JOHN ENDRES: SA won’t win big with the US by playing it safe - BusinessLIVE

John Endres

SA’s approach to trade negotiations with the US government has been too timid. Renewed US attention on Pretoria means a high-level opportunity for our country. But rather than setting the stage for bold, mutually beneficial co-operation, our negotiators fixate on minutiae such as sanitary regulations and natural gas technology. It is a strategy defined by caution, not ambition. And it’s not working. 

The US administration is not disengaged. On the contrary, it has devoted unusual attention to SA over the past year. That scrutiny carries risk, but it also opens a window for serious engagement. The tragedy is that SA’s response has been boring: small-scale, narrow in scope, devoid of creative thinking.

But as the old saying goes, a faint heart never won a fair maiden — and a faint-hearted strategy won’t win the kind of game-changing deal SA needs. 

It’s time to be interesting 

Trade negotiations are not only about economic alignment. They are also a stage on which countries compete to be relevant: to offer value, to stand out and to be interesting. SA’s negotiators must grasp this. They are not the only team at the table. Dozens of other countries are vying for American trade and investment. If SA doesn’t differentiate itself with a compelling, wide-ranging proposal, it will be sidelined. 

The strategy should start with a clear, aggressive deal sheet: a list of ambitious “asks” and “offers”, defining the scope of negotiations and empowering an appointed envoy to close where possible. All too often SA negotiators have had to refer back to Pretoria for direction. That slows talks, kills momentum and sends a message of indecision.

The envoy must be given clearly defined powers, limited in scope but firm in authority, so that a deal can be concluded swiftly. 

What should SA ask for? 

First, energy. SA should request US support — technical, financial and diplomatic — for the refurbishment of coal-fired power stations and the future rollout of a nuclear build programme. Whatever the ideological fashion in Western capitals, energy security must come first. A country that cannot keep the lights on cannot grow. 

Second, security co-operation. Crime and corruption remain defining features of SA’s investment climate. A bold proposal could include joint operations or advisory support in policing, anticorruption efforts and justice reform. Washington is not indifferent to these issues. With the right framing such proposals could serve both countries’ interests. 

Third, infrastructure. SA should seek support to rehabilitate logistics and transport systems: road, rail, ports, water and electricity. These are the arteries of economic life — and they are blocked. A credible offer to fix them, with US support, would show seriousness of purpose. 

What should SA offer in return? 

This is where courage is required. If SA wants bold concessions from Washington it must be willing to make bold concessions in return, especially on the issues the US has already raised. 

Top of that list are race-based laws that act as a tax on growth. A reasonable proposal would exempt US investors from BEE and employment equity obligations, a principle the Institute of Race Relations has long argued for across the board. In addition, SA should consider restoring the bilateral investment treaties it cancelled a decade ago, giving American investors strong protections against expropriation. 

Second, foreign policy. The US has taken note of Pretoria’s stance on Russia, Israel, Iran and other geopolitical issues. Without abandoning its sovereignty, SA can recalibrate its rhetoric. A deliberate toning down of hostility towards Israel — along with a clear public statement from the president condemning “Kill the Boer”, despite the court ruling — would signal maturity and respect. 

From risk to reward 

This is not a call to surrender principle. It is a call to enter the arena with purpose. SA has been granted a rare audience. The worst it can do is waste it on half-measures and bureaucratic quibbling. The Americans are looking for something interesting. Give them something interesting. 

This moment won’t last forever. If SA wants to win real gains from the US — in energy, investment, security, or trade — it must show vision, clarity and purpose. Above all, it must shed its faint heart. 

Endres is CEO of the SA Institute of Race Relations

https://www.businesslive.co.za/bd/opinion/2025-07-28-john-endres-sa-wont-win-big-with-the-us-by-playing-it-safe/