US Think Tank: Financially sanction anti-American ANC leaders in a personal capacity

US Think Tank: Financially sanction anti-American ANC leaders in a personal capacity

Josh Meservey argues that decades long attacks by the ANC justifies the Global Magnitsky Acts to be used.
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A leading opinion former in Washington, the 64-year-old Hudson Institute, is calling for personal sanctions. One of the US's leading Think Tanks, it argues that decades long attacks by the ANC justifies the Global Magnitsky Act to be used against the party's current and former leaders, including those exposed by the Zondo Commission. Hudson senior fellow Josh Meservey, who regularly hosts SA delegations in Washington, explains how far such sanctions would reach, how they would be implemented and their impact. He spoke to BizNews editor Alec Hogg.

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South Africa's foreign policy decisions are drawing increasing scrutiny from the United States, and according to Hudson Institute senior fellow Joshua Meservey, this could soon lead to direct consequences for key ANC figures. In an exclusive discussion with BizNews founder Alec Hogg, Meservey outlines why Washington has lost patience with the ANC and how targeted sanctions could be the next move from the US government.

A rapid deterioration in relations

South Africa's diplomatic approach has traditionally sought to balance relationships with global powers, but recent actions have put the ANC government in Washington's crosshairs. The ruling party's growing alignment with Russia, Iran, Hamas, and Hezbollah—groups the US considers hostile—has triggered alarm bells in Washington, where South Africa was previously given a free pass based on its historical legacy.

Meservey explains that this shift in perception has been gradual but decisive. Traditionally, the ANC benefited from strong goodwill in the US due to its association with Nelson Mandela and the anti-apartheid struggle. However, that sentiment has faded, particularly following South Africa's decision to bring a case against Israel at the International Court of Justice (ICJ). "The ICJ case and South Africa's muted response to Russia's invasion of Ukraine have forced Washington to reassess its view of the ANC," he says.

How South Africa's positioning changed the game

The US did not take serious action against South Africa in the past because, as Meservey puts it, "South Africa was too small in a global context to warrant major attention." But by aggressively inserting itself into contentious geopolitical issues, particularly regarding Israel and Russia, South Africa made itself impossible to ignore.

"The ANC thrust South Africa into the big boy league," says Meservey, referencing its lead role in bringing the ICJ case against Israel. The Biden administration had already signaled concerns, but with the potential return of Donald Trump—a leader known for his impatience with adversarial behavior—the ANC's stance could become a major liability.

The threat of targeted sanctions

One of Meservey's key recommendations is to hold specific ANC officials accountable rather than imposing broad sanctions that would hurt the South African economy. He points out that the US has powerful tools at its disposal, including the Global Magnitsky Act (GLOMAG), which allows Washington to sanction individuals involved in corruption or human rights abuses.

According to Meservey, South Africa is a "target-rich environment" for these sanctions, given the extensive corruption within the ANC, which was laid bare by the Zondo Commission. He suggests that individuals with links to illicit finance, money laundering, and terror-related activities would be prime targets for US sanctions.

So what could these sanctions look like? Meservey outlines the severe implications:

  • Financial Isolation: A sanctioned individual would lose access to US financial institutions, making it nearly impossible to conduct international transactions in US dollars.
  • Credit Card Blacklisting: Even transactions within South Africa could be impacted. If a person uses a Visa or Mastercard issued by a South African bank, it could still be blocked due to the conversion of rands into dollars at some point in the process.
  • Asset Freezing: If a sanctioned individual has investments abroad—whether directly or through proxies—US authorities would have significant power to track and freeze those assets.
  • Travel Restrictions: Sanctioned individuals could be denied entry to the US and potentially other Western countries that align with American sanctions policies.

Alec Hogg posed the scenario of a corrupt ANC official, such as someone named in the Zondo Commission report, facing these consequences. Meservey confirmed that this is entirely possible, stating, "You don't steal a trillion rand plus without having some of it invested around the world." The US, he says, has extensive capabilities to track illicit financial flows, even when disguised through complex offshore networks.

How would the ANC respond?

The effectiveness of sanctions depends on how the targeted individuals react. Some regimes, like Iran, have hardened their stance under US sanctions, while others, like Zimbabwe, have made overtures to have them lifted. Meservey believes that ANC officials would find themselves in a difficult position if sanctions were imposed, particularly given how intertwined South Africa is with the global financial system.

He also notes that there is currently keen interest in Washington to pursue this route. This is partly due to the ANC's refusal to engage constructively with the US on its foreign policy decisions. Despite some ANC members visiting Washington, the South African government continues to double down on its controversial positions, including openly supporting Hamas and Hezbollah leaders.

A last warning for the ANC?

Meservey believes the ANC still has time to shift course before facing serious consequences. His advice to South African leaders is straightforward: "Tone down the rhetoric and return to a genuinely non-aligned stance." While the US does not expect South Africa to sever ties with Russia or China, it does expect it to stop openly aligning with groups that the US considers hostile.

The ANC may be operating under the assumption that past goodwill in Washington will protect it from repercussions. However, Meservey warns that the US government is no longer willing to ignore South Africa's provocations, particularly if Trump returns to power.

With Washington's patience wearing thin and sanctions being openly discussed, South Africa's ruling party could soon face a reckoning unlike anything it has seen before. Whether the ANC recognizes the severity of the moment remains to be seen, but as Meservey warns, the US is prepared to act decisively if necessary.

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