Ramaphosa speaks out against using companies as pawns in trade wars

5th July 2019 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

South Africa President Cyril Ramaphosa on Friday slammed the use of private companies as pawns in trade disagreements between States.

Speaking at the inaugural Digital Economy Summit, in Midrand, he reiterated South Africa’s support of telecommunications giant Huawei amid now-alleviated US restrictions.

“This standoff between China and the US, where the technology company Huawei is being used as victim because of its successes, is an example of protectionism that will affect our own telecommunications sector, particularly the efforts to roll out the fifth-generation (5G) network, causing a setback on other networks as well,” he said.

“We support a company that is going to take our country and indeed, the world, to better technologies,” he said, indicating that the US was “jealous” that a Chinese company found a way to imagine a better future which goes beyond 5G technology.

“They have been unable to imagine what 5G can offer.”

The Western powerhouse earlier this year had taken a hardline stance during an impasse between it and China by effectively banning Huawei from trading with US businesses without a special licence.

The US had since US eased its restrictions on the Chinese technology company after talks between US President Donald Trump and Chinese President Xi Jinping at the G20 late in June.

However, the restrictions had led to several US companies suspending some services with Hauwei, sparking several concerned South African telecommunications groups to plead for Ramaphosa’s assistance.

Addressing delegates at the summit, Ramaphosa welcomed the move but stated that it was unnecessary to “punish” a company in what was a “fight” between two countries.

“We cannot afford to have our own economy being held back owing to jealously,” referring to the damage the tussle could do to South Africa’s technology companies and subsequently the economy.

“We want to go to 5G and only Huawei can take us there,” he said, quoting telecommunications companies viewpoint in the letter written to him warning that the trade impasse was hurting them.