Spaza Shop Campaign benefits local business owners
'Before today, I didn't know where to start or which documents were truly necessary. This workshop answered questions I've had for years. Now, I understand what compliance actually means and how to meet those expectations,' spaza shop owner Matshidiso Mooki said.
Mooki was among those who attended the session held at the City Hall in the Vereeniging Central Business District in Gauteng on Friday.
She said the campaign brought clarity.
'I am determined to ensure that I comply with all the regulations so that I can qualify for support through the Spaza Shop Support Fund,' she said of the session.
The campaign offered spaza shop owners and township-based convenience store operators critical information on how to apply for both financial and non-financial support under the R500-million fund that was launched by Trade, Industry and Competition Minister Parks Tau and Small Business Development Minister Stella Ndabeni Abrahams in April.
For Matome Tshabalala, the information received at the session was a game changer. He started his shop after the COVID-19 lockdown.
'I've always operated informally, but now I want to do things the right way. What stood out for me was the emphasis on record-keeping and understanding zoning laws. I also appreciated the introduction to stock management and bookkeeping,' he said.
The campaign, which aims to formalise and support township-based enterprises, brought together local spaza shop owners, government officials and business development stakeholders.
Compliance
Participants at the session heard about the importance of compliance requirements for spaza shop permit applications.
Matshepo Madumbo, the Assistant Manager of Local Economic Development and Tourism at Emfuleni Local Municipality, emphasised the importance of adhering to municipal regulations when applying for permits.
'Many residential areas are not zoned for commercial activity. For a spaza shop to operate legally, the property owner must apply for a rezoning certificate. Without that, the business cannot be recognised as compliant.
'I cannot stress the importance of submitting a stamped building plan, an occupancy certificate, certified identity document, a proof of address no older than three months, and registration documents from the Companies and Intellectual Property Commission (CIPC) along with a valid tax clearance certificate,' she said.
Madumbo noted that failure to comply with these requirements often leads to unnecessary delays and missed opportunities for funding and supplier networks.
'The Spaza Shop Support Campaign continues to rollout across provinces, ensuring that township entrepreneurs are not only included in the broader economic framework but are also equipped to thrive within it.
'By focusing on compliance, formalisation, and access to resources, the campaign is helping to level the playing field for small business owners in underserved communities,' said the Department of Trade, Industry and Competition and the Department of Small Business Development. – SAnews.gov.za
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Daily Maverick
an hour ago
- Daily Maverick
Trump tariffs – D-day for South Africa and its economic relations with the US
With the 1 August deadline upon us and no trade agreement yet, experts agree that relations between South Africa and the US would need a reset and cool heads to negotiate. With hours to go before US President Donald Trump's tariffs are expected to come into effect, South Africa announced 'urgent interventions' to support exporters impacted by the tariffs. 'The Department of Trade, Industry and Competition (DTIC) has announced a set of measures in response to the imminent 30% tariff hike on South African exports to the United States, which comes into effect on 1 August 2025. 'These urgent interventions are part of the DTIC's ongoing commitment to protecting jobs, preserving market access to the United States, and promoting export diversification to alternate markets in Africa, the European Union, Asia, Latin America, and other strategic partners,' Trade and Industry Minister Parks Tau said in a statement on Thursday night, 31 July. This comes hours after Tau told Radio 702 that South Africa was preparing a last-minute 'enhanced' trade proposal in the hope of avoiding Trump's punishing tariffs. Key among the interventions, Tau said, was the establishment of an export support desk, which would serve as a direct point of contact for companies affected by the US tariff hike. 'The desk will provide updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African Embassies and High Commissions abroad,' said Tau. 'This tariff hike poses a direct threat to our export capacity, particularly in strategic sectors such as automotive, agro-processing, steel and chemicals, amongst others. 'We are working with urgency and resolve to implement real, practical interventions that defend jobs and position South Africa competitively in a shifting global landscape. The stakes are high and we must respond decisively to ensure our export industries remain resilient, competitive and globally integrated into diversified markets,' he said. Tau said exporters were encouraged to visit the DTIC website for updates and also to engage directly with the export support desk. At a White House press briefing on Thursday, press secretary Karoline Leavitt reiterated that on 1 August, the reciprocal tariff rates 'will be going into effect'. She said that foreign leaders of countries that did not have deals would be 'hearing from this administration by the midnight deadline tonight'. Leavitt said that Trump would be 'signing an executive order at some point this afternoon or later this evening' imposing new tariff rates. However, she did not rule out the possibility of the Trump administration making deals with countries that still did not have agreements in place, before midnight on Thursday. 'I will never count out the president… I do know foreign leaders are ringing his phone realising this deadline is a real thing for them tomorrow and they are bringing offers to the table,' she said. South Africa is confronting the most critical moment in its fraught relations with the US, staring at exports worth almost $10-billion being exposed to stiff tariffs that risk making these goods uncompetitive. That is the estimated value of South African exports vulnerable to the 30% 'reciprocal' and sectoral import tariffs threatened by the Trump administration. South Africa has been advised to diversify its export destinations urgently – especially to Africa – to reduce its dependency on the US. Nevertheless, the world's largest economy remains critical for now and South African officials have been working frantically to secure an alternative trade deal with the US to avert President Donald Trump's 1 August deadline for imposing hefty tariffs on most countries. However, said Eckart Naumann, independent economist and associate of the Trade Law Centre (Tralac), 'many dozens of countries are also knocking on the door and US trade officials will likely be run off their feet'. Tralac is a non-profit organisation that builds trade-related capacity in Africa. On Thursday, 31 July, Minister of Trade, Industry and Competition Parks Tau told radio station 702: 'We actually spoke to the US last night, both at the level of the embassy and also at the level of the US trade representative. They indicated that even they are unable to confirm what the announcement [on South Africa's tariff rates] would be, and that they would encourage us to resubmit our proposal, possibly an enhanced proposal, to the US government. It would be processed by the White House… At this point, they are unable to say what the final decision would be.' 'Reckless statements' In his statement, Tau said the DA, 'instead of providing constructive support to the efforts made by government', continued to release 'reckless statements which undermine the progress' the department has been making towards the 1 August deadline. 'In a trying moment for South Africa, there still remain those who would seek to sabotage our efforts to resolve this impasse. Despite our tireless efforts, which we have, where possible, communicated consistently on, some segments of our country refuse to be part of the solution. 'Instead of providing constructive support to the efforts made by government, the Democratic Alliance continues to release reckless statements which undermine the progress we have been making towards the 1 August deadline. This is downright irresponsible for a party in the Government of National Unity, and an integral part of the process,' said Tau. Earlier on Thursday, Business Day reported that South Africa was offering the automotive and agricultural sectors alternative markets and possible Treasury-backed tax incentives, part of a two-part contingency plan to keep production lines going if SA was faced with a 30% tariff from Friday. In response, DA spokesperson on finance Mark Burke said this 'new deflection' by Tau is meant 'to make up for his and his party's failed foreign policy pageantry'. 'Instead of securing a trade deal, Tau now expects our Treasury to borrow or tax South Africans more to pay for the costs of the ANC's association of our state with rogue nations like Iran,' said Burke. The chances of South Africa averting or extending the deadline seemed to dim this week when Trump told reporters that he would probably not be attending the G20 Summit in Johannesburg in November 'because I've had a lot of problems with South Africa. They have some very bad policies.' He also posted on his social media site Truth Social: 'The August 1 deadline is the August first deadline – it stands strong and will not be extended. A big day for America!' South Africa has offered a package of concessions, including lowering tariff barriers to US food imports, buying US gas and committing local companies to investing in US mining and recycling. But many analysts fear it will not be enough because it's not so much about economics as it is about politics. Zane Dangor, director-general of the Department of International Relations and Co-operation, told the Kgalema Motlanthe Foundation's winter seminar this week that there was a risk of SA being punished for its domestic policies – particularly black economic empowerment (BEE) – no matter what economic deal it put on the table. Reserve Bank governor Lesetja Kganyago said earlier this month that Trump's tariffs could cause about 100,000 job losses, with the agriculture and automotive sectors hardest hit. Naumann said the US imported goods worth $14.6-billion from South Africa in 2024, according to its own data. However, he noted that about 36% of these exports were exempt from the new tariffs because they were natural resources (mainly platinum group metals, rhodium and gold) that the US needed. This would leave South African exports to the US worth $9.344-billion vulnerable to the potential new tariff rates. Naumann said South Africa's exposure to the US as an export market was relatively limited, with about 7.5% of its total exports going to the US. 'However, in some sectors, South Africa's exposure to the US is quite high,' he said. 'For example, last year, 29% of our boat exports went to the US duty-free under Agoa [the African Growth and Opportunity Act]; 25% of aluminium and articles thereof were exported to the US and are now subject to 50% tariffs; 11% of our auto exports were shipped duty-free to the US and, along with much of the rest of the world, now face a 25% sectoral tariff. 'In contrast, key competitors like the EU, UK and Japan, and indeed Mexico under the US-Mexico-Canada Agreement, have negotiated far more preferential access to the US for their motor vehicle exports.' Naumann noted that the tariffs SA faced were differentiated: there were the 30% 'reciprocal' tariffs, but also sectoral tariffs of 25% on autos and parts; 50% sectoral tariffs on steel and aluminium; an existing 10% general tariff (to be replaced by the reciprocal tariff) and a threatened extra 10% tariff on all BRICS member countries. 'The days of preferential access to the US market are definitely over,' Naumann added. For now, under Agoa, the US was still waiving standard 'most favoured nation' duties – though not the additional ones the Trump administation has added. He thought it doubtful that South Africa – perhaps any country – would remain in Agoa in its current guise after its scheduled expiry on 30 September. 'The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the US, and a reset is unavoidable,' Tau said in a statement this week. He said SA had decided not to retaliate in terms of the tariffs and awaited the US's response to its proposed framework deal. The deal included South Africa importing 75-100 petajoules of US liquified natural gas for a 10-year period, unlocking $12-billion; giving the US more agricultural market access by simplifying US poultry imports, unlocking about $91-million in trade; being ready to open the South African market for US blueberries; local firms committing to invest $3.3-billion in US industries such as mining and metals recycling; and both governments agreeing to pursue joint investment in critical minerals, pharmaceuticals and agri-machinery. Tralac CEO Trudi Hartzenberg, however, thought pork and poultry seemed a 'tricky' part of the negotiations. Donald MacKay, director of XA Global Trade Advisors, said although the state of the SA-US trade negotiations was very murky, in part because both sides had signed a non-disclosure agreement, he suspected that South Africa would, in fact, be hit with the threatened big 30% tariffs. But he was hoping that the US would give South Africa another reprieve – an extension of the deadline to complete negotiations for a new deal. 'The hardest-hit centres by my estimation are going to be fresh fruit, particularly citrus and table grapes.' But MacKay said probably about half of these products had already been exported this season. 'So, still bad, but … it really means next year's going to be a particularly big problem'. MacKay added: 'The government keeps telling people to find other markets, as if that is really easy to do. For a product like citrus, we already export to over 100 countries. There's just not that many left we can send [citrus] to and certainly none left that will get us the same kind of prices we get in the US. 'Cars, of course, are not included in the 30% tariff, but they've already got their own 25% tariff. We've seen how that looks with Mercedes-Benz at least temporarily closing down its factory,' he added, referring to the company shutting down its manufacturing plant in East London for July, though it was reopened this week. MacKay said South Africa needed 'to get back to basics. We need to get a properly functioning, professional ambassador into the US. I can't even remember the last time we had a properly functioning ambassador.' Tau has been criticised in some quarters for the way he has handled the trade negotiations, but MacKay said because the negotiations had been held behind closed doors, it was impossible to judge. But, he said, he would like the government 'to put some time in with the sectors and the companies most negatively impacted to look at what can be done'. Daniel Bradlow, an economic diplomacy expert at the University of Pretoria and the South African Institute of International Affairs, said: 'The lesson from all of this, not just from South Africa, but from what's happening everywhere, is countries have to learn how to restructure their trade relations to work around the US.' For South Africa and for Africa generally, this meant there was a need to accelerate the implementation of the African Continental Free Trade Agreement (AfCFTA) and other African regional trade arrangements. The institutions that needed to be developed more intensely included regional multilateral financial institutions in Africa such as the Trade and Development Bank and the African Export-Import Bank, which focuses specifically on developing trade for Africa, and several others, Bradlow said. 'And I think South Africa should be looking at: how do we make those more robust and more effective?' Other critical issues to address – which were being tackled in South Africa's G20 – were making Africa's debt more sustainable and how to increase development finance, because that would help to finance the regional infrastructure that is needed to implement the AfCFTA. Bradlow said whatever the outcome of the SA-US trade negotiations – even if the US accepted the Department of Trade, Industry and Competition's package, South Africa would be hit as the US was a big trading partner. It was just a question of how much. He noted that, for starters, a 10% increase was a given as no country had escaped that so far, except on critical minerals, though some countries had managed to lower their reciprocal and sectoral tariff rates. On the auto industry, he said one of the big questions was how the foreign auto producers would react to a tariff increase: 'Would they start shutting down factories?' Like the government, Bradlow also said South Africa and other countries needed to shift trade relations away from the US because, even if a Democrat were to oust Trump in 2028, Democrats might not change the tariffs much – as former president Joe Biden had not changed much of Trump's tariffs in his first term. Naumann noted that the US was South Africa's second-largest export destination by country (7.5% of total exports) and China its first with 11%. Both were overshadowed by the EU, which gets 17% of South African exports and the Southern African Development Community free-trade area. 'But our exports to the US are far more diversified than our exports to China, which are mostly raw materials or resources. That makes the US probably the most important destination as a country, albeit shadowed by the EU as a whole.' A major report on SA-US trade relations just published by Tralac shows the impact of increased US tariffs on South African companies and industries would depend on several factors, including tariff advantage or disadvantage relative to competitors; the seasonality of demand and supply (how responsive demand is to the landed costs of products); and US domestic policies such as local tax breaks on locally produced autos. MP Toby Chance, the DA's spokesperson on trade, industry and competition, said Tau had been slow in realising the danger from Trump's tariffs and in taking action 'both to woo him and explore alternative markets'. He said South Africa had erred in not tackling Trump's 'instinctive negativity' towards the country with better diplomacy, citing the appointment of Ebrahim Rasool as ambassador and Mcebisi Jonas as special envoy to the US. 'I think it is highly likely we will end up on the higher end of the 10% to 30% tariff spectrum, though there could be some sweeteners such as concessions on counter-seasonal fruit, which would help our citrus growers. 'Another glaring omission is the government's ignoring the issue of non-tariff barriers, continually raised by the Trump administration as factors in the negotiations, which are a bar to investment not just by the US but other countries and firms, e.g. BEE, the Employment Equity Act, expropriation without compensation, etc.' Naumann said it was probably unfair to criticise SA's negotiators for the perceived lack of progress. 'We're not first in line for a reasonable deal and apart from years-long neglect and being virtually absent in Washington – and still without an ambassador or interlocutor – politically we're certainly not well favoured by Washington. We shouldn't maintain high hopes of a particularly favourable outcome involving exemptions and a low country tariff rate, as this just doesn't appear to fit the current political narrative.' He thought new tariffs for South Africa would be postponed for further negotiations, but added: 'The US will be careful not to make concessions to South Africa that might undermine dozens of other trade deals being pursued right now.' DM
The Citizen
6 hours ago
- The Citizen
Tau launches urgent support measures for exporters affected by US tariffs
South Africans have been asking for more information on the US tariffs. It seems that there is now some movement at last. Minister of Trade, Industry and Competition (dtic) Parks Tau has announced in a late statement on Thursday that his department is launching urgent measures to support exporters affected by the US tariffs. His statement came after a week of no communication from the dtic, apart from saying negotiations are at a sensitive stage. He lambasted people spreading rumours, saying in a trying moment for South Africa, there remain people who 'would seek to sabotage our efforts to resolve this impasse'. 'Despite our tireless efforts, which we, where possible, communicated consistently, some segments of our country refuse to be a part of the solution. Instead of providing constructive support to the efforts made by government, the Democratic Alliance continues to release reckless statements which undermine the progress we have been making towards the 1 August deadline. 'This is downright irresponsible for a party in the government of national unity and an integral part of the process. We will not, however, be deterred by this.' ALSO READ: Economists question if SA has a plan for US tariffs, Tau says here it is Set of measures in response to imminent US tariff Tau said the department announced a set of measures in response to the imminent 30% tariff hike on South African exports to the US, which comes into effect on 1 August. 'These urgent interventions are part of the dtic's ongoing commitment to protecting jobs, preserving market access in the US and promoting export diversification to alternate markets in Africa, the EU, Asia, Latin America and other strategic partners.' One of the most important interventions is the establishment of an Export Support Desk, which will serve as a direct point of contact for companies affected by the US tariff hike. Tau said the Desk will provide updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African embassies and high commissions abroad. 'This tariff hike poses a direct threat to our export capacity, particularly in strategic sectors such as automotive, agro-processing, steel and chemicals amongst others. As government, we are fully committed to supporting our exporters through this challenging time. ALSO READ: Citrus growers call on president to urgently intervene about 30% US tariff Dtic working with urgency now 'We are working with urgency and resolve to implement real, practical interventions that defend jobs and position South Africa competitively in a shifting global landscape. The stakes are high and we must respond decisively to ensure our export industries remain resilient, competitive and globally integrated into diversified markets.' Exporters are encouraged to engage directly with the Export Support Desk and also visit the dtic website regularly for updates and support mechanisms. Tau said the dtic remains steadfast in its mission to assist local producers and safeguard South Africa's trade interests amid growing global uncertainty.
Daily Maverick
6 hours ago
- Daily Maverick
The writing is on the wall for ArcelorMittal long steel
With the 30 September deadline for winding down the long steel business looming and R1bn in headline losses bleeding from ArcelorMittal South Africa's balance sheet, CEO Kobus Verster is running out of patience with what he calls 'misguided policies' that have crippled the local steel industry. Speaking after the release of devastating interim results that showed a loss of R394-million despite a cash injection from the Industrial Development Corporation, Verster delivered a blunt message to the government: fix the structural problems strangling steel production or watch South Africa's last integrated steelmaker cannibalise itself to survive. 'If that's not on the cards and we can't get agreement on that, then I have to find an alternative to basically recapitalise the business from within,' Verster told Daily Maverick, outlining plans to sell off valuable assets including Saldanha Steel, which he described as being 'in very good condition' with potential for green direct reduced iron production. 'Saldanha Steel is a valuable asset. We had intent for it in terms of green DRI (direct reduced iron). The assets are in a very good condition, but I can't wait five or six or seven years. Maybe there's a partnership or another party that can give me value.' The warning comes as ArcelorMittal prepares to monetise what it calls 'non-core assets' – including Saldanha Steel, the Tubular Mill, Vereeniging Bar Mill, ArcelorMittal Rail and Structures, and various properties – in a desperate bid to shore up its balance sheet and keep the lights on at its remaining flat steel operations. What this means for you As I reported just a few weeks ago, the closure of the long steel business directly threatens about 3,500 jobs. However, as seen with the closure of the Saldanha Steel plant in 2020, the collateral damage goes far beyond that. At the time, management said about 900 direct jobs would be lost. The downstream impact has been far wider, forcing the closure of, among many other supplementary businesses, a local car wash that was used by Saldanha Steel employees. Steel businesses that relied on Saldanha Steel, such as Anderson & Kerr, as well as Duferco Steel Processing, have also taken knocks that resulted in retrenchments. Five years later, many of the employees who once worked at Saldanha Steel remain unemployed and at least one has taken on a job as a local petrol attendant to keep food on the table. 'Misguided policies' At the heart of ArcelorMittal's crisis lies what Verster characterises as a web of 'misguided policies' that have systematically undermined integrated steel production while inadvertently subsidising smaller scrap-based mills. The most contentious is the Price Preference System on scrap metal, which ArcelorMittal claims has transferred 'more than R60-billion over a decade from informal workers and recyclers to a handful of capital-intensive scrap-based mills.' But scrap policy is just one front in what has become an infrastructure war of attrition. Rail performance has 'deteriorated substantially,' forcing ArcelorMittal to transport 62% of raw materials by road – up from 20% – while rail transport dropped 30%. 'Our plants are designed to take a train, tip it into our conveyor system, and it takes everything to the relevant places,' Verster explained. 'Now you have to go and offload those big trucks in the yard, you have to get equipment and move that around, and you have to accommodate about 370 trucks per day into your operation. Those are the types of costs.' The combined impact of disruptive rail and electricity interruptions added R358-million in costs during the first half of 2025 alone. Import invasion While domestic infrastructure crumbles, imports have surged to more than 35% of local steel demand, prompting ArcelorMittal to seek protection through safeguard duties. The company achieved a partial victory in June when a provisional safeguard duty of 52.34% was imposed on corrosion-resistant steel coil for 200 days, based on findings of 'serious injury' to local industry and 'critical circumstances'. But Verster argues the government should go much further: 'The government should be much more aggressive in implementing more blanket protection against all steel, which all other countries are doing. Countries have 25% duties, and they enforce it – then you should not have less.' He pointed to Canada's quotas and additional duties to exclude Chinese products, while noting that even provisional duties already in place haven't shown their full impact, partly because imports are sometimes declared at '10% of the value'. The long steel endgame Despite the IDC's R1.683-billion lifeline – now fully utilised – the long steel business remains on death row. Verster confirmed that 'the timeline and our conditions are exactly the same' for the 30 September wind-down date. The IDC funding, he said, has 'largely neutralised' the losses from the long steel business, but ArcelorMittal 'cannot assume any further financial risks related to the Long Steel Business beyond the next few months'. The company is awaiting the outcome of the IDC's due diligence process, but appears to be preparing for the worst. Asset monetisation plans are already being finalised, with proceeds earmarked to 'reduce debt levels and invest in the core Flats Business for earnings and cashflow improvement'. Cautious optimism Despite the grim numbers, Verster detected signs of improvement in recent months. 'Recently, we perform[ed] a lot better on that front and it also appears the market is taking a bit more material in the last two months than previously, so hopefully that will be behind us.' The company is pursuing what it calls 'export replacement' strategies. Verster said, 'Our intent is not just to recover the 10%. Our intent is to recover the 10% but then move beyond that and replace more imports.' However, the outlook for the second half of 2025 remains cautious, with domestic demand expected to stay constrained despite modest improvements in global steel sentiment. The bottom line What emerges from ArcelorMittal's interim results is a portrait of an industry under siege – not just from global market forces, but from a perfect storm of policy failures, infrastructure collapse and regulatory inaction. Verster's message to the government is clear: 'You cannot have these expensive rail and electricity costs and think manufacturing organisations can survive. Once again, it's not a thing you see – you see the same issues in the smelters and ferro-alloys and others.' His frustration is palpable. 'This is not a crisis you can almost say is a South Africa steel issue. It's not a steel issue. It's an economic issue.' DM
