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“This $150 million commitment with the state department comes with $400 million of revenue commitments from the African governments themselves. So the whole idea here is trade, not aid. We’re putting the African governments in charge,” Zipline CEO Keller Rinaudo Cliffton says.

14,171 görüntüleme • 8 ay önce •via X (Twitter)

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Because the South African government is not a vigilante group, it runs the state and states engage diplomatically not through insults on social media. President Cyril Ramaphosa knows exactly what he is doing, and in my view he is doing the right thing. Many South African companies have outgrown the South African market. Take MTN, for example. If you removed MTN from its African operations outside of South Africa, it would become a much smaller company because South Africa contributes only about 18% of MTN’s total earnings. The remaining 82% comes from its operations across the rest of Africa. As the MTN CEO explains below, those relationships have to be nurtured. You cannot allow xenophobia and Afrophobia to destroy them. These companies pay taxes in South Africa, and the profits they generate across the continent ultimately benefit the South African economy. Their expansion creates value for shareholders, supports jobs at home, contributes to tax revenue, and strengthens South Africa’s economic position. It would therefore be foolish for President Ramaphosa not to engage with his African counterparts. Failing to do so would damage not only diplomatic relations, but also trade and investment ties that are vital to South African companies operating across the continent. If African governments were to adopt a united position against South African businesses because of deteriorating relations, the South African economy would suffer significantly. That is why diplomacy is not a luxury; it is an economic necessity. Unfortunately, many of those fuelling these problems either do not understand how modern economies work or simply do not read enough to appreciate the importance of regional trade, investment, and economic interdependence.

Hopewell Chin’ono

70,701 görüntüleme • 6 gün önce