Latest news with #AfricaGrowthandOpportunityAct
Eyewitness News
5 days ago
- Business
- 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.
Daily Maverick
02-06-2025
- Business
- Daily Maverick
SA farm exports to US rise 19% in Q1, a green sprout amid frosty diplomacy
An important point that emerges from this data is that if the fictional 'white genocide' and land seizures of Trump's imagination were actually unfolding, then South African commercial farmers – who are mostly white – would not be in a position to grow their exports to markets such as the US. South Africa's agricultural exports to the US increased 19% in the first quarter (Q1) of this year compared with the same period in 2024, according to data from Trade Map, which was crunched by the Agricultural Business Chamber (Agbiz) and released on Monday. It is an interesting trend that highlights several important points against the backdrop of a frosty diplomatic landscape amid US President Donald Trump's false claims about a 'white genocide' and the ruthless persecution of white farmers, which was on full display during his recent White House meeting with South African President Cyril Ramaphosa. For starters, as South Africa faces the prospect of exclusion from the Africa Growth and Opportunity Act (Agoa) – which provides preferential treatment to the US market for eligible countries – it is clear that there is American demand for agricultural products grown or made here. Specifically, these products are mainly citrus, grapes, wine, and fruit juices – South African products that could surely grow in the massive US market. Some might see America as a fairly small market in the broader scheme of things, with the 19% year-on-year rise in Q1 only amounting to $202-million – 6% of all South African agricultural exports in that period, which grew 10% to $3.36-billion. But 6% is material: this slow-growth, high-unemployment economy needs to pluck any fruit it can – and this stuff is low-hanging. Americans love citrus and fruit juice, a point underscored by the fact that global prices for these products are heavily influenced by the New York-based OJ futures market. Another important point that emerges from this data is that if the fictional 'white genocide' and land seizures of Trump's imagination were actually unfolding, then South African commercial farmers – who are mostly white – would not be in a position to grow their exports to markets such as the US. What this means: South Africa's commercial agricultural sector is a budding rose among the thorns of this moribund economy. It needs continued access to markets such as the US to grow and create badly needed jobs and investment opportunities while bringing in export revenue to help support the rand. South African farmers can find other markets, but the US, as the world's largest economy, remains the big prize. This does not mean that South Africa's agricultural sector isn't facing a range of serious political, economic and environmental challenges. The Expropriation Act is a red flag for South Africa's commercial farmers and investors more widely. That there are still glaring disparities in ownership – with only about 25% of farmland now in the hands of black South Africans, according to Agbiz estimates – is largely a reflection of state failure and dithering, corruption and incompetence under the ANC. Still, even in the face of other challenges such as climate change, South Africa's agricultural sector is prospering, a narrative at odds with Trump's view that a Zimbabwe-style mass land grab is under way. Americans clearly want to drink South African wine and fruit juice, and farmers here can meet that demand. Instead, Trump's racist resentment threatens to reap a bitter harvest from what should be fields of hope. BM
Eyewitness News
19-05-2025
- Business
- Eyewitness News
Steenhuisen: Top priority during govt visit to US will be growing economy
CAPE TOWN - Democratic Alliance (DA) leader and Minister of Agriculture John Steenhuisen said his top priority during the government's visit to the United States (US) this week will be growing the economy and expanding employment opportunities, particularly in the agricultural sector. Steenhuisen forms part of President Cyril Ramaphosa's delegation to America, where the president hopes to outline South Africa's trade agenda and repair a rocky relationship since the start of Donald Trump's presidency in January. It's also been fuelled by misinformation about the country's laws and the expulsion of South Africa's ambassador to the US. ALSO READ: Steenhuisen said as a proud member of the Government of National Unity (GNU) delegation, he will make every effort to mend and improve relations between the two countries. Ramaphosa set off from Waterkloof Air Force Base on Sunday night on what's set to be one of his toughest diplomatic tasks since the formation of the GNU. The visit comes just a week after 49 Afrikaners were welcomed by Trump's officials to the US capital and granted refugee status after claiming persecution in South Africa. DA spokesperson Willie Aucamp said the delegation, which will include Steenhuisen, is expected to further the aspirations of all South Africans. 'This delegation to Washington, DC represents all South Africans who have entrusted us to put the shared national interest and the desire for economic growth and job creation first, ahead of any party or ideological positions.' Wearing his ministerial hat, Aucamp said Steenhuisen's focus will be on maintaining preferential trade access to US markets. 'Losing these benefits will be disastrous for farmers, farmworkers, and the economy at large.' Last week, Trump said he won't be joining the G20 Leaders Summit in Johannesburg in November because he continues to believe 'bad things' are happening in the country. South Africa stands to lose its duty-free access to US markets for certain products, including agricultural goods, when the Africa Growth and Opportunity Act (AGOA) is renegotiated in September.
Zawya
05-05-2025
- Business
- Zawya
The vital role of trade agreements in driving South Africa's economic growth
Trade agreements are one of the essential pillars supporting South Africa's economic strategy, shaping market access, investment flows, and international competitiveness. While global discourse on trade has recently focused on negotiations involving the United States, Canada, Mexico, and China, to mention a few, South Africa needs to look closer to home and examine its own trade agreements to capitalise on emerging opportunities and mitigate potential risks. With the African Continental Free Trade Area (AfCFTA), the Southern African Customs Union (SACU), and the Africa Growth and Opportunity Act (AGOA) shaping the country's trade landscape, understanding these agreements and how to leverage them are the keys to navigating an increasingly complex global economy. The importance of trade agreements Trade agreements streamline the exchange of goods and services between countries, reducing tariffs and barriers that otherwise hinder economic growth. Historically based on barter systems, modern agreements involve structured and equitable exchanges. South Africa's participation in agreements such as AGOA and SACU allows businesses to access international markets under preferential conditions, driving growth, enhancing economic development, and supporting job creation. AGOA, for example, gives South African exporters duty-free access to the US market for certain goods, particularly benefiting sectors like agriculture, automotive manufacturing and mining. However, AGOA's non-reciprocal nature means South Africa is vulnerable to US policy shifts. Recent diplomatic tensions - highlighted by the US decision to expel South Africa's ambassador - illustrate how quickly trade dynamics can change, potentially affecting market access. Losing AGOA preferences would subject exports to higher US tariffs, significantly hindering South Africa's competitiveness against countries with lower costs and more efficient supply chains. Challenges in navigating trade agreements Trade agreements also pose several other challenges, particularly regarding compliance with international regulations. For South African businesses, especially SMEs, navigating complex legal and administrative requirements can be resource-intensive. Meeting high standards for exports, for example the stringent sanitary and phytosanitary measures in agriculture, requires significant investment in quality control and documentation. Another significant issue is the infrastructural and logistical barriers hampering trade efficiency. South Africa's ports and border posts, notably Beitbridge Border Post, remain congested and inefficient, negatively impacting trade with neighbouring countries. Delays in customs processes and high transportation costs also limit the competitiveness of South African exports, disproportionately affecting smaller businesses looking to enter export markets. Expanding trade beyond traditional partners Against this backdrop, it is imperative for South Africa to actively strengthen trade relationships within Africa. The AfCFTA offers a historic opportunity to create a unified African market, reducing intra-African trade barriers and promoting economic integration. Recently, South Africa began preferential trade under AfCFTA, enabling duty-free or reduced-duty exports to 12 African countries. However, inadequate infrastructure, regulatory disparities, and non-tariff barriers still hinder growth. To leverage AfCFTA fully, South Africa – and indeed all other African countries - must invest in logistics and border efficiency. Modernising customs procedures, reducing red tape and enhancing transportation networks will facilitate smoother trade flows. Addressing regulatory bottlenecks will also help SMEs participate more fully in regional trade, promoting economic inclusivity. Beyond Africa, engagement with BRICS nations offers additional trade opportunities. While China remains a major partner, other BRICS markets hold untapped potential for South African exporters, particularly in minerals, manufacturing and agriculture. However, non-tariff barriers, such as Brazil's stringent medical equipment import regulations, must be addressed to fully realise these opportunities. Policy considerations and future trade strategies For South Africa to remain competitive globally, a strategic policy approach is essential. Recent EU investments totalling €4.7bn in green energy and vaccine production reflect growing opportunities to diversify trade and attract foreign investment. But it is imperative that we build on this positive momentum. There are some areas where government is doing that – for instance its recent decision to invest R1 billion into local electric vehicle (EV) production, thereby demonstrating alignment with global sustainability trends and hopefully enhancing South Africa's competitive position over time. However, there is still much work to be done and, unfortunately, the recent budget demonstrated that there is not much money to fund that work. In fact, little has been said or done of late to signal serious government intent of any sort to boost economic growth through trade facilitation. Still hope for a future built on strategic trade growth Despite the challenges, though, South Africa still has a unique opportunity to reposition itself as a leader in African trade and beyond. By embracing digital customs processes, strengthening regional trade networks and leveraging public-private partnerships alongside private sector investment, the country can create a more agile and resilient trade environment – one that evolves from merely reacting to global trade shifts to proactively leveraging the power of trade agreements to help shape its own economic destiny and that of the African continent.
Yahoo
08-04-2025
- Business
- Yahoo
Trump is weirdly determined to crush this small African kingdom
Jagged mountain ranges under blazing blue skies. Sweeping plains broken by twisting ravines. Unusually for a resident of Sussex, some of my earliest memories are of the landscapes of the Kingdom of Lesotho in southern Africa, where I spent six years of my childhood. So forgive me if I take it personally when Donald Trump, with a casual flick of a pen, wrecks the economy of the country where I went to school. Buried in the president's declaration of economic war on the entire world is the remarkable fact that America's highest tariff will be imposed not on China or Russia – or even Denmark or Panama – but Lesotho, which will suffer a 50 per cent levy. I want to be strictly fair: it would be wrong to suggest that Mr Trump had never heard of Lesotho before administering this economic punishment-beating. While addressing Congress last month he actually name-checked the kingdom. Admittedly he called it a place 'nobody has ever heard of', but that only proves that he must have heard of it himself. Yet however little Mr Trump cares about Lesotho, the kingdom's people will care very much about his tariffs. A quarter of a century ago, a humane and far-sighted American administration passed the Africa Growth and Opportunity Act, which offered not aid or handouts but tariff-free access to the US market for African countries. Free trade worked its magic and Lesotho soon acquired textile factories churning out Levi jeans and other fashionable items for export to America. Today those factories generate 10 per cent of the country's GDP and employ 12,000 people – a big number in a nation whose population is only 2.3 million. What will happen to them now that their employers risk losing their biggest market? The Maluti mountains, beautiful but impossible to cultivate, cover two thirds of Lesotho. The young once had little choice but to leave for South Africa in search of work. The new textile industry represented an opportunity to change that, but for how much longer? Whether Lesotho carries on exporting jeans will make no difference to America, but it will make a huge difference to the fortunes of a Commonwealth country. So what is to be done? First remember one fact. During the Second World War more than 20,000 men from Lesotho volunteered to fight for Britain, of whom 1,000 never went home. There were only 600,000 people in the entire country in 1939, meaning that one male in every 15 served in British uniform. Did anywhere else in the Empire provide more volunteers per capita? Today, in the heart of Lesotho's capital, Maseru, you will find a replica Spitfire prominently displayed in Makoanyane Square. Then you will learn that during the War, the people of Lesotho raised enough money to pay for 24 Spitfires for the RAF. Lesotho came to Britain's aid when we needed it most. I know Sir Keir Starmer will have a crammed briefing note for his next call with Mr Trump. But what the president did with the stroke of a pen can be undone with equal speed. The next time he gets the chance, our Prime Minister should return a debt of honour and urge justice for Africa's mountain kingdom. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
