Opinion piece by Errol Naidoo; Family Policy Institute
Ronald Lamola, the inept Minister of International Relations & Cooperation (DIRCO) evidently cannot fully grasp his ministerial mandate. The US media reports, the out of his depth Lamola’s lack of diplomatic skills is dramatically degrading relations with the US.
Like the ANC criminal network he represents, Lamola is driven by a destructive Marxist ideology – not common sense. His rhetoric has significantly increased SA’s economic risk. The US is the world’s largest economy and SA’s second largest trading partner.
US Ambassador to South Africa, Leo Brent Bozell warned of “a series of escalatory measures” with “severe consequences” if the ANC led government does not address the Trump administrations primary concerns communicated through diplomatic channels.
US Secretary of State, Marco Rubio announced targeted visa restrictions in Sept 2026 over BEE, expropriation without compensation, farm murders and the “kill the boer” chant. Bozell slammed President Ramaphosa for “refusing to condemn an incitement to kill.”
The US ambassador received a démarche (diplomatic rebuke) from Pretoria for the 3rd time in the 9 months since he arrived. The ambassador has been slammed by the ANC for relaying President Donald Trump’s condemnation of South African policies and statements.
As of early October 2026, US-SA trade is still achieving about $29bn in goods and services – up 10% since 2025. However, and more ominously for South Africa’s ailing economy – diplomatic relations with the Trump administration is deteriorating alarmingly fast.
The African Growth & Opportunities Act (AGOA) was extended to Dec 2028, but SA’s eligibility is reviewed annually — a decision for 2027 expected as early as November 2026. The Trump admin retains the option to remove SA from the economic benefits of AGOA.
There are 6 main economic risks if US / SA relations deteriorate further. (1) The loss of AGOA preferences. South Africa is by far AGOA’s biggest user – about 54% of all AGOA exports historically, and R300 billion exported under AGOA in 2019-2024. If excluded, more than a fifth of SA’s US-bound shipments would lose duty-free access overnight.
The sectors most exposed are motor vehicles, agriculture – like citrus, wine, table grapes and nuts. Then there are the steel and aluminium exports. Solidarity warns up to 250,000 jobs partially or fully dependent on AGOA could be at risk if South Africa is excluded.
Business Day reports vehicle export earnings to the US already fell to R8 billion in 2025 down from R17.7 billion in 2024. Further deterioration could mean more targeted tariffs.
(2) Investment freeze and rand volatility. US Foreign Direct Investment (FDI) has been stable so far, but analysts warn multinationals will delay capital expenditure in manufacturing, mining and agriculture while waiting for clarity on sanctions. That means a weaker rand, higher import costs upward inflation pressure and rising unemployment.
(3) Targeted sanctions on individuals and government officials. The US-SA “Bilateral Relations Review Act” proposes a full review and possible Global Magnitsky sanctions on ANC government officials. Even if targeted, this spooks banks (de-risking, compliance costs) and makes business travel, correspondent banking, and deal-making more difficult.
(4) Aid and health funding cuts. The Trump admin already cut HIV treatment funding for SA. Further cuts to PEPFAR-related and humanitarian programs would shift fiscal burden onto SA’s Treasury and impact public health budgets – which in turn hits productivity.
(5) Diplomatic/trade isolation. SA was already excluded from the G20 summit in Miami. Further downgrading of diplomatic relations reduces SA’s leverage in trade negotiations and pushes US buyers to source from other AGOA countries like Kenya, Lesotho etc.
(6) “the bottom line. SA doesn’t need a full diplomatic break to get hurt. Just losing AGOA eligibility in November would be enough to hit autos and agriculture hardest, in the Eastern Cape, Western Cape and Gauteng. The 2-year AGOA extension to 2028 is, as Oxford Economics put it, only a “mild reprieve” — too short for long-term investment decisions.”
The ANC is clearly guided by Marxist ideology and not the best interest of the 62 million citizens dependent on a stable growing economy. SA citizens must vote the ANC, EFF, MK troika out of power and ensure diplomatic and trade relations are restored with the US.
Click here to KEEP UPDATED on the latest news by subscribing to our FREE weekly newsletter.
> Please support Christian media and journalism in South Africa. Help us to spread the Word of God and take a stand for the truth by making a donation to our ministry. We appreciate your support. Click here to take hands with JOY! Magazine.
Date published: 06/10/2026
Feature image: Sourced by Magnific; for illustration purposes only
DISCLAIMER
JOY! News is a Christian news portal that shares pre-published articles by writers around the world. Each article is sourced and linked to the origin, and each article is credited with the author’s name. Although we do publish many articles that have been written in-house by JOY! journalists, we do not exclusively create our own content. Any views or opinions presented on this website are solely those of the author and do not necessarily represent those of the company.
 evidently cannot fully grasp his ministerial mandate...){kind=link}