Over the course of the first five months of 2025, United States (US) President Donald Trump and his administration have worked – mostly using the threat of higher US tariffs on trading partners – to reform global trade. A 10% universal tariff baseline has been established; what remains are the various levels of reciprocal tariffs imposed on individual countries, with much dependent on those governments meeting with US officials to secure a (relatively) more favourable arrangement for their exports to the US.
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For a country as reliant on trade and investment from the US and European countries as South Africa, the government’s focus on ideology and past grievances undermines its opportunity to seize the once-in-a-generation energy and impetus being administered to global trade and investment flows by the Trump administration.
The South African government has often talked a big game about “South Africa open for business”, with President Cyril Ramaphosa and his cabinet setting a 3% growth target for 2025. President Cyril Ramaphosa and his cabinet have set a target of 3% growth in 2025. To reach anywhere near that (after all, between 2012 and 2023 South African GPD averaged only 0.8% per year) the country needs vibrant and active manufacturing and construction sectors.
Anyone who voted for a party other than the ANC in effect helped to block the proposed VAT hike
While stating the global economy is at a “critical juncture,” in its latest World Economic Outlook the International Monetary Fund (IMF) has slashed its global GDP outlook for this year from the 3.3% projected in January to 2.8%. For South Africa, the IMF downgrades the 1.5% January forecast to 1% now; more realistic than the 1.9% projected by National Treasury in the March Budget.
Kabelo Khumalo’s article refers (“Rail company boss hails fast-tracking of state reforms”, March 28). I share Traxtion CEO James Holley’s assessment that “it’s hard to exaggerate what a game-changer moment it would be if the SA government is successful in implementing those three projects [in the request for information]”.
While walking from one briefing to the next in Washington, DC, last week, I received a notification from South Africa’s favourite app. EskomSePush told me loadshedding stage 2 had been implemented.
The repeated injections of geopolitical, trade, and investment uncertainty delivered by the second Trump administration have hit various governments, not least of which US allies, hard.