Latest news with #ParksTau
Eyewitness News
10 hours ago
- Automotive
- Eyewitness News
Minister Tau says SA diversifying and looking elsewhere to mitigate US trade tariffs
CAPE TOWN – Trade, Industry and Competition Minister, Parks Tau, says South Africa is diversifying and looking elsewhere to mitigate the impact of the United States (US) trade tariffs. He said the tariffs imposed by the Donald Trump administration have already impacted the auto industry, with a 25% tariff on automobiles and parts coming into effect in April and May, respectively. In written Parliamentary replies to questions from Members of Parliament (MPs), Tau said the diversification would focus on countries that South Africa has trade agreements with, including some in South America. Tau said, while the US remains an important trading partner for South Africa, it accounted for just 7% of South African trade in 2024. He said around 40% of South Africa's trade is with Asian countries, 25% with European countries and 20% with other African nations. Tau said in February this year, the us 'imposed section 232 tariffs of 25% on steel and aluminium on the basis that imports of these products threaten US national security'. He said government is now determined to strengthen partnerships in Africa to address business challenges and create a favourable environment for conducting business. According to Tau, the diversification focuses on countries that South Africa has trade agreements in place, including the Southern African Development Community (SADC), African Continental Free Trade Area and the European Economic Partnership Agreement. The country also has a preferential trade agreement with the South American trade bloc comprising Brazil, Argentina, Paraguay and Uruguay.
IOL News
12 hours ago
- Business
- IOL News
South Africa pushes for tariff negotiations with US despite silence from Washington
The dtic Minister Parks Tau said South Africa was not in a unique position as the US attempts to finalise negotiations with some 185 countries around the world. Image: Independent Media Archives South Africa's government has reiterated its commitment to secure a favourable tariff deal with the United States, despite a conspicuous lack of communication from Washington D.C. The looming potential of a 30% levy on South African exports has sparked concern as businesses brace for what could significantly impact trade relations between the two nations. The Department of Trade, Industry and Competition (the dtic) on Tuesday said negotiations remained the best tool to deal with the issues that are on the table. The dtic Minister Parks Tau said South Africa was not in a unique position as the US attempts to finalise negotiations with some 185 countries around the world. Tau said the government remained committed to the cause as it awaited substantive feedback from the US counterparts on the final status on its Framework deal. 'The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the United States, and a reset is unavoidable,' Tau said. 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 ✕ 'As the Department of Trade, Industry and Competition, we have been in a period of intense negotiations with the United States. We have signed a condition precedent document and have readied our inputs for entry into the template which is to follow from the US. 'Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios. We have planned for these scenarios and have not sat idle. 'We are working with other government departments on a response plan which includes a support desk within the dtic. Our response package also focuses on demand side interventions in the impacted industries.' Tau said South Africa's Framework deal to the US featured a number of areas including and not limited to importing 75-100 petajoules of Liquified Natural Gas for a 10 year period, which would unlock $12 billion; agricultural market access by simplifying of US poultry exports under the 2016 tariff rate quota and unlock approximately $91 million in trade. In addition, readiness to open market access for blueberries subject to necessary protocols. Tau said South African firms committed to invest $3.3bn in US industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals, and agrimachinery. The Framework also proposes an exemption of specific sectors from reciprocal tariffs to preserve supply chains such as ship building, counter-seasonal agriculture trade, exports from Micro, Small and Medium Enterprises of less than $1m per annum. 'The way forward is clear. President [Cyril] Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution which is mutually beneficial,' tau said. 'The dtic has made this issue an apex priority since well before 2 April 2025, and we have centred South Africa and her people as our non-negotiable. Rest assured, we will not waiver in our mission to ensure we make South Africa prosper.' Meanwhile, Presidential Special Envoy to North America, Mcebisi Jonas, on Tuesday said there's a pressing need for South Africa to diversify its export markets, moving beyond traditional trading partners to engage with emerging powers in Asia, the Middle East, and Latin America. Speaking at a seminar hosted by the Kgalema Motlanthe Foundation, said the African Continental Free Trade Area has shown promise, yet current crises underscored the need for more robust regional integration efforts to improve economic resilience and collaboration. 'Export diversification is a key imperative that South Africa should take up as part insurance against market concentration, but also as a source of resilience. For South Africa and Africa as a whole, the economic implications of China's growth and consequent reconfiguration of the global economy are somewhat contradictory. China has become a large investor in African development,' Jonas said. 'The USA remains a central player in global development. South Africa's relationship with the US is crucial. And it is not transactional. But based on a long partnership rooted in shared values of democracy, justice, and progress. In the immediate term, South Africa is engaged in negotiations with the US to reach a solution on the tariff impasse. But beyond that, I think there is a conversation going on improving the relations between the two countries.' BUSINESS REPORT
Daily Maverick
5 days ago
- Business
- Daily Maverick
Majority of spaza shops fail to meet R500m support fund's criteria
The organisation representing spaza shop owners says that the low compliance rate can be blamed on outdated and rigid compliance criteria. Nearly four months after the launch of the Spaza Shop Support Fund, only 14% of aspirant entrepreneurs have met the fund's compliance requirements. The fund was launched by the minister of trade, industry and competition, Parks Tau, and the minister of small business development, Stella Ndabeni-Abrahams, in Soweto on 10 April. The Department of Small Business Development has stated that despite the spaza shop sector playing a vital role in township economies, it still faces significant challenges, including intense competition from large retailers with greater buying power, limited access to working capital and inadequate business development support. The launch of the fund attracted just over 10,000 applications, which are currently under review for funding. The applications have been split into two categories, with the first group made up of the 14% who comply with the requirements. The Department of Small Business Development said these applications were being finalised for funding. The second group of applications comprises the 86% who do not yet meet the compliance requirements for various reasons, including not providing documentation such as business licences or trading permits. 'Failure of government' The spokesperson for the South African Spaza Shops Association, Kgothatso Ramautswa, said it was deeply concerning that only 14% of applications met the fund's compliance requirements. 'It reflects not a failure by the spaza shop owners, but rather a failure of government to design and communicate a realistic and accessible funding support system,' said Ramautswa. 'Most spaza shops operate in the informal economy, and the current compliance framework is not tailored to the lived realities of township entrepreneurs.' Ramautswa said the 86% figure showed that the fund was failing its intended beneficiaries. If 86% of applicants were non-compliant, the problem lay in the system, not the people. He said it was unacceptable that such a large portion of the informal economy was non-compliant with the fund's requirements because of outdated and rigid compliance criteria. The department has said that instead of declining the non-compliant applicants, it was providing non-financial support, including assistance in applying for the necessary documentation through their local municipality. Outreach programme Siphe Macanda, the spokesperson for the Department of Small Business Development, said: 'This support is part of a broader outreach programme, which serves as an extension of the non-financial support available under the fund. The countrywide outreach programme is implemented by officials from the Department of Small Business.' However, Ramautswa insisted, 'The requirements are overly technical, bureaucratic, and not reflective of township business operations. The average spaza shop does not have access to accountants, registered business documents, or internet connectivity.' The Spaza Shop Support Programme provides targeted financial and non-financial support, with funding of up to R100,000 per qualifying spaza shop owner. The department said this support package is designed to promote sustainability, competitiveness and regulatory compliance. It includes: Up to R40,000 for stock purchases, facilitated through approved delivery partners to ensure reliable and cost-effective supply. Up to R10,000 for business training, covering key modules such as point-of-sale systems, basic business and financial management, digital literacy and credit management, and food safety and regulatory compliance. Up to R50,000 for infrastructure upgrades, including improvements to shop buildings, refrigeration and shelving, security systems, and other essential business assets. 'This comprehensive package aims to strengthen the operational efficiency of local spaza shops, improve their competitiveness and foster inclusive economic participation within township communities,' said Macanda. The department said that despite no applications being formally declined, as part of the due diligence process, applications may be declined in future under specific circumstances, including the following: The applicant is not a South African citizen, as the fund is intended to support South African-owned spaza shops; Fronting — where the applicant is misrepresenting ownership or control of the business; Fraudulent documentation or misrepresentation in the application; An invalid or non-existent trading permit or a business licence that cannot be resolved through the support process; and/or Use of funding for personal or non-business-related purposes, which goes against the objectives of the fund. 'It is important to emphasise that the fund does not immediately decline applications that are non-compliant. Instead, these applicants are provided with client-specific non-financial support to assist them in complying with the fund requirements,' said Macanda. Job Creation The department said the R500-million fund fully covers the cost of training as part of its comprehensive support package. An amount of R10,000 per beneficiary is allocated for targeted business training and capacity building. This amount is included within the broader R100,000 funding package per qualifying spaza shop owner. The training component is designed to develop critical business management skills. To qualify for the Spaza Shop Support Fund, spaza shops must operate within South Africa's townships or rural areas and must serve the local communities in those regions. 'This focus is aligned with government efforts to revitalise township and rural economies by promoting local entrepreneurship, job creation and access to essential goods and services,' said Macanda. 'Spaza shops located in more affluent or urban areas are not eligible under this specific fund, as it is designed to support historically underserved and economically marginalised communities. 'However, spaza shops or retail outlets in urban areas may still qualify for support through existing funding programmes offered by the NEF [National Empowerment Fund] and Sedfa [Small Enterprise Development and Finance Agency]. These programmes cater to a broader range of businesses outside the scope of the Spaza Shop Support Fund,' she said. Corruption Daily Maverick asked the department how it ensured that the fund was used effectively, transparently and free of corrupt elements. The department said it had a comprehensive set of oversight and governance mechanisms in place. 'All applications are processed through an automated system, allowing for real-time tracking and daily reporting on approvals and disbursements. Funding is only disbursed following formal approval by the Investment Committee, which rigorously evaluates applications in line with the fund's due diligence protocols and eligibility criteria,' said Macanda. 'To safeguard the integrity of the disbursement process, the Finance Division applies strict internal controls to verify and validate each transaction prior to payment. 'Post-disbursement, the NEF's Post-Investment Unit conducts audits and site visits to confirm that funds are being used in line with approved business plans. Importantly, disbursements are made directly to vetted and pre-approved suppliers, rather than to beneficiaries, reducing the risk of fund misuse.' Macanda said governance was further strengthened through regular oversight and coordination. 'These combined mechanisms ensure that the fund operates with a high degree of transparency, accountability and alignment with its developmental objectives,' added Macanda. The current maximum funding available per spaza shop owner is R100,000, and this support is offered as a blended finance instrument, with a 50% grant and a 50% interest-free loan. The debt portion is repayable, but carries zero interest. The South African Spaza Shops Association was critical of the non-financial support, asserting that business owners chiefly require finances. 'While training and support are welcomed, they should not replace the urgent financial assistance that these businesses most require to survive. Spaza shops are struggling with load shedding, high crime, inflation and dwindling foot traffic. 'Training without financial backing is a Band-Aid over a gaping wound. Non-financial support should be integrated with immediate access to funding in a practical manner,' said Ramautswa.
IOL News
6 days ago
- Business
- IOL News
South Africa continues to press the US for trade deal, says Parks Tau
File photo ofTrade, Industry and Competition Minister Parks Tau. Image: GCIS South Africa continued to work tirelessly discussing with its counterparts in the US to keep the trade route open and having submitted the Framework Deal in May, South Africa has signed a condition precedent document with the office of the US Trade Representative, a precursor to finalisation of the negotiations, Minister of Trade, Industry and Competition Parks Tau said in his budget vote. Tau said the collective work of business, organised labour and civil society, in engaging the US Congress is also a key lever in South Africa's toolkit in its approach to ensuring the continued inclusion of South Africa in the Africa Growth and Opportunity Act and to respond to the recently proposed US-South Africa Bilateral Relations Review Act. "Our active engagements with Asia are significantly bearing fruit. We have advanced conversations with China on Green Industrialisation and deepening our industrial supply chains. We have also committed to working with them to beneficiate our critical minerals here at source. This will unlock value in our Special Economic Zones (SEZs) and Industrial Parks as we agree that these dynamic strategic nodes in our country are best placed to drive our reindustrialisation agenda." Tau said. He said the government was also reinvigorating its relationship with Japan through InvestSA and the Japan External Trade Organisation (JETRO). As the looming Carbon Border Adjustment Mechanism (CBAM) alone has the potential to create an almost 1% contraction in GDP on the African continent, South Africa remains firm that the multilateral trading system with the World Trade Organisation and the United Nations at their core, must be preserved until all member states are able to reach their developmental goals, he said. "This is the message we will take to the 14th Ministerial Conference in Cameroon next year. Our announcement on the Clean Trade and Investment Partnership (CTIP) with the EU in March, is to be welcomed by our provinces and municipalities. For one, CTIP will enable us to execute our decarbonisation agenda and maximise the R90 billion facilitation funding that has been initially committed," Tau said. 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. 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Advertisement Next Stay Close ✕ Ad loading Deputy Minister for the Department of Trade, Industry (Dtic) and Competition Zuko Godlimpi said to support and accelerate the participation of black industrialist in the economy, the Industrial Development Corporation (IDC) had in 2025/2026 revised its commitment to a total of R12 billion towards transformation focused funding. Godlimpi said R7.4bn was earmarked for black industrialists, R3.5bn for women-owned businesses and R1.5bn for youth-led enterprises in efforts aspired to reflect a deliberate strategy to transform the ownership and control of productive assets in the economy. "In KwaZulu-Natal, the IDC is supporting SME canegrowers and supporting avocado producers link to export markets. In the North West, a second round of funding is being prepared for black grain producers. In the Eastern Cape we are advancing green hydrogen and agro processing through partnership with local industry to respond better to global market conditions," Godlimpi said. He said other highlights included that in the Free State there was a programme of revitalising the agri infrastructure with the provincial government, in Gauteng through supplier development, business referrals are fueling a strong pipeline for transformative funding, whilst in the Western Cape, there was support for black industrialists in poultry, plastics and solar installations. "In Limpopo, we have a proposed R50 million farming aggregator funding, which is expected to create 400 jobs. In Mpumalanga, the IDC is backing green hydrogen and biofuels brick making and furniture making, with plans afoot for the establishment of a Special Economic Zone," Godlimpi said. He said on the part of the Dtic, out of its R11bn, up from R9.6bn in the 2024/2025 year, 35.15% of the total budget goes to business incentives while infrastructure investments are apportioned 10.2% amounting to R5.2bn investment in the incentive programme. BUSINESS REPORT
TimesLIVE
6 days ago
- Business
- TimesLIVE
Is SA's tough economic climate pushing people to gamble online?
Trade, industry and competition minister Parks Tau has raised alarm about the rise of illegal online gambling in South Africa, saying the National Gambling Board has identified at least 90 offshore-registered gambling websites operating unlawfully in the country. Tau was responding to parliamentary questions from Rise Mzansi MP Songezo Zibi, who pressed the department for answers on how it plans to crack down on unregulated platforms. The concern comes as South Africans continue to feel intense financial pressure. According to the latest DebtBusters Money-Stress Tracker which surveyed more than 27,000 people between May and June, 70% of respondents reported experiencing financial stress, with 91% saying it affects their home life, 73% their work and 73% their health. While the report shows a slight dip in money stress levels compared with previous years, the toll on daily life remains high. With desperation mounting, we want to know: are harsh economic realities pushing South Africans into the arms of illegal gambling sites?
