Theuns du Buisson, researcher at the Solidarity Research Institute. (Photo: Ané Janse van Rensburg/Solidarity)
On Wednesday, Solidarity presented a report to the office of Brent Bozell, the US ambassador to South Africa, in which the organization details the impact of South Africa’s racial policy on the economy and job creation.
According to Solidarity, this step follows after Bozell highlighted the abolition of racial policies during a speech in the Western Cape earlier this week as one of five conditions that the American government set for the South African government.
According to Bozell, no attention has been paid to these conditions for more than a year, and he said pres. Donald Trump’s patience with the lack of action is “wearing out”.
In the report, it is argued that the cost of complying with black economic empowerment (SEB) currently amounts to between R145 billion and R290 billion per year.
The report, which was also handed over to the American administration during a Solidarity visit to Washington last year, further argues that this policy could cost the country up to 192,000 jobs per year.
According to Theuns du Buisson, author of the report and economic researcher at the Solidarity Research Institute (SNI), racial policy is also an important factor in the increasing diplomatic tension between South Africa and the USA.
“The race laws are bad for job creation, bad for the economy and bad for investor confidence. The race laws are only kept on the books by the government for the sake of a small group of rich people.”
He adds that according to the message from the US, American investors are willing to invest in South Africa, but that racial laws make it difficult.
“Furthermore, the US’s message is that its business people want to invest in South Africa, but that racial laws are holding them back like a trade restriction. Just like millions of South Africans, Americans do not want to pay a premium to further enrich cadres and the rich.”
Brent Bozell (Foto: Brent Bozell/X)
Solidarity further argues that the cost of race laws is so great that it can ultimately increase inequality in South Africa.
According to Jaco Kleynhans, head of public and international liaison at Solidarity, Bozell’s statements should be a warning to the South African government.
“Bozell’s five demands to the South African government are nothing new or even exceptionally controversial. Yet the first reaction of the ANC’s Fikile Mbalula is how the government refuses to listen to the US regarding policy decisions at all.”
He further says that Bozell’s speech elicited a great reaction from government circles and from the EFF and sends a clear message.
“It soon becomes clear to the American embassy and to Ambassador Bozell that the ANC does not want and will not serve American interests at all. And from Solidarity’s report it is clear how the ANC certainly does not serve South African interests either.”
Solidarity says it hopes that the American ambassador will continue his pressure on race laws and BEE policy, as “South Africans’ patience with that has long since run out”.