A worker walks near a row of cars at BMW's manufacturing plant in Rosslyn, outside Pretoria in this file photo. If South Africa loses the Agoa deal, the local automotive sector will be hit.
Image: File
Cosatu has sounded the alarm over what it calls AfriForum’s “dangerous” behavior, linking the group’s recent international lobbying to a massive R8 billion cut in US aid and potential economic fallout for South Africa.
This as there are fears that investor and business confidence will be affected.
In a statement on Friday, the federation accused AfriForum of spreading racism and fake news, with devastating consequences now hitting the country.
"Cosatu would not normally want to give airtime to fringe juvenile lunatics, let alone those inebriated with racism and fake news, however an exception needs to be made for AfriForum’s acts of buffoonery due to the very real pain we believe they have caused and will further inflict upon millions of South Africans, black and white," the trade union said.
According to Cosatu, AfriForum’s tour of the US, where it pushed claims of genocide and land grabs against white Afrikaans South Africans, triggered the cancellation of critical funding. The bulk of that R8 billion was earmarked for healthcare, supporting over 500 000 South Africans living with HIV/AIDS through the PEPFAR programme. With that lifeline now in jeopardy, 15 000 community health workers have been left without salaries, and patient care is at serious risk.
The fallout doesn’t stop there. Cosatu warns that South Africa’s preferential trade access to the US under the African Growth and Opportunities Act (Agoa) is under threat. If scrapped, it could cost the country 500 000 jobs across agriculture, mining, motor manufacturing, clothing, chemicals, and jewellery sectors. Tourism jobs are also on the line, adding to the economic pressure on a nation already grappling with high unemployment and inequality.
Cosatu dismissed AfriForum’s claim to represent Afrikaners and Afrikaans speakers, calling it a fringe group rejected by most in the community. They pointed to widespread condemnation from Afrikaans citizens, churches, businesses, and political leaders as proof. The federation also flagged AfriForum’s plans for a 30-day trip across G20 European nations, fearing more damage from what they term a “fact-free” campaign.
Cosatu also urged families of HIV/AIDS patients who lose treatment to file civil lawsuits against AfriForum, alongside workers and companies hit by a potential Agoa exit.
"Condemning the shameful behaviour of AfriForum is not sufficient. The families of any patient unable to access HIV/AIDS treatment as a result of these developments and the Department of Health should launch civil claims in our courts against these delinquents and spewers of fake news. Likewise, any worker or company who suffers losses as a result from an Agoa exit too should seek civil claims and attach AfriForum’s assets. There must be consequences for AfriForum’s recklessly dangerous behaviour," it said.
Daniel Wesonga, a senior sales manager at Pepperstone, said, "The US has suspended most aid to South Africa following a controversial executive order by President Trump. This could weigh on investor sentiment, creating short-term volatility in domestic equities."
Business Report reported this week that business confidence in South Africa stalls amid Agoa concerns after US withdraws aid.
The RMB/BER Business Confidence Index (BCI), released on Wednesday, remained unchanged at 45 index points in the first quarter of 2025, marking four consecutive months where the index isbelow the 50-point neutral level.
The BCI survey, conducted between 5 and 24 February, reflects responses largely collected shortly after US President Donald Trump announced the cessation of all aid to South Africa.
The duty-free access to the US provided by Agoa has benefited a number of sectors, particularly South Africa’s automobile industry, and losing Agoa could cost tens of thousands of jobs and dent the government’s economic growth strategy, it said.
While the selected sectors may not feel immediate effects from this geopolitical shift, RMB said the ramifications for already strained US-SA trade relations were troubling. Respondents voiced concerns regarding the potential impacts on the Agoa, which is critical for trade with the US.
BUSINESS REPORT