Speaking at the BizNews Conference in Hermanus on Tuesday (10 March), U.S. Ambassador to South Africa Leo Brent Bozell III said the economic relationship between the two countries remains strong and holds significant potential for growth.
His remarks come at a time when relations between Washington and Pretoria have faced renewed scrutiny over issues ranging from South Africa’s alignment with BRICS partners such as China and Russia to debates around land reform and Afrikaner concerns about property rights.
Despite these tensions, Bozell said the United States continues to view South Africa as a key economic partner on the African continent.
He described South Africa as “a nation of immense potential, immense complexity, and immense importance, not only on the African continent, but around the globe.”
South Africa central to U.S.–Africa trade
South Africa remains the largest destination for American trade and investment in sub-Saharan Africa, serving as a gateway for U.S. companies seeking opportunities across the continent.
According to the ambassador, more than 500 American companies already operate in South Africa, employing over 250,000 people in sectors ranging from technology and finance to manufacturing and consumer goods.
“The United States values partners in South Africa. This country is Africa’s largest economy, and it’s the largest US trade and investment partner in sub-Saharan Africa,” Bozell said.
He added that he plans to engage widely with leaders across government, civil society and business as the United States explores new opportunities to deepen cooperation.
“In the weeks and months ahead, I look forward to engaging with a wide range of South Africans, in government, in civil society, and in the business community,” he said.
Investor concerns and policy debates
While highlighting the depth of economic ties, Bozell also acknowledged that policy uncertainty can influence investment decisions by multinational companies.
Washington has raised concerns about issues including South Africa’s investment climate, rural safety, and policies related to land expropriation, matters that have also sparked debate within South Africa, particularly among Afrikaner farming communities.
“When businesses believe their property rights may be uncertain, when policy frameworks create unpredictability instead of clarity, and when strategic alignments appear to drift towards regimes that do not share our democratic values, common ground becomes harder to sustain,” he said.
Major U.S. tech investments
Despite the geopolitical debates, several American technology companies have recently expanded their presence in South Africa, underscoring the country’s importance in Africa’s digital economy.
Bozell pointed to investments by Visa, Google Cloud, Microsoft and Amazon as examples of the strong commercial ties already in place.
Visa recently launched its first data centre in Johannesburg, with R1 billion ($54 million) planned for investment over three years.
Google Cloud has also established its first African cloud region in Johannesburg, while Microsoft is expanding its cloud and artificial intelligence infrastructure.
“Microsoft is investing an additional R5 billion by 2027 to expand cloud and AI infrastructure here, building on more than R16 billion already invested,” Bozell said.
“They’re proof that American companies bring capital, high standards, cutting-edge technology, workforce development, and long-term commitment.”
Doubling American companies
Looking ahead, Bozell said the United States hopes to dramatically increase its economic presence in South Africa.
He noted that Washington is proud of the more than 500 American companies currently operating in the country, but believes there is room for much greater expansion.
He suggested there is no reason why the number should not reach 1,000 American companies, along with the jobs and investment that would follow.
“That’s how Americans think. Nothing is beyond the pale for us. We want partners who also dream great dreams, and that’s South Africa’s signature. Let us do all in our power to make our relationship prosper and thrive.”
