South African investors will be closely monitoring potential turbulence in the South African rand on Tuesday following reports that the White House could reject South Africa’s newly appointed special envoy to the United States, former deputy finance minister Mcebisi Jonas.
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South African investors will be closely monitoring potential turbulence in the South African rand on Tuesday following reports that the White House could reject South Africa’s newly appointed special envoy to the United States, former deputy finance minister Mcebisi Jonas.
A potential diplomatic snub, hot on the heels of the expulsion of South Africa’s former ambassador, Ebrahim Rasool, in March for controversial remarks, threatens to deepen the rift between Pretoria and Washington, heightening uncertainty for rand-denominated assets.
On Monday, President Cyril Ramaphosa announced Jonas as South Africa’s special envoy to the US, tasked with advancing diplomatic, trade, and bilateral priorities. Ramaphosa underscored the “historical and strategic” relationship between the two nations, and highlighted the importance of mutual respect and sovereignty.
However, US news outlet Breitbart News reported early Tuesday that Jonas is unlikely to be welcomed by the Trump administration. Citing a 2020 speech to the Ahmad Kathrada Foundation, Breitbart highlighted Jonas’s description of President Donald Trump as a “racist,” “homophobe,” and “narcissistic right-winger.”
Breitbart News has close ties to the White House via senior editor Joel Pollok who was recently in the running to become the ambassador to South Africa. However, Trump has named conservative media critic and pro-Israel commentator Leo Brent Bozell III as ambassador to South Africa.
Breitbart noted that Jonas's globalist worldview fundamentally clashes with the current US administration's stance, making him an unsuitable choice for rebuilding ties.
Breitbart further noted," An envoy who insulted the President of the United States — as Trump was in November 2020, and is once again today — does not seem like a good choice for rebuilding a “special relationship” with the United States, especially given that South Africa’s ambassador to the United States, Ebrahim Rasool, was expelled in March for making comparably slanderous remarks about President Trump."
The rand, which rallied below the critical R19 mark against the US dollar on Monday amid easing fears over the Government of National Unity’s stability, now faces renewed pressure.
Escalating US-SA tensions are likely to fuel investor caution, as markets remain highly sensitive to geopolitical risks. A deteriorating relationship with the US could disrupt trade flows, deter foreign direct investment, and undermine South Africa’s economic recovery, all of which are critical to rand stability.
Last week Wednesday the rand was in freefall to the dollar amid global market uncertainty and fell close to the critical R20 against the dollar mark. It recovered after Trump announced a 90-day pause on his sweeping tariffs.
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