South Africa

Since 1994, South Africa has made notable strides toward building an inclusive democracy that provides increased opportunity for its people. Nevertheless, the country faces many challenges, including slow economic growth, high rates of crime and unemployment, lingering corruption, and a persistent HIV/AIDS epidemic. U.S. assistance focuses on improving healthcare, increasing education standards and teacher training, building capacity in agriculture to address regional food security, developing clean energy, and adapting to changing weather patterns.

Since 2004, the U.S. government has invested more than $6.2 billion in assistance through the President’s Emergency Plan for AIDS Relief (PEPFAR) in South Africa’s HIV response to ensure that all South Africans can live longer, healthier lives. U.S. Agency for International Development (USAID) programs seek to strengthen small- and medium-sized enterprises, create employment, improve learning and job skills, promote basic education, combat gender-based violence, and promote HIV/AIDS care, prevention, and treatment.

South Africa is the largest U.S. trade partner in Africa, with a total two-way goods trade of $14 billion in 2018. Approximately 600 U.S. businesses operate in South Africa, many of which use South Africa as regional headquarters. South Africa qualifies for preferential trade benefits under the African Growth and Opportunity Act as well as the U.S. Generalized System of Preferences trade preference program. Both governments engage in frequent discussions to increase opportunities for bilateral trade and investment and optimize the business climate. The United States and South Africa signed an amended Trade and Investment Framework Agreement (TIFA) in 2012. In addition, the country belongs to the Southern African Customs Union, which signed a Trade, Investment, and Development Cooperative Agreement (TIDCA) with the United States in 2008. The United States and South Africa have a bilateral tax treaty eliminating double taxation.