Star 2025-03-10

Relations between SA and the US have plummeted to historic lows under the Trump administration Economists have cautioned that South Africa will increasingly have to weigh its trade and diplomatic options in dealing with the uncertainty generated by the ‘shock and awe’ strategy of the Trump administration. This comes after the US threatened to collapse Iran’s economy by shutting down its oil industry. US Treasury Secretary Scott Bessent last week said that the US was deploying sanctions against Iran aggressively for “immediate maximum impact” with the aim to slash Iran’s oil exports of 1.5 million barrels per day to a trickle. Iran is one of the world’s major Brent crude oil exporters and a member of the BRICS+ bloc of nations. Diplomatic relations between South Africa and the US have…

Transnet Pipelines (TPL) has said it would increase vigilance on pipeline theft as it acknowledged the approval of a tariff decision which recognized the amount of work the division has put into protecting the pipelines. This announcement comes in the wake of the National Energy Regulator of South Africa (Nersa) recent decision to approve a 7.83% tariff increase for the financial years 2025/26 and 2026/27, taking into account the efforts made by the division to combat the tampering and theft of petroleum products. Nersa on Friday said the approved tariff adjustment, which gives the Minister of Petroleum Resources and Energy the authority to implement a R5.23-a-litre increase in fuel prices, reflected Nersa’s commitment to ensuring both public interest and regulatory certainty in the energy sector. The regulator is deeply concerned…

The rand weakened more than 1% to R18.24 against the US dollar, down from an over two-month high of R18.10 hit on 6 March, despite a weaker dollar, after US President Donald Trump announced plans to cut all federal funding to the country. The aid freeze comes as South Africa prepares a new trade proposal, amid concerns over the possible expiration of the African Growth and Opportunity Act (Agoa), which has facilitated billions in duty-free exports to the US. Trump on Friday repeated his claims that South Africa was being terrible to long time farmers in the country. “They are confiscating their land and farms, and much worse than that. A bad place to be right now, and we are stopping all Federal Funding,” Trump posted on his Truth Social…

Newco, a recently formed special purpose consortium, which is intensifying efforts to drive its bid to acquire JSE-listed industrial giant Barloworld, said on Friday that it will be engaging the Public Investment Corporation (PIC) on its broad-based transformation objectives. Newco comprises Entsha Proprietary and Gulf Falcon Holding, a wholly-owned subsidiary of Zahid Group. Newco's statement comes amid a contentious takeover battle that has pitted the Consortium against Barloworld’s second-largest shareholder, the PIC, and seen governance concerns dominate headlines. Caterpillar has also reaffirmed its support for the group’s Standby Offer. Caterpillar, Barloworld’s primary revenue driver, issued a statement on March 4, endorsing the Standby Offer structure that emerged following the collapse of the Consortium’s initial scheme of arrangement. The equipment manufacturer, a key player in Barloworld’s operations, stated, “It is our…

Retailers initially benefited from post-election momentum and hopes of gross domestic product (GDP) growth, but with limited economic reforms materialising, optimism has faded. The two-pot retirement system was expected to inject billions into consumers’ pockets, with the South African Revenue Service (SARS) last estimating the figure to be around R43 billion. While still significant compared to the social relief distress grant, it hasn’t had the anticipated impact on retail spending. High taxes on withdrawals and financial strain indicate that consumers used the money to pay for essentials such as school fees and debt rather than discretionary purchases. The real issue remains South Africa’s sluggish economy. Fourth quarter GDP growth was just 0.6%, largely due to a rebound in agriculture from a weak base, meaning no real per capita improvement. Debt-to-GDP…

Philippa Larkin philippa.larkin@inl.co.za Cosatu has sounded the alarm over what it calls AfriForum’s “dangerous” behavior, linking the group’s recent international lobbying to a massive R8 billion cut in US aid and potential economic fallout for South Africa. This as there are fears that investor and business confidence will be affected. In a statement on Friday, the federation accused AfriForum of spreading racism and fake news, with devastating consequences now hitting the country. "Cosatu would not normally want to give airtime to fringe juvenile lunatics, let alone those inebriated with racism and fake news, however an exception needs to be made for AfriForum’s acts of buffoonery due to the very real pain we believe they have caused and will further inflict upon millions of South Africans, black and white," the trade…