South Africa has proposed a 10-year liquefied natural gas (LNG) import deal with the United States worth between $900 million and $1.2 billion annually, amounting to a staggering $12 billion.
The deal, presented by Minister in the Presidency Khumbudzo Ntshavheni, is part of a broader trade package offered by South Africa during President Cyril Ramaphosa’s recent meeting with U.S. President Donald Trump on May 21, 2025. Alongside the LNG deal, South Africa is seeking duty-free access to the U.S. market for vehicles, auto components, steel, and aluminum.
Under the proposed agreement, South Africa would import between 75 million and 100 million cubic meters of LNG annually from the U.S., aiming to address its persistent energy shortages and reduce dependence on coal. The government cites declining gas supplies from Mozambique and an urgent need for energy diversification as reasons behind the move.
However, the decision is facing sharp criticism for contradicting the African Continental Free Trade Area (AfCFTA) goals and long-standing calls for stronger intra-African economic cooperation. Energy experts and pan-African advocates argue that the government overlooked Angola’s capability to supply LNG, missing a prime opportunity to bolster regional trade and economic resilience.
“The idea that we are sending $12 billion across the Atlantic while ignoring a neighbor with the capacity to meet our energy needs is simply baffling,” said an energy analyst based in Johannesburg. “This is a missed opportunity to foster African economic resilience.”
Although the proposal has been made public, it has not yet been finalized. Negotiations are ongoing, and technical issues temporarily took down the initial government website publication.
