Latest news with #TymeBank
Zawya
22-07-2025
- Business
- Zawya
South Africa: SMEs warned to brace for Trump tariffs, rising costs
South African SMEs face growing pressure amid rising geopolitical tensions and economic uncertainty, with TymeBank warning that new US tariffs could significantly impact local exporters from August. In its July 2025 SME Outlook, the bank's group executive for business banking, Miguel da Silva, says President Donald Trump's 30% blanket tariff on South African imports, effective 1 August, will disproportionately hurt small businesses in key export sectors like agriculture, mining, and automotive manufacturing. 'This is bad news for many South African SMEs who currently export to the United States,' says da Silva. He warns that the move could result in job losses and shrinking revenues unless businesses urgently seek alternative export markets. President Cyril Ramaphosa has echoed this sentiment, calling for greater resilience in global supply chains and urging exporters to diversify. Some SMEs have already pivoted to African markets through the African Continental Free Trade Area (AfCFTA), while others are exploring opportunities in the BRICS+ bloc. China's decision to eliminate all tariffs on imports from African countries is a key development in this regard. The tariff threat comes as South African SMEs face a broader margin squeeze from electricity hikes and rising petrol prices. However, lower inflation forecasts—now expected to stay below 4% in 2025 may provide some relief. Economic growth remains modest, with Q2 GDP data due on 25 July expected to show only a slight uptick from the previous quarter. The upcoming interest rate decision by the South African Reserve Bank (SARB), scheduled for 31 July, is also being closely watched. While most analysts expect rates to remain unchanged, some anticipate a possible 25-basis-point cut, something TymeBank hopes will happen to stimulate consumer spending and SME demand. On a more positive note, da Silva says access to SME funding is likely to improve, thanks to expected partnerships between government, financial institutions, and fintechs. However, smaller businesses with limited track records may still struggle to access meaningful support. 'The next few months will be crucial. SMEs will need to adapt quickly to remain competitive in a shifting global and local environment,' da Silva concludes. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
22-07-2025
- Business
- IOL News
Small businesses brace for Trump tariffs, rising costs and funding hurdles
South African small and medium-sized enterprises (SMEs) are facing mounting pressure from global and local headwinds, including looming US tariffs, rising fuel and electricity prices, and uneven access to funding. As of 1 August, a 30% import tariff on all South African exports to the US will come into effect, a move that could particularly impact SME exporters. Although only about 8% of South African exports go to the US – largely minerals and metals, which may be exempt – key sectors like citrus farming and automotive manufacturing are at risk, said Izak Odendaal, Investment Strategist at Old Mutual Wealth. 'This is bad news for many South African SMEs who currently export to the US, particularly those involved in the agricultural, automotive, and mining sectors,' said Miguel da Silva, Group Executive of Business Banking at TymeBank. 'The tariff increases will also have repercussions for the broader economy, with commentators saying the move could lead to thousands of job losses across the affected sectors.' The tariff order, signed by US President Donald Trump on July 7, follows a suspension of his April 2 'Liberation Day' tariffs, which he placed on pause following an extremely negative market reaction in America. 'The only difference seems to be rounding, so that South Africa gets 30% instead of 34%,' said Odendaal of the new tariffs when compared to the April announcement.
The Citizen
21-07-2025
- Business
- The Citizen
Can SMEs survive Trump tariffs? Here is what small businesses can expect from July
There is still hope that the government trade negotiation teams will be able to strike a deal before the 30% tariffs come into effect. It is about to be a bumpy road for small and medium enterprises (SMEs) in South Africa from July due to the 30% United States (US) import tariffs, hikes in electricity and petrol prices and the uncertainty surrounding the interest rate announcement coming on 30 July 2025. Miguel da Silva, group executive for Business Banking at TymeBank, says it is essential for SMEs to prepare for the impact of a 30% US import tariff, which is set to take effect on 1 August 2025. The impact of tariffs on SMEs Da Silva adds that the tariff hike is bad news for businesses that currently export to the US, especially those involved in the agricultural, automotive, and mining sectors. 'The tariff increases will also have repercussions for the broader economy, with commentators saying the move could lead to thousands of job losses across the affected sectors.' He says there is still hope that the government trade negotiation teams will be able to strike a deal before the 30% tariffs come into effect. In the meantime, President Cyril Ramaphosa has called on South African companies to accelerate their search for alternative markets in order to promote better resilience in both global supply chains and the South African economy. ALSO READ: SMEs need to brace for reduced orders due to a 30% US tariff New export markets for SMEs Da Silva says exporters have been seeking out new markets, taking advantage of trade agreements such as the African Continental Free Trade Area (AfCFTA) to strengthen intra-African commerce and lessen reliance on the US. 'The Brics+ bloc also presents an opportunity for local exporters to tap into major markets like China, Southeast Asia, Saudi Arabia, and the UAE. 'Already, China has announced a decision to eliminate all tariffs on imports from the 53 African countries, including South Africa, which is welcome news for SMEs looking for new markets.' Electricity and petrol price increases He highlighted that electricity and petrol price increases add to SMEs' woes, but on the bright side, inflation appears to be under control. 'The US tariff blow comes at a time when South African SMEs are already facing margin squeeze because of additional cost pressures from energy price hikes and fuel price increases, all of which threaten not only their short-term profitability but also their long-term sustainability and competitiveness.' According to the Bureau of Economic Research's (BER) latest survey, inflation expectations have fallen to their lowest in four years. 'Respondents expect inflation to be below 4% this year, echoing the view of Reserve Bank governor Lesetja Kganyago.' ALSO READ: Mid-year financial check for SMEs: Tips to prepare for the next six months Unemployment remains a concern He has noted that there is modest growth and mixed expectations around interest rates, while unemployment remains a concern. 'GDP data for Q2 2025typically arrives on 25 July. The recent modest growth of 0.4% quarter-on-quarter suggests continued economic challenges, making this release vital for demand forecasting and timing market expansion. 'Expectations about the outcome of the 31 July South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) meeting, scheduled for 31 July 2025, are mixed.' Interest rates to hold Da Silva highlighted that most analysts believe interest rates will remain unchanged, while a few still see a possibility of a 25-basis-point cut. 'We hope the SARB decides to put growth above inflation control this time. In principle, lower interest rates mean more disposable income for consumers, which should ultimately result in increased spending and demand for goods and services from SMEs.' He emphasised that there is an increased collaboration between the private sector, government, and financial institutions to foster funding and investment opportunities for SMEs. 'This may include government initiatives, revamped credit guarantee schemes, and partnerships with fintech companies.' NOW READ: Here is how SMEs can take advantage of the G20 and B20 summits
IOL News
21-07-2025
- Business
- IOL News
South African SMEs brace for impact as Trump tariffs loom
With the looming threat of US tariffs on South African exports, SMEs face an uncertain future. Explore the ripple effects of these economic changes and how businesses are adapting to survive in the July 2025 TymeBank SME Outlook. Image: Supplied South African small and medium enterprises (SMEs) stand at a critical crossroads, grappling with the looming spectre of a 30% import tariff on most goods entering the United States. This decision, signed into effect by President Donald Trump, will come into play on 1 August 2025, raising alarm bells for several sectors, particularly agriculture, automotive, and mining, industries heavily reliant on exports to the US market. The consequences of these tariffs threaten to reverberate throughout the broader economy, with experts warning of potential job losses in the thousands. Miguel da Silva, Group Executive of Business Banking at TymeBank, pointed to the tariff implications as not just an isolated issue but rather a reflection of the shifting geopolitical landscape that South Africa must navigate. 'As a nation, we have to rethink our trade strategies in light of these developments,' da Silva said. In response to these challenges, President Cyril Ramaphosa has urged South African companies to expedite their search for alternative export markets, highlighting the urgent need to bolster resilience in global supply chains and support the local economy. 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 ✕ Some exporters have already begun seeking new opportunities, turning towards the African Continental Free Trade Area (AfCFTA) to boost intra-African commerce. This strategic pivot could lessen dependence on the US market amid increasingly unfriendly trade conditions. The BRICS+ bloc also provides fertile ground for growth, granting access to substantial markets such as China, Southeast Asia, Saudi Arabia, and the UAE. Encouragingly, China recently announced it would eliminate all tariffs on imports from 53 African nations, including South Africa, presenting a timely opportunity for local SMEs to expand their footprint. However, as exporters look towards new horizons, they must also confront domestic obstacles. Energy and petrol price hikes have compounded the financial challenges for SMEs already facing margin pressures. These increases put further strain on already thin profit margins, raising concerns about the long-term sustainability of many businesses. Yet, on a positive note, inflation expectations are reportedly at their lowest in four years, with predictions of rates falling below 4% this year, a significant consideration for businesses with an eye on cost control. The economic landscape remains complex, with mixed expectations surrounding interest rates ahead of the South African Reserve Bank (SARB) Monetary Policy Committee meeting scheduled for 31 July 2025. While the prevailing sentiment points towards maintaining the current interest rate, some analysts speculate on a modest cut. A reduction could inject disposable income into consumers' pockets, providing a much-needed boost for SMEs struggling with stagnant demand. Despite the headwinds, the outlook for funding appears more optimistic. There is an emerging expectation of stronger collaboration between the private sector, government, and financial institutions aimed at creating more avenues for SME financing. Initiatives such as revamped credit guarantee schemes and partnerships with fintech companies are anticipated to ease access to funds for smaller enterprises. However, challenges remain, particularly for those with limited operational histories or lower turnover rates. As South Africa prepares to face a transformed export landscape shaped by new tariffs and economic pressures, SMEs find themselves in a precarious position. With strategic pivots and adaptive measures, these businesses may yet navigate through turbulent times, emerging more resilient in the face of uncertainty. BUSINESS REPORT
Daily Maverick
04-07-2025
- Business
- Daily Maverick
Integrating AI in your business can be a double-edged sword
AI promises to transform businesses with smarter systems and personalised customer experiences. But AI, like any tool, requires skill to wield. Without proper scrutiny, these tools can do more harm than good. The AI sales pitch is irresistible: automated customer service, hyper-personalised engagement, razor-sharp inventory forecasting. But AI, like any tool, requires skill to wield. 'AI isn't magic; it's math and data,' said Matthew Elliot, chief delivery officer at tech consultancy CloudSmiths. 'The more visibility you have into how it works and what it's doing, the safer your outcomes will be.' 'Safe' is the key word here. While AI can give any business an edge, it can just as easily entrench inequality, expose private data, or simply, much like humans, make bad calls. Riskier than you think According to Wendy Tembedza, partner at Webber Wentzel, the issue isn't whether or not to use AI – because most businesses already do. The problems creep in when the risks of its usage are not rigorously assessed. 'Businesses must carefully consider the intended use case of any AI tool and conduct a risk assessment prior to implementation,' she advised. 'This helps manage the risks that may arise from incorrect or inappropriate use.' Those risks include exposure to legal liability if systems fail to meet ethical or compliance standards. If an AI tool inadvertently discriminates, say by offering preferential pricing or marketing to customers living in urban areas that shop online, it poses the risk of enforcing bias. 'In a society where South Africans have unequal access to the internet, AI tools that learn only from online behaviour run the risk of generating biased results,' Tembedza warned. 'The resulting insights may fail to reflect the actual behaviours and preferences of the wider customer base.' Bad inputs, bad outcomes Much of the risk begins with the data. AI tools need clean, well-structured, and representative data to train on. 'Bad inputs make bad decisions,' Elliot said. 'If you don't know where your data came from or how your model behaves, you're flying blind.' TymeBank chief technology officer, Bruce Paveley agrees on that point. 'Bank data is carefully selected and scrubbed to ensure we don't put dirty data into our AI tools,' he said. 'We also allow our AI tools to use learning from other reliable sources to avoid bias toward our own ideas.' What is 'dirty' data? This refers to information that is inaccurate, incomplete, or outdated, hindering the performance and reliability of AI models Elliot reckons that bias is a human problem as much as it is a technical issue, and if your model isn't trained on diverse, representative data, it will leave people behind. To mitigate this, CloudSmiths has developed workflows that stress-tests models against real-world scenarios, using tools such as 'Objective Lens' to detect underrepresentation and misclassification. 'If your AI doesn't work for everyone, it doesn't really work,' Elliot said. Inventory gains, infrastructure pains Inventory management is one of AI's most lucrative use cases. Predictive tools can anticipate buying trends and automate restocking, which reduces waste. But again, the model is only as smart as the data it learns from. 'In practice, many retailers do not have centralised or well-organised data sets,' Tembedza said. 'If data used to train AI models are outdated, inconsistent or inaccurate, no level of technical sophistication can compensate.' Even when the data is right, legacy IT systems often aren't. 'Many retailers continue to operate on legacy information technology systems that may not support the integration of the AI tools they intend to implement,' Tembedza added. In Africa, up to 60% of businesses cited IT infrastructure as a major barrier to AI implementation, a survey by cybersecurity company Fortinet found. Modern, cloud-first businesses like TymeBank are less encumbered, but even their barriers are not always technical. 'The challenge was more adoption by our team members rather than a technical limitation,' said Paveley. 'Education and exposure were key enablers to get our team to embrace AI as a productivity tool rather than one that threatens their jobs.' Leak risks of generative AI When it comes to businesses that adopt and use AI, the most insidious risk does not necessarily come from a chatbot gone rogue but rather from employees pasting confidential information into ChatGPT. 'Never assume off-the-shelf AI is private by default,' Elliot said. He sees companies frequently underestimating the risk of intellectual property exposure and data leaks from generative AI tools. His advice: Use air-gapped or private models for anything involving intellectual property. Train staff on what's safe to input. Review AI governance legislation, like the EU's AI Act. Establish monitoring and evaluation frameworks from day one. 'There needs to be a policy to govern, rather than restrict, usage of AI in our business,' Paveley said. 'Our staff need to complete AI training to ensure they understand the power of productivity improvements but also for awareness of the associated risks.' Boost engagement, don't alienate Done right, the shiny promise of personalisation through AI can boost engagement. If not, it reinforces stereotypes and alienates customers and clients. 'The most ethical AI is also the most useful,' Elliot said. 'If users trust the experience, they are more likely to engage with it – and that's good for everyone.' 'Personalisation shouldn't enforce stereotypes; it should surprise you, teach you something new, or reflect who you're becoming, not just who you've been.' Helpful or harmful? For all its potential, AI certainly doesn't solve problems on its own and certainly not by default. 'The questions are similar from what we hear every day from our South African and UK clients,' Elliot said. 'Typically it's concerns around safety, fairness, cost or return on investment. It seems most businesses are desperately trying to minimise AI risk while staying competitive.'
