Escalating U.S.-South Africa rift raises fears of economic isolation, with potential sanctions targeting South Africa’s ties to Iran, Russia & China.
US. lawmakers are advancing the U.S.-South Africa Bilateral Relations Review Act (H.R. 2633), which could lead to sanctions excluding South Africa from the SWIFT global payments network, amid accusations of South Africa’s alignment with Russia, China, and Iran.
This follows a high-level meeting in Johannesburg where South Africa’s finance minister and top bankers discussed the fallout from potential U.S. restrictions, including SWIFT disconnection.
Losing SWIFT access would cripple international transactions, mirroring the GDP devastation seen in sanctioned Russia and Iran.
South Africa’s economy, though diversified with China as its top trade partner and the U.S. a smaller share, faces severe risks, experts say.
Analyst Sandile Swana notes the bill targets ANC leaders narrowly, not the nation, and believes BRICS alternatives could mitigate impacts, strengthening resolve for non-dollar systems.
Yet, with 30% U.S. tariffs already imposed under President Trump, exclusion could freeze payments, spike inflation, and trigger job losses, underscoring the high stakes of South Africa’s foreign policy.
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