Incoming US tariffs to cut jobs in SA key sectors
For years, the African Growth and Opportunity Act has provided South African agricultural products preferential access to the US market.
However, the uncertainty surrounding AGOA's future and the new tariffs threaten to unravel years of progress.
The agriculture and automotive sectors are mostly likely going to be the ones that are going to be greatly affected by the tariffs that are expected to kick in on first of August.
Experts say the country cannot be surprised if it sees a shutdown of big automative manufacturing plants due to the fact that the US is such a major market vehicles like BMW and Mercedes. This means workers will be laid off as job losses will definitely take place.
While President Ramaphosa says South Africa needs to mine new markets when the US tariffs kick in, experts suggest this won't happen overnight.
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The Citizen
14 minutes ago
- The Citizen
Citrus growers call on president to urgently intervene about 30% US tariff
While other industries can wait for government to negotiate the US tariff down, citrus growers could be stuck with boxes of rotten fruit. With mere days to go before Friday, when the US tariff of 30% on South African goods kicks in, the Citrus Growers' Association of Southern Africa wrote to President Cyril Ramaphosa, calling on him to urgently intervene on behalf of rural communities in the Northern and Western Cape, where citrus exported to the US is grown and where livelihoods rely on the US-SA citrus trade. 'This week, with the tariff deadline on Friday, is one of great anxiety for the citrus growers in the Western and Northern Cape. These two provinces annually export about 7 million cartons of citrus to the US,' Dr Boitshoko Ntshabele, CEO of the Citrus Growers' Association of Southern Africa (CGA), says. The association has asked Ramaphosa to urgently facilitate an extension of the current 10% US tariff beyond 1 August, which would allow for negotiations to reach a mutually beneficial trade agreement. The CGA also requested that, if a general extension of the deadline is not possible, an urgent request for a specific extension for seasonal fresh produce should be secured. 'Seasonal fresh produce is perishable and cannot be stored for extended periods like other trade products. We just passed the midpoint of the 2025 export season, which means that hundreds of thousands of cartons of citrus are ready in packhouses to be shipped to the US over the next few weeks. The implementation of a 30% tariff on 1 August will mean most of this fruit will be left unsold.' ALSO READ: Experts question if SA has a plan for US tariffs, Tau says here it is SA citrus growers no threat to US farmers—no reason for US tariff of 30% South African citrus growers do not pose a threat to US growers or jobs, as they sustain demand when local US citrus is out of season, benefiting US consumers. 'Citrus as a source of nutrition also helps to keep America healthy. Should we not be able to secure a favourable trade deal or the concession for fresh produce, local job losses before the next season will be a certainty,' Ntshabele says. Gerrit van der Merwe, chairman of the CGA, says being a grower in Citrusdal, he is very worried about the effect the tariffs will have on the town and the wider Cederberg municipality. 'Citrus forms the economic heart of the area. 'Not just farmers and farm workers will feel the impact, as local businesses and even the funding of social support programmes will be affected too. The social fabric of some rural towns in the Western and Northern Cape is threatened. 'Local growers also say a 30% tariff will not only stifle future growth but lead to the eventual destruction of between 500 and 1 000 ha of land that would simply become unprofitable.' ALSO READ: Trump tariffs implemented in same week SA citrus growers pack for US export Letter to the president about US tariff In the letter to the president, the CGA highlighted that, while much focus has been placed on market diversification in the past few weeks as a general answer to the trade turmoil, certain realities must be considered. 'Citrus is grown for designated markets, each with their own precise market and plant health specifications. Therefore, it is not easy to simply divert citrus from the US and find a new market. Should some citrus be diverted away from the US, the diversion could very well depress the price in these markets through oversupply, negatively impacting the entire Southern African citrus industry. 'The citrus industry has the potential to create 100 000 additional jobs by 2032 because of new plantings, but for this to be realised, we require the expansion of every market—including the US, China, India, the European Union, and others,' the CGA says in the letter. Ntshabele says while the CGA acknowledges measures of progress made in the US trade negotiations, it is of the opinion that more direct and active contact with the US is necessary before the 1 August deadline. ALSO READ: Devastating impact of US tariffs on SA automotive sector even before implementation US tariff much worse than losing Agoa status Arthur Kamp, chief economist at Sanlam Investments, says South Africa's direct trade exposure to the US is relatively modest but not insignificant. In 2024, goods exports to the US amounted to R156.8 billion (7.6% of total South African goods exports and 2.1% of GDP). The US announced a 30% tariff increase for South Africa. 'After taking the 25% US import tariff increases on aluminium, steel, and motor vehicles into account, while also adjusting for exclusions, we estimate the overall effective US tariff increase for South Africa is likely to be less than 20%.' However, he points out that this is still a large increase and is likely to cause a sharp decrease in South African exports to the US, including motor vehicles. 'We note that vehicle exports to the US were already significantly down last month, indicating manufacturers readjusting and finding new markets for finished goods, as total vehicle exports were up by 3%. 'While some exclusions may also be rescinded, it is important to understand that the impact will be far greater than losing our AGOA (African Growth and Opportunity Act) status alone. 'Downward revisions to South Africa's gross domestic product (GDP) forecast for 2025 should result, while combined with heightened geopolitical risk, the effect on business sentiment and investment could be more pronounced, particularly given South Africa's dependence on the US for foreign capital, especially portfolio capital, which is highly liquid.'
The Herald
an hour ago
- The Herald
SA will seek new markets for minerals if US imposes high tariffs: Mantashe
South Africa will need to seek out alternative markets for its critical minerals exports if the US hits the country with steep tariffs, said mineral and petroleum resources minister Gwede Mantashe on Tuesday. South Africa is by far the world's leading producer of platinum group metals (PGMs), which are used in car catalytic converters and are among critical minerals subject to a US investigation that could result in new import levies. Washington launched that probe in part to pressure Beijing. China is a top global producer of 30 of the 50 minerals considered critical by the US Geological Survey and has been curtailing exports. 'If the US imposes high tariffs, we must look for alternative markets,' said Mantashe on the sidelines of a G20 meeting on critical minerals. South African exports of mineral products and precious metals to the US were valued at R65.3bn ($3.64bn) last year. PGMs, largely produced by miners Valterra Platinum and Impala Platinum, accounted for 76.3% of that total. Other South African exports to the US — its second-biggest bilateral trading partner after China — include gold, diamonds, iron and manganese ores, and coal. 'We should never be bullied for our own resources. If people want to trade with us, it must be on terms that are mutually beneficial,' Mantashe said. As President Donald Trump has sought to leverage tariff threats to reshape global trade, South Africa has had a fraught relationship with his administration, which has attacked its domestic race policy and its genocide case against Israel. South Africa's exports to the US are facing the prospect of a 30% baseline tariff from August 1, though PGMs are currently excluded from those levies. Pretoria is awaiting a response from Washington to a counterproposal it submitted last month in hopes of avoiding the 30% rate, South African officials said on Monday. Reuters
IOL News
an hour ago
- IOL News
The learning board: continuous education as a governance imperative
The pace of change in technology, climate governance, geopolitical tensions, stakeholder expectations, and regulatory shifts demands more than static knowledge. It calls for a governance mindset that embraces learning as a strategic necessity. Image: AI Lab Nqobani Mzizi In today's dynamic environment, a board's effectiveness is measured not just by what its members know, but by how deliberately they continue to learn. Directors may be appointed for their experience, but without renewal, that experience quickly becomes outdated. Yet in many organisations, director education is reduced to a box-ticking exercise, limited to induction packs, technical updates or ad hoc compliance briefings. This is governance at its most passive. In truth, boards should embody the traits of a learning organisation: adaptive, inquisitive, self-aware and committed to continuous renewal. An informed board acknowledges that its fiduciary duties exist in a world of fast-moving risks and opportunities. The pace of change in technology, climate governance, geopolitical tensions, stakeholder expectations, and regulatory shifts demands more than static knowledge. It calls for a governance mindset that embraces learning as a strategic necessity. The proof is stark: a 2023 PwC South Africa Director Survey revealed that 68% of South African directors admit their boards are outmatched by technological disruption, yet a mere 31% invest in formal upskilling. Directors cannot rely solely on legacy knowledge or past achievements. The role has evolved, and so must those who occupy it. In 2022, boards spent less than 5% of their time discussing climate risks. The KZN floods that year cost R50 billion. The gap between governance and reality is unsustainable. Boards that fail to learn, fail to lead. The concept of a learning organisation, popularised by Peter Senge, rests on disciplines such as systems thinking, personal mastery, mental models and team learning. These principles are equally applicable to governance. Boards that model intellectual agility are better positioned to anticipate risk, adapt to change and shape resilient organisations. They do not wait for a crisis to revisit assumptions. They engage proactively, ask difficult questions and challenge entrenched thinking. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Yet becoming a board committed to continuous renewal does not happen by accident. It requires deliberate investment. Formal director development programmes are one part of the equation, but not the whole. Ongoing capacity building must be embedded into board culture and processes. It includes reflections after key decisions, cross-committee peer learning, exposure to external perspectives and periodic assessments of knowledge gaps. It also includes openness to uncomfortable truths, recognising when the board lacks diversity of thought or when market and strategy assumptions are no longer fit for purpose. One of the clearest signals of a board's commitment to growth is how it allocates time. Agendas dominated by compliance reviews and operational reports leave little space for strategic thinking or capacity building. A forward-looking board agenda should reserve time for horizon scanning, scenario planning and trend deep dives, from generative AI and cybersecurity to climate disclosures, social unrest and institutional reputation. The question is not whether these issues are important, but whether the board is equipped to govern them well. Governance frameworks codify this imperative. King IV in South Africa explicitly underscores the need for ongoing director development as integral to ethical and effective leadership. Principle 1 highlights the responsibility of the board to lead with competence and awareness, while Principle 7 calls on governing bodies to ensure that their composition, skills, experience and capacity align with the organisation's needs. Continuous learning is, therefore, not an optional extra, but a governance requirement rooted in accountability and future fitness. Importantly, this learning orientation must go beyond individual directors. It must shape the board as a collective. The best boards are not echo chambers of technical expertise, but dynamic forums of inquiry. They welcome diverse viewpoints, interrogate blind spots and evolve with the organisation they serve. Adaptive boards are also better stewards of succession, identifying gaps and mentoring future leaders with clarity and foresight. They understand that board continuity is not just about filling seats but about transferring wisdom. Some companies have introduced directors' retreats, not as ceremonial off-sites, but as serious opportunities for immersive engagement with new ideas. Others rotate committee chairs to foster cross-learning and reduce siloed thinking. A growing number of boards are also creating advisory panels with academics, technologists or emerging market experts who present independent insights and challenge institutional orthodoxy. Boards that operate as communities of growth also tend to approach self-evaluation differently. Rather than relying on template-based questionnaires, they view assessments as opportunities to identify development areas, improve dynamics and deepen collective performance. The value lies not only in the review itself, but in the courage to act on its findings. In an age of complexity and disruption, the evolving board is not a luxury. It is a governance necessity. It strengthens oversight not only through technical competence, but through curiosity, humility and responsiveness. It builds institutional capacity not merely to react, but to adapt and regenerate in the face of change. To lead well in this environment is to remain teachable. An adaptive board recognises that effective governance is not about knowing everything, but about cultivating a posture of inquiry, one that seeks out what matters most before the next disruption makes it urgent. Board effectiveness demands self-examination. Boards must ask: Are we building knowledge renewal into our board agenda, or treating it as an after thought? Do our development efforts build strategic agility, or simply refresh technical compliance? Are we actively drawing on diverse, independent perspectives to challenge blindspots? If our approach to knowledge renewal were visible to stakeholders, would it inspire confidence or concern? Ultimately, a board's legacy will rest not on its past expertise, but on the learning culture it fostered and how well it prepared the organisation for the future. Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. Image: Supplied * Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. BUSINESS REPORT
