Africa is alive with possibilities. While we wait and see what will come of the trade wars and tariff threats, we should spend our time understanding the enormous potential that sits right on our doorstep. With 1-billion customers, producers, manufacturers and suppliers who call Africa their home, the future is indeed bright.
Former president Thabo Mbeki’s famous “I am an African” speech should give us the inspiration we need. “I owe my being to the hills and the valleys, the mountains and the glades, the rivers, the deserts, the trees, the flowers, the seas and the ever-changing seasons that define the face of our native land,” he said in 1996.
Afrocentricity is now of paramount importance. As a developed economy, we can lead the charge as we look towards unlocking the economic opportunities that rest with our neighbours and help them in turn to exploit the opportunities we hold for their domestic needs.
Unfortunately we are looking at the very real chance of entering a technical recession. This puts everyone in a dire position and creates an environment where there is a lot of uncertainty and reluctance to trade with the rest of the world because of the losses that could come from this.
What stands in our way is that trading operates too much in silos, which puts Africa at a disadvantage to other territories where trading happens without undue barriers.
There are also still too many barriers to entry, whether that is from a risk appetite point of view, or because there are no existing political or bilateral relationships in place. By putting truly borderless trading behaviour in place with the requisite safeguards, we can find a way around these barriers.
South Africa has another opportunity to lead the way, and this is in the space of regulating cross-border trade and our commitment to secure and safe financial services.
There are already updated rules for financial services providers coming into effect in the middle of this year, while the South African Reserve Bank issued a directive to the banking sector to cease executing so-called low-value transactions within the common monetary area through “inappropriate” systems by March 2027 as part of measures to rein in potential money laundering. The directive is geared towards efforts to get South Africa removed from the Financial Action Task Force’s grey list.
These new regulations will have a major impact on the strength of the rand and the robustness of businesses wishing to deal with South Africa.
There is a lot of focus globally from central banks trying to find a logical solution to regulate new assets and payment channels and platforms. South Africa has a real opportunity to show the world how this regulation could be drawn up in a way that makes business sense.
Unfortunately we are looking at the very real chance of entering a technical recession. This puts everyone in a dire position and creates an environment where there is a lot of uncertainty and reluctance to trade with the rest of the world because of the losses that could come from this.
The large-scale tariffs imposed on China are likely to have indirect consequences for South Africa. As one of our largest trading partners, any economic pressure on China — such as the need to absorb or pass on increased costs — can affect trade flows, pricing structures and supply chain dynamics. While South Africa benefits from strong trade ties with China, it is important to anticipate and prepare for the potential ripple effects these tariffs may create across emerging markets.
The extent to which the tariffs on South Africa are going to be imposed relies heavily on government collaboration. Mcebisi Jonas’s appointment as special envoy to the US will hopefully be the catalyst we need as we negotiate in the best interests of all South Africans.
We have always had good relationships with the EU, with the UK and across the Commonwealth. We need to capitalise on that to mitigate the risk of further implications on the economy.
Diversifying trade partnerships is essential for long-term economic resilience. South Africa has historically placed significant emphasis on trade with the United States, but there is growing opportunity and need to strengthen regional collaboration across the continent. By building a more interconnected, Africa-centric trading ecosystem, we can unlock local value, increase intra-African trade and reduce reliance on external markets. This shift not only supports domestic growth but also reinforces Africa’s collective economic strength.
Cross-border markets are under pressure, with rising volatility pushing governments to find smarter, more cost-effective trade solutions.
• Coetzee is country director of Verto South Africa, a global B2B financial technology firm that enables businesses to access cross-border payments, FX and banking solutions.
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