs, the state has
purchased large amounts of land intended to be transferred to populations that had limited or no
ability to own land under the apartheid system—primarily those of black, “coloured” or Indian
descent. While black ownership and other access to land has risen markedly in some provinces
since 1994, redistribution and restitution processes have been slow and have resulted in less
extensive transfers than initially projected. As a result, the small minority white population
continues to own over 70% of land nationally. 34 This has spurred growing demands for
uncompensated state expropriation of private land and pushed the ANC to pursue an ongoing
effort to amend the constitution to permit such expropriation (see “Land Issue” below).
South Africa also faces challenges with regard to its criminal justice system capacity. While the
country has a relatively well-resourced national police force, there are periodic incidents of
vigilante mob justice, and police sometimes use heavy-handed, abusive tactics to quell crime and
public unrest.35 Several police leaders also have been implicated in misconduct inquiries or
corruption. Police performance is a sensitive political issue because rates of violent crime—
notably murder, rape, and gun crime—are high.36 The causes of these high crime rates are
diverse; in addition to criminal motivations, analysts have identified grievances and fractures
arising from socioeconomic inequality and marginalization, as well as social bias, as contributing
factors.37 Brutal, drug-dealing street gangs also wield extensive power in many large townships,
notably in several near the city of Cape Town. In one such township, the military was deployed to
help police counter a spate of murders in 2019.38
Femicide and Violence Against Women and Children
South Africa has one of the world’s highest per capita rates of gender-based violence (GBV) and rape. Children
also are often victimized. Several high-profile femicides and child murders in 2012 and 2013 spurred the Zuma
administration to sponsor a National Commission of Enquiry into rape and GBV and launch an anti-rape education
campaign. Public and policymaker concern about these matters remains intense. In 2019, a series of murders and
rapes of women spurred several mass protests and prompted President Ramaphosa—who hosted a National
Summit Against GBV in 2018—to cancel his participation in the 74th U.N. General Assembly session. He instead
convened a special parliamentary session on GBV and xenophobic violence (see below) at which he announced
the launch of a national GBV Emergency Action Plan.39 It seeks to strengthen GBV prevention, criminal justice

34 Rural Development and Land Reform Department, Land Audit Report, Phase II: Private Land Ownership by Race,
Gender and Nationality, November 2017; AgriSA, Land Audit: A Transactions Approach, November 2017. The audit
is critiqued in Institute of Race Relations (IRR), Who Owns the Land? A Critique of the State Land Audit, March 2018
and AgriSA, Submission on Expropriation Without Compensation, May 25, 2018.
35 Norimitsu Onishi, “Police in South Africa Struggle to Gain Trust After Apartheid,” New York Times, August 13,
2016; and Siyabonga Mkhwanazi, “Deaths from Police Brutality on the Rise-Report,” IOL, June 20, 2017, inter alia.
36 Violent crime rates broadly increased in 2018/2019 over the prior year. Murders rose nearly 2%, as they have at an
annual average of 2.9% since 2011, when they hit a low after a long-term decline starting in 1995. The country’s per
capita murder rate is among the highest globally; it ranked 5th in 2018, when there were 36.4 homicides per 100,000
people, compared to 5 in the United States. Africa Check, “Factsheet: South Africa’s Crime Statistics for 2018/19,”
September 12, 2019; Statistics South Africa (StatsSA, a public agency), Victims of crime report 2018/19, October 3,
2019; South African Police Service, Crime Statistics 2018/2019; and U.N. Office on Drugs & Crime, DataUNODC.
37 Chandre Gould, “Comment: Why Is Crime and Violence so High in South Africa?,” Africa Check , September 17,
2014; work by the South African Institute for Security Studies (ISS) and the Centre of Criminology, University of Cape
Town (e.g., the South African Crime Quarterly and ISS’s Crimehub web resource), among others.
38 Reuters, “South African Army To Stay Longer In Gang Hotspots – Ramaphosa,” September 16, 2019, among others.
39 He called South Africa among “the most unsafe places in the world to be a woman,” and also cited a high level of
violence against girls, including babies. He noted that in 2018, 2,700 women and more than 1,000 children were
murdered, that more than 100 cases of rape were reported to police daily, and that many more such cases were not
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responses, legal reforms, victim support programs, and women’s economic empowerment programs.40 In late
2019, parliament appropriated 1.6 bil ion Rand ($108 mil ion) to fund the plan, which remains under
implementation.41
Broader challenges to social cohesion include widespread de facto residential racial and
socioeconomic segregation. While many of the poor live in townships, the wealthy, including
many whites, often live in gated, highly secured communities. White farmers are periodically
victimized in criminal attacks. While often opportunistic—in part as many such farmers are
wealthier than the average citizen—such attacks are sometimes also attributed to racial or
socioeconomic resentments. Xenophobic mob violence targeting foreigners, notably foreign
shopkeepers, also occur regularly. Some have been large-scale and widespread, as in 2019—
following similarly extensive attacks in 2008 and 2015. Smaller-scale incidents also occur, as in
early 2020. A wave of attacks in September 2019 spurred tensions with several African countries
and a diplomatic rift with Nigeria, as many Nigerian immigrants were victims. Analysts have
linked such attacks to local resentment of immigrants’ success in achieving socioeconomic
mobility, anti-foreigner rhetoric by politicians, and a lack of preventive state action, among other
factors.42
Another key challenge is a high HIV prevalence, though estimates vary. South Africa reports that
18.7% of adults are HIV-positive in 2020, up from 18.6% in 2019 and 18.5% in 2018, while
UNAIDS reports a decrease from 19.2% in 2018 and 19% in 2019 (latest data). Both sources,
however, report a slow but steady decline in incidence (new cases per population group share in a
given period).43 National efforts to counter HIV have received considerable international support,
notably under U.S. PEPFAR programs (see above).
Notwithstanding inadequacies in state performance, many of South Africa’s state agencies (e.g.,
the central bank, the statistical agency, the courts, some ministries, and the Treasury) possess
considerable institutional independence and technical capacity. They have arguably made
substantial progress in many areas, even if unmet needs remain extensive. South Africa ranked
second globally on the International Budget Partnership’s 2019 Open Budget Survey, a measure
of public budget transparency. While some state-owned enterprises (SOE) are struggling to
recover from reported mismanagement and malfeasance under Zuma, these entities manage large,
highly complex transport, telecommunication, energy, and other infrastructure systems.

reported. GOSA/Presidency, “Address by President Cyril Ramaphosa at the Joint Sitting of Parliament on the crisis of
violence in South Africa, National Assembly, Cape Town,” September 18, 2019.
40 A presidential Interim Steering Committee and co-chaired by government entities and civil society groups
spearheads plan implementation, and the government finalizing a longer-term National Strategic Plan. Ibid.;
GOSA/Presidency, “Minister Pandor leads delegation to UNGA74,” September 12, 2019; and GOSA, “Declaration of
the Presidential Summit Against Gender-Based Violence and Femicide,” November 2, 2018, inter alia.
41 In a June 2020 national address, Ramaphosa again highlighted the challenge of GBV in the context of the COVID-19
lockdown. GOSA, “R1.6bn allocated for GBV Emergency Action Plan," November 11, 2019, and “President receives
emergency response action plan to combat GBV," April 30, 2020; and Estelle Ellis, “Gender-based violence is South
Africa’s second pandemic, says Ramaphosa,” Daily Maverick, June 18, 2020.
42 Nigerian leaders boycotted a South Africa-hosted World Economic Forum annual meeting, and some South African
businesses in Nigeria suffered retaliatory attacks. Silindile Mlilo and Jean Pierre Misago, Xenophobic Violence in South
Africa: 1994-2018: An Overview, Xenowatch/African Centre for Migration & Society, 2019, and prior annual
Xenowatch analyses; Julie Turkewitz, “South African Riots Over ‘Xenophobia’ Prompt Backlash Across Africa,” New
York Times, September 5, 2019; and William Shoki, “A Ditch to Climb,” Africasacountry.com, February 19, 2020.
43 StatsSA, Mid-Year Population Estimates 2019, Release P0302, July 29, 2019; and UNAIDS AIDSInfo database
http://aidsinfo.unaids.org/.
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The state also administers a large welfare system that supported about 17.8 million grants serving
11 million beneficiaries as of March 2019. $12.4 billion was spent in the 2018/2019 budget cycle,
and such costs are likely to grow. Despite the welfare system’s role in helping to reduce extreme
poverty, reported graft and poor administration of the system has spurred considerable
controversy in recent years, including with regard to the provision of newly authorized social
welfare grants to combat the economic effects of COVID-19.44
Politics and Governance
The ANC, the majority party since the advent of universal suffrage in 1994, is ideologically
leftist, but in practice melds pragmatic support for private sector-led growth with state-centric
economic planning under what it terms the “developmental state” model. The ANC’s political
credibility is largely founded on its leading role in the anti-apartheid struggle and its efforts to end
deep-rooted, enduring social inequalities. It has struggled to build on this legacy, however, amid
the country’s persistent challenges. The ANC’s gradual loss of electoral support, service protests
focusing on alleged ANC policy shortcomings, and other indicators suggest that South Africans
are increasingly judging the party on its current performance record, rather than its past
antiapartheid role—though it remains the country’s most popular party.
The Democratic Alliance (DA) is the second-largest party in parliament, with 84 of 400 National
Assembly seats. Its leadership has long been predominantly white, but it has built a growing base
among blacks—despite repeated controversies concerning racially insensitive remarks by white
party leaders. The DA has regularly confronted the ANC in parliament, at times in league with the
Economic Freedom Fighters (EFF), a populist hard-left party centered on black empowerment
that controls 44 National Assembly seats. The EFF was formed in 2013 by Julius Malema,
firebrand former ANC Youth League leader who later became one of the ANC’s harshest critics.
Two other notable parties include the Inkatha Freedom Party (IFP), a self-described centrist party
that was once a fierce ANC rival during the anti-apartheid period, and the Vryheidsfront
(Freedom Front) Plus party—which, among other policy goals, advocates for minority rights and
self-determination, notably to protect predominantly white Afrikaners’ interests.
Opposition parties have successfully exploited growing voter dissatisfaction with the ANC,
notably following a rise in corruption and ANC in-fighting under Zuma. In general elections held
in May 2019, the ANC won 57.5% of National Assembly votes and 230 out of 400 seats (down
from 249 in the last election, in 2014). This represented the ANC’s worst electoral performance
since 1994, and mirrored a similar decline during local elections in 2016. The DA, meanwhile,
won 22.7% of the 2019 vote, while the EFF made a large gain, winning 10.8%.45
All political parties’ long-term prospects may depend, in part, on their ability to draw the support
of voters among the “Born Free” generation—those born in 1994 or later—who comprise about
47% of the population and about 14% of the eligible electorate. Many in this generation share

44 About 73% of grants supported child/dependent care and 20% support old age recipients in March 2019. Grant costs
have generally risen and are slated to rise by 7.65 over the next budget cycle. South African Social Security Agency,
Annual Report On Social Assistance 01 April 2018 – 31 March 2019; GOSA/Treasury Department, 2019 Budget
Estimates of National Expenditure: Vote 17 Social Development; Corruption Watch, “End of the Road for CPS, Says
Corruption Watch,” February 13, 2020; and Paul Vecchiatto, “South African Post Office Takes Over Welfare
Payments,” Bloomberg, December 10, 2017.
45 The African Christian Democratic Party won four seats, with 0.8% of the vote. Eight small parties won one or two
seats. Election data from South African Electoral Commission. See also Wendell Roelf, “South African Lawmakers
Elect Ramaphosa as State President,” Reuters, May 22, 2019.
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discontent over corruption, public services, and poverty with their older counterparts—and suffer
even higher unemployment rates—but are reportedly less engaged in formal politics and vote at
lower rates than older generations.46
At present, National Assembly elections take place under a party-list proportional system, in
which voters select a party and each party allocates its share of elected seats based on an internal
party nominee lists. As a result, internal ANC politics and leadership selections play a key role in
national politics. Rivalry within the ANC at the provincial and local levels—often regarding
appointments to local state bodies and the selection of delegates at national party decision-making
bodies—is often fierce and has spurred many political assassinations.47 The Congress of South
African Trade Unions (COSATU) and the South African Communist Party (SACP) also exert
influence within the ANC. They do so under the Tripartite Alliance, a compact under which the
two organizations do not independently contest elections but receive selected top ANC and state
leadership posts. In recent years, unity among Alliance members has weakened.48
South Africa’s political system may soon change dramatically as a result of a June 2020
Constitutional Court ruling that invalidated a national electoral law banning independent
candidates from running in national and provincial legislative races. The court ordered the
National Assembly to amend the law within two years to allow for such candidacies. This likely
will result in a system of concurrent direct constituency and electorate-wide party list-based
elections. While observers see this change as having a range of potential effects, both positive and
negative, many see it as likely to foster a more competitive electoral landscape.49
Ramaphosa Administration
Ramaphosa—a former anti-apartheid activist and labor leader turned business executive—
succeeded Zuma as president in early 2018, shortly after narrowly winning a highly contentious
ANC leadership election. His win, based largely on a pledge to fight corruption and heal the
economy, was a key defeat for the Zuma-linked wing of the party.50 Ramaphosa’s administration
has prioritized efforts to spur economic growth by stimulating public and private investment with
the aim of creating jobs and enhancing social services and infrastructure, and to make growth
more inclusive. They have pursued inclusivity through “transformation” efforts aimed at
expanding and equalizing access to economic opportunities, especially for the poor black
majority, using tools such as small business promotion, state procurement preferences, and other
actions to boost industrial growth. Other priorities have included mining sector and trade policy
reforms, alongside efforts to attract local and international investment, spur digital sector growth,

46 Joseph Mullen, “Is South Africa’s “Born Free” Generation Truly Free?,” Africa Up Close Blog, Wilson Center,
September 10, 2019; and Elnari Potgieter and Barend F. Lutz, “South African Youth: Politically Apathetic?,” in
Electoral Institute for Sustainable Democracy in Africa, Election Update South Africa 2014, 2014, inter alia.
47 Norimitsu Onishi and Selam Gebrekidan, “Hit Men and Power: South Africa’s Leaders Are Killing One Another,”
New York Times, September 30, 2018, inter alia.
48 Zuma was the focus of often-fierce SACP and COSATU criticism and there have been divisions in COSATU related
to the emergence of new unions and discontent among its grassroots membership over a variety of issues. Ashley N.
Mabasa, “Alliance Partners Must Have a Clear Plan for Reconfiguration,” Daily Maverick, July 17, 2018.
49 Possible hypothesized negative effects include the potential for a diminishment of collective civic action through
political party participation, a rise in the influence of individual politicians, and a possible strengthening of identity-
based politics. Karabo Mafolo, “ConCourt ruling paves way for independent candidates to contest elections,” Daily
Maverick, June 11, 2020; and Mcebisi Ndletyana, “Constitutional Court ruling heralds changes to South Africa’s
electoral system,” The Conversation, June 12, 2020, inter alia.
50 His main rival was Nkosazana Dlamini-Zuma, Zuma’s ex-wife, a former African Union Commission chair and
longtime cabinet minister. Azad Essa, “Cyril Ramaphosa wins ANC leadership vote,” Al Jazeera, December 18, 2017.
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and expand agricultural production.51 The government is twinning such efforts with action to
address COVID-19 and its economic effects (see below), with an emphasis on infrastructure
investments. In late June, President Ramaphosa hosted a summit to roll out a revised national
Infrastructure Investment Plan focusing on such efforts, and in July identified several hundred
projects that are to be pursued under the plan, a decade-long, $138 billion line of effort.52
Another priority is to combat corruption and enhance the performance of state agencies and state-
owned enterprises (SOEs). Public Enterprises Minister Pravin Gordhan—a two-time finance
minister under Zuma who later fiercely clashed with Zuma—is spearheading such efforts, though
Ramaphosa has also been directly involved. After assuming office in 2018, he ordered probes into
irregularities and mismanagement at two major SOEs: Eskom, the national power utility, and
Transnet, a transport and logistics firm. He also replaced these SOEs’ boards, along with that of
Denel, an important but ailing defense sector SOE, and fired the head of the tax service, a key
Zuma ally and Gordhan foe, and appointed a commission of inquiry into malfeasance at the
agency. A separate parliamentary commission also probed systematic irregularities at Eskom.
Notwithstanding such efforts, several SOEs with longstanding, severe governance and/or fiscal
problems—and now COVID-19-linked pressures—are in dire financial trouble. They include
South African Airways, the Land Bank, and Denel.
A high-profile judicial commission of inquiry into state capture ordered by former Public
Protector Madonsela, commonly known as the Zondo Commission, after its chair, is continuing
its investigations (see textbox below). Its work has been interrupted by the COVID-19 lockdown,
and its mandate has been extended until 2021. While its proceedings center on developments
during the Zuma administration, the matters at issue remain issues of ongoing concern, as some
of the key actors at issue remain active in public affairs or hold high state or party posts.53
Commission witnesses have confirmed many of the state capture allegations made in
Madonsela’s report and implicated a range of formerly high profile officials in state capture
activity.54 In commission testimony in 2019, Zuma denied a range of allegations against him,
which he attributed to a campaign of character assassination by unnamed national intelligence
services.55
Checks and Balances and State Capture
During Zuma’s presidency, opposition parties and non-governmental organizations used the courts to check
executive power by regularly suing state officials, including Zuma. These suits, relating to alleged executive branch
overreach, agency malfeasance, and il icit actions, were often successful.56 Former Public Protector Thuli

51 See 2020 and past State of the Nation addresses [https://www.gov.za/state-nation-address] and the National
Development Plan 2030: Our Future-Make It Work, 2012, which Ramaphosa helped craft as a leading member of the
National Planning Commission. The plan underpins a raft of other ministry and sectoral state strategic plans.
52 GOSA, “Presidency hosts Infrastructure Development Symposium to drive growth of SA economy and post COVID-
19 recovery plan,” June 19, 2020; and Antony Sguazzin, “South Africa Names First Projects in $138 Billion Drive,”
Bloomberg, July 26, 2020, among others.
53 The Commission’s proceedings can be accessed at http://www.sastatecapture.org.za.
54 David Bruce, “Political Bias Within the System Weakens SA Criminal Justice,” ISS, September 21, 2018; Colleen
Goko, “Head of South African Graft Unit Suspended After Testimony: ST,” September 2, 2018, Bloomberg; IOL,
“How the Guptas, Fireblade and a Sex Tape Sank #MalusiGigaba,” November 13, 2018; and Sarah Evans, “Finance
Minister Nhlanhla Nene Resigns, Tito Mboweni Sworn In,” News24, October 9, 2018, among others.
55 James Hamill, “Zuma’s Testimony to South Africa’s Corruption Inquiry Further Divides the ANC,” World Politics
Review, August 7, 2019, among others.
56 Nqobile Dludla, “South Africa’s ANC Accuses Judiciary of Pandering to Opposition,” Reuters, May 5, 2017;
Michael Cohen, “Courts Emerge as Main Theater for South Africa’s Political Wars,” Bloomberg, November 20, 2016;
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Madonsela also acted as a restraint on presidential power. She issued many reports on alleged acts of
noncompliance with laws and regulations, corruption, and operational failings by the executive branch and state
agencies—and mandated diverse corrective actions. Most notably, in 2016, she issued State of Capture, a highly
critical report centering on Zuma, the Gupta family, and a network of Zuma-allied ANC, business, and family
associates. The Guptas are an Indian émigré family that accumulated a range of business holdings after arriving in
South Africa in the 1990s. The report alleged that these actors had engaged in extensive high-level state-business
malfeasance, and mandated the creation of a now-ongoing Zondo commission of inquiry. Zuma fought an
unsuccessful legal battle to prevent the report’s release, claiming that Madonsela had violated his due process
rights, but established the commission—under court order—shortly before he resigned as president.57
The widespread, deep-seated corruption and influence peddling addressed in Madonsela’s report, dubbed “state
capture” by analysts and later law enforcement and other officials, continues to roil politics and draw intense
public and policymaker attention. The term refers, in particular, to the activities of the Zuma/Gupta and allied
ANC and business network. Its members allegedly engaged in col usion that reportedly influenced and even
directly shaped many state agency decisions, contracts, regulatory processes, and fiscal decisions in order to
advance network members’ mutual political, business, and personal financial interests. The Guptas, central actors
in this network, allegedly influenced the appointments of a finance minister and other cabinet members. Their
firms also engaged in questionable energy deals with the state utility, Eskom, were awarded or facilitated large
state contracts with the state rail company and other SOEs—some involving kickbacks, and their media companies
received significant shares of state advert revenues and service contracts.58 Several western blue chip firms were
tarnished by their links with Gupta-owned or linked firms (see textbox under “U.S. Trade and Investment,”
below). The Guptas also reportedly sponsored digital media influence campaigns that promoted the political aims
of the Zuma-aligned wing of the ANC and their own interests. Involvement in such activity led to the dissolution
of the once prominent UK public relations firm Bell Pottinger.59
While “state capture” is primarily linked to the activities of the Zuma-Gupta network, other actors were also
party to the phenomenon—which President Ramaphosa asserts cost South Africa about $34 bil ion.60 In October
2019, the U.S. Treasury Department signaled U.S. support for Ramaphosa administration and South African judicial
system efforts to seek accountability for state capture activity by imposing sanctions on two of the Gupta brothers
and a key associate for engaging in “widespread corruption and bribery, capture government contracts, and
misappropriate state assets.” Senate Foreign Relations Committee (SFRC) chairman Jim Risch lauded the action.61
Several separate commissions of inquiry have examined alleged malfeasance at various state
agencies—including the alleged extralegal manipulation of state security agencies for political
purposes under Zuma.62 In 2019, President Ramaphosa also appointed a special tribunal to fast-

and Reuters, “South Africa’s EFF Leader Malema to Lodge Court Application to Discipline Zuma,” March 30, 2017.
57 The report investigated a pattern of “alleged improper and unethical conduct” by Zuma and other officials “relating
to alleged improper relationships and involvement of the Gupta family in the removal and appointment of Ministers
and Directors” of SOEs “resulting in improper and possibly corrupt award of state contracts and benefits to the Gupta
family’s businesses.” Public Protector, State of Capture, 2016.
58 State capture activities were numerous, sprawling, and complex. For background, see State Capacity Research
Project, Betrayal of the Promise: How South Africa Is Being Stolen, 2017; Ivor Chipkin, The State, Capture and
Revolution in Contemporary South Africa, Public Affairs Research Institute (PARI), 2016; David Pilling and Joseph
Cotteril, “Jacob Zuma, the Guptas and the selling of South Africa," Financial Times, November 30, 2017; BBC News,
“The Guptas and their links to South Africa’s Jacob Zuma," February 14, 2018; and investigative journalism
collections, e.g., amaBhungane Centre for Investigative Journalism, “#GuptaLeaks," https://tinyurl.com/ya68ma7h and
http://www.gupta-leaks.com; and Mail & Guardian, “Gupta Family" (https://mg.co.za/tag/gupta-family/), inter alia.
59 David Segal, “How Bell Pottinger, P.R. Firm for Despots and Rogues, Met Its End in South Africa,” New York
Times, February 4, 2018.
60 Tom Wilson, “Graft under Jacob Zuma cost South Africa $34bn, says Ramaphosa,” Financial Times, October 14,
2019.
61 U.S. Treasury, “Treasury Sanctions Members of a Significant Corruption Network…,” op cit.; and SFRC, “Risch
Applauds Magnitsky Sanctions Against Gupta Family's Grand Corruption Network in South Africa,” October 10, 2019.
62 Zuma administration officials allegedly created ad hoc intelligence networks that worked in parallel to state agencies
and employed mass digital surveillance to target perceived foes of the administration. In response to such actions, in
late 2019, a court invalidated parts of a key digital surveillance law. GOSA, Report of the High-Level Review Panel on
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track the recovery of public assets lost to graft.63 Meanwhile, Zuma is being tried on 16 charges
of fraud, corruption, racketeering, and money laundering in a long-running corruption case
centering on a 1990s-era state arms deal scandal. Zuma fended off the case for years, allegedly
aided by the National Prosecuting Authority (NPA). In 2009, the NPA dismissed the case, but was
forced to reinstate the charges in 2018 after an appeals court ruled that its 2009 decision was
made under political pressure.
The NPA’s alleged improper favoritism toward Zuma in various instances has been the subject of
several court cases. In 2018, after the last Zuma-era head NPA director’s appointment was
invalidated by a court, Ramaphosa appointed career prosecutor and former International Criminal
Court legal adviser Shamila Batohi to head the NPA. She has prioritized state capture and other
state malfeasance cases and pledged to reform a “broken and dysfunctional” criminal justice
system and end NPA favoritism in high-profile corruption cases.64
Ramaphosa himself has faced allegations of campaign finance improprieties by current Public
Protector Busisiwe Mkhwebane,65 who also attempted to force Ramaphosa to legally censure
Gordhan for his role in setting up an allegedly extrajudicial tax enforcement intelligence unit and
other actions. Gordhan has sharply questioned her motives and investigatory methods in a legal
fight opposing her efforts.66 Mkhwebane is a controversial figure. Critics have alleged that her
investigatory actions favored the interests of the still-influential Zuma-linked faction of the ANC
and potentially undermined state reform efforts. Especially notable was her attempt to require
parliament to amend the constitution to alter the mandate of the South African Reserve Bank in a
manner advocated by the Zuma-aligned wing of the ANC. The bank successfully sued to overturn
her order.67 Mkhwebane has lost in several key legal proceedings—as recently as June 2020—and
courts have repeatedly questioned her judgment and integrity.68
Land Issue
The Ramaphosa administration is implementing an ANC-endorsed effort to amend the
constitution to permit the expropriation of certain private land, without compensation, for

the State Security Agency, 2018; and Sesona Ngqakamba, “Victory for amaBhungane as Court Declares Mass
Interception By State ‘Unlawful and Invalid’,” September 16, 2019, and Kyle Cowan, “Spy Wars: Report Reveals How
Zuma’s Man at SSA Helped Build Parallel Network,” March 10, 2019, both in News24, inter alia.
63 Reuters, “South Africa’s Ramaphosa Appoints Graft Tribunal,” February 24, 2019.
64 Such favoritism was potentially exemplified by the NPA’s withdrawal of a key criminal case against the Guptas
hours prior to Batohi’s appointment. Quote from Qaanitah Hunter, “Batohi’s Harsh Stance on Graft,” Sowetan, July 25,
2019. See also Karyn Maughan, “Can Shamila Batohi Resuscitate the NPA?,” Financial Mail, December 6, 2018;
Bonga Dlulane, “Shamila Batohi Names Top Prosecutors To Fast-Track State Capture Cases,” Eyewitness News, April
7, 2019; and Lauren Tracey-Temba, “Leadership is not the NPA’s only challenge,” ISS Today, February 16, 2018.
65 Joseph Cotterill, “Ramaphosa Violated S Africa Constitution, Says Public Protector,” Financial Times, July 19 2019;
and Jeanette Chabalala, “Maimane Threatens Ramaphosa With Legal Action if He Doesn’t Explain ANC’s Thank You
Letter to Bosasa for R3m Donation,” News 24, September 26, 2019.
66 Rebecca Davis, “Defender Pravin Comes Out Guns Blazing Against Protector Busisiwe—and He’s Not Firing
Blanks,” Daily Maverick, July 10, 2019, among others.
67 In 2019, the Constitutional Court ruled that she had lied under oath in a highly political bank case, prompting calls
for her disbarment as a lawyer and a prospective parliamentary review of her appointment. Amogelang Mbatha and
Michael Cohen, “South Africa’s Graft Ombudsman Seeks Changes to Central Bank Role,” Bloomberg News, June 20,
2017; Prinesha Naidoo, “Sarb Fires Back at Public Protector,” MoneyWeb, July 14, 2017.
68 Gopolang Moloko, “Supreme court denies Mkhwebane leave to appeal Vrede Dairy Farm matter,” The Citizen, June
29, 2020; BBC, “South Africa’s Anti-Corruption Chief Busisiwe Mkhwebane Lied Under Oath,” July 22, 2019; and
Amogelang Mbatha, Mike Cohen and Paul Vecchiatto, “Ax Hovers Over South Africa’s Controversial Graft
Ombudsman,” Bloomberg, July 23, 2019.
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redistribution to victims of apartheid-era discrimination and land seizures. After adopting this
plan in early 2018, parliament appointed a constitutional review committee that held nationwide
hearings and in late 2018 recommended that the change proceed. The National Assembly then
appointed a committee to craft and introduce a reform amendment. This effort is highly
controversial, both domestically and abroad. It has raised fears that land seizures may mostly
target white minority farmers, who own most farmland, and might damage the banking system
and prompt international investors to question the security of private property ownership in South
Africa. Ramaphosa has worked to dampen such fears.69
In August 2018, President Trump sparked controversy when he posted a tweet stating that South
Africa’s government was “seizing land from white farmers” and alluding to “farm seizures and
expropriations and the large scale killing of farmers.” His comments drew criticism and were
questioned on factual and other grounds by U.S. and South African commentators70 and by the
South African government.71 Trump’s tweet also directed Secretary of State Mike Pompeo to
“closely study the South Africa land and farm seizures and expropriations.” In February 2020,
shortly after President Ramaphosa affirmed his government’s intention to pursue uncompensated
land expropriation, Pompeo said that the proposed change would be “disastrous” for South
Africa’s economy—though days later, U.S. ambassador to South Africa Lana Marks, predicted
that there would “be no confiscation of any private land whatsoever” and that President
Ramaphosa was handling the issue “in a totally open and transparent manner.”72
COVID-19 in South Africa
South Africa’s COVID-19 caseload is large and rapidly accelerating, and the healthcare system is
increasingly overburdened. As of July 30, South Africa had 471,123 cases—just over 63% of the
sub-Saharan African caseload and the fifth-largest caseload globally. 73 Its approach to countering
the virus has emphasized social distancing, the use of protective face masks, handwashing and
hygiene promotion, and large-scale health screening, viral testing, and contact tracing. Several
vaccine and other COVID-19 medical research studies also are under way in South Africa.74

69 He has said expropriation would be limited mainly to cases involving “unused land, derelict buildings, purely
speculative land holdings, or… where occupiers have strong historical rights and title holders do not occupy or use
their land, such as labour tenancy, informal settlements and abandoned inner-city buildings.” Cyril Ramaphosa, “Land
Reform in South Africa is Crucial for Inclusive Growth,” Financial Times, August 23, 2018.
70 Uncompensated expropriation of land was not under way at the time of the tweet—and has not occurred to date; nor
have farmers been killed in large numbers. Some commentators also asserted that Trump’s comments reflected
narratives espoused by U.S. and South African white supremacist groups. Judd Devermont, “Trump’s South Africa
Tweet is False, Counterproductive and Dangerous,” The Hill, August 28, 2018; Julie Hirschfeld Davis and Norimitsu
Onishi, “Trump Tweet Echoes Agenda of Supremacy,” New York Times, August 24, 2018, among others.
71 GOSA, “Meeting between DIRCO and US Embassy Following President Trump’s Tweet on Land Redistribution in
South Africa,” August 23, 2018.
72 She also contended that “now is the time for major US investment in South Africa.” Sarah Smit, “‘We’re Satisfied
with SA’s Land Reform Policy’-US Ambassador,” Mail & Guardian, February 26, 2020.
73 Current COVID data at GOSA, COVID-19 Corona Virus South African Resource Portal (SACoronavirus hereafter;
https://sacoronavirus.co.za); and Johns Hopkins University of Medicine, COVID-19 Dashboard
(https://coronavirus.jhu.edu/map.html). See also Sarah Smit and Chris Gilili, “SA accelerating towards virus peak
without capacity, experts warn,” Mail & Guardian, June 18, 2020.
74 Some 500 healthcare workers also are participants in a study to assess the effectiveness of a tuberculosis vaccine
against COVID-19. SACoronavirus; Bonolo Mogotsi and Max Bearak, “South Africa is hunting down coronavirus with
thousands of health workers,” Washington Post, April 21, 2020; Sofia Christensen, “S.Africa’s mass testing hits limits
as virus spreads,” AFP, May 16, 2020; and BBC, “BCG vaccine trial begins on SA health workers,” May 5, 2020.
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In mid-March, nearly two weeks after South Africa’s first confirmed case, the government
declared a national state of disaster, giving officials special authority to counter COVID-19. It
then issued an array of orders temporarily restricting local and overseas travel, imposing
mandatory residential lockdowns, school closures, and banning public and large group gatherings,
including religious meetings. Many forms of commerce also were curtailed. Though essential
activity exceptions were given for some restrictions, South Africa’s measures have been among
the strictest globally, and many remain partially in effect, and some have recently been
reimposed.75
Business restrictions were eased in early May and further in early June, but the negative
economic effects of the lockdowns continue to ravage the economy. The poor, many of whom
survive hand to mouth in the informal sector, have been particularly hard-hit. To ease the impact
of lockdown-related income cuts and business restrictions, the government has been providing
small income grants and food to the most vulnerable, though the efficacy of food aid distributions
has been criticized, and there have been some reports of corrupt or partisan aid diversions.76 In
July, in response to a rapid growth in COVID-19 cases, the government again closed schools and
reinstated a ban on alcohol sales.
COVID-19 restrictions spurred demonstrations over food insecurity, loss of incomes, and a ban
on alcohol and cigarette sales. Some protests were violent, and there were multiple incidents of
looting of grocery and alcohol retailers. Police, backed by tens of thousands of military troops,
were—and remain—deployed to enforce the lockdown and to counter unrest. Police also have
reportedly collaborated with private security firms to illegally and forcibly evict squatters from
municipal properties.77 Some security force elements have engaged in human rights violations,
including at least ten reported killings, and there have been hundreds of thousands arrests for
lockdown violations.78 In response to abuses, courts have ordered military and police disciplinary
actions, as well as broad code of conduct reforms. In June 2020, some protests against lockdown-
related police brutality merged with protests in solidarity with ongoing U.S. anti-racism protests
and local efforts to fight racism.79 Lockdown restrictions also resulted in a sharp decline in gang-
related murders in some crime-ravaged townships, and reportedly spurred rival gangs to engage
in joint charitable work (e.g., food distributions). Some analysts, however, assert that gangs may
in fact be using such activity as cover for ongoing criminal activity.80
The economic impacts of the lockdown hit South Africa when it was already in a recession and in
a fiscal position worse than that prior to the 2008 global financial crisis. Citing the lockdown,

75 Hanibal Goitom, “South Africa Government Measures to Contain the Spread of COVID-19 and Mitigate Damages,"
In Custodia Legis blog, April 15, 2020, and “South Africa: Directions for Court Operations During COVID-19
Lockdown Issued,” Global Legal Monitor, April 23, 2020, both from the Law Library, Library of Congress; and
GOSA, SA COVID-19 Portal, op cit., and “Regulations and Guidelines - Coronavirus Covid-19.”
76 Tshidi Madia, “’Arrest them’-Duarte on claims ANC members looting food parcels meant for poor,” News24, April
20, 2020; and Poloko Tau, et al., “Councillors accused of looting food parcels meant for the poor,” City Press, April
19, 2020.
77 The evictions reportedly have violated national disaster regulations and lack required court authorization. Diana
Neille, “Gauteng demolitions: Red Ants in all-out war on the poor,” Daily Maverick, April 22, 2020.
78 Andrew Faull, “State abuses could match the threat of COVID-19 itself,” Institute for Security Studies, April 2,
2020; Franny Rabkin, “Victory for Khosa family as judge makes orders to prevent further state brutality,” Mail &
Guardian, May 16, 2020; Emma Farge, “U.N. raises alarm about police brutality in lockdowns,” Reuters, April 27,
2020; and BBC, “Coronavirus: South Africa deploys 70,000 troops to enforce lockdown,” April 22, 2020, inter alia.
79 Kim Harrisberg, “South Africans protest police brutality against poor under lockdown,” Reuters, June 9, 2020.
80 Gerald Imray, “Gangs deliver food in poor Cape Town area amid lockdown,” AP, May 18, 2020; and Rukshana
Parker, et al., “Cape Gangs in Lockdown: Saints or sinners in the shadow of COVID-19?," Global Initiative, 2020.
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many firms, notably in the mining sector, declared force majeure (i.e., suspended operations
and/or declared themselves unable to meet contractual obligations due to COVID-19’s unforeseen
effects). Others laid off staff, cut salaries, and reduced dividends, and several declared
bankruptcy. Although the state’s restrictions on businesses were eased moderately in May and
further in June, the negative economic effects of the earlier restrictions—and new ones in the
hardest hit areas—have persisted.81 The government’s economic policy responses to the pandemic
are discussed below; see “COVID-19: Economic Impacts and Responses”)
Responses to COVID-19 also have also shaped politics. The government’s restrictions on tobacco
and alcohol products, in particular, also provoked widespread ire and some protests.82 Some
politicians, at times invoking nationalist and racially tinged rhetoric, also have used responses to
the pandemic to score political points.83 The government’s emergency measures also attracted
substantial criticism and lawsuits from the DA and other interest groups citing alleged
abridgements of constitutional rights. In June, a court invalidated several of the lockdown
regulations on constitutional grounds and ordered the government to amend them. The
government is appealing the ruling.84 Despite its prioritization of anti-corruption efforts, the
Ramaphosa administration has faced its own challenges with corruption in relation to COVID-19
spending. In late July, stating that “corruption puts our lives at risk,” Ramaphosa announced a
sweeping investigation into allegations of such graft.85
The Economy
South Africa has Africa’s most diversified, industrialized economy and one of sub-Saharan
Africa’s top-five-highest GDPs per capita ($6,100 in 2019), making it one of few upper-middle-
income countries in Africa, despite several years of anemic growth.86 South Africa is a top
producer of raw and processed mined commodities (e.g., platinum, steel, gold, diamonds, and
coal). It also has well-developed automobile, chemical, textile, and food manufacturing sectors,
which are part of an overall industrial base that contributed 26% of GDP in 2019 and are key job
sources. There are well-developed tourism, financial, energy, legal, communications, and
transport sectors, which are part of an overall services sector that contributed 61% of GDP in
2019.87 The country regularly hosts large global development and business events, and South

81 Alexander Winning, “South Africa to assign coronavirus restrictions by district,” Reuters, May 14, 2020.
82 Benjamin Roberts, et al., “Up in Smoke: Public reflections on decision to extend the ban on tobacco sales," May 4,
2020, and Ivor Sarakinsky, “Cigarettes and the Smoking Gun,” May 6, 2020, both in Daily Maverick; and Andrew
Meldrum and Nqobile Ntshangase, “South African bans on tobacco, liquor amid virus stir debate,” AP, May 27, 2020.
83 Examples include assertions that post-lockdown restaurant and agricultural jobs should go to South Africans, rather
than foreign immigrants—a sensitive issue given xenophobic riots and looting in recent years—and that aid for the
tourism sector be prioritized for black-owned businesses. Antony Sguazzin, “South Africa’s Virus Response Exposes
Government Divisions,” Bloomberg, May 5, 2020, inter alia.
84 The ruling found that multiple lockdown measures were arbitrary and “irrational.” It drew praise for checking
executive state power, but was criticized as poorly constructed, making it potentially subject to reversal upon appeal.
Jeanette Chabalala, “Lockdown regulations ruling: ‘Flawed’ judgment creates more confusion than clarity, say
experts,” and “Here is what the High Court said about the various lockdown regulations,” News24, both June 4, 2020;
Ferial Haffajee, “Prohibition lockdown goes rogue,” April 20, 2020, Daily Maverick; and Pretoria News, “DA
welcomes level 3, but will go ahead with lockdown case,” May 27, 2020.
85 Mogomotsi Magome, “South Africa warns COVID-19 corruption puts ‘lives at risk’,” AP, July 26, 2020.
86 GDP data from International Monetary Fund, World Economic Outlook (WEO) Database, October 2019. Upper
middle-income countries have a per capita gross national income (GNI) of between $4,046 and $12,535 in 2019, as
calculated using the World Bank Atlas method. GNI is similar to GDP, but includes income earned abroad.
87 Sectoral GDP shares from World Bank, WDI database. Mining trends from U.S. Geological Survey commodity
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African firms are active across Africa, notably in the mobile phone, retail, and financial sectors.
Some also operate internationally, and the Johannesburg Stock Exchange is among the 20 largest
global bourses. South Africa is also a famed wine producer and exports diverse agricultural
products, but only about 10% of its land is arable and agriculture contributes only 2% of GDP.
Despite its substantial economic strengths, South Africa’s annual GDP growth, which stood
above 5% in the mid-2000s, has been persistently low in recent years; it averaged 0.8% between
2015 and 2019, and the economy slid into a recession in late 2019. The International Monetary
Fund (IMF) estimates that growth stood at under 0.2% in 2019 and will contract by 5.8% in 2020
due to COVID-19 (see below, “COVID-19: Economic Impacts and Responses”).88 Recent GDP
trends are provided in Table 2. While the nominal value of GDP has slowly risen in constant
Rand terms since 2010, exchange rate volatility has caused the value of GDP in dollars to
fluctuate greatly, with major implications for the country’s terms of trade, international debt
servicing, and integration into global manufacturing chains. Global factors contributing to low
growth have included weak investor confidence, attributed to uncertain economic policy trends
and alleged poor governance under Zuma, and periods of weak prices and sluggish global
demand for key commodity exports, notably to China. While weak commodity prices may hurt
national export earnings, they can also reduce the cost of raw manufacturing material imports.
South Africa has a generally open foreign direct investment (FDI) regime, although investors face
high taxes, currency exchange volatility, substantial regulatory burdens, large locally entrenched
firms, and Black Economic Empowerment policy compliance costs (see below).89 Some foreign
investors have expressed concern over South Africa’s 2015 Protection of Investment Act, which
removed special FDI dispute rights enjoyed by foreign investors under bilateral investment
treaties (BITS), which South Africa no longer joins. Such investors now must settle most disputes
through the South African legal system. Observers have raised concerns about potentially unequal
treatment under the law and the possibility of expropriation, which South African law permits in
some narrow instances.90 Increasing FDI is a key government goal; in 2018, Ramaphosa pledged
to attract $100 billion worth of new investment over five years, and has elicited at least $55
billion in FDI commitments.91 Examples include investments announced by U.S. firms such as
McDonalds’, Procter and Gamble, Microsoft, and Amazon, and United Airlines’ entry into the
U.S.-South Africa nonstop airline market, alongside Delta Airlines.92
After several years of stagnation, FDI flows into South Africa jumped from $2 billion in 2017 to
$5.3 billion in 2018—though they remained lower than a peak of $9.2 billion in 2008.
Meanwhile, outward flows declined, dropping from $7.4 billion in 2017 to $4.6 billion in 2018.
(See Table 3, above, for summary trade and FDI trends.) The auto industry has been an important
focus of job-intensive FDI; South Africa has long hosted Ford plants, and other automakers (e.g.,

surveys. Industry summaries from CIA World Factbook 2020 and other sources.
88 IMF WEO, op cit., April 2020 and October 2019 editions.
89 Economist Intelligence Unit, “South Africa: Investment Regulations,” EIU ViewsWire, March 1, 2017.
90 See, e.g., Azwimpheleli Langalanga, "Imagining South Africa’s Foreign Investment Regulatory Regime in a Global
Context," SAIIA Occasional Paper No 214, May 2015; American Chamber of Commerce, Public Affairs Forum
Minutes, February 16, 2016; and Andile Sicetsha, “South Africa’s ‘Protection of Investment Act’ may drive foreign
investors away,” The South African, July 25, 2018.
91 Local and foreign firms reportedly pledged $20 billion worth of cross-sectoral investments during the government-
led South Africa Investment Conference in late October 2018. This augmented more than $35 billion in prior
investment commitments, mostly from China, Saudi Arabia, the UK, and the United Arab Emirates. Jan Cronje,
“Ramaphosa Announces R1.2 Trillion Investment Drive,” Fin24.com, April 16, 2018; and Alexander Winning and Ed
Stoddard, “South Africa Raises $55 Billion So Far in Investment Pledges,” Reuters, October 26, 2018.
92 State Department, “The Enduring Partnership between the United States and South Africa” [speech], June 21, 2019.
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Toyota, BMW, and Nissan) have announced significant manufacturing capacity investments in
recent years. Rail locomotive manufacturing has also attracted FDI.
Table 2. South Africa: GDP and Other Key Economic Indicators, 2015-2020
Indicator/Year
2015
2016
2017
2018
2019
2020
GDP (Current Rand, Billions)
3,064
3,076
3,120
3,145
3,165
3,199
GDP (Current U.S. dollars, Billions)
317.6
296.3
349.4
368.1
358.8
369.9
Real GDP Growth (Annual % Change;
Constant Rand)a
1.2
0.4
1.4
0.8
0.2
-5.8
Real GDP Growth Per Capita (Annual %
4.8
6.0
5.2
3.2
3.5
4.7
Change; Constant Rand)b
Inflation, Consumer Prices (Annual % Change)
4.6
6.3
5.3
4.6
4.1
2.4
Unemployment (Annual; % of Labor Force)
25.4
26.7
27.5
27.1
28.7
35.3
Source: IMF, World Economic Outlook database, October 2019 and April 2020 updates. Projections in italics.
a. Annual percentage change in GDP in constant (i.e., inflation-adjusted) Rand, with 2010 as base year.
b. CRS calculation of annual per capita percentage change in GDP in constant 2010 Rand.
Table 3. South Africa: Key Trade Indicators, 2014-2018
Indicator
2014
2015
2016
2017
2018
Exports of Goods and Services
Value (current $ in billions)
110.3
95.7
90.6
103.5
110.1
Annual % Growth
3.6
2.9
0.4
-0.7
2.6
Value as % of GDP
31.5
30.2
30.6
29.6
29.9
Imports of Goods and Services
Current $ in billions
115.6
99.9
89.1
99
108.9
Annual % Growth
-0.6
5.4
-3.9
1
3.3
Value as % of GDP
33
31.5
30.1
28.3
29.6
Total Trade in Goods and Services
Exports and Imports, Current $ in
225.9
195.6
179.7
202.5
219.0
billions
Foreign Direct Investment (FDI; $ in billions)
Inflows (to South Africa)
5.8
1.7
2.2
2.0
5.3
Inward Stocks (FDI in South Africa)
138.9
126.8
135.5
156.1
128.8
Outflows (South African FDI abroad)
7.7
5.7
4.5
7.4
4.6
Outward Stocks (South African FDI
146.0
154.7
175.6
276.5
238.0
abroad)
Sources: Trade date: World Bank, World Development Indicators database. Investment data: U.N. Conference
on Trade and Development (UNCTAD), Annex Tables, World Investment Report 2018 and 2019 editions.
The World Economic Forum (WEF) ranked South Africa as the second most competitive sub-
Saharan African economy in 2019 (after Mauritius), but assessed it as 60th globally. The WEF
cited as economic strengths South Africa’s large market size, relatively good infrastructure,
advanced financial system, and innovation capability, but described its research and development
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capacities as inadequate.93 The country’s score on the World Bank Doing Business index (82nd
globally and fourth in Africa in 2019) have dropped over the past decade. The survey suggested
that ease of doing business varies within sub-regions of the country.94
South Africa’s private sector is relatively dynamic, although firms face a highly unionized labor
force, rigid labor laws and, in some industries, sector-wide wage and working condition
agreements negotiated between large firms and unions. Such factors arguably tend to protect
incumbent jobholders, reduce labor market flexibility, and limit formal sector economic
opportunities for the unemployed and poor, and contribute to chronically high unemployment.
South Africa first enacted a general minimum wage law in 2018. 95
Oligopolies in some sectors also hinder competition and spur high prices for some locally
produced goods.96 There are also skill and geographical mismatches between labor demand and
supplies, and low skill levels in some segments of the labor force. This is, in part, an enduring
legacy of population and economic controls and discriminatory education and training patterns
under apartheid. Information and communication (ICT) adoption rates also are low and uneven,
and education quality ranks poorly in international comparisons, despite large investments in the
sector, which has negative impacts on workforce capabilities.97
Black Economic Empowerment (BEE) policies, which seek to promote racial equality and
economic inclusion using market-based incentives, are a key tool for reversing structural racial
disparities. Private firms that receive public contracts must comply with BEE requirements,
notably a scorecard-based system. It ranks firms by factors such as racially inclusive ownership
and management, investment in skills development for historically disadvantage persons, and
prioritization of commercial ties with other BEE-compliant firms. BEE policies can impose
compliance costs on firms and limit hiring choices, and have sometimes been criticized for
favoring the interests of middle- and upper-income blacks.
Private firms also face state competition, as state-owned firms enjoy regulatory preferences in
some sectors, even though their performance has often been poor. According to the IMF, SOEs
play a major role, often with limited competition, in providing key products/services, such
as power, telecommunications, and transportation (e.g., ports, airways). Their performance
thus affects not only the public finances and the borrowing costs of the whole economy,
but also economic growth and job creation through the cost of important inputs for a wide
range of businesses and households. […G]enerally, there is a need to allow private firms
to compete on a more equal footing with large SOEs.98
South Africa’s sovereign credit ratings are low and have fallen sharply in recent years. Rising
public deficits and debt are also a challenge. Other domestic factors hindering growth include
social service delivery challenges and unmet infrastructure needs, which undercut productivity
potentials and hurt South Africa’s attractiveness as an investment destination.99 Periodic rolling

93 WEF, The Global Competitiveness Report 2019 and The Global Competitiveness Report 2018.
94 World Bank, Doing Business in South Africa 2018, September 19, 2018, and “South Africa” Doing Business country
profile, October 31, 2017.
95 The minimum wage is R20 per hour or R3,500 a month ($1.19 or $209 as of mid-July 2020). Olivia Kumwenda-
Mtambo, “South Africa’s Ramaphosa Signs Minimum Wage Bill into Law,” Reuters, November 26, 2018.
96 IMF, “Bridging South Africa’s Economic Divide,” speech by IMF Deputy Managing Director, July 19, 2016.
97 World Economic Forum, Global Competitiveness Report 2016-2017, inter alia.
98 IMF, South Africa 2017 Article IV Consultation, July 2017.
99 World Bank, An Incomplete Transition: Overcoming the Legacy of Exclusion in South Africa, Systematic Country
Diagnostic, April 30, 2018; recent editions of World Bank South Africa Economic Update series; and IMF, South
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power blackouts also regularly disrupt productivity economy-wide. They are attributable to years-
long delays, technical flaws, and overspending on the construction of two massive new coal-fired
plants by the public national power utility, Eskom. Eskom suffers from massive debt, a low credit
rating, chronic liquidity problems, and reported mismanagement and malfeasance, including in
the form of Gupta-related coal and uranium supply deals.100 The utility’s $30 billion state-backed
debt is key factor contributing to South Africa’s low sovereign debt rating. The government is
implementing a multi-year, $4.9 billion restructuring of Eskom that is to split it into three entities
focused, respectively, on generation, transmission and distribution.101 The country also has faced
several recent droughts, including one that caused extreme water shortages in Cape Town, a
global tourist destination with a population of 3.7 million. Future water shortages are likely.
The government’s efforts to reduce unemployment, poverty, and socioeconomic inequality,
improve education and healthcare, and unite a geographically and racially divided society are
guided by the 20-year National Development Plan (NDP). Crafted by a Ramaphosa-headed
commission and issued under Zuma, it is supplemented by multiple shorter-term, sector-specific
plans. The NDP emphasizes investments in social services and state operational capacities and
efforts to boost employment and incomes. These include labor-intensive state projects and
investment in infrastructure, notably in the transport, communications, and power sectors. NDP
implementation challenges have included policy inconsistency and poor governance under Zuma,
the intractability and extensive scope of the country’s challenges, and financing limitations.
COVID-19: Economic Impacts and Responses
The IMF projects that South Africa’s GDP will contract by 8% in 2020 as a result of COVID-19,
ahead of a recovery in 2021 of 3.5%.102 In addition to a decline in natural resource output and
weak global prices for mined commodities, vehicle and auto parts production, and tourism—all
key exports—are projected to fall, due to the effects of both the lockdown and weak overseas
demand.103 Key financial rating agencies have recently downgraded South Africa’s sovereign
credit rating to “junk” status (i.e., sub-investment grade with an elevated default risk). This is
significant because a large share of South African sovereign credit is obtained from the private
sector. Such downgrades are expected to spur billions of dollars’ worth of FDI outflows, foreign
institutional dumping of South African public bonds, and higher future state credit costs, and the

Africa: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for South
Africa, July 30, 2018.
100 Reuters, “South Africa’s Eskom to fix design flaws at Medupi, Kusile coal plants,” May 11, 2020; eNews Channel
Africa, “Ramaphosa orders SIU investigation of Eskom and Transnet,” April 6, 2018; and Alexander Winning, “U.N.
rights expert asks to give evidence in South Africa air pollution case,” Reuters, June 15, 2020.
101 Colleen Goko, Paul Burkhardt, and Prinesha Naidoo, “Eskom Extends South Africa Power Cuts as Moody’s Flags
Risk,” Bloomberg, February 11, 2019; Olivia Kumwenda-Mtambo, Wendell Roelf, and Mfuneko Toyana, “South
Africa Pledges $5 Bln Eskom Bailout as Budget Creaks,” Reuters, February 20, 2019; and Joseph Cotterill,
“Ramaphosa vows to break Eskom’s hold on South Africa energy,” Financial Times, February 13 2020, inter alia.
102 IMF, Regional Economic Outlook for Sub-Saharan Africa, June 2020.
103 Emma Rumney, “Toyota’s South African unit sees 15-20% hit to production due to virus, April 22, and “Exclusive:
South Africa’s auto industry could cut up to 10% of workforce due to lockdown - survey," April 9, 2020, both Reuters;
and John Stuart, “South Africa’s Role in the Automotive Components Trade in Africa," Tralac Blog, January 21, 2020.
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Rand has lost considerable value since the start of 2020.104 Tax receipts also are down sharply,
which is likely to further spur already high deficit spending.105
The South African Reserve Bank (SARB) has responded by sharply reducing institutional lending
rates, taken other actions to facilitate interbank lending and bolster market liquidity, and is buying
South African government bonds from private sellers. SARB also will guarantee a portion of
potential losses to private banks participating in an $11 billion public-private loan program. The
program is intended to restart economic activity halted by the lockdown, and about half of it is to
support firms with less than a 300 million Rand annual turnover.106
That $11 billion stimulus is part of a 500 billion Rand (~$26 billion) recovery plan announced by
President Ramaphosa in April 2020. In addition to stimulating the economy, the plan seeks to
fund COVID-19 health interventions and reduce food insecurity and social impacts; 10% is to aid
poor and vulnerable persons. A 130 billion Rand ($6.8 billion) share of the effort is to be financed
by repurposing existing state spending and tapping other local sources.107
South Africa also has approached multiple international financial institutions (IFIs) for loans or
grants to fund its response. Such efforts are controversial, as key elements of the ANC’s political
base, notably trade unions, fear that IFIs might impose policy conditions at odds with ANC policy
or undermine national political sovereignty.108 After months of consultation, in late July, the IMF
approved a $4.3 billion policy-unconditional loan to help South Africa address the COVID-19
crisis. The government earlier received a $304 million loan from the African Development Bank
and is discussing further loans with the World Bank.109 In June, the New Development Bank
(NDB, an entity created in 2014 by the BRICS grouping, comprising Brazil, Russia, India, China,
and South Africa) approved a $1 billion loan to fund healthcare resources and the social safety net
in response to the COVID-19 pandemic in South Africa.110
COVID-19 in South Africa: International Aid and Cooperation Issues
In addition to seeking possible IFI assistance in its fight against COVID-19, the South African government has
received assistance from various foreign governments.

104 Nqobile Dludla, “Moody’s sees South Africa GDP shrinking 6.5% in fiscal 2020,” April 24, 2020, and Alexander
Winning, “Fitch downgrades South Africa further into ‘junk’," April 3, 2020, both Reuters; Paul Wallace, “Here’s How
Much a Downgrade to Junk Will Cost South Africa,” Bloomberg, March 31, 2020; and World Bank, “Assessing the
Economic Impact of Covid-19 and Policy Responses in Sub-Saharan Africa,” Africa’s Pulse (Vol. 21), April 2020.
105 Wendell Roelf, “South Africa's revenue shortfall to reach $15 billion due to coronavirus - tax commissioner,”
Reuters, May 5, 2020; and Lynley Donnelly, “South Africa still heading for a fiscal cliff, warns investment bank,”
DispatchLIVE, July 16, 2020.
106 Vernon Wessels and Colleen Goko, “South African Markets Cheer as Central Bank Injects Liquidity," March 20,
2020, and Roxanne Henderson, “South Africa to Cap Losses for Banks Giving Virus Loans," both in Bloomberg, April
24, 2020; and Tim Cocks and Alexander Winning, “South Africa deputy finance minister urges central bank to print
money to fund government: report," May 3, 2020, and Mfuneko Toyana, “South Africa’s central bank to cut rates
again, resist QE pressure for now," May 20, 2020, all Reuters, inter alia.
107 Cara Anna and Mogomotsi Magome, “South Africa announces $26 billion to help struggling nation,” AP, April 21,
2020 (quote source); and Nqobile Dludla and Alexander Winning, “South Africa’s Ramaphosa pledges COVID-19
rescue package worth 10% of GDP,” Reuters, April 21, 2020.
108 Antony Sguazzin and Prinesha Naidoo, “South Africa Seeking IMF Aid Crosses a Red Line for ANC,” Bloomberg,
June 8, 2020; and Alexander Winning, “South Africa should not approach IMF for help, ANC and allies say,” Reuters,
April 6, 2020.
109 David Lawder and Nqobile Dludla, “IMF board approves $4.3 bln loan to help South Africa to fight pandemic,”
Reuters, July 27, 2020.
110 Wendell Roelf, “New Development Bank provides South Africa with $1 billion COVID-19 loan,” June 20, 2020.
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U.S. Assistance. The United States has announced at least $41.6 mil ion in COVID-19 health response aid for
South Africa. $8.4 mil ion is for risk communications, water and sanitation, infection prevention and control, and
public health messaging. $13.2 in “initial” U.S. Centers for Disease Control and Prevention (CDC) resources are
to support surveillance and lab work, infection prevention and control, Emergency Operations Centers, border
health, vaccine preparedness, COVID-19 response capacity-building and research, and CDC operational support.
Also included are up to 1,000 ventilators.111 DOD, through the U.S. Embassy’s Office of Defense Cooperation
(ODC) and the Defense Threat Reduction Agency, also have donated locally sourced PPE and thermometers for
use by South African military and civilian personnel. Multiple U.S. private businesses active in South Africa also are
donating to the country’s efforts to counter COVID-19. 112
WHO. The South African government called the Trump Administration’s stated intent to suspend some or all
U.S. funding to the World Health Organization (WHO) “very regrettable.”113 President Ramaphosa, the current
African Union (AU) Chair, also expressed the AU’s strong support for the WHO’s COVID-19 work globally and
in Africa and praised the “exceptional leadership” of WHO Director-General Dr. Tedros Ghebreyesus, an
Ethiopian physician, the target of criticism by some U.S. officials.114
China. In February 2020, China’s government sourced 2.8 mil ion facemasks from South Africa to fight the
pandemic in China.115 Once COVID-19 reached South Africa, China’s government donated health supplies (e.g.,
PPE and testing chemicals) and pledged to provide further support. The local Chinese business community in
South Africa, in coordination with China’s embassy, also has donated testing kits and funds.116 In March 2020, the
South African government evacuated some of its nationals who had been studying in China. This spurred public
concerns focused on costs and possible COVID-19 transmission by the returnees, although they were
quarantined.117 South African officials also have expressed concern, both on behalf of South Africa and of the AU,
regarding allegations of racist treatment of South Africans and other Africans in China.118 In June 2020, China and
the AU, represented by President Ramaphosa, co-hosted a summit to review action on combatting COVID-19.119
Cuba. South Africa is hosting a 216-member Cuban medical assistance brigade, which arrived on an aircraft that
South African had used to donate medical supplies to aid Cuba’s own COVID-19 fight. Medical cooperation
between the two countries is long-standing and rooted in Cuba’s support for the ANC’s anti-apartheid efforts.
Leaked documents suggest that South Africa may pay more than R510 mil ion in total (about $127,000 per
worker) for the deployment.120 Local critics have asserted that the government should instead have hired retired

111 State Department, “Update: The United States Is Continuing To Lead the Response to COVID-19," May 1, 2020,
“U.S. government adds R250 million to its support to South Africa to combat COVID-19," April 22, 2020, and “The
United States Provides Ventilators to South Africa to Battle COVID-19,” May 12, 2020, among others.
112 U.S. Africa Command (AFRICOM), “Locally-Sourced Protective Masks Donated to South Africa," April 28, 2020;
CRS-AFRICOM communication, May 5, 2020; and State Department, “United States donates locally-sourced
protective masks to South African government,” April 28, 2020, “U.S. Government Donates 720,000 Protective Masks
to South African Government,” May 15, 2020, “All-of-America, including U.S. Business, Supports South Africa in
Fight against COVID-19,” May 19, 2020.
113 CRS Insight IN11369, U.S. Funding to the World Health Organization (WHO);White House, “Remarks by
President Trump in Press Briefing," April 14, 2020; Rama Venkat and Huizhong Wu, “Trump threatens to halt WHO
funding, review U.S. membership,” Reuters, May 18, 2020; and GOSA, “South Africa expresses concern at the
President of the United States of America’s announcement to cut funding to the WHO,” April 15, 2020.
114 AU, “African Union reaffirms its unwavering support to WHO," April 8, 2020.
115 The Citizen/News24, “Coronavirus: SA helps China with tons of emergency equipment," February 6, 2020.
116 Tim Cocks, “South Africa coronavirus cases rise to 2,415, China donates equipment,” Reuters, April 14, 2020;
GOSA, “Humanitarian Aid Donated by the Government of the People’s Republic of China COVID-19,” April 14,
2020; People’s Republic of China (PRC), “Chinese Enterprises and Communities in South Africa Donates Cash and
Kind to Firmly Support South Africa Fighting Against the COVID-19,” March 21, 2020; Xinhua, “S. African
communities receive medical supplies from China amid pandemic,” April 28, 2020; and VOA, “China President
Pledges Help to South Africa in Coronavirus Fight,” April 9, 2020.
117 Norma Young, “South Africans are divided over the return of 114 students from China’s coronavirus epicenter,”
Quartz, March 14, 2020.
118 GOSA, “South Africa concerned about the allegations of discrimination and stigmatisation of Africans in China,”
April 12, 2020.
119 PRC, “Joint Statement of the Extraordinary China-Africa Summit on Solidarity Against COVID-19,” June 17, 2020.
120 Sarah Marsh, “Cuba sends doctors to South Africa to combat coronavirus,” Reuters, April 25, 2020; Rebecca Davis,
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and unemployed local medical personnel. The United States has cal ed for South Africa to directly pay the Cuban
workers, contending that paying Cuba’s government wil allow it to “turn a profit on human trafficking.”121
U.S. Trade and Investment
South Africa has been the largest U.S. trade partner in Africa since 2014 (when it eclipsed
previously larger U.S. imports of oil from Nigeria), and in 2019 ranked as the 39th-largest U.S.
trade partner globally. Its goods trade with the United States is more diverse than that with any
other African country, and in 2019 totaled just under $13 billion ($5.3 billion in U.S. exports and
$7.6 billion in U.S. imports), down from a peak of $16.7 billion in 2011. Trade in services in
2019 totaled nearly $5.1 billion ($3 billion in U.S. exports and $2.1 billion in U.S. imports). In
2018 (latest data), U.S. FDI stock in South Africa totaled $7.6 billion, and centered on
manufacturing (e.g., chemicals and food), professional services, and wholesale trade. South
Africa’s FDI stock in the United States totaled $4.3 billion. 122
A U.S.-South Africa Trade and Investment Framework Agreement (TIFA) signed in 2012
facilitates bilateral trade and investment dialogues, and there are bilateral tax enforcement and
cooperation and double taxation treaties. South Africa also is eligible for duty-free benefits under
the African Growth and Opportunity Act (AGOA, P.L. 106-200, Title I, reauthorized until 2025
under P.L. 114-27), but not for special AGOA apparel benefits. South Africa’s $1.2 billion in
AGOA exports to the United States in 2019—16% of all its exports to the United States—made it
the largest non-oil-focused AGOA beneficiary and the second largest overall, although the value
of its exports under AGOA has fallen since peaking at $2.6 billion in 2013.123
Alleged Improprieties by Local Affiliates of U.S. and European Firms
The local affiliates of several U.S. and European services firms active in South Africa have drawn negative attention.
Local units of several blue chip firms, including McKinsey, KPMG, HSBC, and SAP, became embroiled in Gupta-
related scandals, and as a result have lost clients and have faced South African and foreign regulatory and criminal
probes. SAP admitted to il icit acts pertaining to the payment of nearly $10 mil ion in commissions to Gupta-linked
firms to secure South African SOE digital technology contracts. In 2017, SAP also faced U.S. Justice Department
and U.S. Securities and Exchange Commission inquiries under the U.S. Foreign Corrupt Practices Act related to its
South Africa activities. The consulting firms KPMG and McKinsey al egedly provided Gupta-owned firms and allied
actors with accounting and consultancy services that violated auditing or other due diligence standards, and in
some cases may have il egal acts. In 2018, the South African government barred KPMG from state agency audits.124
In a separate matter, an ongoing, multi-year probe by South Africa’s Competition Commission (Compcomm) of
multiple large banks—including local affiliates of some major U.S. banks—found that several had engaged in

“The White Coat Army: Why is South Africa paying Cuba for doctors when so many of our own doctors are
unemployed?,” Daily Maverick, May 10, 2020; and @EmbassyCubaZA tweet, April 23, 2020, inter alia.
121 State Department, “Secretary Michael R. Pompeo at a Press Availability,” April 29, 2020.
122 Top U.S. exports center on vehicles, aircraft, machinery, machinery and equipment and parts thereof. Top U.S.
imports include vehicles and parts, precious and other metals, diamonds, centrifuges and other filtering technology, ash
and residue thereof, and hydrocarbon products. BEA suppresses most sectoral data for South Africa FDI in the United
States due to commercial privacy concerns Goods data in this paragraph from USITC, Trade Data Web; trade data
from BEA, South Africa…, op cit.
123 South Africa also receives additional Generalized System of Preferences benefits. USITC, Trade Data Web.
124 Joseph Cotterill, “Germany’s SAP Says Payments to Scandal-hit Gupta Entities More than Thought,” Financial
Times, March 8, 2018; AFP, “KPMG Banned from Auditing South Africa’s State Bodies,” April 17, 2018; and Reuters,
“South African Regulator Pursuing Criminal Complaints Against SAP, KPMG, McKinsey,” January 17, 2018, and
“South Africa to Probe Whether Kickback Was Paid for SAP Contract,” September 12, 2018.
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currency trade price rigging col usion. In April 2017, Citibank NA admitted to il icit currency trading and agreed to
pay a $5.2 mil ion penalty and cooperate with Compcomm’s prosecution of 18 other banks. Compcomm, which
initially recommended that the banks be fined 10% of their annual local trading volume, is proceeding with legal
actions against the banks. U.S. authorities have also become involved. In 2019, Standard Chartered Bank pled guilty
to currency manipulation in an agreement with the New York State Financial Services Department.125
U.S. trade preferences for South Africa have been the subject of repeated U.S. debate, as during
the 2015 congressional AGOA reauthorization process, which ultimately did not result in changes
affecting South Africa’s AGOA eligibility. During that debate and at other times, critics of South
Africa’s continued AGOA eligibility have argued that its reciprocal trade agreements with other
advanced economies, notably one with the European Union (EU), place U.S. firms at a
competitive disadvantage. (The EU agreement gives EU firms preferential tariff access to South
Africa; in contrast, AGOA gives South African firms U.S. trade preferences, but does not give
U.S. firms reciprocal treatment in South Africa.) Other concerns have focused on the large size
and advanced character of South Africa’s economy, notably relative to its African peers, which
some have argued make it a U.S. competitor in some sectors.126 Those supportive of South
Africa’s continued AGOA eligibility have argued that South Africa’s exports of high-value items
show that AGOA preferences are working as intended—and that helping to improve South
Africa’s economic development and fosters regional trade, another AGOA goal. (South Africa is a
key trade partner of many other African countries).127
In 2015, South Africa’s imposition of anti-dumping duties and other restrictions on imports of
certain U.S. meat products spurred a trade dispute and threatened its AGOA eligibility. The
dispute was resolved in 2016, after congressional intervention, including a congressionally
mandated special review of South Africa’s AGOA eligibility, and negotiations that ended with
South Africa lifting these measures.128 South Africa’s March 2020 imposition of new tariffs on
poultry imports from all countries spurred renewed U.S. criticism, though no U.S.
countermeasures. Separately, an ongoing U.S. review of South Africa’s eligibility to enjoy
Generalized System of Preferences (GSP) tariff benefits could have major ramifications for
bilateral trade—and for South Africa’s AGOA eligibility, as AGOA eligibility requires concurrent
GSP eligibility. Such a loss could be sizable; over the last decade, over a third of South African
exports to the United States by value have received duty-free treatment under GSP (14%) and
AGOA (23%). The GSP review, addressed at an early 2020 USTR hearing, centers on the
adequacy of South African intellectual property rights (IPR) protections under a proposed law.

125 Banks under scrutiny include local affiliates of Barclays, JP Morgan, Investec, Standard Bank and Standard
Chartered, and Bank of America Merrill Lynch International. Compcomm press releases (various dates); Lynley
Donnelly, “Competition Commission Resolute in Bank Collusion Hearings,” July 31, 2018; Wendell Roelf, “South
African Watchdog Says Forex-rigging Trial Likely to Begin in 2019,” Reuters, April 25, 2018; and IOL, “Standard
Chartered Pleads Guilty to Manipulating the Rand Companies,” February 5, 2019.
126 South Africa, uniquely among AGOA-eligible countries, makes significant use of AGOA in the export of advanced
manufactured products, notably motor vehicles and parts, though such exports have fallen in recent years. Even so,
these exports comprise a large share of African non-oil exports under AGOA. USITC, TradeDataWeb. See also CRS
Report R43173, African Growth and Opportunity Act (AGOA): Background and Reauthorization, by Brock R.
Williams; Witney Schneidman and Andrew Westbury, “AGOA moves forward: Reviewing last week’s reauthorization
in the U.S. Senate,” Africa in Focus, Brookings, May 20, 2015; and Leadership Africa USA, AGOA’s Reauthorization:
Beyond 2015, 2015
127 CRS Report R43173, African Growth and Opportunity Act (AGOA): Background and Reauthorization, op. cit.;
Faizel Ismael, “Opinion: AGOA is of Mutual Benefit to SA and US,” IOL, March 17, 2015. These and other issues
have featured in recent USTR annual reviews of South Africa’s AGOA eligibility.
128 US Fed News, “Sens. Isakson, Coons Announce Arrival of First U.S. Poultry to South Africa in 15 Years,” February
29, 2016.
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These reforms, U.S-based International Intellectual Property Alliance (IIPA) petitions have
asserted, undermine various IPR protections, allegedly making South Africa GSP-ineligible. At
the hearing, various interest groups argued for and against the adequacy of South Africa’s IPR
protections and its eligibility for GSP.129
A similar debate—also focused on IPR concerns—also featured in USTR reviews of South
Africa’s AGOA eligibility in 2018 and 2019.130 South Africa’s move to expropriate land without
compensation could also potentially affect South Africa’s AGOA eligibility, although there are no
overt signs of such a shift.131 The State Department’s annual Investment Climate Statements
discuss a range of other issues with implications for U.S.-South African investment and trade.132
A series of separate contentious bilateral trade issues also have played out under the Trump
Administration. In March 2018, the Administration imposed U.S. tariffs on steel (25%) and
aluminum (10%) under Section 232 of the Trade Expansion Act of 1962 (P.L. 87-794, as
amended), including imports from South Africa. This action roiled bilateral trade ties, though
differences were later largely resolved.133 In October 2018, the South Africa’s government
reported, the Administration granted Section 232 duty exclusions for U.S. imports of 161
aluminum and 36 steel products, largely allaying South African concerns. This action followed
South Africa’s initially unsuccessful effort to seek the tariffs’ removal, requests from several
Members of Congress seeking an exemption from these tariffs for South Africa, and U.S. firms’
requests for the exclusions.134 Separately, on March 31, 2020, the Department of Commerce
(DOC) launched an antidumping duty investigation of aluminum alloy sheet imports from South
Africa and 17 other countries. In April, the U.S. International Trade Commission found a
“reasonable indication” of U.S. industrial harm from imports from the named countries, which
provided a basis for the DOC investigation to proceed.135

129 Other interests, such as the U.S. National Pork Producers Council, also used the review to argue against GSP for
South Africa, citing alleged South African discrimination against their products. Prinesha Naidoo, “South Africa Raises
Poultry-Import Tariffs, Drawing U.S. Ire,” March 13, 2020, and “South Africa Exports to U.S. at Risk Pending
Program Review,” October 28, 2019, both in Bloomberg; and hearing material and statements submitted in relation to
the USTR GSP review (USTR docket USTR–2019–0020).
130 USTR, Annual Review of Country Eligibility for Benefits Under African Growth and Opportunity Act, August 30,
2018, USTR Docket USTR-2018-0022, and eponymous August 27, 2019 hearing, and USTR Docket USTR-2019-0006
materials.
131 Rene Vollgraaff, “South Africa Says U.S. Doesn’t Link AGOA Access to Land Plan,” Bloomberg, September 5,
2018; and Luke Daniel, “Land Expropriation: South Africa May Face US Intervention, Says American Analyst,” The
South African, August 22, 2018, among others.
132 The most recent edition is “South Africa,” Investment Climate Statements for 2019.
133 For background, see CRS Report R45529, Trump Administration Tariff Actions (Sections 201, 232, and 301):
Frequently Asked Questions, coordinated by Brock R. Williams and CRS In Focus IF10667, Section 232 of the Trade
Expansion Act of 1962, by Rachel F. Fefer and Vivian C. Jones.
134 The exclusions are for products produced in the United States in insufficient amounts or quality, according to the
Department of Commerce (DOC). Tanisha Heiberg, “South Africa Says U.S. Decision Not to Grant Steel Tariff
Exemption Could Hurt Jobs,” Reuters, May 2, 2018; South African Trade and Industry Department, “South Africa
Welcomes Product Exclusion for Some Steel and Aluminium Products from the Section 232 Duties,” October 24,
2018; CRS communication with DOC, October 30, 2018; and Senator Chris Coons, “Bipartisan Group of Senators
Urge Secretary Ross to Grant South Africa Exemption From Steel, Aluminum Tariffs,” September 24, 2018.
135 International Trade Administration, “Commerce Initiates Antidumping Duty and Countervailing Duty Investigations
of Imports of Common Alloy Aluminum Sheet from 18 Countries,” March 31, 2020; and Inside U.S. Trade,
“Aluminum Association files AD petitions against 18 countries,” March 10, 2020, and “ITC preliminarily determines
aluminum alloy imports injure U.S. industry,” April 22, 2020 (quote source).
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Another U.S. Section 232 investigation on imports of automobiles and certain automotive parts
could result in the levying of additional U.S. tariffs—reportedly up to 25%—on such imports,
including from South Africa, which the South African government argued against at a DOC
hearing on the matter. In 2019, the DOC submitted a nonpublic report on an investigation into
U.S. imports of these products to President Trump, who in May 2019 stated that U.S. imports of
these products may “threaten to impair” U.S. national security.136 The USTR, under President
Trump’s direction, is working to negotiate potential solutions to the threat asserted by the
President. Prospects for a resolution of this matter and its effects on South Africa are not clear. As
currently envisioned, such negotiations would center on U.S trade partners that are significantly
larger than South Africa, though an exclusion similar to the one granted to South Africa regarding
steel and aluminum tariffs may be possible.137 A further Section 232, announced in June 2020,
could affect U.S. imports of South African vanadium, a rare metal used in alloys and as a catalyst.
The investigation, triggered by a petition from two U.S. vanadium firms, is to assess the impact
on U.S. national security interests of U.S. imports of vanadium. Some analysts view the action as
an erroneous application of the Trade Expansion Act.138
South Africa and the Rest of the World
Africa
Sub-Saharan Africa is a key focus of South African foreign policy. Its regional activities are
multifaceted, but center on investment, peacekeeping, stabilization, and conflict mediation, and
the economic and other development priorities of the AU and other sub-regional organizations
(e.g., the Southern African Development Community, or SADC). It also often helps coordinate or
represent African views in multilateral fora on such issues as climate change, African peace and
security issues, U.N.-African cooperation, and developing country priorities. South Africa is
currently serving, through the end of 2020, as a nonpermanent member of the U.N. Security
Council (UNSC). Some analysts see this as affording South Africa an opportunity to revitalize its
international role following what some see as a period of foreign policy drift under Zuma.139 A
key South African aim during its UNSC tenure has been to convince Council members to adopt a
proposal under which assessed contributions from U.N. member countries would finance 75% of
the cost of AU-led peacekeeping operations.
Regional Efforts. South Africa played key roles in the formation of the AU, which President
Ramaphosa currently chairs, and the establishment of the AU’s New Partnership for Africa’s
Development (NEPAD) strategic socioeconomic development policy framework. It hosts the
NEPAD Planning and Coordinating Agency, now the permanent AU Development Agency. In late
2018, South Africa ratified the AU-backed African Continental Free Trade Area (AfCFTA), an

136 White House, “Adjusting Imports of Automobiles and Automobile Parts Into the United States,” [presidential
proclamation and source of quote], May 17, 2019, among others.
137 DOC, Section 232 National Security Investigation of Imports of Automobiles and Automobile Parts (Hearing), July
19, 2018; and CRS In Focus IF10971, Section 232 Auto Investigation, coordinated by Rachel F. Fefer.
138 DOC, “U.S. Secretary of Commerce Wilbur Ross Initiates Section 232 Investigation into Imports of Vanadium,”
June 2, 2020; Inside U.S. Trade, “Analysts question intent behind new Section 232 probe of vanadium imports,” June
5, 2020; and U.S. Geological Survey, “Vanadium,” Mineral Commodity Summaries, 2020.
139 Gustavo De Carvalho, “South Africa’s Long-term Potential on the UN Security Council Will Depend on Its
Partnerships,” January 10, 2019, and Priyal Singh, “SA’s Trial by Fire on the UN Security Council,” January 22, 2019,
both in ISS Today, among others.
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emergent free trade area intended to increase intra-African trade by sharply reducing tariffs,
among other ends.140 To advance its policy goals across the continent, South Africa is working to
establish a foreign aid agency, the South African Development Partnership Agency (SADPA), but
progress has been slow and limited.141
Migration, Conflict Resolution, and Peacekeeping. South Africa hosts roughly 273,000
refugees, asylum-seekers, stateless persons, and other populations of international humanitarian
concern, and many economic migrants.142 Most of these populations are from Africa. South
Africa also sometimes hosts political exiles from other countries. In 2014, one such dissident, a
former Rwandan intelligence chief, was assassinated in South Africa. Analysts attributed the
killing to the Rwandan government, which denied involvement. In September 2019, South Africa
issued arrest warrants for two Rwandans who allegedly carried out the killing.143
South Africa has repeatedly sought to resolve the political crises and halt or mitigate armed
conflicts that contribute to refugee flows and humanitarian emergencies across the African
continent. It has been particularly active in this respect in southern Africa, on behalf of SADC—
as in Zimbabwe, after violent, contested elections in 2008, and in Lesotho, in response to repeated
periods of political instability. South Africa is considering helping the Mozambican government
counter a burgeoning, Islamic State-affiliated Islamist insurgency in that country’s north, a locus
of large-scale commercial natural gas development operations and varied illicit trafficking
activity. A South African private military contractor is reportedly supporting Mozambican
military operations.144 Since 2009, former South African President Thabo Mbeki has chaired the
AU High Level Implementation Panel on Sudan and South Sudan. South Africa has also played
mediating roles in conflicts in Cote d’Ivoire, the Democratic Republic of the Congo (DRC),
Burundi, and elsewhere.
South Africa has long deployed uniformed personnel to U.N. peacekeeping operations and
contributed troops to periodic AU military interventions. As of May 31, 2020, there were 1,145
South African troops, police, and experts serving with U.N. peacekeeping missions in South
Sudan, Darfur, Sudan, and DRC. In DRC, South Africa helped spearhead the formation of a
special U.N. peacekeeping unit authorized to carry out contingent offensive operations in
coordination with the DRC military to counter armed groups in DRC’s highly unstable east.145
China and the BRICS
South Africa established diplomatic relations with China in 1998, after severing ties with Taiwan,
and the two countries maintain close political, trade, and investment ties, which the Trump

140Ramaphosa’s priorities are set out in his AU Chair’s inaugural speech, “Acceptance Statement by South African
President H.E. Cyril Ramaphosa on assuming the Chair of the African Union for 2020,” February 9, 2020. On
AfCFTA, see CRS In Focus IF11423, African Continental Free Trade Area (AfCFTA) .
141 SADPA would replace South Africa’s current foreign aid mechanism, the African Renaissance Fund (ARF). Carien
Du Plessis, “Plans to Implement Humanitarian Aid Projects in Africa Stalled in a State of Promises, Not Delivery,”
Daily Maverick, October 24, 2018; and Library of Congress, Regulation of Foreign Aid in Selected Countries, Global
Legal Research Center, 2011/2012, among others.
142 U.N. High Commissioner for Refugees (UNHCR), Mid-Year Trends 2019, February 2020.
143 Tom Wilson and Joseph Cotterill, “South Africa Issues Warrants for Rwanda Spy Chief Murder,” Financial Times,
September 10, 2019.
144 Matthew Hill, “Mozambique in Talks With South Africa to Help Fight Insurgency,” Bloomberg, May 23, 2020; and
ACLED, Zitmar, et al., “Cabo Ligado Weekly: 8-14 June," June 16, 2020, inter alia.
145 Peter Fabricius, “Is the Force Intervention Brigade Still Justifying Its Existence?,” ISS Today, June 22, 2017.
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Administration may view negatively.146 China is South Africa’s largest trade partner. Bilateral
relations take place under a 2010 comprehensive strategic partnership pact and a host of
subsidiary cooperation agreements. The most recent such agreements were signed in 2018 during
a heads of state summit of the Forum on China-Africa Cooperation (FOCAC). The 2018 summit
followed the 10th summit of the Brazil, Russia, India, China, and South Africa (BRICS)
cooperation group, which South Africa hosted earlier in 2018.
During a state visit to China by President Ramaphosa alongside the FOCAC 2018 summit, China
reportedly agreed to provide $10 billion in financing for South Africa, adding to $14.7 billion in
investments pledged by China during the BRICS summit. Much of the FOCAC financing was
slated to fund South African state economic stimulus, infrastructure, and industrial development
projects. The government did not make public the terms and conditions of the deal. These and
other deals and loans have drawn opposition Democratic Alliance statements of concern—and
lawsuit threats—focused on the transparency of such transactions, which the DA has cautioned
will increase South Africa’s indebtedness to China, and may be linked to corruption.147
Middle East Issues
South Africa maintains cordial relations with multiple Middle East countries, including Iran,
Saudi Arabia, and the United Arab Emirates (UAE). These ties have attracted local attention in
light of reported pledges by the latter two countries to invest $10 billion each in South Africa, and
because South Africa’s Denel arms manufacturing SOE could be the target of some of these
investments.148 South Africa has exported arms to Saudi Arabia and the UAE in recent years, and
the Saudi military has reportedly used those arms in attacks in the ongoing war in Yemen.
Analysts have suggested that these exports may violate South African human-rights-based arms
sale controls.149 Closer relations with Riyadh could affect long-standing South African relations
with Iran, which take place through a bilateral Joint Commission of Cooperation created in 1995
and multiple cooperative agreements, as well as South Africa’s reported role as a back-channel
intermediary between Iran and Saudi Arabia regarding the war in Yemen.150
South Africa, which supports a peaceful resolution of U.S.-Iranian differences, “expressed deep
concern” over the early 2020 U.S. assassination of Iranian military leader Qasem Soleimani, and

146 The Administration has alleged that Chinese activities in Africa are “corrupting elites, dominating extractive
industries, and locking countries into unsustainable and opaque debts and commitments.” White House, National
Security Strategy, December 2017. See also CQ Transcripts, “Heritage Foundation Holds Discussion on White House
Africa Strategy,” December 13, 2018.
147 Investigative reports indicate that the Guptas may have received as much as R122 million in questionable
commissions tied to transactions linked to a $2.5 billion dollar 2014 China Development Bank loan to Transnet, a
South African rail SOE. Susan Comrie, “Guptas Siphoned R100m-Plus From China Loan, Evidence Shows,”
AmaBhungane Centre for Investigative Journalism, September 10, 2018. On DA concerns, see Matuma Letsoalo,
Dineo Bendile, Tebogo Tshwane, “China Gifts SA with R370bn,” Mail & Guardian, September 14, 2018 and DA,
“DA to Question Ramaphosa’s R370 Billion Chinese ‘Gift’,” September 16, 2018, among others.
148 Luke Daniel, “Ramaphosa Does It Again: UAE Invest a Further $10 Billion in SA,” July 14, 2018, and “Ramaphosa
Strikes Gold: Saudi Arabia to Invest R133 Billion in South Africa,” July 12, 2018, both in The South African.
149 Africa Confidential, “Riyadh to the Rescue,” October 12, 2018; Luke Daniel, “South Africa Is Supplying Weapons
to Saudi Arabia, Involved in Yemen War,” The South African, October 1, 2018; and CRS Report R43960, Yemen: Civil
War and Regional Intervention, by Jeremy M. Sharp.
150 Peter Fabricius, “South Africa is Trying to Broker Peace Between Saudi Arabia and Iran in Yemen,” Daily
Maverick, October 12, 2018; Mahlatse Mahlase, “Mixed Success for Ramaphosa on 3-country Investment Drive,”
News24, July 19, 2018; GOSA, Joint Communiqué of the 13th Joint Commission between the Republic of South Africa
and the Islamic Republic of Iran, October 23, 2017; and GOSA, DIRCO Treaty Register.
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in 2018 set out its “deep concern” over the Trump Administration's withdrawal from the Iran
nuclear deal, the Joint Comprehensive Plan of Action.151 Such positions and South Africa's
friendly relations with Iran could potentially hinder relations with the United States, but U.S.
officials rarely publicly address South African-Iranian ties.152 Possible differences with
Washington regarding the status of the Palestinians could also potentially roil U.S.-South African
relations but, as with Iran, such difference rarely appear to affect bilateral ties.153
Outlook
The Ramaphosa administration has taken steps to reverse a sharp rise in corruption and a poor
economic performance during the Zuma administration. Multiple inquiries into public sector
corruption and malfeasance are under way, alongside SOE reforms. Such efforts are likely to be
politically challenging for Ramaphosa, as they may threaten the influence of the still-influential
wing of the party associated with ex-President Zuma. Ramaphosa also faces the challenge of
balancing pressure from the political left on issues such as land reform and black economic
empowerment, with the often influential interests of property owners and the private sector.
Ramaphosa has made some progress on the economy, eliciting substantial investment pledges,
pursuing a $26 billion COVID-19 recovery package, and pushing reforms that may allow SOEs
to contribute substantially more to economic growth. Many of the reasons for weak growth,
however, are structural, long-term phenomena that are not amenable to quick fixes, and the
growing COVID-19 pandemic has magnified the breadth of the economic challenges facing the
country. South Africa’s economy is large and diversified, however, and may have the capacity to
expand moderately in the coming years, notably if the country’s large unemployed labor pool can
be better integrated into the economy. Because of its market size and economic role within Africa,
South Africa is well placed to grow as a key U.S. investment and export destination and hub for
U.S. firms active in Africa.
Although South Africa has attracted limited congressional attention in recent years, it is a
politically and economically significant actor in Africa, and the largest U.S. trade partner in the
region. Some Members of Congress may view the bilateral status quo as satisfactory. Others have
voiced an interest in strengthening the U.S-South African relationship.154 For such Members, a
range of issues may be of interest. They include South Africa’s future status under AGOA and as
a trade partner in general, and as a target and hub for potential U.S. investment in the region—
potentially through activity supported by the Trump Administration’s Africa-wide Prosper Africa

151 GOSA, “President calls for peaceful resolution of US-Iran tension,” January 10, 2020, and “President Ramaphosa
expresses deep concern on the decision by the US Government to withdraw from the Joint Comprehensive Plan of
Action (JCPOA) with Iran,” May 9, 2018.
152 Kitaneh Fitzpatrick, “Shedding Light on the Iran-South Africa Relationship,” Africa in Transition blog, Council on
Foreign Relations, December 17, 2019.
153 South Africa criticized the Trump Administration's recognition of Jerusalem as Israel’s capital, for instance, as well
as stated U.S. willingness to recognize prospective Israeli annexation of some West Bank areas under certain
circumstances, and often made other statements that display positions at odds with U.S. stances toward the Palestinians
and possible Palestinian statehood. See, for instance, GOSA, “South Africa condemns Israel's planned annexation of
Palestinian territories” (June 30, 2020), “Statement by the Permanent Mission of South Africa to the United Nations,
during the United Nations Security Council Open Debate on the situation in the Middle East, including the question of
Palestine, Thursday,” April 23, 2020; and “South Africa’s position on the unilateral decision taken by the United States
to recognise Jerusalem as the capital of Israel which undermines Middle East Peace Process” (December 7, 2017).
154 SFRC, “Bipartisan Foreign Relations Committee Senators’ Statement on Election Results in South Africa,” May 14,
2019; and “Chairman Risch and South Africa’s Foreign Minister Meet to Discuss Strategic Partnership,” August 21,
2019.
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initiative and the recently created U.S. International Development Finance Corporation (DFC).155
Prospects for South Africa’s relative progress in controlling its HIV/AIDS epidemic and
PEPFAR’s role in helping it to do so—and prospects for it to assume primary or sole
responsibility for such efforts—are another congressional issue of interest.156 Some Members may
see a need to consider relative levels and allocations of U.S. assistance to South Africa, which are
weighted overwhelmingly toward the health sector. There also is potentially scope for closer
military or other security cooperation, including with respect to the emergence of an ISIS-
affiliated group in northern Mozambique, a stated matter of mutual bilateral concern. Despite
periodic strains in U.S.-South African relations on some international issues, there also may be
potential for greater cooperation on a range of international and multilateral matters of mutual
bilateral interest, as South Africa’s votes as a current U.N. Security Council member—which
have been congruent with U.S. votes—have arguably demonstrated. Some Members may also see
a need to focus specifically on the relative alignment of U.S. and South African policy in sub-
Saharan Africa, in light of U.S. support for South African assistance in the region under the U.S.
Trilateral Assistance Program.

Author Information

Nicolas Cook

Specialist in African Affairs

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
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155 On these efforts and the DFC, see CRS In Focus IF11384, The Trump Administration’s Prosper Africa Initiative and
CRS In Focus IF11436, U.S. International Development Finance Corporation (DFC).
156 Such interest has been reflected in congressionally required reporting on these issues, as under P.L. 113-76 .
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