Since the graylisting decision, South Africa has made significant progress in addressing the FATF’s concerns (something the body has commended). Put simply, those trading partners would be jeopardizing their own companies and other trading relationships by continuing to trade with South Africa. South African businesses seeking to engage in international trade would also face stricter regulatory measures, as would any international businesses wishing to trade with South Africa. In May, the US Ambassador to South Africa, Reuben Brigety, accused the country of covertly supplying arms to Russia. Consequently, South Africa lost further credibility as an investment destination, and an already embattled Rand experienced a momentary freefall.

Source: The North Africa Journal June 28, 2023 07:59 UTC