In a 13 February executive order (EO), ‘Reciprocal Trade and Tariffs’,US president Donald Trump puts forth a wide-ranging review and proposed change to how the US administers tariffs – and how the US administration views global trade as well as bodies such as the World Trade Organisation.
Government targets private capital, but introduces laws that make SA a riskier place to invest
SOUTH AFRICA’s G20 Presidency provides the host country with numerous diplomatic, economic, and cultural opportunities. With a main summit (22-23 November in Johannesburg) preceded by numerous side conferences and engagements focused on a range of areas and sectors, South Africa’s G20 Presidency offers multiple chances to make a positive impact on international diplomatic and business counterparts.
While it remains uncertain whether ArcelorMittal SA (Amsa) will receive a R1bn bailout, the domestic steel industry faces mounting challenges. If Amsa shuts down permanently it is unlikely that Transnet Port Terminals (TPT) can compensate for the loss of locally produced long steel with an immediate increase in break-bulk steel imports.
Another proposed bailout for Transnet is unlikely to fix its fundamental operational and management problems, and will undermine hard-won government fiscal credibility.
Dilution of property rights amounts to a spectacular own goal
In addition to the new trade review instructions implemented by Trump, the bipartisan US-SA Bilateral Review Act could be revived
With load-shedding seemingly a thing of the very recent past (load-limiting remains in place, and load-shedding could return when Eskom takes more of the coal fleet offline for maintenance), the major binding constraint on South Africa’s growth potential is the consistently awful performance of the country’s ports and railways.