America’s Choice, South Africa’s Future: The Impact of the US Elections on SA

Issued by Ismail Joosub on behalf of the FW de Klerk Foundation:

Introduction

As the world prepares for the 2024 US presidential election, the outcome is not just a matter of interest to American voters. It will reverberate across the globe, affecting economies, international relations and trade policies, including in countries like South Africa. Given the significant role the United States plays in global economic governance, the foreign policy direction of the next administration—whether led by Kamala Harris or Donald Trump—will have a direct impact on South Africa’s economic prospects, geopolitical positioning and international trade relations. This article seeks to explore the potential consequences of the upcoming US election on South Africa, examining key areas such as trade, foreign policy, energy, technology and investment and offering insights into how these factors could shape South Africa’s future.

Economic Policy: Taxes and Trade

At the heart of both Trump’s and Harris’s economic policy platforms are tax reforms and trade agreements that will have varying implications for South Africa. Kamala Harris, the Democratic frontrunner, is pushing for higher corporate taxes and regulatory reforms aimed at reshaping the financial and tech sectors. This could result in reduced profitability for US corporations, which in turn may have downstream effects on global markets, including South Africa’s. Higher corporate taxes could potentially lower US firms’ appetite for international investment, directly impacting South African businesses that rely on foreign capital inflows, mergers and acquisitions.

In contrast, Donald Trump’s tax agenda remains focused on deep cuts, particularly for domestic manufacturers, with the goal of boosting US industry. Trump’s policies could, in theory, encourage American firms to repatriate profits, providing them with greater liquidity to engage in cross-border acquisitions,…continue reading this article HERE.

Tokyo Sexwale: {2009 – 2014} Tokyo Sexwale served as Minister of Human Settlements from 2009 to 2014. He is a prominent businessman and former anti-apartheid activist. During his time in office, he worked on policies aimed at improving housing conditions and promoting sustainable human settlements.