JOHANNESBURG, Feb. 10 (Xinhua) -- South African and U.S. business communities should intervene and correct the disinformation that has resulted in the diplomatic spat between both countries, a South African expert said Monday.
Raymond Parsons, an economist from the North-West University's Business School, urged companies in both countries to mobilize their suppliers and customers to correct the disinformation.
"Disinformation about the situation in South Africa and negative U.S. statements about South African policies have triggered a worrying spike in economic uncertainty, which is not only bad for business but also for the country more broadly," he said.
The row between the two countries began last week when U.S. President Donald Trump threatened to withdraw funding for South Africa due to the recently signed Expropriation Act, which allows public institutions to expropriate land in the public interest.
South African President Cyril Ramaphosa dismissed claims that the Expropriation Act was aimed at seizing land, expressing willingness to engage with the Trump administration on land reform policies and other bilateral issues.
"We should not underestimate what may ultimately be at stake for the South African economy and business in the face of the current sharp breach in bilateral political and diplomatic relations between the U.S. and South Africa," noted Parsons.
He explained that the business community should contribute their efforts to the ongoing political and diplomatic initiatives. The business community has to be united in mounting its case to the Trump administration and other stakeholders, said Parsons, urging affected companies in both countries to enlarge their spheres of influence.
"Intervention by business should be conducted in a calm and focused manner which proposes better ways -- supported by facts -- to manage and preserve U.S.-South Africa economic relations in the short and longer terms," he said.
Parsons further noted the spat has put the renewal of the African Growth and Opportunity Act (AGOA), set to expire in September 2025, in jeopardy. AGOA allows African products to the U.S. markets with no tariffs.
Trump signed an executive order on Friday to cut financial assistance to South Africa and offered refugee status to Afrikaners in South Africa, which they turned down.
