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TimesLIVE
2 days ago
- Business
- TimesLIVE
US friendship 'could make Africa great again,' says Trump adviser
The African continent deserves balanced trade relations with the US and other economic regions, based on mutual respect and benefit. However, to achieve this Africa must be given the room to reform critical aspects of its economies. This is according to communications strategist and US President Donald Trump's adviser Jason Miller. He was addressing the African Export-Import Bank (Afreximbank) AGM in Abuja, Nigeria. Calling Africa 'the land of the future' and 'the land of limitless growth', Miller said that as the century passes by, the continent has an opportunity to redefine its trade relationship with the rest of the world and ensure that it is never exploited again. 'All of these changes have created a pivotal moment for Africa to seize its opportunities. But if these opportunities are not taken advantage of, Africa and its people risk falling further behind. And if Africa isn't strategic about how to take advantage of these opportunities and who Africa chooses as its closest allies, the continent itself risks being taken advantage of.' The Afreximbank AGM comes at a time when Trump announced major sets of tariffs, namely the section 232 tariffs aimed at protecting US industries and 'reciprocal tariffs', which were later suspended for three months. The announced tariffs had the effect of nullifying the trade benefits of the African Growth and Opportunity Act (Agoa), a piece of legislation that allows duty-free trade on specific items between the US and the continent. It is unclear if the US Congress will renew Agoa when it expires on September 30. Miller said that while Trump's second administration has been fast in seeking to redefine the global economy, the president was aware of the advantages that Africa had, including its minerals and its young population. 'As you know, the global economy is rapidly shifting. President Trump's leadership has restored America as the hottest country in the world to do business with. Technological advancements in the fields of AI, energy and so many other sectors are rapidly changing the future of our workforce. Calling China out by name, Miller said the US offered Africa 'something different' from 'sloppy' companies that polluted African ecosystems and shackled African sovereigns in unsustainable debt. He said the US and Africa could have a trade relationship characterised by 'mutual respect'. 'In the heightened demand for natural resources, critical minerals and rare earths to power the AI technological revolution [are] something Africa has and everybody wants. And, of course, Africa itself is growing rapidly. The sheer manpower available in Africa now and in the coming years, at a time when other areas in the world are facing population declines, creates a new dynamic that, too, will change the balance of power.' However, he said Africa's advantages heading into the rest of the 21st century include that it is projected to surpass Europe in economic size by 2050 to become the third-largest economic bloc in the world. 'For these reasons alone, Africa deserves more. Africa can, in fact, accomplish more. And working with the US, everything is possible. But it's Africa and Africa's leaders — you — that must make the choice. And, in fact, Africa must make several choices to realise this success.' He urged Africa to position itself for long-term success and refuse finance and investment arrangements that create endless debt for its economies. He said basics such as peace, food sustainability, energy, infrastructure and other needs should not be off the table as Africa negotiates investments with the world. 'The second point I want to raise — and I'm just going to be very blunt and take this head-on — is to attract these needed investments, African nations must continue making the needed reforms to improve the business climate. '[These are] ending corruption, enforcing contracts and the rule of law, [and] stabilising currencies. This isn't a wish list. This is exactly what is required to generate the critical investment Africa needs to realise its full potential.' He reminded delegates that the US was home to the No 1 pool of capital in the world, but said American capital was government and private capital, and this capital would 'demand results' and 'deliver accountability'. Repurposing his most famous client's election slogan, Miller said: 'Together we will make Africa powerful again. Together, we will make Africa wealthy again. Together, we will make Africa strong again. Together, we will make Africa proud again. Together, we will make Africa safe again. And together, ladies and gentlemen, we will make Africa great again.' He praised the Nigerian government for the 'gutsy' move of fixing the Nigerian currency, the naira, as this would stabilise the economy and allow US investments to flow in. He urged Africa to 'remember who its true friends are', pointing out the US's work in providing humanitarian aid, peacekeeping missions and Ebola relief on the continent.
BBC News
12-06-2025
- Business
- BBC News
China ready to drop all tariffs on African imports
China say dem don ready to drop di tariffs dem dey charge on imports from all 53 African kontris wey dem get diplomatic relations wit. Di move wey dem announce for one China-Africa co-operation meeting, dey come as di continent dey face di possibility of increased tariffs on dia products wey dey enta US. China na Africa largest trading partner – one position dem don hold for di last 15 years – as Africa dey export goods wey worth around $170bn (£125bn) go di Asian nation for 2023. One joint ministerial statement bin criticise "certain kontris' [effort to] scata di existing international economic and trade order" through di unilateral imposition of tariffs. China ask US to resolve trade disputes on di basis of "equality, respect and mutual benefit". Di zero-tariff move, wen dem implement am, go be extension of one deal dem make last year for China to drop tariffs on goods from 33 African nations wey dey classified as "least developed". Di expanded list go include some of China largest trading partners on di continent, wey include South Africa and Nigeria. China neva tok wen di go come into effect. Eswatini na di only African state dem exclude from di zero-tariff announcement as dem recognise Taiwan as independent kontri, whereas China see am as breakaway province. China currently dey import plenty raw materials from Africa, most especially from di Democratic Republic of Congo and Guinea. For April, President Donald Trump bin raise concern among US trading partners wen e announce high tariffs on dia imports from many kontris, wey include 50% rate for Lesotho, 30% for South Africa and 14% for Nigeria. Di US bin pause di implementation until next month, although di temporary pause fit dey extended further for countries wey dey negotiate "in good faith", according to US Treasury Secretary Scott Bessent. For 2024, di US import $39.5bn-worth of goods from Africa. Dem carry out di importation under di zero-tariff deal wey dey known as di Africa Growth and Opportunity Act (Agoa), wey now look like say dey under threat if Trump administration go ahead wit di imposition of fresh charges.
Yahoo
12-06-2025
- Business
- Yahoo
China ready to drop all tariffs on African imports
China has said it is ready to drop the tariffs it charges on imports from all 53 African countries with which it has diplomatic relations. The move, announced at a China-Africa co-operation meeting, comes as the continent is facing the possibility of increased tariffs on its products entering the US. China is Africa's largest trading partner – a position it has held for the last 15 years – with Africa exporting goods to the Asian nation worth around $170bn (£125bn) in 2023. A joint ministerial statement criticised "certain countries' [efforts to] disrupt the existing international economic and trade order" through the unilateral imposition of tariffs. It then called on the US to resolve trade disputes on the basis of "equality, respect and mutual benefit". The zero-tariff move, when implemented, will be an extension of the deal made last year for China to drop tariffs on goods from 33 African nations classified as "least developed". The expanded list will include some of China's largest trading partners on the continent, including South Africa and Nigeria. China has not said when the decision will come into effect. Eswatini is the only African state excluded from the s zero-tariff announcement as it recognises Taiwan as an independent country, whereas China regards it as a breakaway province. China currently imports a lot of raw materials from Africa, notably from the Democratic Republic of Congo and Guinea. In April, President Donald Trump caused consternation among US trading partners by announcing high tariffs on its imports form many countries, including a 50% rate for Lesotho, 30% for South Africa and 14% for Nigeria. How jeans and diamonds pushed Lesotho to the top of Trump's tariffs list The implementation has been paused until next month, though the temporary halt could be extended further for countries that are negotiating "in good faith", according to US Treasury Secretary Scott Bessent. In 2024, the US imported $39.5bn-worth of goods from Africa. Some of that was brought in under the zero-tariff deal known as the Africa Growth and Opportunity Act (Agoa) which now looks under threat if the Trump administration goes ahead with the imposition of fresh charges. China's mission to win African hearts with satellite TV China's Belt and Road Initiative: Kenya and a railway to nowhere The cheap Chinese shop at the centre of Kenya row Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Focus on Africa This Is Africa
Daily Maverick
10-06-2025
- Automotive
- Daily Maverick
Built for export, boxed in at home — SA vehicle sector calls for decisive action
While May brought a surge in local car sales according to the National Automobile Dealers Association's latest reporting, a sharp contraction in exports and rising global tariff tensions have pushed South Africa's automotive industry to a crossroads. South Africa's automotive industry may have enjoyed a high-revving May in local markets, but the road ahead is looking increasingly precarious. Local vehicle sales surged 22% year-on-year, according to the latest Automotive Business Council (Naamsa) data, yet exports dropped 14.6% overall, with passenger vehicle exports plummeting by nearly 35%. The African Growth and Opportunity Act (Agoa), a long-standing US trade programme that allows duty-free access for eligible African exports – including South African vehicles – faces renewed uncertainty under the Trump administration. With the White House pushing for reciprocal tariffs and stricter eligibility reviews, South Africa's preferential access could be one executive decision away from suspension. Speaking to Daily Maverick, Nada's vice-chairperson Thembinkosi Pantsi painted a picture of both resilience and distress. 'We're adapting, we're consolidating, and we're innovating to survive,' he said, referring to the shift toward multi-brand dealerships and used vehicle expansion. 'But make no mistake – we are nearing a cliff edge.'The automotive sector value chain in its entirety supports around 110,000 jobs, according to data from Naamsa, Stats SA and trade union data, with countless families relying on those employed in the sector to put food on the table. The industry – if you include both manufacturing and sales – contributed 5.3% to our GDP in 2023, and is the single largest manufacturing sector. Local sales surge, but export markets faltering While May saw strong domestic demand – driven partly by an influx of East Asian vehicle imports – it also underscored a growing contradiction: consumers want affordability, but the domestic industrial base relies on export volume to remain viable. 'We are seeing more Chinese brands enter the market with cost-effective models,' said Pantsi. 'This is good for consumer access, but doesn't help the thousands employed in export-geared manufacturing.' Volkswagen SA chairperson and managing director Martina Biene echoed the sentiment during her keynote address at Nada Connect in March of this year. 'Sometimes, as a local manufacturer, we don't feel as valued as we should be,' she said. 'There's a lot of investment here – jobs, skills, community development – but little relief from systemic pressures.' Biene disclosed that VW SA had spent more than R130-million on diesel generators to cope with load shedding. 'Every day I run them, it's R1.6-million in cost. That goes straight into the vehicle price,' she said. Add port congestion, road freight insecurity and policy drift, and 'you get a toxic mix,' she warned. What this means for you If global trade shocks persist and local manufacturing continues to contract, thousands of jobs across the auto value chain could be lost. Consumers may benefit from cheaper import options, but the broader consequences – shrinking local industry, fewer employment opportunities and weakened export competitiveness – pose a long-term economic risk. The off-and-on again Trumpian promise – tariffs Trump's revived steel and aluminium tariffs have reignited fears of a protectionist spiral. Pantsi warned that such moves could 'compound local challenges' and further disrupt trade patterns. 'Tariffs don't only raise costs. They erode investor and consumer confidence,' he said. 'We need urgent interventions – rebates, subsidies and export duty relief.' Biene concurred, calling for incentives over protectionism. 'We contribute massively to GDP and jobs. But sometimes it feels like the government is dazzled by short-term imports at the expense of long-term industrial strategy.' She said Agoa's uncertainty was more than symbolic. 'Agoa isn't a given,' Biene warned. 'If we lose that access, it's not just a dent in our balance sheets – it's a question of whether we keep local production viable.' Pricing inaction For every vehicle exported, dozens of suppliers – from tyre producers to seat manufacturers – depend on consistent output. A dip in export volumes, Pantsi noted, ripples across the entire automotive value chain. 'The automotive industry is the second-largest contributor to GDP after mining. If we allow it to shrink, the consequences will be systemic,' he said. Beyond the 110,000 people the sector employs directly, it supports hundreds of thousands more through components, logistics and retail. Both Pantsi and Biene urged the government to move past platitudes. 'We need a granular, not generic, state response,' said Pantsi. 'Targeted logistics reform. Decisive Agoa diplomacy. Training institutions revived. It's the details that matter now.' The sector at a T-junction Despite strong local sales buoyed by competitively priced imports, the export decline is a red flag. 'We have the infrastructure, the people, the expertise,' Pantsi said. 'What we lack is policy certainty and logistical coherence.' Biene was blunter: 'We're here for the long haul. But we can't keep pouring money into diesel and delays. The government needs to decide if it wants this sector to thrive – or merely survive.' DM.
The Star
09-06-2025
- Automotive
- The Star
Goodyear South Africa's restructuring puts over 900 jobs at risk
Yogashen Pillay | Published 2 hours ago Goodyear South Africa's announcement on Friday to discontinue its manufacturing operations in Uitenhage, Eastern Cape, has sent shockwaves through the region, with over 900 jobs at risk due to a Section 189 notice served to the National Union of Metalworkers of South Africa (Numsa). The decision, communicated by Goodyear's Managing Director Paul Gerrard, has raised alarm among unions, and economic analysts, who fear the closure could devastate the local economy amid high unemployment. Mziyanda Twani, Numsa Eastern Cape Regional Secretary, said on Friday that the union is dismayed by Goodyear South Africa's announcement to discontinue its manufacturing operations in South Africa. 'The union has been served with a Section 189 notice from Paul Gerrard, the Managing Director of Goodyear Tyres in South Africa. The manufacturing plant is located in Uitenhage in the Eastern Cape, and the company envisages that at least 907 employees will be affected by the plant closure,' Twani said. Twani added that as a region, Numsa was deeply worried about the impact on workers and their families in Uitenhage. 'It is becoming a ghost town given that ContiTech, which is part of Continental, closed down and it is also in the same tyre and rubber industry. At the same time, it may not be easy to replace these jobs. The Eastern Cape has a very high unemployment rate at 41.9% according to StatsSA.' Twani said that while the outlook is bleak, as Numsa, "we stand ready to do everything we can to defend the jobs of our members and to negotiate fair severance packages. The dates of the first consultation will be communicated in due course". Chris Harmse, consulting economist of Sequoia Capital Management, said he is concerned about the move. 'One of the issues could well be that the African Growth and Opportunity Act (Agoa) could be ending due to the strain on South African and American relations. This could well have led to Goodyear South Africa wanting to scale down operations at its Uitenhage plant. The Agoa most major part is made up of 60% of the motor industry, with the next largest part being the agriculture industry. We hope that if Agoa does end, other major companies don't look to scale down business,' he said. Goodyear South Africa is the heart of business in Uitenhage. 'Another issue is that the cost of doing business in South Africa is becoming too high, including issues with electricity, water, and failing infrastructure. We could see businesses looking to move their operations to other parts of Africa and to countries like Botswana and showing a preference to use Walvis Bay in Namibia for doing business South Africa already faces steep economic challenges. We are seeing that South Africa's GDP is being revised downwards, and this does raise concern about doing business in South Africa,' he said. Nduduzo Chala, the managing executive at South African Tyre Manufacturers (SATMC), said that he is concerned about Section 189 at Goodyear South Africa. 'However, we must remember that Goodyear South Africa has entered a consultative process, and there will be an opportunity for the government, trade unions, and other stakeholders to voice their concerns. It is not set that they would retrench over 900 workers and end operations at the manufacturing plant in Eastern Cape. We just have to wait and see how the process unfolds.' SATMC is concerned about the possibility of the plant closing. 'It's not a great situation for us as SATMC, workers, and the Eastern Cape community, but we have to see what happens during the consultative process,' Chala said. Dr Eliphas Ndou, an economist and author at Unisa's Department of Economics, said the manufacturing sector's contribution to GDP has become smaller over time. 'The sector faces many challenges, including low-cost imports and a decline in local manufacturing competitiveness. The decline in the latest BER business confidence index shows that most businesses are not satisfied with prevailing business conditions. Hence, the development in the tyre manufacturing sector is a clear message to the government that wants to grow the economy, create, and keep employment to fast-track the implementation of structural reforms that will improve the local manufacturing sector's competitiveness, including tyre producers.' Ndou added that the structural reforms may help to significantly improve the tyre manufacturers' competitiveness by ensuring the availability of reliable power and water supplies, and not an above-inflation increase in administered prices. 'These factors are crucial for the local industry's competitiveness.' BUSINESS REPORT Visit:
