President Cyril Ramaphosa has called on the government to invest in the implementation of the African Continental Free Trade Area after US President Donald Trump’s decision to impose a 30% tariff on SA exports.
In his closing address at the ANC’s national executive committee (NEC) meeting in Germiston on Monday, the ANC leader bemoaned the US decision.
The 30% export duties are set to come into effect at the end of the week if the US, SA’s third-largest trading partner, still has not responded to SA trade proposals. These included new trade deals in liquefied natural gas, agriculture, mining, critical minerals and pharmaceuticals, plus agri-machinery.
The department of trade, industry & competition has set up an export support desk to assist affected companies.
“SA is confronted by the immediate and damaging punitive tariffs announced by the US. While we must act with urgency and purpose to limit the impact of these very punitive tariffs, we must also undertake measures to ensure the resilience of our economy and exports into the future,” he said.
The government was looking to use the R340m localisation support fund to help SA businesses reroute exports to other markets after the US decision.
Ramaphosa said SA’s engagements with the US would continue, with a view to normalising trade and bilateral relations.
“As we speak, the department of trade, industry & competition, working together with the presidency, is involved in discussions with the US with a view to resolving this imposition of tariffs on us.
“We must invest in the implementation of the AfCFTA and in diversifying our export markets. The department is already working on a number of interventions to assist various exporters from SA to various markets,” Ramaphosa said. “Producers and exporters are working with our government to find a solution to this calamity that has befallen us.”
Ramaphosa said the NEC meeting discussed the state of the economy and steps needed to drive inclusive growth and job creation.
“We have reaffirmed that industrial policy must be the leading instrument of economic development and transformation, which will, in turn, help to shape our trade policy. For this industrial policy to succeed, we need an all-of-government approach,” he said.
“This requires co-ordinated alignment across multiple centres of state power, not just trade, industry & competition, but also energy & electricity, transport, water, agriculture, land reform, rural development, public works & infrastructure, public enterprises, mining, higher education, science & innovation, petroleum and finance as well as labour.”
Network industries needed to be efficient, reliable and competitive to drive “industrialisation that is so much needed in our country”.
“We must ensure our integrated resource plan advances energy, security and emission reduction targets while reducing the cost of electricity to the economy and households. We must move with speed to implement our freight logistics road map, so we enhance capacity and capability of all our port networks.”
The government needed to be forward-looking and invest in and develop industries such as battery storage and electric vehicle production, he said.
“Infrastructure is the flywheel that our economy needs to create jobs. We must use our infrastructure build to create platforms for black industrialists, marginalised communities and work for small and medium enterprises.”
Infrastructure development would help promote processing and beneficiation of “our rich mineral endowment”.
The president was unhappy about the slow pace of infrastructure rollout in the national, provincial and local government spheres. This was not due to a lack of money, but it was a problem of capacity and execution, issues the president said were being looked into.
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