US stance unchanged as South Africa investment pact stalls

Core US demands remain in place

According to IOL, US officials told South Africa’s newly appointed ambassador to the United States, Roelf Meyer, that economic demands for an investment deal have not been dropped. Meyer formally began his tenure last month after presenting his diplomatic credentials in Washington DC.

According to IOL, the US is insisting on several specific changes as part of any deal. These include an exemption for American companies from Broad-Based Black Economic Empowerment (B-BBEE) requirements and explicit legislative guarantees that investor assets cannot be seized or expropriated for less than full market value. According to IOL, this demand touches on the legislative framework of the Expropriation Bill, and remains a significant point of contention.

Geopolitical and security concerns cited

According to IOL, the US also demands that Pretoria halt actions it views as threatening US national security interests and re-establish a verified geopolitical neutrality. IOL reports these demands specifically reference South Africa’s legal action at the International Court of Justice against Israel and the hosting of foreign military assets.

Experts warn of a difficult path to reconciliation

International relations experts quoted by IOL say rebuilding trust will take time and sustained diplomacy.

“Considerable time and sustained diplomatic engagement will be required to rebuild trust and bridge differences on key issues,” said Professor Theo Neethling. He added that the White House under Donald Trump is unlikely to abandon positions on issues such as South Africa’s relationship with Iran, expropriation without compensation, the so-called Afrikaner refugees, and BEE’s role in trade relations.

Professor Neethling told IOL the appointment of Ambassador Meyer could be a small but meaningful step, but that a delicate balance between ideological differences and economic necessity will shape the relationship going forward.

Professor Kagiso “TK” Pooe told IOL that ongoing geopolitical tensions have kept Washington’s attention elsewhere, giving South Africa some breathing room. He said South Africa needs a clearer definition of what non-alignment means in practice to give the US something substantive to engage with, rather than a posture that can be dismissed or misread. Pooe also suggested that underlying tensions over South Africa’s stances on Israel and the ICC may be driving some US demands.

Responses and next steps

According to IOL, Ambassador Meyer was not immediately available for comment. The Department of International Relations and Cooperation spokesperson, Chrispin Phiri, referred all requests for comment to Meyer, according to IOL.

The reporting in IOL indicates that, with core US demands unchanged, agreement on an investment deal remains uncertain and will depend on sustained diplomatic engagement between the two capitals.