By Enyichukwu Enemanna
South Africa has offered to buy liquefied natural gas (LNG) from the United States in a trade deal proposal, which would in turn see the African nation enjoy waiver in the payment of duties on vehicles shipped into the US market.
The proposal was announced in a statement released by Minister to the Presidency Khumbudzo Ntshavheni, and published by state-owned news agency.
South Africa and the US “will negotiate an arrangement to facilitate LNG imports from the US at the appropriate price. This will not replace our current suppliers of gas but complement those supplies,” she said.
Ntshavheni said this will be complemented by US investment in South Africa’s gas infrastructure, with both countries cooperating on key technologies, including fracking, to boost local gas production.
This comes as Pretoria makes effort to repair ties with Washington, one of its largest trade partners.
Diplomatic tension had escalated between the two countries since January when President Donald Trump was installed for a second term as US President.
In addition to freezing of aid to South Africa, the United States in March expelled expelled South African ambassador, Ebrahim Rasool over remarks he made about Trump’s administration.
Washington has not made a comment on whether or not to accept the deal.
The automotive industry and vehicle exports are a particularly important sector in South Africa’s economy, representing approximately 5% of its GDP.
On his April 2 “Liberation Day” announcement, Trump rolled out import levies across the world with South Africa attracting around 30%.
The country’s local automotive industry is already struggling with a 25% export tax.
President Cyril Ramaphosa was in Washington last week where he denied allegation of genocide against white farmers after the US leader confronted him with a video to back his claim.
