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IOL News
12 hours ago
- Business
- IOL News
How South African defence companies are expanding globally at IDEF 2025
South African defence companies exhibit advanced technologies and innovations at the South African National Pavilion during IDEF 2025 in Istanbul, Türkiye, aiming to grow export markets and secure international partnerships. Image: File A group of South African defence sector companies has arrived in Istanbul, Türkiye, aiming to showcase local innovation and forge new global partnerships during the International Defence Industry Fair (IDEF) 2025. Taking place from July 22 to 27, IDEF 2025 is one of the world's foremost defence expos, drawing industry leaders from across Eurasia, the Middle East and North Africa. South Africa's participation is spearheaded by the Department of Trade, Industry and Competition (the dtic) under its Export Marketing and Investment Assistance (EMIA) scheme. The initiative supports local businesses in accessing international markets and attracting foreign direct investment (FDI) into South Africa. Shane George, Senior Manager of Industry Support and Business Development at the Armaments Corporation of South Africa SOC Ltd, said the delegation was enthusiastic about the opportunities IDEF 2025 presents. 'In terms of our responsibility of creating and maintaining systems, we are going to be having meetings with some of the international Original Equipment Manufacturers (OEM), in looking for solutions and expanding current contracts,' said George. 'We are confident that, by the end of the week, we will have strengthened the bilateral relationships between South Africa and Türkiye, as our critical partner.' Among the exhibitors is Swatek Defence and Aerospace, which designs and produces cable harnesses and control boxes for military and aviation applications. Its founder, Dr Khulile Mtsetfwa, highlighted the role her company plays in supporting defence innovation. 'South Africa has the capabilities in the military sector, and one of them is the electrical systems that Swatek supplies. We are bringing skills, capabilities and a variety of offerings, one of them being electrical systems for the vehicles,' she said. Queen Ndlovu, CEO of QP DroneTech, is also part of the delegation. Her company provides commercial drone services geared towards disaster preparedness and climate-related interventions. 'I am looking for potential partners to use our drones and services, and also research and development partners to improve some of the specifications of our drones that we use in climate change and sustainability activities,' she explained. South Africa has secured a 164m² national pavilion to house its participating companies, providing a platform to showcase defence-related products and services to both existing and potential clients. IDEF 2025 presents a strategic opportunity for South African innovators to position their offerings within global defence supply chains, particularly as nations increase their focus on advanced technologies and sustainability in defence operations IOL News
IOL News
13 hours ago
- Business
- IOL News
Samsung opens third call for black-owned ICT and service centre businesses in South Africa
Samsung and DTIC open EEIP applications for black-owned ICT businesses, Image: Supplied Image: Supplied In a significant boost for South Africa's small business landscape, Samsung, in collaboration with the Department of Trade, Industry and Competition (DTIC), has opened the third call for eligible black-owned ICT and Service Centre small, medium and micro enterprises (SMMEs) to participate in this year's Equity Equivalent Investment Programme (EEIP) for Enterprise Development (ED). This initiative represents a continued investment of R280 million to empower local businesses and promote socio-economic development. Since its inception in 2019, the EEIP has witnessed notable achievements, cementing its role as a powerful catalyst for the advancement of black entrepreneurs within the ICT sector. As part of Samsung's enduring commitment to harnessing the potential of SMMEs, this year's third edition of the programme seeks to build upon the success of its predecessors while aligning with the government's Vision 2030. Nicky Beukes, Samsung EEIP Project Manager said, "This programme has in the last few years seen great success and has also had a positive impact in the lives of entrepreneurs in the ICT space. As part of our transformation objectives, our EEIP programme continues to contribute to the sustainable development goals of the National Development Plan (NDP)." Image: Supplied With a keen focus on economic transformation, Samsung's initiative stands as a testament to the potential of black-owned enterprises within the South African ICT landscape. By inviting local small businesses to join this programme, the EEIP offers a unique platform for entrepreneurs to elevate their operations and drive innovation. Beukes elaborated on the partnership with the DTIC, saying, 'Together with the DTIC, we have in the last few years re-affirmed our commitment to ICT development and economic transformation which are aligned to South Africa's Vision 2030. This third edition of EEIP and its success to date, is a clear indication that Samsung's significant investment in SMME development is yielding tangible results.' Image: Supplied The call for applications is open to all black-owned SMMEs in the ICT and Service Centre sectors across South Africa, reflecting Samsung's unwavering dedication to driving growth and fostering an inclusive entrepreneurial ecosystem. This initiative not only serves to uplift SMMEs but also plays a pivotal role in job creation and sustainable development across the region. For those interested in seizing this opportunity to propel their businesses into new horizons, additional information on how to apply can be found at
IOL News
2 days ago
- Business
- IOL News
Why Trump's 30% blow to South Africa is a wake-up call for a new economic order
On August 1, 2025, South African exporters will wake up to a 30% tariff on all goods entering the United States, a decision announced by the administration of President Donald Trump. Image: File On August 1, 2025, South African exporters will wake up to a 30% tariff on all goods entering the United States, a decision announced by the administration of President Donald Trump. This is not a sector-specific sanction, nor the outcome of any formal trade dispute. It is a sweeping penalty imposed on all products, citing trade imbalances and regulatory barriers imposed by South Africa. But this is not the end of trade. It is the beginning of South Africa's trade adolescence, the moment we decide to grow up or continue being disciplined by our 'partners.' The justification provided by the US administration rests on the claim that South Africa runs a trade surplus with the United States. In truth, South Africa exported around R170 billion worth of goods to the US in 2023 (Stats SA, 2024), largely in automotive components, citrus and minerals, while importing just over R100 billion in return. The surplus exists but it is relatively small in the context of overall bilateral trade. Trade imbalances are also not inherently unfair; the US itself enjoys surpluses with many countries. What this tariff reveals is not a fiscal grievance but a display of geopolitical leverage, an assertion of economic power with limited regard for multilateral process. The tariff appears partly aimed at appeasing domestic political interests ahead of the 2026 midterm elections, particularly in states where trade unions are concerned about foreign competition. However, the consequences for South Africa's economy will be profound and immediate. South Africa is already under pressure to reindustrialise and this penalty could not come at a worse time. The automotive industry alone accounts for over 4% of GDP and more than 110 000 jobs (Naamsa and Department of Trade, Industry and Competition, 2024). With the US as a key destination for vehicle parts and assembled models, this tariff will deal a serious blow to sectoral stability. Reports indicate that companies relocating production to the US may receive expedited regulatory approvals. In effect, this risks incentivising capital flight and weakening local value chains. This policy shift is taking place while South Africa holds the presidency of the G20 (G20 Secretariat, 2025). That irony is difficult to ignore. We are presiding over a global forum committed to equitable development while being subjected to unilateral economic pressure by one of its most powerful members. This is more than a diplomatic discomfort; it is a direct challenge to the credibility of multilateralism. If the G20 cannot protect developing economies from arbitrary market exclusion, it must ask itself what kind of influence it truly holds. While this move falls outside the scope of Agoa, it nonetheless underscores how preferential trade access can shift at the stroke of a pen. 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 ✕ Past threats to South Africa's participation in Agoa, such as the poultry trade dispute of 2015 (USTR, 2016), highlight how even codified benefits remain vulnerable to political shifts. Critics of South Africa's trade policy may point to the use of technical regulations and local content rules. However, these are allowed under World Trade Organisation (WTO) guidelines, as outlined in the Technical Barriers to Trade Agreement (WTO, 2020). Developing countries are within their rights to protect and promote industrial growth through policy instruments that stimulate domestic value addition. The United States also protects its own industries through farm subsidies, defence procurement and steel tariffs. To frame South Africa's approach as uniquely restrictive is not only unfair; it reflects a double standard embedded in the global trade architecture. This situation reflects a deeper structural issue in South Africa's trade exposure. Our economy remains disproportionately dependent on the EU, the US and China. Even beyond the US, our exposure to external shocks is growing from the EU's carbon border taxes to shifting Chinese demand. Diversification must be structural, not just diplomatic. There is also a domestic reckoning to be had. South Africa's industrial policy remains constrained by loadshedding, underinvestment in ports and rail and persistent skills mismatches. If we are to reposition ourselves globally, these internal constraints must be addressed with equal urgency. A resilient economy cannot rely solely on favourable trade preferences beyond its control. It must be built on a foundation of functional infrastructure, competitive inputs and policy certainty. South Africa faces a choice. It can wait out the Trump presidency in the hope that future leadership will reverse course or it can act decisively now. This is not a call for isolationism. South Africa should not abandon global trade nor retaliate blindly. However, we must negotiate from a position of design rather than deference. We must ensure that this is the last time our national strategy is disrupted by external political cycles. Our trade strategy must pivot. Already, trade with BRICS+ partners has rivalled that of individual Western blocs in recent quarters, accounting for more than 22% of South Africa's exports in 2024 (SARB, Q4 2024). This is a foundation we can build upon. The African Continental Free Trade Area (AfCFTA) remains our continent's most ambitious economic project. While its infrastructure is still maturing, its potential cannot be deferred any longer. Trade corridors, payment systems and regulatory alignment must be fast-tracked in practice, not just policy. The World Bank estimates AfCFTA could lift 30 million people out of poverty by 2035 (World Bank, 2020). Parliament and the economic cluster must now take this seriously not as a trade spat but as a strategic inflection point for the country's long-term development path. The legality of this tariff under WTO rules remains debatable, especially given its blanket nature and lack of arbitration. However, legality aside, the message it sends is unmistakable. The global playing field remains unequal and South Africa must protect itself accordingly. This is not an argument for withdrawal. It is an argument for resilience. We cannot afford to build a 21st-century economy on the hope that global goodwill will prevail. We must design for volatility, prepare for shocks and root our trade agenda in real production, regional depth and economic clarity. US President Donald Trump may eventually give way to a different leader but the conditions that made this tariff possible are not tied to any single administration. The unpredictability of external markets, the asymmetry of trade power and the fragility of our supply chains are structural issues. They will not be resolved with the next election. The tariffs may be American but the decision before us is South African. Do we keep asking permission to grow or do we take the blows and build something of our own? Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. Image: Supplied Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
IOL News
2 days ago
- Business
- IOL News
South Africa reassures on trade ties with Russia amidst looming US tariffs
Following Trump's statement that US imports from Russia could face a staggering 100% tariff if peace talks regarding the ongoing Russia-Ukraine conflict do not bear fruit within 50 days, worries have mounted over what this means for countries engaging in commerce with Russia, including South Africa. The Department of Trade, Industry and Competition (dtic) has sought to allay concerns regarding South Africa's trading relationship with Russia in the wake of US President Donald Trump's recent tariff ultimatum. Following Trump's statement that US imports from Russia could face a staggering 100% tariff if peace talks regarding the ongoing Russia-Ukraine conflict do not bear fruit within 50 days, worries have mounted over what this means for countries engaging in commerce with Russia, including South Africa. Russia produces 10% of the world's crude, and it has been able to sell oil through discounted sales to China, India, Brazil and Turkey. According to the International Energy Agency Russia earned $192 billion from oil sales last year despite western sanctions. The oil price heading for its first weekly loss in three weeks last week after Trump gave Russia a 50-day ceasefire deadline, with the Brent crude falling by 0.5% to $69.21 per barrel by Sunday. South Africa, a member of the BRICS economic bloc alongside Russia, has already been grappling with the ramifications of heightened tariffs on its exports to the US. With negotiations currently underway concerning 30% tariffs affecting key sectors – from citrus and wines to minerals and automotive exports – the last thing South Africa desires is further complications on the trade front. Despite its modest reliance on Russian imports, the figures tell a nuanced story. South Africa's bilateral trade with Russia has seen only a 7% increase, climbing from $806 million in 2023 to $864m in 2024. In a wider context, Russia ranks as South Africa's 46th largest export destination and the 39th largest source of imports. This limited trade relationship implies that although Russia is an important ally in the BRICS bloc, the economic stakes remain relatively low. The geopolitical battleground may complicate future transactions; however, the South African government remains keenly aware of the need to sustain a stable trading relationship with Russia while juggling the demands of the US market. The dtic indicated that the dissimilarities in trade profile between South Africa and Russia may serve as a buffer against potential US sanctions. South African exports have notably surged by 5%, reflecting the resilience of its agricultural products in Russian markets. Items such as citrus fruits, apples, and even consumer goods like refrigerators have managed to penetrate the Russian economy. This expansion comes at a time when Western sanctions have compelled Russia to pivot towards alternative markets, with increasing reliance on discounted energy sales to nations such as China, India, and Turkey. However, the dtic reiterated that while the unilateral sanctions imposed by the US and EU on Russia did not directly bind South Africa, they carried an extraterritorial effect. This means that South African companies engaging in trade with Russia may face repercussions, including the inability to do business in the US and EU. Notably, some Russian banks have been removed from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, presenting barriers in banking relations and payment infrastructures for South African businesses. The dtic highlighted that despite sanctions affecting various sectors, there remains a segment of legal trade that continues unhindered. This gives South Africa a unique opportunity to bolster its agricultural exports to Russia, particularly at a time when Russia has imposed bans on food imports from several Western nations. 'There are certain products, banks, individuals, and companies that are not under sanctions. The sectors not under sanctions and legal trade can take place include: food, agricultural commodities, medicines and medical supplies,' said Yandeya Mashau, director for Europe trade relations at the dtic. 'The Russian nuclear industry remained exempt from sanctions and the national nuclear company Rosatom remained the largest actor in the international market for nuclear reactor construction (also playing key roles in nuclear fuel supplies, nuclear equipment supplies, and handling nuclear waste) 'Currently, SA banks are reluctant to finance transactions with Russia, even in products and sectors not under sanctions. According to Russia, 70% of bilateral trade takes place via third countries such as Turkey, Azerbaijan, Latvia, UAE, Qatar, etc. 'Therefore, although there are sanctions, trade can still take place. Russia responded with sanctions against several countries, including a total ban on food imports from Australia, Canada, Norway, Japan, the United States, the EU and the United Kingdom. This creates an opportunity for SA to supply agricultural products to Russia.' Michael Hewson, director at specialist African transfer pricing advisory firm, Graphene Economics, said Trump's focus on introducing new tariffs and his swift changes of direction regarding implementation of these tariffs had triggered retaliatory actions from certain trade partners and injected fresh uncertainty into global markets. 'Multinational enterprises (MNEs) that are manufacturing in Africa and then distributing into the USA will need to consider their value chains,' Hewson said. 'For example, imagine a South African company that manufactures automotive components and sells them to its sister company in the United States, which then sells the completed vehicles to American customers. The price at which the South African company sells the parts to its US counterpart is the 'transfer price'. The ripple effects of tariff-driven supply chain realignments and transfer pricing adjustments can be significant for African economies.' BUSINESS REPORT
IOL News
2 days ago
- Business
- IOL News
Trade Minister Parks Tau highlights the rise of 90 illegal online gambling in South Africa
The National Gambling Board has two personnel dealing with the challenges posed by the illegal gambling websites and R596 000 is allocated for the identification of illegal gambling websites. Image: Supplied Trade, Industry and Competition Minister Parks Tau has disclosed that the National Gambling Board (NGB) has recorded at least 90 online gambling websites currently operating illegally in South Africa, all of which are registered and licensed overseas. 'The National Gambling Board did not engage with the operators of the illegal gambling websites, and operators did not block their illegal sites as the National Gambling Board did not engage with them,' he said. Tau revealed this when he was responding to parliamentary questions from Rise Mzansi MP Songezo Zibi, who enquired about the approaches used by the NGB to identify illegal gambling websites and the engagements undertaken by the board with South African network operators to block illegal online gambling websites in the past five financial years, among other things. 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 Zibi had also wanted to know about the steps taken by NGB with Google Africa to remove illegal gambling websites from their search engine. In his written reply, Tau said the NGB has two personnel who dealt with the challenges posed by the illegal gambling websites. 'The National Gambling Board has allocated financial resources to the extent of R596 000 for the identification of illegal gambling websites. This includes travel costs and legal enforcement forum meetings to be held in the 2025/26 financial year period.' Tau also said the illegal gambling sites were identified by reliance on third-party information. 'When unlawful winnings are confiscated by third parties, the websites through which the illegal online gambling activity has occurred are mentioned in a prescribed National Gambling Board form. 'Other instances of identification of illegal online gambling websites include complaints received from the public via a dedicated NGB email address or the NGB fraud hotline.' Tau explained that the NGB engaged with various stakeholders who are responsible for the provision of the platform for the website to operate in South Africa when blocking illegal gambling websites. He stated that the NGB forwarded 10 websites to Google Africa for removal from the search engine in the financial year ending 2024/25. 'To date, none of the websites have been removed from the search engine, and (c) Yes, the NGB has engaged with Google SA,' Tau said. Meanwhile, Tau confirmed that the National Gambling Board was still without a board of directors. 'The process of selecting members to serve on the National Gambling Board is under way and has not yet been concluded,' he said in response to DA MP Toby Chance's inquiry. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
