Latest news with #BusinessUnitySouthAfrica
IOL News
03-08-2025
- Business
- IOL News
BUSA calls for coordinated action against US tariffs and AGOA challenges
Business Unity South Africa (BUSA) calls on SA government to act amid economic threats as a result of USA tariffs Image: File Business Unity South Africa (BUSA) has called on the South African government to take urgent, coordinated action in response to the new US import tariff and mounting uncertainty over the African Growth and Opportunity Act (AGOA). BUSA expressed concern over the implementation of broad-based import duties by the US and proposals to introduce reciprocal tariffs on countries running trade surpluses with the US, including South Africa. BUSA CEO Khulekani Mathe said the delay in finalising a framework agreement between South Africa and the US to address the proposed 30% tariff is 'particularly troubling.' Mathe noted that countries such as the UK, Japan, Pakistan, South Korea, the Philippines, Indonesia, and blocs like the European Union had already secured trade deals with the US that reduced or eliminated the original 30% tariff. 'This demonstrates that there is an opportunity for a successful agreement to be reached even after 1 August 2025,' BUSA said, 'provided the country adopts a coordinated approach and prepares a solid offer based on what we can realistically deliver in response to US expectations.' The organisation said the US remains a key trade and investment partner for South Africa, and the AGOA trade preferences have underpinned the relationship for over two decades, supporting key export sectors such as agriculture, automotive manufacturing, and mining. 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 Next Stay Close ✕ Ad loading BUSA warned that the impact of the new tariff on local industries would be 'substantial.' In the automotive sector, South African exports to the US amount to approximately R24.1 billion. These exports are already subject to a 25% tariff under Section 232, and the proposed 30% hike could push total duties to 55%. According to BUSA, 'approximately 20,000 jobs are at risk in this sector,' including jobs at original equipment manufacturers and component suppliers. In the agriculture and agro-processing sectors, about 15,000 to 20,000 jobs are also threatened. Citrus and nut exports, valued at R4.2 billion and currently duty-free under AGOA, could become uncompetitive due to price increases triggered by the tariffs. 'There is a significant risk of trade being diverted to other regions, such as South America and the European Union,' BUSA added. In the mining sector, about 5,000 jobs are at risk, with diamond beneficiation and iron ore exports likely to be negatively affected. BUSA said mitigation measures for these sectors must be incorporated into the government's response and that sector-specific proposals should form part of the framework deal currently under discussion.
The Citizen
23-05-2025
- Business
- The Citizen
Presidency clarifies Mcebisi Jonas' absence from Trump meeting
Jonas contributed to preparatory engagements ahead of the meeting between Ramaphosa and Trump. The Presidency has moved to clarify US special Mcebisi Jonas' noticeable absence from the much anticipated meeting between President Cyril Ramaphosa and US President Cyril Ramaphosa at the White House in Washington DC. Jonas, a former deputy finance minister, was part of Ramaphosa's delegation to meet Trump at the Oval Office on Wednesday. Delegation Others in the delegation included four ministers, renowned businessman Johann Rupert and golfers Ernie Els and Retief Goosen. Business Unity South Africa (BUSA) Vice President Adrian Gore and Congress of South African Trade Unions (Cosatu) President Zingiswa Losi were also in Washington DC to provide support to Ramaphosa and the South African delegation for the meeting with Trump. However, Jonas didn't join Ramaphosa with the Presidency, dismissing speculation around his status. ALSO READ: Ramaphosa says Trump meeting a success despite ambush [VIDEO] Clarification Presidency spokesperson Vincent Magwenya on Thursday said Ramaphosa's office acknowledged the 'recent commentary' regarding Jonas and deemed it prudent to provide clarity. 'Initial interpretations of procedural matters, communicated in good faith, have been amended following confirmation that Mr. Jonas holds a valid visa for travel to the United States of America'. Magwenya said no 'formal concerns or substantive inquiries' related to Jonas' professional responsibilities have been brought to the attention of the Presidency. 'Mr. Jonas contributed to preparatory engagements ahead of the meeting between President Ramaphosa and President Donald Trump, including consultations abroad. His absence from Washington, at his own request, has no bearing on the President's official programme'. Jonas appointment Ramaphosa appointed Jonas in April as tensions between the United States and South Africa continued to simmer. His appointment as special envoy followed the expulsion of the former South African ambassador to the US, Ebrahim Rasool. Rasool returned to South Africa in March after US Secretary of State Marco Rubio expelled him and stripped him of his diplomatic privileges. He was declared persona non grata and given just a week to leave the US due to comments he made about the country and the Donald Trump administration during a webinar. Ramaphosa said Jonas would serve as the official representative of the Presidency and government. ALSO READ: 'There is doubt in Trump's head about genocide in SA,' Ramaphosa says [VIDEO]
Eyewitness News
22-05-2025
- Politics
- Eyewitness News
Ramaphosa, his delegation could've done better job defending SA: Former BUSA head
JOHANNESBURG - Former Business Unity South Africa (BUSA) head Bonang Mohale says President Cyril Ramaphosa and his delegation could have done a better job explaining themselves to the United States (US). US President Donald Trump hosted Ramaphosa at the Oval Office in the White House on Wednesday to discuss the two countries' diplomatic relationship. ALSO READ: Unfair to compare treatment of black people during apartheid to alleged white genocide: Ramaphosa Trump appeared unconvinced by South Africa's refutal of genocide against Afrikaner farmers, even playing video clips of the Economic Freedom Fighters (EFF) chanting the 'kill the Boer' song. Mohale said that given Trump's commitment to his false narrative about genocide, the South African delegation could have better countered his claims. 'Now we want to convince somebody who has clearly made up his mind. His problem is the United States of America, not here at home in our shores. So, we are just collateral. We should have been concise, precise, and clear as daylight. That's what we needed.'
Eyewitness News
21-05-2025
- Business
- Eyewitness News
Special envoy to US Mcebisi Jonas not part of Ramaphosa delegation in the US
WASHINGTON - Newly appointed South African special envoy to the United States (US) Mcebisi Jonas, will not be joining President Cyril Ramaphosa on his working visit with President Donald Trump. The Presidency said his absence bears no consequence to the president's programme. Ramaphosa and four members of his cabinet, including Khumbudzo Ntshavheni, Ronald Lamola, Parks Tau and John Steenhuisen, will be joined by businessman Johann Rupert. Champion golfers Ernie Els and Retief Goosen and representatives from labour and business, such as the Congress of South African Trade Unions (COSATU)'s Zingiswa Losi and Business Unity South Africa's Adrian Gore, will also form part of Ramaphosa's delegation. The much-anticipated meeting is set to take place at 11:30 in the US, which is 5:30 Central African Time. The president has maintained that the two nations are joined at the hip. This with over 600 US companies operating in South Africa. According to reports, Trump might use Wednesday's meeting to push for US companies to be exempt from South Africa's Black Economic Empowerment (BEE) laws. This has also fuelled talks of the US President's key ally, Elon Musk's desire to bring his internet service Starlink to South Africa, as he failed to acquire a licence due to not meeting its BEE quotas. ALSO READ:
The Citizen
06-05-2025
- Business
- The Citizen
SA loses R30 billion in revenue due to illicit trade in cigarettes and liquor
When tobacco and liquor sales were banned during the lockdown, people bought from the illicit trade and did not return to the legal market. South Africa loses about R30 billion in revenue every year due to the illicit trade in cigarettes and liquor according to a new report, almost three times as much as government wanted to collect by increasing VAT. According to the Transnational Alliance to Combat Illicit Trade (Tracit) report for 2025, published today, South Africa is doing worse now than in 2019 and 2023 in combating illicit trade and other illicit economic activities across sectors, including alcohol, tobacco, foodstuffs, agrichemicals, pharmaceuticals, counterfeiting, mining and wildlife trafficking. The Transnational Alliance to Combat Illicit Trade (Tracit) is an independent, private-sector initiative established to drive change and mitigate the economic and social damages of illicit trade by strengthening government enforcement mechanisms and mobilising businesses across the industry sectors most affected by illicit trade. Business Unity South Africa (Busa) launched the report in partnership with Tracit. The report is important because it examines the scale, complexity and socio-economic consequences of illicit trade in South Africa and proposes urgent, coordinated steps to address it. ALSO READ: Illicit trade: SA economy loses R100 billion annually SA's scores for efficiency in combating illicit trade South Africa was placed at 60 out of 158 countries and 4 out of 47 African countries surveyed for the report, but the country's real problem with controlling illicit trade is illustrated by its score out of 100, which decreased from 62 in 2019 to 60 in 2023 and now to 52.4 in 2025. This score measures the country's efficiency in combating illicit trade and other illicit economic activities. Although South Africa's score was higher than the global average of 49.9 and the average for Africa of 40.8, the breakdown of the score clearly shows that while the country is better at some aspects of combating the trade in illicit goods, it is sorely lacking in others. South Africa's trade customs and border control scored 79.6, its regulatory framework and enforcement 70.4, and the taxation and economic environment 62.8. However, supervision over supply chain intermediaries only scored 21.6, and sectoral illicit trade indicators 31.6, highlighting systemic gaps in oversight, regulation, and inter-agency coordination. This table shows how South Africa compares to the global and African averages: ALSO READ: Sars loses R119 billion in tax revenue due to illicit cigarette sales since 2002 The serious threat to SA's stability, governance and international standing According to the report, illicit trade continues to pose a serious threat to South Africa's economic stability, governance and international standing. Despite its position as Africa's most industrialised economy and a prominent member of global forums such as the G20 and Brics, the country remains vulnerable to pervasive illicit activities across critical sectors that undermine legitimate businesses, erode public revenues, distort trade flows and deepen inequality. The report points out that while there have been promising developments, such as increased budget allocations to Sars, expanded inter-agency enforcement and new efforts to formalise the informal economy, progress remains uneven and difficult to sustain. The report says South Africa's continued placement on the Financial Action Task Force (FATF) grey list underscores persistent shortcomings in anti-money laundering and counter-terrorism financing frameworks. 'Illicit trade is not merely a criminal or enforcement issue but a systemic threat with far-reaching economic, fiscal and governance implications. It erodes investor confidence, endangers public health and fuels broader organised criminal activity. 'Now is a critical opportunity for the new administration to advance meaningful reforms, strengthen institutional capacity and demonstrate regional leadership. 'By tackling corruption, modernising regulatory systems and enhancing enforcement capabilities, South Africa can reclaim lost tax revenues, rebuild trust in its institutions and protect the foundations of sustainable economic growth.' ALSO READ: Crackdown on codeine: SA authorities launch digital tracking to combat abuse and illicit trade Recommendations for SA to tackle illicit trade The report makes these recommendations for South Africa to tackle the problem of illicit trade: Strengthen inter-agency coordination by appointing a national Anti-Illicit Trade Coordinator and aligning efforts across Sars, the police, the National Prosecuting Authority and regulators. Tighten controls on money laundering and enhance financial intelligence to dismantle the funding of illicit trade networks. Develop a coherent and predictable tax policy framework that avoids market distortions and reduces incentives for illicit activity. Modernise regulatory frameworks to address vulnerabilities in e-commerce, digital trade and high-risk product categories. Combat corruption within customs, law enforcement and judicial systems to restore institutional integrity and enforcement credibility. Raise public awareness and build public-private partnerships to boost education, brand protection and joint enforcement initiatives. ALSO READ: British American Tobacco to retrench workers amid 'ballooning' illicit tobacco trade in SA The threat to economic recovery and public safety 'Illicit trade remains one of the biggest threats to South Africa's economic stability and growth. Despite some governmental efforts, the scope and depth of the problem require sustained political will and comprehensive strategies to address the underlying issues. 'By addressing these issues head-on, South Africa can reclaim significant tax revenue, boost investor confidence and support its broader economic and social development goals,' the report says. Esteban Giudici, TRACIT director of programmes, says the study highlights the continued threat illicit trade poses to South Africa's economic recovery, public safety and institutional integrity. 'Despite authorities' efforts to address illegal trade, corruption and money laundering, illicit trade remains deeply entrenched and highly damaging. 'If left unchecked, it will continue to rob the government of vital revenue, distort legal markets and deter both domestic and foreign investment.' ALSO READ: Illicit goods worth R1.7 million intercepted at Botswana border post SA at crossroads to dismantle illicit networks for trade In particular, the 2025 report emphasises how inflation, high unemployment, organised crime networks and lingering post-pandemic effects have exacerbated the illicit economy, while new digital platforms and smuggling channels are also intensifying the challenge,' TRACIT director-general Jeffrey Hardy says. 'South Africa stands at a crossroads. Now is the time for bold policies and strong enforcement to dismantle illicit networks. 'That is why this year we went a step further and proposed a structured Public-Private Partnership (PPP) to support South African and regional authorities in their fight against illicit trade.' TRACI is working closely with partners in South Africa to bring the proposed Public-Private Partnership model to life in the coming months.
