South Africa considers increased import duties on renewable energy components
The Department of Trade, Industry and Competition is reviewing import duties on key components used in renewable energy projects
Image: Henk Kruger/Independent Newspapers
The Department of Trade, Industry and Competition is reviewing import duties on key components used in renewable energy projects as part of a broader strategy to drive local production and reduce reliance on foreign supply chains.
In a government gazette published on April 17 2025, the International Trade Administration Commission (ITAC) highlighted that South Africa's domestic demand trajectory, raw material resources, technological capacity, and manufacturing expertise position the country to potentially become a major player in both regional and international renewable energy supply chains.
The proposed change, as outlined by ITAC, would involve increasing customs duties on components essential for solar, wind, and battery storage technologies. These proposals have also been published for public comment.
"With careful calibration, an updated tariff structure could boost demand for, and enhance the competitive supply of, locally manufactured products and components. This shift would also unlock new export market opportunities and strengthen the competitiveness of the local renewable energy value chain," ITAC noted.
The National Employers Association of South Africa (Neasa) has pointed out that, if the proposed tariff increases are implemented, the duty liability on these products could rise from R371 million to R7.2 billion, based on 2024 import data.
"This increase is connected not only to current capacity but also to the possible future capacity to produce locally. If implemented, this would raise the duty liability on these products from R371 million to R7.2 billion," Neasa stated.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
13 hours ago
- IOL News
Alexforbes celebrates 90 years with impressive annual results
Alexforbes, a JSE-listed financial services group, said profit for the year from continuing operations improved 28% to R745 million, owing to a significant decrease in non-trading and capital items. Image: File Alexforbes delivered a strong set of results for the year ended March 21, 2025 on the back of a strong investment performance and as the group celebrates its 90th anniversary this year. Profit for the year from continuing operations improved 28% to R745 million, owing to a significant decrease in non-trading and capital items. CEO Dawie de Villiers said, "What excites me about Alexforbes is the way we have punched above our weight for 90 years and the impact we've had on the financial services industry. We have influenced and led real change and continue to do so and most importantly, we secure the financial well-being of members in the retirement funds that we serve. "With the vision of transforming clients' financial journeys, I am proud to share that we are making financial advice available to over 1 million members in our base. Across all ages, income bands and levels of wealth – every single one of our members can now access financial advice from Alexforbes to help them invest, plan and reach their investment destination," he said. The integrated financial services, insurance and investment group said its operating income increased 13% to R4.4 billion owing to strong investment performance underpinned by positive market growth that resulted in higher average assets under management, inflationary increases from within its retirements and healthcare consulting client base and high client retention. Operating income from retirement consulting increased 17% to R1.35bn owing to organic and acquisitive growth, while healthcare consulting reported a 2% increase in operating income to R371 million. Investments reported a 12% increase in operating income to R1.8bn, underpinned by higher average assets under management that benefitted from new institutional inflows, an improvement in retailflows and strong market performance during the year In addition, consolidation of acquisitions completed in previous financial years and higher than expected two-pot claims volumes also contributed to its top line. Alexforbes said it has processed over 480 000 two-pot claims and made gross benefits payments of R7.7bn, with R2.1bn paid to the South African Revenue Services. Total assets under management and administration increased 14% year on year to R599bn, while new institutional business flows for the year amounted to R35bn. Alexforbes said over the past two years, institutional new business levels have hit record highs driven by a significant increase in platform assets due to the platform clients on-boarded from the Sanlam stand-alone retirement fund administration business operations acquisition. Headline earnings per share from total operations increased 15% to 70.8 cents per share. Cash generated from continuing operations remains strong at R1.23bn, up 15% year on year. Alexforbes said, "The group balance sheet remains financially robust,supported by the sustained cash flow generated from continuing operations, with a sound regulatory surpluscapital position of R1 348 million and available cash of R700 million. The group cover ratio of 2.3 times remains above the target solvency cover ratio of 1.2 times." Alexforbes declared a gross final cash dividend of 33 cents per share (up from 30 cents per ordinary share in 2024), which when added to the interim dividend of 22c per share amounts to a total dividend of 55 cents per share for the year. The total annual dividend is up 10% year on year. In addition, the board declared a gross special dividend of 10 cents per share. It said, "Our prospects into the next decade are directly influenced by our vision, which is to transform every client's financial journey - through inclusive advice, intelligent technology and impactful solutions that empowers each one of them to reach their investment destination."
IOL News
4 days ago
- IOL News
Strengthening trade ties: South Africa must evolve beyond a market for Chinese products
South Africa and China have taken a firm step toward strengthening trade ties, with both nations agreeing to speed up efforts to make trade smoother and more efficient. Image: Sars South Africa and China have taken a firm step towards strengthening trade relations, with both countries agreeing to accelerate efforts to make trade smoother and more efficient. This follows a meeting between Chinese Ambassador to South Africa Wu Peng, SARS Commissioner Edward Kieswetter, and International Trade Administration Commission (ITAC) Commissioner Ayabonga Cawe in Pretoria on Wednesday. China is currently South Africa's largest trading partner, having overtaken the European Union in 2023. Bilateral trade between the two countries reached US$34.18 billion last year, significantly outpacing the EU's US$1.34 billion in trade with South Africa. However, despite the growth in trade, experts and economists have raised concerns about an imbalance in the structure of the relationship. In his weekly letter last year, President Cyril Ramaphosa also noted the need to boost South Africa's manufacturing capacity and increase exports of value-added goods. "There is an imbalance in the structure of our trade. South Africa exports mainly minerals and agricultural products to China and imports largely manufactured products from China." Kieswetter also expressed a vision for a partnership that goes beyond South Africa serving merely as a market for Chinese goods, advocating for increased Chinese investment in manufacturing and assembly operations within the country. 'China, as the largest trading partner to South Africa, is ideally suited to strengthen this long-standing relationship. I would like to see the relationship grow not only with South Africa as a marketplace for Chinese products, but as a destination for assembly and manufacturing by Chinese investors. South Africa is also ideally suited as a strategic partner into the rest of Africa.' Meanwhile, Peng described the relationship as an 'All-Round strategic cooperative partnership for a new era. 'China attaches great importance to developing economic and trade relations between China and South Africa, which in recent years have made great progress. Trade, investment, and personnel exchanges between the two countries have been increasingly strengthened.' ITAC Commissioner Cawe highlighted concerns about the unstable global trade environment and its impact on supply chains and key markets. He pointed to the risks of rising inventories leading to trade diversion, particularly for a small, open economy like South Africa. 'We remain open to engagement with our Chinese counterparts in securing the participation and co-operation of their exporters and other interested parties in such investigations, as a key trade-related element in our bilateral relationship.'he said. [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
Eyewitness News
4 days ago
- Eyewitness News
Ramaphosa satisfied with outcomes of White House visit
CAPE TOWN - The Presidency said that President Cyril Ramaphosa was enthused and satisfied with May's visit to the White House to hold talks with US President Donald Trump. His spokesperson, Vincent Magwenya, said that government believed that South Africa was in a much better position with the world superpower than it was prior to the visit. Magwenya said that since that visit, the false narrative of an alleged white genocide had also started to dissipate. ALSO READ: • Cabinet satisfied with Ramaphosa's working visit to US - Ntshavheni • Ramaphosa keen to end racial classification system but says it's necessary to address past inequalities • Ramaphosa says no one will be arrested for singing 'Kill the Boer' song • Ramaphosa: No intentions to make changes to SA's mining royalties structure • Ramaphosa pokes fun at Oval Office meeting with Trump The Presidency said that what the world viewed in the full glare of the Oval Office was not what transpired behind closed doors. Magwenya said that the real meat of the meeting took place in private. He said that the Department of Trade, Industry and Competition was awaiting a response to its proposal put to its US counterparts and more meetings were scheduled in the coming weeks and months. "Part of the issues that will be discussed will be issues of tariffs alongside what we see as an excellent opportunity to expand the basket of tradable goods between ourselves and the United States." Magwenya said the president had made it clear he wanted the benefits under the Africa Growth and Opportunity Act (AGOA) to continue when it comes up for reconsideration in September. "However, we are ready to discuss a new trade relationship framework in the absence of South Africa's continued participation." Either way, the Presidency said that government was better placed to reach a mutually beneficial trade relationship with the US than it was before May's visit.
