Latest news with #R168
IOL News
2 days ago
- Business
- IOL News
The impact of Trump's tariffs on South Africa's sugar industry and jobs
The South African sugar industry is facing the threat of collapsing and job losses as a result of US President Donald Trump imposing 30% tariffs on the country's exports. Image: Karen Sandison / Independent Newspapers Stress is weighing on farmers as they anticipate losing millions of rand through 30% tariffs, which US President Donald Trump imposed on South African companies generating profit from exporting to the United States of America. Despite President Cyril Ramaphosa's ongoing efforts to talk to Trump to go easy on the local exporters, the fear was that the US would not back down. The US tariffs against many countries around the world came into full swing after midnight on Friday, leaving a chilling fear that this might collapse the South African industries. SA Farmers Development Association (SAFDA) Executive Chairman Dr Siyabonga Madlala is concerned that while businesses have no power over politically influenced tariffs, they are the ones that will bear the brunt. Although it was still early to see how much damage the tariffs would inflict on the local businesses, Madlala anticipated a loss of millions of rand, a situation that would result in alarming job losses. His concern was that the sugar industry, which falls under the South African Sugar Association (SASA), was producing far more than enough for local and foreign producers, and with the tariffs, a lot might go to waste. 'America, through AGOA (African Growth and Opportunity Act), has given us a lucrative market for some 24,000 tons of sugar exports, so with the imposition of tariffs, our sugar won't be attractive to our US consumers as it is now becoming expensive. 'It forces US consumers to look for alternatives rather than buying from us because our sugar becomes 30% more expensive,' said Madlala. South African competitors in supplying the US with sugar are Mexico, Brazil, Australia, and several Central American and Caribbean nations. Madlala said that while the local sugar industry produces 1.5 million tons for local consumers, another 500,000 tons are sent to the foreign market, which is also supplied by its local producers and other countries. He estimated that, through the tariffs, SASA loses R168 million from its annual revenue. He said the sugar market, through the government, will have to find an alternative market for the 24,000 tons that would not be viable to send to the US. According to Madlala, the US market, which found South African sugar affordable under the AGOA agreement, may look for alternative countries to buy from. 'The reason is that lots of other countries are subsidised, therefore they can afford to sell sugar than us, as we are not subsidised but working on our own. 'With this imposition of tariffs, we will lose 24,000 tons, which will have to go to the dumping market, meaning that we are losing half of the profit we are receiving from the sale of the sugar,' said Madlala. He said reducing production would cause job losses and the closure of sugar mills. 'Once you try to lower the production, it means some farms will shut down or diversify. By that, it means that sugar mills will lose sugar cane supply, which is the lifeblood of the sugar mill,' he said. He said the tariffs came at the wrong time when most of the sugar mills were being revived through the Trade and Industry's master plan and when some sugar mills, including Tongaat Hulett, were making their way out of business rescue. 'Those mills are starved for sugar cane, so we cannot lower production; in fact, we need to grow production. Unfortunately, Trump's tariff is coming at a time when the industry is being revived. While we are appreciating the initiative of the master plan, we are now bombarded with the tariffs,' said Madlala. Influential organisations such as FW De Klerk Foundation recently called for the country to expand its trade partners rather than relying on the US. Agriculture Minister John Steenhuisen said the government was also reaching out to other countries. However, Madlala said finding an alternative market was not easy to do overnight. National Association of Automotive Component and Allied Manufacturers (NAACAM) Chief Executive Officer Renai Moothilal told the media that the automotive industry was already feeling the effects of the tariffs, as some US companies that contract with the local industry were starting to fall away. 'We are already seeing new contracts, especially for the US, being cancelled or not pursued, putting one of the country's most critical manufacturing sectors at risk,' Moothilal said. Build One SA (BOSA) described the tariffs as 'a serious escalation in trade tensions between SA and the US', which are threatening thousands of jobs in automotive manufacturing, agriculture, and mining. In a statement, the party called on Ramaphosa to be frank with the US political leadership in trying to revive the AGOA agreement.
IOL News
31-07-2025
- General
- IOL News
Melmoth housing project finally making progress after decade-long delays
SOME of the challenges that faced the decade-long delayed Thubalethu housing project in Melmoth was the hilly terrain where the houses are built. However, retaining walls were erected to mitigate against flooding THE Thubalethu housing project in Melmoth in the background with some of the water infrastructure built since the provincial government's intervention in the delayed project. KwaZulu-Natal Human Settlements MEC Siboniso Duma inspected progress of the project yesterday KWAZULU-NATAL Human Settlements MEC Siboniso Duma accompanied by the department's officials inspects the Thubalethu housing project in Melmoth which has faced decade-long delays THIS was how some of the houses for the Thubalethu housing project, in Melmoth looked like after vandalism, illegal occupation and delays before the provincial government had to step in. TRIBUNE REPORTER THE beneficiaries of a housing project in Northern KwaZulu-Natal have regained hope of occupying the houses that have remained unoccupied and incomplete for many years, with many being vandalised in the process due to delays and a plethora of other challenges. The R168 million Thubalethu housing project in Melmoth has been beset with challenges of delays, cost overruns, vandalism, illegal occupation, and lack of power and water supply since 2012, leaving many beneficiaries destitute and living in informal settlements. The project is a national government initiative under the Human Settlements' Breaking New Ground (BNG) programme and was meant to be an extension of Thubalethu township. The project was initially for 512 units, but the final number was adjusted to 751 due to the land's topography. A total of R168 million was allocated for the project. Yesterday, Human Settlements MEC for KwaZulu-Natal, Siboniso Duma, returned to the Thubalethu community to monitor progress on the project following an April 29 visit earlier this year, accompanied by the Human Settlements Minister Thembi Simelane, who both committed to seeing the project to its finality and exerted pressure for its speedy progress. 'We remain convinced that only hard work and commitment to serve the people will end the prolonged construction of houses in Thubalethu township."We want to ensure that there is no maladministration and that there is accountability for every cent spent,' said Duma yesterday when he undertook Operation Sukuma Sakhe Cabinet Day work in the township. He monitored and inspected the work involving the department, Mthonjaneni, and King Cetshwayo municipalities. The Human Settlements Department has made available R38.5 million for the construction of the retaining walls to mitigate against flooding. Some of the houses are in hilly terrain, which maximises the risk of flooding. R61 million has been provided for the installation of bulk water services, and another R19 million for the construction of water infrastructure in the area. There's also a plan to erect water tanks and upgrade sewer and septic tanks. One of the many challenges facing the project was plumbing and sanitation. In the early stages of the project, there were reports of political bickering between the Mthonjaneni Local Municipality and the King Cetshwayo District Municipality, which further complicated the project's progress. The provincial government had to step in to nip the bickering in the bud.
