The signing of the investment incentive agreement between South Africa and the US in 1993 ensured that the two countries would develop cordial relations. Since the signing of the agreement the USA and South Africa have maintained good relations despite developments with a potential to throw the two countries on a collusion course. South Africa's ambivalent position in relation to Robert Mugabe's obstinacy has not alienated the country from the USA. The most recent test to this relationship was the controversial awarding of the Nobel Peace Prize to Liu Xiaobo, a Chinese dissident and China's condemnation of the process. It would have been expected that South Africa would support the Chinese Government on this, considering that it happened shortly after (then) President Zuma returned from a state visit to China. Yet, South Africa's relations with the USA remain on terra firma. Critics of South Africa's friendship with the USA, notably M. J. Molyneaux, argue that the "good relations" between the two countries merely guarant the USA "unfettered but covert control over the vast reserves of the world's strategic minerals in Africa - a position absolutely essential to USA global dominance".

National People's Party leader, Amichand Rajbansi, threatens that he would not co-operate with the James Commission, which was appointed by President P.W. Botha to investigate allegations of corruption and maladministration in the Tricameral Parliament chamber, the House of Delegates. Rajbansi accused the chairman of the commission, Neville James, of bias and requested that he should recuse himself. The commission of inquiry revealed that he used his offices to offer his close allies liquor licenses, influence the civil service appointments and promotions, and that he had improperly influenced witnesses against the previous parliamentary inquiries about his conduct in office.    

A dissatisfied faction of the Bophuthatswana Defence Force and some members of the National Executive Committee of the People's Progressive Party, led by Rocky Malebane-Metsing, attempted to overthrow the government of Chief Lucas Manyane Mangope. Mangope was held hostage for at least fifteen hours in Kemonosi Stadium. Metsing issued an instruction not to spill unnecessary blood while executing the coup. He further requested the then S.A. State President P.W. Botha and the S.A. ambassador in Bophuthatswana not to interfere. His request was not granted as the S.A. Defence Force moved in to return Mangope to power. Five people died and one person was injured during events that followed. After the failed coup Malebane fled the country and joined the African National Congress (ANC). He successfully applied to the Truth and Reconciliation Commission (TRC) for amnesty.  

The South African Airways Helderberg 747 jet aircraft crashed into the Indian Ocean near Mauritius, killing all 159 people on board. A fire, which started from the main deck cargo hold, caused the crash of the jet. The board of enquiry, headed by Mr Justice Margo, reported that the fire was fuelled by plastic and cardboard packing materials, but the actual source of ignition could not be determined. Sabotage was unlikely to have been the cause. According to Margo the smoke and fire detector systems as well as the fire fighting facilities were in poor working condition. The fact that a ZUR tape recording of flight had disappeared, rumours that there had been an earlier fire (information about which had allegedly been suppressed) and that the flight had carried dangerous cargo, led to wide-spread speculations in the press.

Two strategic acts of sabotage, supposedly by the Umkhonto we Sizwe (MK ), against the oil-from-coal plants based in Secunda failed to successfully hit their target. Though the African National Congress (ANC) military wing, (MK), did not claim responsibility for these acts, the South African Defence Force argued that it was the ANC who had planned and executed the sabotage attempts. Furthermore, the South African government blamed the Zimbabwean government for allowing MK to use Zimbabwe as a base to launch these attacks. The Zimbabwean government denied any responsibility and claimed that the acts were carried out from elsewhere.

The Soweto riots of 1976, in which school children protested against being taught in Afrikaans and were subsequently gunned down, detained, and exiled, led the Security Council to impose a mandatory arms embargo on South Africa in 1977. However, the Reagan and Thatcher governments, argued for 'constructive engagement' with, rather than isolation of, South Africa. This diminished the chances for more comprehensive sanctions on South Africa in the early 1980s. A mass grassroots campaign under the direction of the Free South Africa Movement, headed by Randall Robinson, began to further isolate the South African regime. On 27 November 1984, 250 people demonstrated outside the South African embassy in Washington in protest against apartheid and President Reagan's policy of constructive engagement. Other demonstrations like divestment campaigns, sit-ins, and college protests ultimately led to the passing of the Comprehensive Anti-Apartheid Act in 1986 over President Reagan's veto. By this time South Africa was denied its seat in the United Nations, banished from participation in many international sports, and subject to an almost comprehensive worldwide sanctions campaign.

Cyril Ramaphosa, a lawyer and General Secretary of the National Union of Mineworkers of South Africa, was arrested in Lebowa, on charge of organising or planning to take part in a meeting in Namakgale. The local magistrate had banned meetings in the town.

Dr. Nicholaas Diederichs (Nico), former Finance Minister, was inaugurated as South Africa's third state president, in succession of President Jim Fouche. Diederichs was elected unanimously by a joint session of the House of Assembly and the Senate under the Chairmanship of Chief Justice F.L.H. Rumpff. His inaugural ceremony, resembling a religious service, was conducted by Dr. J.S. Gericke and the Rev A.H. Jeffree-James in the two official languages. After the ceremony the new state president led the procession to the Grand Parade where he delivered his inaugural address. His term of office was of short duration as he died in August 1978.   

Dissatisfaction with the Coloured Persons Representative Council (CPRC), instituted in September 1969, climaxed with a motion of no confidence in separate development. This was followed, on 29 July, by a walkout of the Federal Party after its third defeat in three days by the Labour Party, led by Sonny Leon. The Federal Party was prepared to co-operate with the government within the framework of Apartheid, while the Labour Party was strongly opposed to it. While the Labour party won more seats in the CPRC election, the scale was tipped in favour of the Federal Party when the government appointed all twenty nominated members from the ranks of the latter party. This caused great bitterness in the ranks of the Labour Party.  

Dr D.F. Malan, leader of the National Party (NP) and first prime minister of the NP government that came into power in May 1948, retired from his position and withdrew from politics at the age of eighty. He was replaced by Advocate J.G. Strijdom as prime minister and leader of the party. Malan, a former minister of religion and editor of Die Burger before his political career started, was known as a sound thinker and eloquent orator.