Star 2025-04-07

Stock markets around the world got a bloody nose for a second day on Friday, and the JSE All Share Index slumped 5.26% as investors fretted about a global recession arising out of Donald Trump’s import tariffs and an expanding global trade war. Adding fuel to the fire in South Africa are deepening political risks. There was talk in the US of a review of ties with South Africa given its links with Russia, Iran, and China. Locally, the future of the Government of National Unity also hangs in the balance. The JSE Resources Index slumped 9.77%, the JSE Precious Metals and Mining Index was down 10.37%, chemical companies fell an average 8.88%, companies making in industrial materials index fell 10.03%, while the JSE Healthcare Index fell 6.06%. Even the…

Minister of Small Business Development Stella Ndabeni-Abrahams has revealed that her department was finalising the long-overdue Township and Rural Economic Development and Revitalization Policy to support township enterprise hubs, zones, and clusters. In 2023, the government commissioned a study on mapping and identification of opportunities in 20 townships focusing on local production and import substitution, infrastructure support, and investment in industrial parks. The study also looked into various aspects such as the economic linkages with other townships and the broader economy, extent of industrialisation, critical challenges affecting economic development, funding and financial instruments. South Africa’s townships still experience poor investment, overpopulation, poor infrastructure, high levels of unemployment, deepening poverty and isolation from mainstream economic centres. Speaking at the 60th anniversary celebration of the National African Federated Chamber of Commerce and…

South Africa is preparing for significant diplomatic engagements with the United States following the hefty 31% reciprocal tariffs announced by President Donald Trump, which have effectively nullified the African Growth and Oppotunity Act (Agoa) benefits. This engagement is crucial as the South African government seeks to understand the implications of the new trade policies and formulate an appropriate response. Minister of Trade, Industry and Competition, Parks Tau, on Friday said the initial delays in the visit to the US were strategic, intended to coincide with expected announcements concerning global trade and tariffs. “We thought it was important that when the announcement is made, we assimilate the information and respond accordingly,” Tau said. “Our approach has always been to engage with the US, to find solutions and resolve problems rather than…

Government plan to mitigate emissions without dismantling the current coal-dependent energy structure Electricity and Energy Minister, Kgosientso Ramokgopa, has announced that the government was actively engaging with technological leaders in China and Japan to embrace low-temperature coal-burning techniques paired with ammonia, aiming to mitigate emissions without dismantling the current coal-dependent energy structure. This initiative is seen as a necessary step towards repurposing aging coal-fired power stations such as Komati and Rietvlei, while ensuring that South Africa’s energy demands are met sustainably. During a recent session in the House of Assembly’s plenary session, Ramokgopa responded to questions from various Members of Parliament, including IFP’s Nompumelelo Mhlongo, People’s Assembly Wayne Thring, MK Party’s Adil Nchabaleng, and DA’s Kevin Mileham. Ramokgopa emphasised that the core issue lied not with coal itself, but with…

South Africa must urgently pursue a new trade deal with the US to safeguard its economic interests amid rising tariffs and strained diplomatic ties, a senior business leader said, as the Trump administration’s “Liberation Day” policy threatens to unravel decades of duty-free access under the African Growth and Opportunity Act (Agoa). Dr Stavros Nicolaou, a member of the South Africa BRICS Business Council who is responsible for the trade portfolio, said in an interview on Friday with Business Report Executive Editor Philippa Larkin that a new agreement is vital following the US imposition of a 30% tariff on South African goods, effective this Wednesday (April 9), alongside a global 10% import levy announced on April 2. The US is key market for South Africa’s merchandise exports, having accounted for…

Markets on Monday are expected to crash. It is not exactly rocket science. The world hates uncertainty and what is happening right now is uncharted economic waters that no one has sailed before - all thanks to US President Donald Trump and co. This after Trump’s latest tariff bombshell has flipped the global economic script, leaving markets reeling and wiping out more than a trillion dollars in value, and world leaders scrambling for answers. The US, burdened with $36.2 trillion in debt - $9.2trl (R165.6trl) of which needs refinancing this year - has rolled out a bold new play: a 10% universal tariff on all imports, effective April 5, plus tailored “reciprocal tariffs” for specific nations. The White House frames it as a shield for national and economic security,…