Latest news with #BLSA
The South African
25-06-2025
- Business
- The South African
South Africa just 14 days' away from Trump tariff disaster
Tuesday 9 July 2025, mark the day in your calendar as the beginning of the Trump tariff disaster. Back in April of this year, US President Donald Trump announced 30% 'punitive reciprocal trade tariffs' with South Africa. Amid growing political tensions between South Africa and the US, many believed this would deal a crippling blow to the economy. Then, all of a sudden, the Trump tariff disaster was averted when he hit a '90-day pause.' 'Afrikaner refugees,' cessation of US Aid and anti-Israeli rhetoric are just some of sticking points between the two heads of state. Image: File Nevertheless, the pause comes to an end in 14 days' time, on Tuesday 9 July 2025, reports BusinessTech . In the intervening weeks, South Africa has sent the President and other high-ranking officials to rectify tensions. But time is quickly running out. However, Busi Mavuso of Business Leadership South Africa (BLSA) says an important meeting is taking place this week in Washington. Trade, Industry and Competition Minister Parks Tau is meeting with US officials to hopefully dodge Trump tariff disaster once and for all, and secure an economic future for the country. Thankfully, the Elon Musk-Donald Trump bromance appears at an end for now. Image: via X @elonmusk Of course, South Africa tabled several trade proposals to the US when President Ramaphosa last visited Washington. This included mineral access and potential US liquified natural gas acquisitions, amongst others. However, zero progress has been made on the discussions since. Interestingly, it's not South Africa that's dragging its heels but rather the US that has not given formal feedback on the proposals. Essentially, it sounds like the US is ghosting us. And the clock is ticking. Minister Tau is the one entrusted with breaking the impasse this week. With no trade agreements yet, experts worry SA-US trade relations could sour quickly ahead of the approaching 9 July deadline. Image: Canva Mavuso says: 'Africa remains a critical source of minerals essential to the American economy. And the continent's growing population positions Africa as a key long-term manufacturing hub, too. Therefore, a Trump tariff disaster risks ceding this strategic advantage to China,' said Mavuso. As such, Minister Tau will either strive for an extension or a full tariff freeze this week. Any signed trade deals will go a long way to solidifying diplomatic relations between South Africa and the US. And the consequences of failure may mean the potential loss of the African Growth and Opportunity Act (AGOA), which is a key part of the negotiations. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
23-06-2025
- Business
- The Citizen
Navigating economic headwinds of grey list and US tariffs
While South Africa might finally see the end of being on the grey list, the country still faces the US tariffs that could be 30% again. While the world watches various wars and conflicts play out that can affect economies worldwide, including our own, South Africa must also complete its work to get off the grey list and plan and negotiate to manage the US tariffs scheduled to kick in on 9 July. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), says in her weekly newsletter that South Africa's completion of all the Financial Action Task Force (FATF) requirements is a significant achievement for the country's economy. 'I congratulate National Treasury for orchestrating a complex, multi-agency effort that fundamentally strengthened our anti-money laundering and counter-terrorism financing frameworks. 'The final hurdle, to demonstrate sustained improvements in investigation and prosecution capabilities, required rebuilding capacity across our entire criminal justice system, from police units to the National Prosecuting Authority. 'We now have a clear trajectory toward exiting the FATF grey list in October, pending the required on-the-ground peer review.' ALSO READ: South Africa well on its way to get off FATF grey list Grey list costs the economy but can soon be over Mavuso says this progress cannot come soon enough, as grey listing imposed crushing costs on South Africa's economy due to the fact that international financial institutions must apply enhanced due diligence to every South African transaction, a burden many simply avoid by severing relationships with our companies entirely. 'BLSA sounded the alarm about impending grey listing six months before it happened, commissioning a report that analysed the potential economic costs. Throughout this process, business stood ready to support government in meeting FATF requirements, and there have been various joint projects to do so. 'The improvements achieved since February 2023 extend far beyond FATF compliance. We now have comprehensive beneficial ownership registers for companies and trusts, while investigators can finally use the Financial Intelligence Centre's vast data reserves to build prosecutable cases. 'Our law enforcement agencies have also been integrated into global networks combating transnational crime. Let's be clear: Grey listing was state capture's direct legacy. The systematic gutting of our criminal justice system, from crime intelligence to the NPA, created a paradise for white-collar criminals. 'Skilled investigators were purged, replaced by political appointees whose job was protection, not prosecution. The probability of facing consequences for economic crimes became negligible.' ALSO READ: Financial Intelligence Centre: Lawyers and estate agents keeping SA on grey list Treasury reversed institutional decay to get SA off grey list Mavuso points out that the National Treasury's remediation process started to reverse this institutional decay, with important economic implications. 'As I consistently argued, the collapse of the rule of law devastates economic growth. Contracts become unenforceable. Businesses shoulder massive fraud and corruption costs. Criminal syndicates flourish, spawning extortion networks that strangle legitimate enterprise.' Although critical steps remain before October's official exit, Mauvo says prospects are now excellent. 'Removing this economic headwind will provide crucial momentum for growth. Given the challenges we face, we need every advantage we can get.' ALSO READ: Tariffs and Agoa: How Parks Tau summarised US-SA trade talks US tariffs of 30% looming on 9 July However, she says, with this good news, there are also other challenges waiting for the South African economy, and in particular, the significant headwind from Washington that demands urgent attention. 'The current 10% US tariff on South African goods expires on 9 July, reverting to a punitive 30% unless we can secure an extension.' Trade, industry, and competition minister Parks Tau will meet with US officials this week at the US-Africa Summit in Angola, a meeting that could determine our economic trajectory. However, Mavuso says progress has been disappointing since President Trump and President Ramaphosa's Washington discussions, during which South Africa tabled proposals, including mineral access and potential US liquified natural gas acquisitions. 'The US did not give formal feedback, and the clock is ticking. The minister and his team must break the logjam. The broader geopolitical context makes this moment even more critical. China's recent announcement of duty-free access for all African nations with diplomatic ties will not have gone unnoticed in Washington. 'We may be witnessing a fundamental shift in Africa's global orientation, one that could permanently damage American interests on the continent.' ALSO READ: Trump tariffs' seesaw impact on Southern Africa SA cannot afford to lose employment-intensive industries due to US tariffs She says this matters profoundly for two reasons. 'Africa remains a crucial source of critical minerals essential to the American economy, while our continent's young, growing population positions Africa as a key long-term consumer market and manufacturing hub. America risks ceding this strategic advantage to China.' Mavuso believes that South Africa must present a materially different proposition that clearly serves American interests as well as our own. 'In this transactional environment, incremental gestures will not suffice. Business has a vital role here. 'Our daily interactions with American customers and suppliers provide direct insight into genuine opportunities and risks. This intelligence must inform our negotiating strategy. The consequences of failure fall hardest on manufacturing and agriculture, sectors that drive employment. 'Raw material exports remain exempt, but value-added activities that create jobs face significant disruption under 30% tariffs. We cannot afford to lose these employment-intensive industries.' She emphasises that this week's meetings will be defining. 'We need a deal that recognises economic realities while serving mutual interests. The stakes are high.'
IOL News
18-06-2025
- Business
- IOL News
Business Leadership SA slams Transnet's new wage agreement as leadership failure
Business Leadership South Africa (BLSA) has criticised Transnet's new wage agreement with unions Image: Leon Lestrade/ Independent Newspapers Business Leadership South Africa (BLSA) has criticised Transnet's new wage agreement with unions, calling it a failure of leadership and warning that it undermines the country's economic recovery. Last week IOL reported that Transnet concluded a three-year wage agreement with its recognised unions, SATAWU and UNTU, securing a 6% annual salary increase for workers over the next three years. The deal also includes increases to key benefits such as pension contributions, medical aid, housing allowances, and the 13th cheque. According to the state-owned freight and rail company, the deal came after the "conclusion of a conciliation process led by the Commission for Conciliation, Mediation, and Arbitration (CCMA)". BLSA President Busiswe Mavuso criticised Transnet's decision to provide an above-inflation increase to workers, saying that the agreement overlooks the country's weak economic growth, rising debt, and Transnet's poor performance record. "I was astounded to see the news last week of Transnet's capitulation to union strike threats, agreeing to give workers 6% pay rises in each of the next three years. This agreement represents a failure of leadership on both sides – militant unions holding the country hostage with strike threats, and management caving to their demands without a fight," Mavuso said. She added that the increases come at a time when inflation is running at 2.7%, and the economy is expected to grow by only 1.4% this year. 'While South African businesses slash costs and workers face retrenchments, Transnet workers will get pay rises that are double the inflation rate, funded by taxpayers already struggling to make ends meet.' Mavuso also pointed to Transnet's operational inefficiencies, citing an estimate from Professor Jan Havenga of Stellenbosch University that poor logistics performance is costing the South African economy R1 billion per da. In a letter following the wage agreement reached last week, SATAWU defended the agreement by emphasising that it accepted the CCMA's proposal for a 0.5% increase in the third year, which would raise the final year's increase to 6%. 'Our correspondence dated 21 May 2025 stated that the union was prepared to accept the additional 0.5% increase,' the union said. SATAWU also argued that the final agreement reflected existing provisions and legal frameworks already in place between Transnet and organised labour. "When comparing the original retrenchment clause and the one contained in the final wage offer, it is evident that there is no significant difference, but only a reformulation of existing provisions. The only notable amendment in the final collective agreement is the additional 0.5% increase in Year 3".
IOL News
18-06-2025
- Business
- IOL News
Business Leadership SA slams Transnet's new wage agreement as leadership failure
Business Leadership South Africa (BLSA) has criticised Transnet's new wage agreement with unions Image: Leon Lestrade/ Independent Newspapers Business Leadership South Africa (BLSA) has criticised Transnet's new wage agreement with unions, calling it a failure of leadership and warning that it undermines the country's economic recovery. Last week IOL reported that Transnet concluded a three-year wage agreement with its recognised unions, SATAWU and UNTU, securing a 6% annual salary increase for workers over the next three years. The deal also includes increases to key benefits such as pension contributions, medical aid, housing allowances, and the 13th cheque. According to the state-owned freight and rail company, the deal came after the "conclusion of a conciliation process led by the Commission for Conciliation, Mediation, and Arbitration (CCMA)". BLSA President Busiswe Mavuso criticised Transnet's decision to provide an above-inflation increase to workers, saying that the agreement overlooks the country's weak economic growth, rising debt, and Transnet's poor performance record. "I was astounded to see the news last week of Transnet's capitulation to union strike threats, agreeing to give workers 6% pay rises in each of the next three years. This agreement represents a failure of leadership on both sides – militant unions holding the country hostage with strike threats, and management caving to their demands without a fight," Mavuso 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 Next Stay Close ✕ She added that the increases come at a time when inflation is running at 2.7%, and the economy is expected to grow by only 1.4% this year. 'While South African businesses slash costs and workers face retrenchments, Transnet workers will get pay rises that are double the inflation rate, funded by taxpayers already struggling to make ends meet.' Mavuso also pointed to Transnet's operational inefficiencies, citing an estimate from Professor Jan Havenga of Stellenbosch University that poor logistics performance is costing the South African economy R1 billion per da. In a letter following the wage agreement reached last week, SATAWU defended the agreement by emphasising that it accepted the CCMA's proposal for a 0.5% increase in the third year, which would raise the final year's increase to 6%. 'Our correspondence dated 21 May 2025 stated that the union was prepared to accept the additional 0.5% increase,' the union said. SATAWU also argued that the final agreement reflected existing provisions and legal frameworks already in place between Transnet and organised labour. "When comparing the original retrenchment clause and the one contained in the final wage offer, it is evident that there is no significant difference, but only a reformulation of existing provisions. The only notable amendment in the final collective agreement is the additional 0.5% increase in Year 3".
Mail & Guardian
17-06-2025
- Business
- Mail & Guardian
Transformation Fund draft document lacks clear, outcome-driven goals, BLSA says
Business Leadership South Africa has criticised the recently launched Transformation Fund as being flawed because it was structured around input-based targets instead of clear, outcome-driven goals..(John McCann/M&G) Business Leadership South Africa (BLSA) has criticised the recently launched Transformation Fund as being flawed because it was structured around input-based targets instead of clear, outcome-driven goals. It said effective efforts should be anchored in measurable objectives that justified the financial commitment required. According to a In 'The fund should use an outcome-based approach by specifying the expected transformation impact in tangible terms, such as the number of businesses it aims to grow, employment targets, or improvements in SME (small and medium enterprises) survival rates,' it said. 'For example, a goal of supporting 5 000 black-owned businesses with a 30% annual growth rate over five years would provide a more practical framework for assessing effectiveness.' Trade and Industry Minister Parks Tau published the fund's concept document — which envisages raising R20 billion annually for black enterprise development — in March, with a 28 May deadline for comments. Scrutiny of the draft comes amid tension over the government's Communications and Digital Technologies Minister Solly Malatsi, a DA cabinet member, recently President Cyril Ramaphosa has BLSA acknowledged the importance of redressing the structural economic imbalances created by apartheid, and commended the government for establishing the Transformation Fund, but bemoaned the lack of analysis about why previous state-led initiatives such as the National Empowerment Fund and the Small Business Fund had underperformed. 'The paper does not provide a comprehensive overview of these existing funding mechanisms, nor does it justify why a new R100 billion structure is necessary instead of enhancing existing models,' it said in its submission. It also expressed concern about institutional inflation, where new entities are created for the same purpose instead of supporting ongoing programmes, adding that access to funding alone would not resolve the systemic challenges and insufficient mentorship capacity had hampered black empowerment initiatives. 'Without targeted investment in mentorship infrastructure even significant financial allocations may fail to yield desired development outcomes,' it said. Labour union Solidarity and the Free Market Foundation estimate that black empowerment laws have incurred R145 billion to R290 billion in compliance costs since their inception, equivalent to between 2% and 4% of GDP. A report by the two organisations on the cost of broad-based black economic empowerment says the programme has imposed a substantial economic burden on high-intensity sectors such as mining and finance, attributing low employment numbers to racially motivated policies. 'While B-BBEE may have contributed to an increase in black ownership and supported some skills and SME development, those gains are overshadowed by elite capture, limited grassroots impact and persistent inequality,' the report said. BLSA said transformation efforts would improve with more private sector participation in the fund's financial disbursement and oversight. It argued that transformation is already happening in companies' enterprise and supplier development programmes, which have proved to be commercially viable in integrating small businesses. A joint fund management team between government and the private sector would allow businesses to share and 'codify lessons and best practices for the fund's design', the organisation added. 'We recommend that the Transformation Fund be designed with sufficient flexibility to align with existing industry master plans and accommodate the requirements of the fast-growing priority sectors,' it submitted.
