The Western Cape Provincial Parliament has passed a binding resolution confirming the province’s commitment to securing South Africa’s inclusion in the African Growth and Opportunity Act (Agoa).
DA spokesperson for finance, economic opportunities and tourism, Cayla Murray, said the resolution, passed on Thursday, had committed the provincial government to reaffirm the USA and Western Cape’s “friendship and important economic and trade ties” and to support the renewal of Agoa in 2025.
The resolution calls on President Cyril Ramaphosa to take urgent diplomatic action by engaging with the US to ensure SA's inclusion in Agoa and on Minister of Trade, Industry and Competition, Ebrahim Patel, to support trade relations on behalf of the Western Cape by negotiating for the renewal. It emphasises the province’s strong bilateral ties with the US and commits to strengthening these ties.
“The ANC-led National Government does not speak for the people of the Western Cape in their shameful support of Russia’s illegal war. It is ultimately our residents that will bear the brunt of the decreased economic activity that will result from a lack of Agoa access,” Murray said.
This comes after a warning from the South African Reserve Bank this week that the ANC’s stance on Russia could lead to sanctions and exclusion from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system. More than 90% of the country’s international payments flow through SWIFT. However, should it be banned from this vital system, the consequences would have a catastrophic ripple effect on cross-border trade.
“This would harm our province’s major export industries, such as agriculture, tourism, and technology, which rely on SWIFT to conduct transactions and receive payments. These industries are key drivers of economic growth and job creation in the Western Cape,” Murray said.
A total of R110.49 billion worth of exports and R99.96bn worth of imports had been processed via the Port of Cape Town, totalling R210.45bn in 2021, she said.
“Our ability to conduct essential trade and investment flows would be severely compromised if excluded from SWIFT, rendering it impossible to finance crucial transactions and hampering our capacity to receive payments from correspondent banks in dollars,” she said.
Murray added that the situation would result in “irreparable damage” to relationships with key trading partners, risking the loss of invaluable preferential trade access.
“South Africa cannot afford to be excluded from Agoa and the international financial system as that would bring about economic devastation and diplomatic isolation,” Murray said.
