Ninety One CEO Hendrik du Toit’s message to the South African government

South Africa has to find a way to cooperate with the United States, given its status as the world’s largest economy and the home of two-thirds of global investable capital. 

This is the message from Ninety One CEO, Hendrik du Toit, following President Cyril Ramaphosa’s meeting with his US counterpart, Donald Trump, on 21 May. 

Du Toit is a highly influential CEO who runs South Africa’s largest private asset manager, with over R3 trillion in assets under management. 

Speaking to Bloomberg TV on the sidelines of the Qatar Economic Forum, Du Toit stressed the importance of improved relations with the United States for South Africa. 

He said South Africa cannot afford any political confrontation with the world’s largest economy if it wants to attract investment and improve economic outcomes for South Africans. 

“I think it is a very good lesson for South Africa. The experience for the South African leadership is important,” Du Toit said. 

“You have to find ways to cooperate with the largest economic blocs in the world, whether that be the United States, China, or Europe.” 

“So, you better get on message and hopefully the win for Ramaphosa is that Trump will attend the G20 in South Africa and respect his presidency of it.”

Du Toit said that would only be the start, and the government is likely to have to continue working hard to improve relations with the United States. 

US President Trump did not commit to attending the G20 meetings in November, but did not rule out potentially attending if relations between the countries improved. 

Improved relations with the United States are particularly important for South Africa, given the government’s difficult financial position and its need for external capital. 

Du Toit explained that two-thirds of all investable capital sits in the United States, making it the largest source of potential foreign investment in South Africa. 

However, with poor relations between the two countries, investors in the United States would not be willing to be seen pumping money into South Africa. 

South Africa needs a reset 

Du Toit’s comments in Qatar broadly echo those of Finance Minister Enoch Godognwana, who also stressed the importance of good relations with the United States. 

Godongwana repeatedly tried to impress upon South Africans the importance of the United States in post-Budget events. 

He explained that life would become very difficult for South Africa if it continued to disagree with the United States. 

“Let me start by saying that the meeting in Washington yesterday was very significant,” Godongwana said at a post-Budget event hosted by Momentum.

As the largest economy in the world, the United States has an outsized influence on global trade and can limit any country’s ability to trade freely. 

“If you disagree with the Americans, life becomes difficult in dealing with anybody. No one wants to touch you,” Godongwana said. 

“This is a fundamental problem. They can make it very difficult for you to engage with other countries and trade freely.”

Despite tense scenes inside the Oval Office on 21 May, Godongwana believes the meeting was very positive and signalled a reset of relations between the two countries. 

“Even if it’s not a final deal, there has been some progress, and over time, we are likely to see the conclusion of a deal,” he said. 

Godongwana cited the potential impact of higher US tariffs as a key reason for the National Treasury’s downgrade on Wednesday of its economic growth forecast for this year.

While the relationship between the South African and US leaders appears to be mending, more work needs to be done with legislators, Godongwana said.

Last month, two US lawmakers introduced a bill calling for a review of Pretoria’s ties with Washington, alleging that it supports America’s adversaries.

“The challenges, I’ve indicated, will be at Capitol Hill with both Congress and the Senate,” Godongwana said. 

“We still need to do some work there to complete the picture of that resetting of the relationship.”