Rand gains on weaker dollar but tariff concerns linger
The rand traded at 17.80 against the dollar on Wednesday afternoon, roughly up 0.5% on Tuesday's close.
This week's major focus for South Africa is whether it can negotiate a better trade pact as it faces a 30% duty on goods exported to the US, the highest rate among sub-Saharan African countries.
The dollar last traded 0.3% weaker against a basket of currencies as investors held back from making big bets, still reeling over the disappointing July employment report but also on the lookout for US President Donald Trump's decision on appointments to the Federal Reserve.
Trump on Tuesday said he would soon announce a short-term replacement for Fed governor Adriana Kugler, who announced her resignation on Friday, as well as his pick for the next Fed chair.
'The dollar is losing its exceptionalism and is steadily finding itself on the defensive, allowing other currencies to make up lost ground,' ETM Analytics said in a research note.
The JSE's Top-40 index was up 0.5% and the wider All-share index up 0.4%.
The benchmark 2035 government bond was little changed as the yield rose half a basis point to 9.68%.
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Mail & Guardian
2 hours ago
- Mail & Guardian
The new trade playbook: Africa's response to US bilateralism
US President Donald Trump announced a 30% tariff on South African goods, saying his country's relationship with Pretoria has been, 'unfortunately, far from reciprocal'. (X) On 2 April, the world witnessed a trademark move from US President Donald Trump, who declared the day Using an unprecedented and unconventional methodology, the US calculated these tariffs by taking its trade deficit with each country, dividing it by the value of that country's exports to the US, and then halving the result. The outcome was a sweeping set of tariffs ranging from 10% to 50%, with countries such as Lesotho at the upper end of the scale. This one-size-fits-all approach blatantly disregards unique country-specific realities, especially for least developed countries. Take Lesotho: years of support from successive US governments under the African Growth Opportunity Act helped it develop an export-oriented apparel industry employing about More broadly, the reciprocal tariff regime is not only punitive, it undermines US commitments under World Trade Organisation (WTO) rules. It poses a direct challenge to the multilateral trade system, and Africa is directly in the crosshairs. The tariffs will be felt across African countries. Although the US announced a pause in implementing full reciprocal tariffs until August, providing a window for One noteworthy example of this is the UK-US 'Economic Prosperity Deal'. The two parties seem to have agreed on a Other countries — including Vietnam, Philippines and Japan — have signed bilateral deals involving adjusted tariff rates (20%, 19% and 15% respectively). These are accompanied by supplementary conditions such as penalties on transhipped goods or sector-specific investment clauses. Notably, there is no trade deal, yet, with any African country. Zimbabwe was the first African country to respond in April 2025, prematurely, by suspending all tariffs on US imports in a bid to signal goodwill. Meanwhile, major African economies such as South Africa and Kenya are deep in negotiations, attempting to secure favourable terms in the face of mounting pressure. While another extension to the tariff pause seems likely, it's clear that the US is pursuing a transactional, bilateral trade strategy, offering selective relief in exchange for sectoral concessions or access to strategic resources like critical minerals. This approach is deeply concerning. It reduces complex trade relationships to blunt negotiations, with developing countries expected to simply 'take it or leave it'. Such a strategy fragments global trade into a patchwork of uneven bargains, privileging those with greater economic or strategic clout. For African countries, the risk is clear: without a united response, they risk being sidelined. The danger is that African nations may be pressured into accepting inequitable deals without the protection of multilateral institutions like the WTO. These deals could extend to critical sectors such as raw materials, where African leverage is significant but often underused. In response, African countries must pursue smart sector-specific bilateral deals and push for tariff exemptions on key exports like apparel, coffee and minerals. Leveraging the continents' strategic assets (minerals such as cobalt, lithium, for example) is critical to securing favourable terms. At the same time, it is crucial to diversify trade partnerships with emerging economies like China, and enhancing South-South cooperation for new export markets will be key. Long-term resilience will also require African governments to invest in industrial competitiveness and deepen regional integration under the African Continental Free Trade Area. In this new trade playbook, Africa must not be a passive player. With coordinated strategy and assertive diplomacy, the continent can protect its interests and shape a more equitable global trading order. Shimukunku Manchishi is a senior policy officer: trade at African Future Policies Hub.
IOL News
3 hours ago
- IOL News
Trump's Economic Coercion Failing to Intimidate BRICS Countries
Demonstrators burn a US flag and a picture of US President Donald Trump during a protest in defence of national sovereignty following the US government trade taxes and sanctions on Brazil, near the US consulate, in Sao Paulo, Brazil, on August 1, 2025. Image: AFP Kanwal Sibal US President Trump has rattled Washington's ties with New Delhi to an unexpected degree. Countries, including India, were prepared for rough diplomatic weather after Trump won his second term, but did not anticipate the kind of onslaught he has unleashed on the global system and diplomatic norms. Trump's latest attack on India and the BRICS countries explains this underlying dynamic. The BRICS aspire to play a greater political, economic and financial role in global affairs. This aspiration is based on shifts of economic and concomitant political and financial power towards the so-called emerging powers or middle-income countries. BRICS countries have already begun to use their national currencies in trading with each other as much as possible. The use of draconian financial sanctions on Russia by the West has accelerated this process. Today, almost all trade operations between Russia and China are conducted in rubles and yuan. India, too, is encouraging the use of its national currency in payment transactions with select countries. A significant portion of the trade between India and Russia is now settled using a rupee-ruble mechanism. Washington cannot use secondary sanctions to prevent countries, including India, from using the US dollar to trade with Russia and then oppose de-dollarisation if these countries are compelled to use alternative payment mechanisms. If the US continues to weaponise the dollar, it will inevitably lead to the very 'de-dollarisation' that Trump is concerned about. India has officially disowned any de-dollarisation agenda, not the least because the US is its biggest trade partner in goods and services. India seeks more investments and technology transfers from the US. In many ways, New Delhi's ties with Washington are the most important for achieving its growth and developmental goals. But that does not preclude India from establishing other partnerships to reduce over-dependence on one country, balance its external relations and hedge against the excesses of US foreign policy. Trump has exacerbated the disruptions caused by Washington's frequent use of sanctions as a political weapon by also weaponising tariffs. He is convinced that by imposing arbitrarily determined tariffs on imports from other countries, he will compel them to enter into negotiations with the US to obtain relief by lowering their high tariffs on American products. But India on Wednesday sent a clear message: it is determined to protect the interests of its businesses, farmers and people. Trump's use of tariffs as a lever, like in the case of Brazil, where he has cited President Lula's treatment of his predecessor Bolsonaro as a reason for imposing 50% levies, is being closely monitored by the world's governments. Trump has repeatedly targeted BRICS since his return to the Oval Office. He had threatened the countries with tariffs if they continued to pledge to create a new common currency or support any alternative to the US dollar. Trump appeared to harbour the illusion that BRICS was 'dead' following his threats, which have now materialised into action. In reality, the BRICS summit held in Brazil this July showed no visible signs of intimidation. On the contrary, such overt displays of American economic coercion may well drive more countries toward alliances that seek to challenge the dominance of any single global power. The administration in Washington appears to lack realism in its assessment of global trends. Trump positions himself as a peacemaker and openly aspires to win a Nobel Peace Prize, while at the same time bombing Iran and assisting Israel in perpetuating the humanitarian crisis in Gaza. Similarly, threatening China as a BRICS member with 100% tariffs so casually – along with talk of bombing Beijing if the People's Republic were to invade Taiwan – makes little sense, especially given that an interim trade deal has already been reached and further negotiations are imminent. The US cannot reasonably claim that forums like BRICS have no right to determine their agenda in pursuit of their shared interests. At the same time, the US has walked out of or subverted key international agreements and institutions. It has withdrawn from the Paris Climate Change agreement, the WHO, the UN Human Rights Commission and UNESCO. Trump seems to believe that these organisations cannot function or survive without the presence of the US and its financial contributions. In reality, the US will lose its voice and its leadership in these international forums. The space it vacates will be filled by others, especially China. Beijing has already carved out enormous influence in the UN institutions, as it is now the second largest contributor to the UN. With Washington also bullying Europe and thereby damaging Western solidarity, the US's absence from these organisations will have even less impact. The more the world learns to manage without the US in these international bodies, the more America's international influence will erode. These US decisions will also accelerate the dispersal of influence at the global level, as other centres of influence develop. * Kanwal Sibal is a retired Indian foreign secretary and a former Ambassador to Russia between 2004 and 2007. This article was originally published at ** The views expressed do not necessarily reflect the views of IOL, Independent Media or The African.
The Herald
3 hours ago
- The Herald
Celebrity baker urges women to ‘find your why'
Established Gqeberha law firm Rushmere Noach Incorporated celebrated Women's Month with an inspirational luncheon featuring Cape Town baker and entrepreneur Andriette Georgiou as guest speaker. The event, held at Muse restaurant in Walmer, was attended by the firm's female clients. Georgiou, founder and owner of award-winning bakery Mondvol (which means mouthful), is best known as the runner-up of MasterChef SA Season 4 and for her New York-style cookies, which recently earned the 2024 Food and Home gold award for best sweet and savoury snack. Sharing her journey from being retrenched to building a thriving business that has sold nearly 200,000 cookies in just two years, Georgiou reflected on resilience, risk-taking and creating opportunities for other women. 'A cookie is just a cookie, but it can also be worth so much. I want to spread joy — there's enough misery out there,' she told the audience. Rushmere Noach director Liane Koorsse said Georgiou's story and the bakery's values of inclusiveness and empowerment aligned with the firm's ethos. 'At Rushmere Noach we support gender parity and inclusiveness in the workplace — the idea that women can hold a space alongside their male counterparts,' Koorsse said. The firm's leadership reflects this commitment, with a five-to-four female-to-male ratio on its board and women heading key practice areas including litigation, conveyancing, corporate, employment, family and criminal law. Women make up 68% of its staff. The afternoon ended with Georgiou's personal message: 'Know your worth. Find your why. You are worth being celebrated.' The Herald
