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IOL News
a day ago
- Business
- IOL News
Why Trump's 30% blow to South Africa is a wake-up call for a new economic order
On August 1, 2025, South African exporters will wake up to a 30% tariff on all goods entering the United States, a decision announced by the administration of President Donald Trump. Image: File On August 1, 2025, South African exporters will wake up to a 30% tariff on all goods entering the United States, a decision announced by the administration of President Donald Trump. This is not a sector-specific sanction, nor the outcome of any formal trade dispute. It is a sweeping penalty imposed on all products, citing trade imbalances and regulatory barriers imposed by South Africa. But this is not the end of trade. It is the beginning of South Africa's trade adolescence, the moment we decide to grow up or continue being disciplined by our 'partners.' The justification provided by the US administration rests on the claim that South Africa runs a trade surplus with the United States. In truth, South Africa exported around R170 billion worth of goods to the US in 2023 (Stats SA, 2024), largely in automotive components, citrus and minerals, while importing just over R100 billion in return. The surplus exists but it is relatively small in the context of overall bilateral trade. Trade imbalances are also not inherently unfair; the US itself enjoys surpluses with many countries. What this tariff reveals is not a fiscal grievance but a display of geopolitical leverage, an assertion of economic power with limited regard for multilateral process. The tariff appears partly aimed at appeasing domestic political interests ahead of the 2026 midterm elections, particularly in states where trade unions are concerned about foreign competition. However, the consequences for South Africa's economy will be profound and immediate. South Africa is already under pressure to reindustrialise and this penalty could not come at a worse time. The automotive industry alone accounts for over 4% of GDP and more than 110 000 jobs (Naamsa and Department of Trade, Industry and Competition, 2024). With the US as a key destination for vehicle parts and assembled models, this tariff will deal a serious blow to sectoral stability. Reports indicate that companies relocating production to the US may receive expedited regulatory approvals. In effect, this risks incentivising capital flight and weakening local value chains. This policy shift is taking place while South Africa holds the presidency of the G20 (G20 Secretariat, 2025). That irony is difficult to ignore. We are presiding over a global forum committed to equitable development while being subjected to unilateral economic pressure by one of its most powerful members. This is more than a diplomatic discomfort; it is a direct challenge to the credibility of multilateralism. If the G20 cannot protect developing economies from arbitrary market exclusion, it must ask itself what kind of influence it truly holds. While this move falls outside the scope of Agoa, it nonetheless underscores how preferential trade access can shift at the stroke of a pen. 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 ✕ Past threats to South Africa's participation in Agoa, such as the poultry trade dispute of 2015 (USTR, 2016), highlight how even codified benefits remain vulnerable to political shifts. Critics of South Africa's trade policy may point to the use of technical regulations and local content rules. However, these are allowed under World Trade Organisation (WTO) guidelines, as outlined in the Technical Barriers to Trade Agreement (WTO, 2020). Developing countries are within their rights to protect and promote industrial growth through policy instruments that stimulate domestic value addition. The United States also protects its own industries through farm subsidies, defence procurement and steel tariffs. To frame South Africa's approach as uniquely restrictive is not only unfair; it reflects a double standard embedded in the global trade architecture. This situation reflects a deeper structural issue in South Africa's trade exposure. Our economy remains disproportionately dependent on the EU, the US and China. Even beyond the US, our exposure to external shocks is growing from the EU's carbon border taxes to shifting Chinese demand. Diversification must be structural, not just diplomatic. There is also a domestic reckoning to be had. South Africa's industrial policy remains constrained by loadshedding, underinvestment in ports and rail and persistent skills mismatches. If we are to reposition ourselves globally, these internal constraints must be addressed with equal urgency. A resilient economy cannot rely solely on favourable trade preferences beyond its control. It must be built on a foundation of functional infrastructure, competitive inputs and policy certainty. South Africa faces a choice. It can wait out the Trump presidency in the hope that future leadership will reverse course or it can act decisively now. This is not a call for isolationism. South Africa should not abandon global trade nor retaliate blindly. However, we must negotiate from a position of design rather than deference. We must ensure that this is the last time our national strategy is disrupted by external political cycles. Our trade strategy must pivot. Already, trade with BRICS+ partners has rivalled that of individual Western blocs in recent quarters, accounting for more than 22% of South Africa's exports in 2024 (SARB, Q4 2024). This is a foundation we can build upon. The African Continental Free Trade Area (AfCFTA) remains our continent's most ambitious economic project. While its infrastructure is still maturing, its potential cannot be deferred any longer. Trade corridors, payment systems and regulatory alignment must be fast-tracked in practice, not just policy. The World Bank estimates AfCFTA could lift 30 million people out of poverty by 2035 (World Bank, 2020). Parliament and the economic cluster must now take this seriously not as a trade spat but as a strategic inflection point for the country's long-term development path. The legality of this tariff under WTO rules remains debatable, especially given its blanket nature and lack of arbitration. However, legality aside, the message it sends is unmistakable. The global playing field remains unequal and South Africa must protect itself accordingly. This is not an argument for withdrawal. It is an argument for resilience. We cannot afford to build a 21st-century economy on the hope that global goodwill will prevail. We must design for volatility, prepare for shocks and root our trade agenda in real production, regional depth and economic clarity. US President Donald Trump may eventually give way to a different leader but the conditions that made this tariff possible are not tied to any single administration. The unpredictability of external markets, the asymmetry of trade power and the fragility of our supply chains are structural issues. They will not be resolved with the next election. The tariffs may be American but the decision before us is South African. Do we keep asking permission to grow or do we take the blows and build something of our own? Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. Image: Supplied Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
The South African
10-07-2025
- Business
- The South African
Clifton's crown jewel: Why Nettleton Road is SA's priciest street
High above Cape Town's dazzling Atlantic Seaboard, Nettleton Road isn't just another scenic street; it's the pinnacle of luxury in South African real estate. This secluded stretch is home to jaw-dropping mansions, ultra-wealthy residents, and property prices that regularly break national records. But why is this particular road one of South Africa's most exclusive addresses? Views over Clifton. Image: canva Nettleton Road has long been associated with wealth, but its real estate prices have surged into the stratosphere in recent years. In early 2025, two adjoining vacant plots, comprising just 2 700 square metres, sold for a staggering R170 million. That's not a typo! That's the price of nothing on Nettleton: just the land, no house, no finishes, JUST location. And this deal follows a pattern. In 2017, a six-bedroom mansion on the road sold for R120 million, then one of the most expensive residential property sales ever recorded in South Africa. And in 2021, a 1 200 square metre villa, featuring a cinema, gym, wine cellar, and cantilevered pool, reportedly sold for over R150 million. Sunset skies in Clifton. Image: canva It's not just the ocean views, as fantastic as they are! Every home on Nettleton Road faces west, soaking in those famous Cape Town sunsets over the Atlantic. Below are the iconic Clifton beaches; above looms Lion's Head. There's also security, privacy, and scarcity. Only a handful of homes line this quiet cul-de-sac. And, of course, you could add in architectural bragging rights. Nettleton Road has become a blank canvas for South Africa's top architects, Greg Truen, Stefan Antoni, and others, to showcase gravity-defying, glass-walled masterpieces. Most homes come with luxury specs as standard: think heated infinity pools, private cinemas, wellness spas, multi-car garages, and staff quarters. But more importantly, they offer something rarer: status. You won't find names on buzzers on Nettleton Road. Privacy is the norm. But it's no secret that tech entrepreneurs, mining magnates, and international investors have snapped up properties along the exclusive road. There's heavy foreign interest too, especially from German, UK, and Middle Eastern buyers looking for high-end African investment properties or holiday homes. Interestingly, though, while it exudes wealth, Nettleton Road hasn't always been ultra-premium. In the 1970s and '80s, Clifton was already desirable, but Nettleton itself was mostly undeveloped. Over the past 25 years, as Cape Town transformed into a global destination, the road's potential was recognised and monetised. Now, it's Cape Town's answer to Malibu's Carbon Beach or London's The Bishops Avenue. But with better views and better weather. 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 South African
25-06-2025
- Sport
- The South African
Mamelodi Sundowns face biggest match in their history TONIGHT
Mamelodi Sundowns are preparing for the biggest match in their 55-year existence – certainly in terms of prize money at stake – on Wednesday in Miami, Florida. Masandawana will take on Brazilian side Fluminense knowing that nothing short of victory will most likely be enough to see them avoid elimination at the FIFA Club World Cup. The clash at the Hard Rock Stadium is scheduled for 21:00 (SA time). When South Africans connect, we don't just network; we build a community. The Lekker Network is a professional network where every conversation starts with, 'How can I help you?' Come join us & be a part of a community of extraordinary Saffas. Heading into the clash, Mamelodi Sundowns are in third place in Group F with only the top two sides progressing to the Round of 16. The Tshwane giants opened their campaign with a 1-0 win over South Korean side Ulsan HD, but them went down 4-3 against Bundesliga giants Borussia Dortmund in their second encounter. With Borussia Dortmund almost certain to beat already eliminated Ulsan HD, that would leave Mamelodi Sundowns needing to beat Fluminense to progress to the Last 16. Fluminense will progress should the match end in a draw. The Borussia Dortmund versus Ulsan HD match will also kick off at 21:00 (SA time) tonight. By securing their place at the tournament, Mamelodi Sundowns were guaranteed $9.55 million (R170 million) in appearance fees. As a reminder, each group stage win is worth $2 million (R35.7 million), while in the event of a draw, both sides will pocket $1 million (R17.85 million). Losers of any group match go away empty-handed. Their win over Ulsan HD – thanks to the lone goal in the match by Iqraam Rayners – was worth R35.7 million to the Tshwane giants. That means Mamelodi Sundowns have banked $9.55 million (R170 million) in appearance fees and $2 million (R35.7 million) for their opening match win, giving them a total of R205.7 million. They can add another R35.7 million to that total with a win on Wednesday night. But that's not all! All teams that progress to the Round of 16 get an additional $7.5 million (R133.8 million) for doing so. That means, a win tonight would be worth a minimum of R161.5 million to Mamelodi Sundowns. Considering each Betway Premiership title is worth 'only' R20 million to the winner, Masandawana could bank more than EIGHT times that much in just 90 minutes! Should Mamelodi Sundowns finish top of Group F, they will face the runner-up in Group E. Group E comprises River Plate from Argentina, Italy's Inter Milan, Monterrey from Mexico and Japanese side Urawa Red Diamonds. If Mamelodi Sundowns finish second in Group F, they will face the winner of Group E. Should Masandawana successfully navigate their way into the quarter-finals, that will be worth another $13.125 million (R234 million). A spot in the semi-finals would be worth an additional $21 million (R375 million). The tournament's runner-up will receive $30 million (R535 million) while the overall winner will walk way $40 million (R714 million) richer. In a best case scenario , this is how much Mamelodi Sundowns could still potentially win: Round Dollars Rands Appearance fee $9.55 million R170 million * Group stage Beat Uslan HD $2 million R35.7 million * Lost to Borussia Dortmund $2 million R0 (lost 4-2) Beat Fluminense $2 million R35.7 million Reach Round of 16 $7.5 million R133.8 million Reach quarter-finals $13.125 million R234 million Reach semi-finals $21 million R375 million Lift the trophy $40 million R714 million TOTAL $97.125 million R1.6982 billion *denotes confirmed prize money won That is PROPER money and will ensure Mamelodi Sundowns get richer and the gap between the Tshwane giants and the rest of the PSL teams just widens even further. It's also sure to leave Soweto giants Kaizer Chiefs and Orlando Pirates green with envy. The next FIFA Club World Cup is due to be held in 2029. Ronwen Williams (captained), Denis Onyango, Reyaad Pieterse, Khuliso Mudau, Thapelo Morena, Aubrey Modiba, Divine Lunga, Grant Kekana, Malibongwe Khoza, Mothobi Mvala, Keanu Cupido, Mosa Lebusa, Marcelo Allende, Jayden Adams, Themba Zwane, Sphelele Mkhulise, Neo Maema, Teboho Mokoena, Bathusi Aubaas, Peter Shalulile, Lucas Ribeiro Costa, Iqraam Rayners, Arthur Sales, Tashreeq Matthews, Lebo Mothiba, Kutlwano Letlhaku Masandawana will be captained by goalkeeper Ronwen Williams, who created history at the 2024 Africa Cup of Nations by saving four shootout penalties to take South Africa past Cape Verde in a quarter-final. Coach Miguel Cardoso has selected a 26-man squad including 20 South Africans, two Brazilians, a Chilean, a Ugandan, a Zimbabwean and a Namibian. Mamelodi Sundowns' remaining Group F matches are as follows (all times SA): Wednesday, 25 June vs Fluminense – 21:00 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 South African
18-06-2025
- Business
- The South African
Mamelodi Sundowns: How much money they can still win at FIFA Club World Cup REVEALED
Mamelodi Sundowns are making big money at the FIFA Club World Cup in the USA. Mamelodi Sundowns have already made over R200 million at the FIFA Club World Cup. Interestingly, this comes after just one match – a morale-boosting 1-0 victory over Uldan in their Group F opener. Though, it must be noted that The Brazilians received over R170 million as a participation fee for qualifying for the CWC. Sundowns secured over R35 million for their victory over Uldan. Thus, bringing their total earnings for the FIFA Club World Cup to over R200 million (R170 million for participation and over R35 million for their win). However, Sundowns still have a lot to play for – in every way. The Brazilians have over R70 million up for grabs in their next two Group F encounters against Borussia Dortmund and Fluminense. This is because FIFA has allocated over R35 million per win to any of the 32 sides at the FIFA Club World Cup. Meanwhile, even a draw could see Sundowns pocket almost R18 million (R17.9 million). The reigning defending Betway Premiership champions have dominated the PSL for eight years now. Eight titles on the trot and now they are representing South Africa on the international stage. So, they will want to make the whole of SA proud with every minute they play. The further they make it, the more money they will make, the higher the player stocks will rise and the higher the club rankings and reputations will soar. En route to qualifying for the FIFA Club World Cup these Sundowns stars have become the most valuable stars in the PSL – worth more than double Kaizer Chiefs and Orlando Pirates most expensive players. 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
18-06-2025
- Business
- The Citizen
Standard Bank's ‘disproportionate' attempt to foreclose on Vavi's home fails
Bank was also claiming more than R160 000 in legal costs from Vavi and his wife – twice the value of their current repayment arrears. Saftu General Secretary Zwelinzima Vavi and his wife can stay put, for now. Picture: Neil McCartney / The Citizen Standard Bank has failed in its attempt to obtain authorisation for the foreclosure of a mortgage bond it granted over the Sandton primary residence of South African Federation of Trade Unions (Saftu) General Secretary Zwelinzima Vavi and his wife Noluthando. The judgment highlighted the high legal costs that result from mortgage bond arrears and foreclosure, with the bank claiming more than R160 000 in legal costs from the couple – twice the value of their current mortgage bond repayment arrears. Judge Stuart Wilson said Standard Bank had placed nothing before him explaining why execution against the Vavis' home is a proportionate means of recovering the arrears. He postponed the application brought by the bank indefinitely on Tuesday and ordered that each party should pay its own costs. Wilson said a court asked to authorise foreclosure against a debtor's primary residence must be satisfied that to do so would be proportionate. Read more The Art Lab: A space for collaboration, experimentation, and creativity at Nelson Mandela Square He added that foreclosure is generally proportionate when there is little meaningful prospect of the debt secured against the residence being recovered in some other way – and when the interest of the creditor in obtaining payment outweighs the interest of the debtor in retaining ownership of the home. Standard Bank was seeking a money judgment and leave to execute it against the primary residence of the couple, whose indebtedness arose from a mortgage bond passed over the property. ALSO READ: Court rules in favour of clients in Standard Bank home loan dispute Steps taken to reduce arrears – judge Wilson said the fact that the property is, on the face of it, an expensive dwelling in a well-heeled suburb makes no difference to the fundamental inquiry – but cases in which it would be disproportionate to authorise execution of a proven mortgage debt against such a property are likely to be rare. However, he said: 'This is such a case. The Vavis owe around R1.68 million on their bond, and are in arrears to the tune of just over R85 000 – or around four months' worth of instalments. 'The arrears were accumulated around three years ago, and since then the Vavis appear to have serviced their bond punctiliously while taking steps to reduce their arrears from just under R170 000 when the application was instituted to around R85 000 today. 'The latest home loan statement filed shows around 18 months of apparently perfect adherence to the Vavis' obligations to pay their monthly instalments.' ALSO READ: Class action suit shows banks sell repossessed houses for cents in the rand Legal costs and arrears 'separate issues' Wilson added that Standard Bank claims over R160 000 in legal costs against the Vavis – and it is apparent from the affidavits that the bank has tied the resolution of this dispute to the settlement of those costs. 'It is at least possible that the Vavis have balked at paying legal costs of twice the value of their current arrears. 'It seems to me that the Vavis would be entitled to rehabilitate the loan agreement by paying their arrears and then debating the reasonableness of those costs with Standard Bank as a separate issue, but I cannot say why the arrears have not been settled. 'Nevertheless, in the absence of more information, I cannot presently conclude that foreclosure against the Vavis' home is a proportionate means of liquidating their arrears.' Although the judge postponed the application sine die (indefinitely), Wilson said the bank may renew the application if and when it presents evidence that foreclosure would be proportionate. ALSO READ: What to do if you start falling behind on your home loan Financial woes The Vavis have been in the news for other alleged arrears related to their Sandton home. City Press reported in February 2024 that Vavi and his wife had been taken to court by the City of Johannesburg (CoJ) Metropolitan Municipality for allegedly failing to pay more than R400 000 in outstanding levies for their home. It said the CoJ was seeking an order from the High Court in Johannesburg that would compel the couple to pay an amount stipulated as R433 493 after they had applied to the municipality for provision. The article said it had previously reported on their financial woes, which it claimed began in 2022 when Standard Bank applied for a writ of execution on the same house after accusing them of non-payment. It subsequently reported that Noluthando Vavi said they only became aware of the court papers when inquiries were made by City Press about their home, which they bought for R2 million in 2008. It is unclear what happened to the CoJ's arrears high court application. This article was republished from Moneyweb. Read the original here.
