Phala Phala: Governing South Africa Must Be Given Top Priority

(Budget Vote Debate: Presidency)

President Cyril Ramaphosa should deal with the Phala Phala matter swiftly and honestly so that the focus can shift to what should be the top priority in the interest of all South Africans: properly governing South Africa.

Once this has happened, South Africa’s international relations policy should urgently be addressed.

The country’s measures and guidelines for the effective coordination of international engagements were approved in 2009, and the time is ripe for a comprehensive review and overhaul of this policy. It simply has to happen. The world and the international climate have changed dramatically since 2009.

South Africa will have to rethink certain aspects of its policy towards the United States (US). The US remains the world’s largest economy with the strongest military, and South Africa cannot afford to be hostile towards it.

It is encouraging that both countries are now represented at ambassadorial level, as this provides a good starting point to improve relations with Washington – something that can only be to South Africa’s advantage.

South Africa must be willing to make certain fair concessions. Let us consider the unaddressed issues standing in the way of a mutually beneficial agreement – the five critical conditions set by the US.

The benefits that could flow from this could be so profound and positive that they would overshadow the current pressure on the Presidency by stirring up a spirit of optimism and expectation in millions of South Africans.

At the heart of a new agreement should be a pact on critical minerals. South Africa could offer strategic access to the exploration, mining and especially the refining of platinum group metals, manganese, vanadium, rare earth elements and titanium.

The US could match this with long term offtake commitments, targeted reserve building programmes and financing for processing capacity that goes beyond, to actual throughput.

A Johannesburg-based critical minerals exchange, linked to US commodity markets, could unlock supply chains and position South Africa as a global processing and trading hub.

This partnership would unlock economic opportunities for South Africa while securing reliable, strategic raw materials for the US.

The strategic payoffs would be immediate: the US would secure trusted supplies for the manufacturing of electric vehicles, aircraft and advanced industries, while South Africa would position itself as a global processing and trading hub – not just a mine pit at the end of another country’s value chain.

A US/Africa/Middle East hub for mining technology, supply chain traceability and AI driven monitoring will draw investment from US private equity firms and Gulf sovereign wealth funds.

This minerals agreement could increase South Africa’s GDP by $40 billion and create approximately 500 000 jobs across the mining, processing, energy, logistics and services sectors.

It would drive up economic growth to 5% per year and halve unemployment over time. For the US, direct gains from minerals, gas exports and agriculture could exceed $75 billion, justifying the reduction of South Africa’s general tariff to 10% and guaranteeing trade privileges under AGOA.

With an open door to the White House, the time is now to secure a landmark deal with the Trump administration, one that can deliver prosperity for South Africa and its people. The alternative is perpetual decline.

The Freedom Front Plus (VF Plus) is willing to walk with government every step of the way. It CAN be done!

FF+ Manifesto on Food security: Ensuring food security for all citizens.

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