Latest news with #Kganyago
Eyewitness News
2 days ago
- Business
- Eyewitness News
Kganyago calls for emerging markets, developing countries to address insurance protection gap
JOHANNESBURG - South African Reserve Bank (SARB) governor Lesetja Kganyago has called for emerging market and developing economies to urgently address the widening insurance protection gap in the face of growing natural disasters. The calls from Kganyago and other central bank governors come amid an alarming increase in natural catastrophes, including hurricanes, typhoons, wildfires, and floods across the world. ALSO READ: SARB's Kganyago says global debt crisis had shifted into a new paradigm South Africa is among countries recently devastated by deadly floods, with more than 400 lives lost in KwaZulu-Natal in 2022 and 100 lives claimed in June's floods in the Eastern Cape. Climate action, financing, and insurance gaps are on the agenda at the G20 finance track meetings currently underway in KZN on Friday. Kganyago addressed some delegates on the matter on the sidelines. 'For central banks, policymakers, and supervisors, bridging this protection gap is part of building macro financial resilience.' President of the World Bank Group Ajay Banga said the cost of uninsured losses in natural disasters ends up on the public balance sheet as debt. 'Insurance can help but for insurance to work, high quality development is a necessary precondition. It simply cannot function in the face of poor infrastructure, unreliable data or chronic underinvestment. Without that foundation, insurance premiums would just be too expensive.'
The South African
4 days ago
- Business
- The South African
Why 100 000 South Africans could lose their jobs thanks to Donald Trump
South Africa could lose up to 100 000 jobs if urgent action is not taken to counter looming US tariffs set to take effect next month, Reserve Bank Governor Lesetja Kganyago has warned. The anticipated job losses would primarily hit the automotive and agricultural sectors, both critical pillars of the country's economy. The warning comes amid growing concern over the US government's decision to impose 30% tariffs on South African imports, a move that could seriously undermine trade relations and damage the country's fragile economic recovery. 'By some measures, if we do not find alternative measures, the impact on jobs could be around 100 000,' Kganyago said during a media briefing. The automotive industry, which supports over 100 000 direct jobs, has already experienced an 82% drop in exports to the US this year due to earlier 25% tariffs on vehicle components. Industry insiders warn that further tariffs could push several manufacturers – particularly those dependent on the US market – into crisis. Meanwhile, agriculture, a major employer in rural areas, faces a similar threat. Despite posting record $13.7 billion in exports in 2024, the sector could see widespread job losses, especially among low-skilled workers with limited alternative employment options. President Cyril Ramaphosa has indicated a willingness to negotiate a reduction in tariffs, but no agreement has been reached with US counterparts. With the tariffs due to take effect in August 2025, time is running out for diplomacy to avert a crisis. Economists and trade analysts have urged the government to: Strengthen trade partnerships beyond the US Accelerate domestic economic reforms to support local industries And implement short-term relief measures to protect jobs South Africa's vulnerability to global trade shifts is once again in sharp focus. Without swift and effective measures, the combination of US tariffs and potential AGOA exclusion could deliver a major blow to economic growth, export revenues, and employment. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
TimesLIVE
17-07-2025
- Business
- TimesLIVE
Kganyago asserts Africa's G20 agenda despite tariffs, Bessent absence
South African Reserve Bank governor Lesetja Kganyago said on Wednesday an 'African agenda', including climate change and cross-border payment systems, is still due to be discussed by G20 finance chiefs amid fears that tariffs will overshadow the gathering. US Treasury secretary Scott Bessent skipped the meetings in Durban, marking his second consecutive absence from G20 finance meetings and raising questions about its ability to tackle pressing global challenges. President Cyril Ramaphosa has sought to leverage Africa's first G20 presidency to promote the African agenda, which also included topics such as the high cost of capital. 'The African issues have been elevated, all of us are talking about those,' Kganyago told Reuters as discussions were ongoing between deputies and other officials, before the two-day meeting gets officially under way on Thursday. Kganyago emphasised the push for a co-ordinated African payments system to facilitate trade across the continent, a move that could face scrutiny from US President Donald Trump.
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Business Standard
16-07-2025
- Business
- Business Standard
Trump tariffs may cost South Africa 100,000 jobs: Central bank chief
US President Donald Trump's tariffs on South Africa could cause around 100,000 job losses, with the agriculture and automotive sectors hardest-hit, central bank governor Lesetja Kganyago said on Wednesday. Kganyago told local radio station 702 that the impact of the 30 per cent tariff, which Africa's biggest economy faces from August 1, could cause significant damage to specific industries. "The impact in agriculture could actually be quite devastating because agriculture employs a lot of low-skilled workers, and here the impact is on citrus fruit, table grapes and wines," Kganyago said. He said statistics showing South African car exports to the United States slumped more than 80 per cent in the wake of import tariffs imposed on cars by the Trump administration in April were very concerning. "If we do not find alternative measures the impact on jobs could be around 100,000, so that is what we actually face," the governor said. South Africa already has one of the highest unemployment rates in the world, with the official rate sitting at 32.9 per cent in the first quarter of this year and an expanded definition at 43.1 per cent. Farmer groups have also warned of the adverse impact of the tariffs on producers of citrus, macadamia nuts, grapes, wine, fruit juices and ostrich leather. In the citrus sector alone the tariffs have put 35,000 jobs in jeopardy and threaten to devastate towns such as Citrusdal in the Western Cape that are heavily dependent on exports to the U.S.
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Business Standard
16-07-2025
- Business
- Business Standard
Trump's tariffs may cost South Africa 100,000 jobs, warns Kganyago
U.S. President Donald Trump's tariffs on South Africa could cause around 100,000 job losses, with the agriculture and automotive sectors hardest-hit, central bank governor Lesetja Kganyago said on Wednesday. Kganyago told local radio station 702 that the impact of the 30 per cent tariff, which Africa's biggest economy faces from August 1, could cause significant damage to specific industries. "The impact in agriculture could actually be quite devastating because agriculture employs a lot of low-skilled workers, and here the impact is on citrus fruit, table grapes and wines," Kganyago said. He said statistics showing South African car exports to the United States slumped more than 80 per cent in the wake of import tariffs imposed on cars by the Trump administration in April were very concerning. "If we do not find alternative measures the impact on jobs could be around 100,000, so that is what we actually face," the governor said. South Africa already has one of the highest unemployment rates in the world, with the official rate sitting at 32.9 per cent in the first quarter of this year and an expanded definition at 43.1 per cent. Farmer groups have also warned of the adverse impact of the tariffs on producers of citrus, macadamia nuts, grapes, wine, fruit juices and ostrich leather. In the citrus sector alone the tariffs have put 35,000 jobs in jeopardy and threaten to devastate towns such as Citrusdal in the Western Cape that are heavily dependent on exports to the U.S.
