Latest news with #Godongwana
IOL News
5 days ago
- Business
- IOL News
Donald Trump's tariffs could cost South Africa 100,000 jobs
Finance Minister Enoch Godongwana has warned that South Africa stands to lose more than 100,000 jobs if it fails to secure a renewed trade agreement with the United States Image: Phando Jikelo / GCIS Finance Minister Enoch Godongwana has warned that South Africa stands to lose around 100,000 jobs due to US tariffs if a trade deal is not renewed. In an interview with Bloomberg Television, Godongwana said the country's automotive sector, which exports heavily to the US, would be hardest hit because of the tariffs . "We heard from the central bank governor saying, potentially, if the current deal, the current tariffs stay in place, 100,000 jobs could be at stake", Godongwana said. Earlier this year, US President Donald Trump imposed a 25% tariff on all vehicles imported into the US and has since upped the ante on South Africa, informing President Cyril Ramaphosa last week that South Africa will be hit with a 30% tariff on all its exports to the United States from August 1. This comes despite Ramaphosa's recent efforts to preserve and strengthen trade ties with Washington, including discussions held at the White House earlier this year, aimed at resolving long-standing trade tensions. Godongwana added that the stakes are high and the economic impact would be severe if a deal is not reached. 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 ✕ "My prayer, first and foremost, is that the deal should be made by August 1st. And secondly, if it's not made, it would be useful that we get an extension until we finalise the deal,' he added. "Of course, the US has a huge economy. If we lose a trading partner such as the USA, it's going to have a major impact and create more unemployment in the economy.". Minister of Agriculture John Steenhuisen earlier this year also conceded that the future of South Africa's trade benefits under the African Growth and Opportunity Act (AGOA) remains uncertain, saying the government was 'hoping for the best but preparing for the worst.' "When we approached the subject of AGOA, it was made very clear that it is a creature of Congress and that we would have to engage with Congress, my personal view is that AGOA may still be on the boil but it is going to be different from the AGOA we know from the past," Steenhuisen said. Business Leadership South Africa CEO Busisiwe Mavuso has also warned that if the trade deal is not renewed, the country's economic momentum could be disrupted. "Earlier this year, confidence was building - you could feel it in boardrooms and investment committee meetings. Then the global trade environment shifted dramatically," Mavuso said. "The looming expiration of the current 10% tariff arrangement on July 9 could see South African exports to the US facing 30% tariffs, fundamentally altering trade flows and forcing rapid strategic adjustments". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
5 days ago
- Business
- IOL News
Trump tariffs could cost South Africa 100,000 jobs
Finance Minister Enoch Godongwana has warned that South Africa stands to lose more than 100,000 jobs if it fails to secure a renewed trade agreement with the United States Image: Phando Jikelo / GCIS Finance Minister Enoch Godongwana has warned that South Africa stands to lose around 100,000 jobs due to US tariffs if a trade deal is not renewed. In an interview with Bloomberg Television, Godongwana said the country's automotive sector, which exports heavily to the US, would be hardest hit because of the tariffs . "We heard from the central bank governor saying, potentially, if the current deal, the current tariffs stay in place, 100,000 jobs could be at stake", Godongwana said. IOL previously reported that earlier this year, US President Donald Trump imposed a 25% tariff on all vehicles imported into the US and has since upped the ante on South Africa, informing President Cyril Ramaphosa last week that South Africa will be hit with a 30% tariff on all its exports to the United States from August 1. This comes despite Ramaphosa's recent efforts to preserve and strengthen trade ties with Washington, including discussions held at the White House earlier this year aimed at resolving long-standing trade tensions. Godongwana added that the stakes are high and the economic impact would be severe if a deal is not reached. 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 ✕ "My prayer, first and foremost, is that the deal should be made by August 1st. And secondly, if it's not made, it would be useful that we get an extension until we finalise the deal,' he added. "Of course, the US has a huge economy. If we lose a trading partner such as the USA, it's going to have a major impact and create more unemployment in the economy.". Minister of Agriculture John Steenhuisen earlier this year also conceded that the future of South Africa's trade benefits under the African Growth and Opportunity Act (AGOA) remains uncertain, saying the government was 'hoping for the best but preparing for the worst.' "When we approached the subject of AGOA, it was made very clear that it is a creature of Congress and that we would have to engage with Congress, my personal view is that AGOA may still be on the boil but it is going to be different from the AGOA we know from the past," Steenhuisen said. Business Leadership South Africa CEO Busisiwe Mavuso has also warned that if the trade deal is not renewed, the country's economic momentum could be disrupted. "Earlier this year, confidence was building—you could feel it in boardrooms and investment committee meetings. Then the global trade environment shifted dramatically," Mavuso said. "The looming expiration of the current 10% tariff arrangement on July 9 could see South African exports to the US facing 30% tariffs, fundamentally altering trade flows and forcing rapid strategic adjustments". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
Eyewitness News
5 days ago
- Business
- Eyewitness News
G20: Treasury's Pieterse confident finmins & central bank governors can reach consensus on number of issues
JOHANNESBURG - National Treasury said that finance ministers and central bank governors were on the brink of reaching consensus as fiscal and monetary policy leaders meet for a third time under South Africa's G20 presidency. The diplomatic bloc failed to agree on a formal communique at the February meeting in Cape Town, with some pushback from the US on climate financing. In the chair's summary, member states agreed on efforts to strengthen multilateral development banks, reforming global governance institutions, enhancing debt sustainability and addressing liquidity challenges. READ: Slow responses to global headwinds could defer 2030 Sustainable Development Goals deadline - Godongwana At the finance track meeting underway in KwaZulu-Natal (KZN), the wording on sustainable financing coming from the US delegation was the cause for a difference of opinion. But Director-General at Treasury, Duncan Pieterse, said the first communique in two years could be finalised when the meeting wraps up on Friday. "We are quietly confident that we will be able to get there, and it would be a significant achievement because a communique means that there is consensus among the members of G20 on a range of issues and at a time like now, I think that kind of achievement is quite remarkable."
IOL News
5 days ago
- Business
- IOL News
South Africa finalising R54 billion loan package with World Bank, KfW, and African Development Bank
The International Monetary Fund has also recommended that South Africa reduce its debt-to-GDP ratio to 60% to align with international standards. The announcement comes amid growing concerns over the country's escalating debt levels. South Africa's debt-to-GDP ratio has grown from 23.6% in 2008/09 to a projected 74.7% in 2024/25. In an interview with Bloomberg Television on Thursday, Godongwana said the funds will support municipal projects and performance-related initiatives aimed at improving service delivery and strengthening local government operations across the country. Finance Minister Enoch Godongwana has revealed that the government is managing a loan package totalling about R 54 billion from international lenders, including the World Bank , African Development Bank, and KFW. Godongwana explained that this is not a single new loan but rather a package made up of multiple loans from different development partners. 'We're dealing with another one now, which is supporting performance-related for municipalities. Again, it's a consortium of the World Bank, the KFW, the African Development Bank, all of them coming together to put up a loan for us,' he said. He added that the total loan amount, in rand, is expected to be about 54 billion, and that the funds will likely be disbursed in stages, with some going directly to municipalities and some allocated as a policy loan to support broader reforms. 'I think in Rands overall, the total loan is going to be about 54 billion. I suspect it's going to be staggered because some of it is going to be going into municipalities. Some of it is in what is called the policy loan." The announcement comes barely a month after the World Bank approved a $1.5 billion (R26 billion) loan to support the country's "key reforms aimed at making the country's infrastructure more efficient and sustainable." According to the bank, the loan also aims to address South Africa's twin economic challenges of low growth and high unemployment by easing infrastructure constraints in the energy and freight transport sectors. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
Eyewitness News
5 days ago
- Business
- Eyewitness News
Slow responses to global headwinds could defer 2030 Sustainable Development Goals deadline
DURBAN - Finance Minister Enoch Godongwana said that slow responses to global headwinds could defer the deadline for the 2030 Sustainable Development Goals, hitting Africa the hardest. Godongwana made the comments during the opening address at the third G20 Finance Ministers and Central Bank Governors meeting in KwaZulu-Natal (KZN) on Thursday. Global heads of fiscal and monetary policy at the table are preoccupied with policy uncertainty, fragmentation and stagnant economic growth. Godongwana said that rising trade barriers, persistent global imbalances and new geopolitical risks could not go unchecked. "Many developing countries, especially in Africa, remain burdened by high and rising debt vulnerabilities, constrained fiscal space and high cost of capital that limits their ability to invest in their people and their futures." Godongwana said that a failure to address these challenges would have a domino effect on the fight against poverty, inequality and slow efforts to create jobs. "The cumulative impact of these cascading challenges is pushing the achievement of the 2030 sustainable development goals further out of reach."
