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IOL News
5 days ago
- Business
- IOL News
US tariffs: Trump negotiated in bad faith
Minister Ronald Lamola says the SA government is still engaging with the US about the tariffs that are set to come into effect for the country later this month. Image: GCIS THE South African government has accused the Donald Trump administration of negotiating in bad faith in their engagements to strike a deal that will avert the impending 30 percent tariffs on local products. Trade and industry Minister Parks Tau and his international relations counterpart, Ronald Lamola said the US failed to honour an agreement to sign a confidentiality agreement that had been agreed upon. As a result, South Africa is now looking to expand its trade relations with Asia and the Middle East, whilst continuing to engage with Trump's administration over the hikes set for later this week. Minister Ronald Lamola says the SA government is still engaging with the US about the tariffs that are set to come into effect for the country later this month. Image: GCIS Video Player is loading. 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Advertisement Next Stay Close ✕ Ad loading 'We waited for the US to sign the confidentiality agreement after we had signed our agreement. We got to a point where there was an agreement to unlock the discussions. However, we did not get a signed confidentiality agreement from the US. We then went back almost on the eve of the tariffs and said we have been waiting for the confidentiality agreement, what do we do now, as we have two days, and the feedback was that at this point, let us look at the template as a response,' he stated. Addressing the media, Lamola echoed Tau's sentiments, saying South Africa had done all it could to ensure that the negotiations with Trump's administration bear fruit, adding that despite all these efforts, Trump decided to continue with the 30 percent retaliatory tariffs against some of the country's key export industries, which include motor and the agricultural sectors. "Since the beginning of the 7th Administration, South Africa has embarked on a process to stabilise and enhance mutually beneficial trade and investment relations with the US. The aim has been to address long-standing bilateral issues of concern for both sides in ways that move the trade relations forward... However, even with these efforts, the US decided to impose a 30 percent unilateral tariff on South Africa." Lamola said the government's efforts in resetting the relationship with the US have been undermined by some actors within South African society. "The unilateral tariffs have been implemented notwithstanding South Africa's submission of a comprehensive and ambitious Framework Deal in May 2025 aimed at addressing the US trade deficit, addressing tariffs, promoting digital trade, and eliminating non-tariff barriers to enhance mutually beneficial trade relations with the United States," he said. Reacting to the impending tariff hikes, economic expert Johann Els said the tariffs on SA exports will result in a loss of volume because of the higher pricing. 'There will be some employment losses. But it is also important to see the bigger picture as the tariffs will impact less than 5% of the country's total exports, as some industries are not affected, and they will not collapse to zero overnight." On Monday, via his weekly newsletter, President Cyril Ramaphosa stated that the decision by the United States to impose a 30% tariff on South African imports highlights the urgency with which the country has to adapt to increasingly turbulent headwinds in international trade. "The US is South Africa's second largest trading partner by country and these measures will have a considerable impact on industries that rely heavily on exports to that country and on the workers they employ, as well as on our fiscus. Domestic sectors such as agriculture, automotive, and textiles have historically benefited from duty-free access to the US market under the African Growth and Opportunity Act (AGOA). Our trade relations have historically been complementary. South African exports do not compete with US producers and do not pose a threat to US industry," Ramaphosa said. Ryan Smith, DA spokesperson on international relations and cooperation said the country would not be in this position had Lamola pursued economic diplomacy in any meaningful and non-aligned manner. 'The interventions announced by Ministers Parks Tau and Ronald Lamola demonstrate that neither will take accountability for the 30% tariff imposed on South African exports to the United States of America in the absence of a solid trade deal. "Whereas our Southern African Development Community (SADC) neighbours have managed to negotiate their tariffs down to 15%, Ministers Tau and Lamola have left South African businesses and exporters vulnerable and exposed to the ongoing trade war. This diplomatic negligence and trade paralysis on South Africa's part demands an urgent shift in attitude and approach on both accounts.' Cape Times
IOL News
6 days ago
- Business
- IOL News
Minister Lamola spells out government's plan to tackle looming US tariffs
Minister Ronald Lamola says the SA government is still engaging with the US about the tariffs that are set to come into effect for SA later this month. Minister Ronald Lamola outlined government's plan to tackle the looming US tariffs. IOL has widely reported that US President Donald Trump has slapped SA with a 30% tariff set to come into play this week. Addressing the media on Monday, Lamola said since the onset of the 7th Administration, South Africa has diligently aimed to stabilise and elevate its mutually beneficial trade and investment relationships with the United States. "However, recent developments suggest that despite ongoing negotiations and strategic frameworks proposed by South Africa, the US has decided to implement a 30% unilateral tariff on South African imports, a significant move that threatens to destabilise these vital economic exchanges," he said. Lamola explained that this unilateral tariff decision comes as both countries engage in discussions designed to resolve long-standing bilateral issues aiming to foster predictability in trade. He said South Africa submitted a comprehensive Framework Deal in May 2025 which proposed ways to address the US trade deficit, promote digital trade, enhance investment opportunities, and eliminate non-tariff barriers. "Nevertheless, these efforts seem to have been undermined, much to the dismay of the South African government, which views them as detrimental to the intended reset of relations with the US," Lamola stated.
IOL News
03-07-2025
- Business
- IOL News
A new era in housing: The Department of Human Settlements' essential shift from housing builder to settlement enabler
South Africa's post-apartheid housing landscape has long been shaped by spatial exclusion, urban fragmentation, and economic inequality. Image: Tracey Adams / IOL The challenge for the Department of Human Settlements (DHS) is to move from being a housing builder to a settlement enabler, ensuring that delivery is not just about numbers, but about equity, dignity and inclusion. This is according to Dr Uduak Johnson and Dr Thandile Ncwana, who are Academic Programme Leaders at the Management College of Southern Africa (MANCOSA) School of Public Administration, in response to an enquiry by "Independent Media Property". They described the first year of South Africa's 7th Administration, which came into office about a year ago following the 29 May 2024 elections, as being marked by cautious optimism and necessary institutional realignment. They said while progress has been uneven, key reforms such as governance strengthening, spatial policy recalibration and targeted investments in vulnerable groups signal a shift toward developmental governance. 'What remains now is for the 7th Administration's plans to be translated into tangible, community-centred outcomes.' Delivering the 2025 Budget Vote on Wednesday, DHS Minister Thembi Simelane said over the next five years, the Department's delivery efforts will be driven by a focused agenda that seeks to consolidate past investments, respond to urgent needs, and deepen our impact. 'Therefore, as we begin to lay the foundation of the recently approved 2024-2029 MTDP, we have committed to deliver the following during the 2025/2026 financial year: 41 944 housing units, 32 250 fully serviced sites with water, sewer, electricity, and roads, 4 282 units through the First Home Finance programme, originally known as FLISP (Financially Linked Individual Subsidy Programme), 3 000 social housing units and eradicate 8 047 mud houses,' Simelane said. Dr Johnson and Dr Ncwana said that despite the intent of policies such as Breaking New Ground (BNG) and the Comprehensive Plan for the Development of Sustainable Human Settlements, delivery has often occurred at the urban periphery, reinforcing marginalisation. They said by the time the 7th Administration took office last year, the backlog had grown to over 2.3 million housing units, with 2 700+ informal settlements nationwide and slow progress in land release and infrastructure upgrades. The academics said, despite severe budget constraints and inflationary pressures, the DHS has made incremental progress with highlights that include the Special Housing Needs Programme (launched March 2025), targeting vulnerable groups such as people with disabilities, elderly persons, and survivors of domestic violence. Another one is the Housing Assistance Programme for Military Veterans, fast-tracked, with 4 560 beneficiaries confirmed. They said it also brought Institutional Stabilisation as boards were appointed to five of six DHS entities, thereby improving governance oversight. With regards to policy advancements, the academic programme leaders mentioned the approval of a new Human Settlements White Paper in December last year, outlining integrated and sustainable development frameworks. They said with regards to Social Housing Expansion, the Social Housing Regulatory Authority (SHRA) approved 1 898 units in FY2024/25, while the SHIP 15A pipeline continues to grow. Additionally, they said digitalisation efforts have begun to improve beneficiary tracking and reduce fraudulent housing allocations, although their implementation is still partial. The MANCOSA academics said persistent and emerging challenges for the department included systemic constraints. 'Informal Settlement Growth: Upgrading initiatives remain underfunded and inadequately implemented. Although the Informal Settlements Upgrading Partnership Grant (ISUP) exists, the number of informal settlements continues to grow beyond 2 700.' They said there were also governance failures with reports from the Auditor-General (AGSA) and Special Investigating Unit (SIU) pointing to irregular expenditure, ghost beneficiaries, and project mismanagement, especially at provincial and municipal levels. The other challenge was the spatial disconnect as settlements remained far from transport, economic nodes, and services, continuing the apartheid legacy. The academic leaders said the budgetary pressures with reduced allocations to the Human Settlements Development Grant (HSDG) and the impact of inflation have constrained delivery. 'Provinces such as Gauteng and the Western Cape underspent and had portions of their HSDG reallocated to better-performing provinces like the Eastern Cape (99% expenditure).' To meet its long-term mandate, Johnson and Ncwana said the DHS must pivot from mass delivery alone to an enabling developmental role that prioritises spatial justice through the release of well-located urban land, upgrading over displacement in informal settlements, inclusive and participatory urban planning, including People's Housing Processes (PHP), blended finance models, combining public subsidies, private investment, and concessional loans as well as performance-based budgeting, where provinces are rewarded for efficient delivery. Independent Media Property
