President Donald Trump announced reciprocal tariffs for over 180 countries on Wednesday, including South Africa, Nigeria, and Angola, amongst others, in a bid to rectify trade practices that have reportedly contributed to the country’s trade deficits.



A 30% tariff has been imposed on South Africa in relation to imports into the United States (U.S.). This is following an announcement by President Donald Trump, on April 2, 2025. The U.S. plans to impose a tariff of 10% on all imports into the country with higher percentages mentioned for specific trading partners. &nbsp;&nbsp;&nbsp;



According to the Executive Order, trade deficits have led to the hollowing out of the country’s manufacturing base and inhibited its ability to scale advanced domestic manufacturing capacity. It goes on to say that this has undermined critical supply chains in the U.S. and rendered its defense-industrial base dependent on foreign adversaries.



The South African Presidency noted the new tariffs, in a statement, saying: “Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity”.



“The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S., as an essential step to secure long-term trade certainty.”



Following the announcement of the tariffs, Investec Chief Economist, Annabel Bishop noted in a statement that the reaction from financial markets was swift, adding that there might be “higher inflation expectations (and fewer interest rate cuts) for the U.S. as a consequence of the marked increase of the cost of living on the imposition of the tariffs on imported goods into the U.S.”.



She also pointed out that South Africa is expected to see lower gross domestic product (GDP) growth in 2025 at 1.3% year-on-year from 1.8% year-on-year, referring to an economic growth note from March 7 and the macroeconomic outlook from March 27. This would be as a consequence of the “escalation in the trade war and the loss of AGOA [the African Growth and Opportunity Act], among other noted factors”.



Relations between South Africa and the U.S., in particular, have been strained recently for several reasons, most notably, the cutting of funding to the country and an offer from the latter to resettle White South African farmers and their families in February following utterances of a ‘white genocide’ in the country–allegations which have been denied by South Africa–and the suspension of USAID funding, globally, by the U.S, which has reportedly impacted several organizations in South Africa.



More recently, in March, the U.S. expelled South Africa’s ambassador to the country, Ebrahim Rasool, after remarks he made about President Trump. In the same month, Trump nominated Brent Bozell III, a conservative media commentator, to become the next U.S. ambassador to South Africa, stating, “Brent brings fearless tenacity, extraordinary experience, and vast knowledge to a nation that desperately needs it”.



In relation to the new tariffs, South Africa’s Trade Minister, Parks Tau reportedly stated, at the Gauteng Investment Conference on Thursday in Johannesburg, that the country would need clarity from the U.S. as to how they arrived at the 30% figure and how they would want to engage.



According to reports, South Africa currently imposes an averaged 7.6% tariff on products from the U.S.



Other African countries facing higher percentages than the standard 10% include Angola (32%), Botswana (37%), Côte d’Ivoire (21%), Lesotho (50%), Mauritius (40%), Namibia (21%), Nigeria (14%), Zambia (17%) and Zimbabwe (18%), to name a few.



The White House confirmed that the 10% tariffs would take effect from April 5 and reciprocal levies on April 9.

South African Rand Sinks Most Since 2011

U.S. Imposes Reciprocal Tariffs Globally; South Africa To Seek Clarity, New Trade Deal

The country’s parliament announced, on the day that the Budget Speech was expected to be delivered, that it would be postponed until a later date, reportedly over concerns within the GNU about a proposed 2% increase in VAT, among others.



For the first time in its democratic history, South Africa has postponed its 2025 Budget Speech to March 12, after it was initially expected to be delivered on February 19.



This was after reports of an emergency cabinet meeting, called by President Cyril Ramaphosa, earlier on Wednesday following concerns by members of the executive committee, which included a proposed 2% increase in Value Added Tax (VAT). It would have taken the country’s VAT to 17% from the current 15%.



National Assembly speaker, Thoko Didiza announced to parliament that an agreement could not be reached regarding these proposals. &nbsp;



“Cabinet decided not to come and do a presentation of the budget and allow themselves enough time to relook at the budget and come back to this house in March, at a time at which they will inform us,” she said.



Finance Minister, Enoch Godongwana later briefed the media on the postponement announcement, where the new date was announced.



“Cabinet is united in the view that the budget must strike a balance between the interest of the public, economic growth and fiscal sustainability,” he said.



Political party leaders in the country have each offered their view with the Economic Freedom Fighters’ Julius Malema stating that “this is unprecedented”.



“This is not a practice we want to set for this parliament. It is going to be your legacy that, during your tenure, that parliament could not debate and adopt a budget. You are denying this body an opportunity to receive a budget, debate it, accept it or reject it,” Malema added in parliament.



The Democratic Alliance&#8217;s (DA) John Steenhuisen later said, “There were some concerns around some of the proposals in the current budget that members of the GNU felt were not in-line with the growth agenda in South Africa”.



“What we want to do is come back with a budget that will give South Africans hope that there is now a big move forward under the Government of National Unity to fix the economy, create jobs and ensure that we can combat the high cost of living.”

President Cyril Ramaphosa Launches South Africa’s G20 Presidency

South Africa’s 2025 Budget Postponed Until March 12

President Cyril Ramaphosa delivered his 2025 State of the Nation Address (SONA) against the backdrop of South Africa’s evolving political and economic realities. Addressing Parliament in Cape Town City Hall today, he outlined an ambitious framework for national renewal, emphasizing economic revitalization, infrastructure investment, and the country’s place in the shifting global order.



The address came at a critical moment: the first full year of South Africa’s Government of National Unity (GNU), rising geopolitical tensions, and an economy striving to recover from years of stagnation. While Ramaphosa painted a picture of resilience and reform, the challenges of implementation remain a formidable test.



Economic Recovery And Infrastructure



Ramaphosa placed economic growth and job creation at the heart of his administration’s priorities. “Our most urgent task is to grow our economy so we can create jobs, reduce poverty, and improve the lives of all South Africans,” he stated, setting a 3% GDP growth target as a crucial milestone. However, this target may be difficult to achieve given existing economic constraints.



South African economist Dawie Roodt offers a measured perspective. “If we get kicked off AGOA, it’s not the end of the world, but everything adds up. We could see economic growth well below 1.5%, and that will have serious consequences,” he tells FORBES AFRICA. While the government’s infrastructure plans are extensive, structural challenges may pose obstacles to reaching this ambitious growth rate.



With GDP growth struggling to surpass 1.5% in recent years, achieving the government’s 3% target will be a significant challenge. While infrastructure spending is a key strategy, Roodt cautioned that it alone may not be enough to drive the necessary economic expansion.



To stimulate growth, his government has committed to a R940 billion ($51 billion) infrastructure investment over three years, including R375 billion ($20.3 billion) in spending by state-owned enterprises (SOEs). Projects range from modernizing ports and railways to the completion of the Polihali Dam in the Lesotho Highlands, ensuring water security for key industrial hubs.



Infrastructure reform extends to energy, where South Africa’s ongoing transition away from Eskom’s monopoly is set to redefine the electricity sector. “We must put the risk of loadshedding behind us once and for all,” Ramaphosa affirmed, touting the Electricity Regulation Amendment Act, which enables private investment in generation and transmission networks. The government also aims to mobilize over $13 billion in international climate funding to support the Just Energy Transition (JET).



State Capacity And Governance Reform



Ramaphosa acknowledged the systemic failures in public service delivery, from failing municipalities to persistent corruption in state institutions. Acknowledging the urgent need for reform, he announced a new model for public service recruitment, strengthening the Public Service Commission’s role in appointing directors-general and SOE executives.



Municipal service failures remain a pressing concern, with unmaintained roads, disrupted electricity, and inadequate water provision plaguing local governance. In response, the government will establish ring-fenced utilities for water and electricity in struggling municipalities to ensure revenue is reinvested into infrastructure.



South Africa–U.S. Relations And Foreign Policy



The speech took on a notable diplomatic tone, reflecting South Africa’s role in an increasingly fragmented global order. Ramaphosa reaffirmed South Africa’s commitment to multilateralism, highlighting its G20 presidency as an opportunity to champion Africa’s economic interests on the global stage.



However, relations with the U.S. remain complex. The Biden administration’s recent decision to suspend some HIV and TB program funding for Africa — which accounts for 17% of South Africa’s HIV spending — was met with concern. “We are looking at various interventions to address the immediate needs and ensure the continuity of essential services,” Ramaphosa stated, underscoring the country’s reliance on international partnerships.



South Africa’s stance on Palestine and its International Court of Justice (ICJ) case against Israel has also drawn U.S. scrutiny. While South Africa upholds its position on human rights and territorial sovereignty, Washington’s view on the country’s geopolitical alignment remains cautious, particularly given its engagement with BRICS and growing economic ties with China and Russia.



Jobs, Trade, And Business Confidence



Addressing unemployment, particularly among youth, Ramaphosa reaffirmed the expansion of the Presidential Employment Stimulus, which has created 2.2 million work opportunities. However, he emphasized that private-sector growth is crucial to sustainable employment, urging businesses to engage with the SAYouth.mobi platform and expand workplace experience programs.



On trade, the African Continental Free Trade Area (AfCFTA) remains a pillar of South Africa’s economic strategy. With the country positioning itself as a regional hub for green manufacturing, electric vehicles, and digital services, Ramaphosa reiterated South Africa’s ambition to lead Africa’s industrialisation wave.



Economist Roodt further emphasizes the risks beyond trade: “If the U.S. stops buying our government bonds, that’s when we’ll be in real trouble. The rand will tank, inflation will spike, and the entire financial system could come under strain.”



The mining sector, a historical backbone of the economy, is also poised for reform. A modernized mining rights system, expected this year, aims to unlock investment in exploration and critical minerals, strengthening South Africa’s position in the global commodities market.



Challenges Ahead



Despite the optimistic tone, economic realities pose significant risks. With GDP growth struggling to surpass 1.5% in recent years, achieving the 3% target will require more than infrastructure spending. Structural challenges — from inefficiencies in SOEs to regulatory red tape — continue to hamper investor confidence.



Furthermore, political stability within the GNU remains untested. With ideological differences between the ANC, DA, IFP, and other coalition partners, policy coherence will be a major determinant of success.



Ramaphosa’s message was clear: South Africa has the potential to emerge stronger, but execution will determine its trajectory. Whether the government’s ambitious reforms translate into real economic growth and global competitiveness will be the ultimate test.

South Africa’s President Cyril Ramaphosa’s State-of-the-Nation Address

South Africa’s 2025 State of the Nation Address: Economic Vision, Global Relations, and National Challenges

In a move to strengthen South Africa-Nigeria ties, South Africa’s President Cyril Ramaphosa announced last night that efforts to create a favorable environment will include a simplified visa process for travelers coming in to South Africa from the West African nation.



With Nigeria’s President Bola Ahmed Tinubu, who is in South Africa for the 11th session of the South Africa-Nigeria Bi-National Commission in Parliament in Cape Town, Ramaphosa added in his opening remarks: “Qualifying Nigerian business people can be granted a five-year multiple entry visa. In addition, tourists from Nigeria can now apply for a visa without submitting a passport.”



That the visa process, previously, has been cumbersome, has been widely reported.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">South Africa&#39;s President Ramaphosa: We want to see Nigerian products on the shelves of South African shops&#8230; Nigerian tourists can now apply for a visa without submitting a passport.&quot; MXM <a href="https://t.co/4PLI7lJrb4">pic.twitter.com/4PLI7lJrb4</a>&mdash; Jonathern Thom 🇿🇦 (@JonathernThom) <a href="https://twitter.com/JonathernThom/status/1863991288649130038?ref_src=twsrc%5Etfw">December 3, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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A <a href="about:blank">2024 report</a> by the Centre for Human Rights (University of Pretoria) stated that South Africa’s Department of Home Affairs has a list of countries exempted from needing a visa for a 30- to 90-day stay in the country, but countries such as Nigeria, Senegal, The Gambia, Cameroon, Sudan, Somalia, to name a few, are not on the list.



“Despite Ramaphosa’s emphasis on immigration and tourism, the first year of his presidency saw 7,000 Nigerians get their visas rejected,” Mamadou Saidou Bah and Marie Rebecca Jolicoeur wrote in the report. “It is indeed true that South Africa is largely closed to other Africans but more welcoming to the wider world. When it comes to Africans, the visa regime of South Africa is applied rigidly and that is a contributing factor to the high rejections of visa applications by Africans.”



The president’s announcement garnered mixed reactions on social media.



“We already have a problem with these nationals in our country, now we further relaxing visa laws. Please make it make sense,” one user said on Instagram.



Another on <a href="about:blank" target="_blank" rel="noreferrer noopener">X said</a>: “The damage done by some Nigerians is hard to overlook. However, should we look into the business side of things? We can both benefit. Africa is our home. Let&#8217;s find a way to work towards making it a great continent.”



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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">At this rate, the plan of ANC is to destroy South Africa. How does strengthening our relationship with Nigeria secure comfortable future of South Africans? 😩😭&mdash; Oracle (@Oracle5152) <a href="https://twitter.com/Oracle5152/status/1864019886093062538?ref_src=twsrc%5Etfw">December 3, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">South Africans we are on our own!!!! We want to see Nigerian products on the shelves of South African shops&#8230; Nigerian tourists can now apply for a visa without submitting a passport.&quot; <a href="https://t.co/HrBttGavw5">pic.twitter.com/HrBttGavw5</a>&mdash; Sir Cabonena Alfred (@Lebona_cabonena) <a href="https://twitter.com/Lebona_cabonena/status/1863942923806818371?ref_src=twsrc%5Etfw">December 3, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trade between Nigeria and South Africa is significant, with Nigeria being South Africa&#39;s largest trading partner in Africa. Crude oil from Nigeria constitutes a major portion of this trade. With recent agreements focusing on easing visa restrictions for Nigerian businesspeople…&mdash; People (@MadawaMan_) <a href="https://twitter.com/MadawaMan_/status/1864270349287768511?ref_src=twsrc%5Etfw">December 4, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Ramaphosa also stated in his address that he would like to see more Nigerian products on the retail shelves in South Africa. Nigeria is South Africa’s largest trading partner in West Africa. He wishes to see more robust trade between the two countries.



“Nigeria and South Africa enjoy strong diplomatic ties and expanding trade and investment flows,” Ramaphosa said. “The strategic positioning of both countries in their respective regions presents enormous opportunities for collaboration.”



According to <a href="about:blank" target="_blank" rel="noreferrer noopener">Africa Check</a>, in 2016, there were 30,000 Nigerians living in South Africa.



“The outcome of this 11th session of the Bi-National Commission reaffirms our commitment to strengthening existing ties and deeper collaboration between Nigeria and South Africa towards a future of shared prosperity, security, and progress for our people,” Tinubu wrote on X. “As two of Africa’s leading economies, Nigeria and South Africa must keep working together to ensure shared prosperity for our countries and Africa.”

Nigeria-South Africa bi-national Commission held in Cape Town

South Africa To Ease Visa Rules To Strengthen Ties With Nigeria; Both Countries To Work Collaboratively To Boost Trade

The 16th BRICS Summit commenced today in Kazan, Russia, uniting the leaders of Brazil, Russia, India, China, and South Africa, alongside new member states such as Iran and the United Arab Emirates (UAE). The summit’s agenda focuses on bolstering multilateralism and expanding the use of local currencies in intra-group trade, addressing some of the most pressing economic and geopolitical challenges facing the bloc today.



Held under the theme Strengthening Multilateralism for Just Global Development and Security, the summit, on until October 24, signals BRICS’ intention to reconfigure global governance structures in a more equitable and representative manner. The symbolic weight of holding this summit in Russia, amidst ongoing geopolitical tensions — particularly the war in Ukraine and escalating conflicts in Palestine and Lebanon — underscores BRICS’ ambition to position itself as a counterbalance to Western dominance, both economically and, potentially, politically.



Brazilian President Luiz Inácio Lula da Silva was notably absent due to a health-related issue, but he commented on the proceedings remotely. Meanwhile, South African President Cyril Ramaphosa, upon arriving in Kazan, met with Russian President Vladimir Putin to discuss mutual interests.



Highlighting BRICS&#8217; strategic importance, Ramaphosa emphasized in a statement, &#8220;BRICS plays an important role in a multipolar world, championing multilateralism, mutually beneficial cooperation, and sustainable development.&#8221;



As Gustavo de Carvalho, a Senior Researcher at the South African Institute of International Affairs, explains to FORBES AFRICA: “For most BRICS members, it&#8217;s not about replacing the U.S. dollar but about creating systems that give members options to trade, particularly using local currencies within the group.” He stresses that the BRICS agenda, while ambitious, aims to build economic resilience without severing ties to the broader global financial system.



Several key issues dominate discussions, including the integration of new members and the push for local currencies in trade. Yet, questions remain about the bloc&#8217;s ability to fully implement its vision amidst internal tensions and external geopolitical conflicts.



Local Currencies in Intra-BRICS Trade: A Practical Shift?



At the core of the summit’s economic agenda is the push for greater use of local currencies in trade between BRICS members — a move aimed at reducing reliance on the U.S. dollar. While this initiative is often misinterpreted as de-dollarization, BRICS members clarify that it is not about replacing the dollar but rather providing greater flexibility in cross-border transactions.



“It’s not about replacing the U.S. dollar outright, but creating systems that provide BRICS members the option to trade in their local currencies,” explains Carvalho. This approach aims to mitigate the risks of exchange rate volatility and external sanctions while allowing BRICS members to strengthen financial independence.



However, the path to local currency adoption is fraught with challenges. For example, Russia&#8217;s surplus of Indian rupees has already raised concerns about how currency imbalances might complicate these efforts. &#8220;There are practical limitations, especially when one country ends up with a surplus of another&#8217;s currency,&#8221; Carvalho adds, highlighting that balancing trade flows will be critical to making local currency trade viable.



In response, BRICS Finance Ministers have been tasked with preparing reports on how to advance the use of local currencies and payment platforms, following a request made at the Johannesburg Summit in 2023. President Ramaphosa reinforced the strategic importance of these initiatives, noting, &#8220;BRICS now covers 43% of the world&#8217;s population&#8230; providing opportunities to develop mutually beneficial cooperation that contributes to sustainable growth.&#8221;



Despite the long-term potential, the shift toward local currencies is expected to be gradual. The focus at this summit is on laying the groundwork for more substantive changes in the years ahead.



Iran’s Inclusion in BRICS: Geopolitical Implications



The inclusion of Iran, especially in the context of ongoing conflicts in the Middle East, adds another layer of complexity to the BRICS dynamic. Iran’s membership brings significant geopolitical weight at a time when the country remains isolated by Western powers, particularly as tensions in Palestine and Lebanon intensify.



BRICS, while not a formal political or military alliance, presents a platform for countries like Iran to engage with global powers outside Western influence. Yet, this inclusion is not without its challenges. &#8220;Geopolitical issues within BRICS tend to be divisive, making coordinated positions on specific disputes challenging,&#8221; Carvalho notes, reflecting the potential for discord over how BRICS members approach contentious global issues.



The geopolitical dimensions of Iran’s membership also raise questions about BRICS’ ability to serve as a counterbalance to Western dominance. While the bloc seeks to promote multilateralism, its capacity to form a unified stance on complex geopolitical matters — especially those involving longstanding regional disputes — remains uncertain. President Ramaphosa, however, remains optimistic, stating, &#8220;A founding value of BRICS is the shared vision of the urgent need to restructure global governance to be more fair, just, and representative.&#8221;



 Expanding BRICS



While the inclusion of new members like Iran and the UAE has been a focal point at the summit, further expansion is unlikely in the near future. Instead, BRICS is prioritizing its outreach program. The BRICS+ format, first introduced at the 2017 Shanghai Summit, allows non-member states to engage in development finance, trade, and infrastructure initiatives without full membership commitments.



Reports from BRICS Foreign Ministers on the development of the Partner Country model will be pivotal in shaping this program’s future. &#8220;While the possibility of expansion exists, it seems unlikely at this stage,&#8221; Carvalho notes, emphasizing that BRICS is more focused on refining its existing framework than rushing toward further enlargement.



The outreach program aims to foster partnerships across Africa, Asia, and Latin America, while maintaining BRICS&#8217; internal cohesion. By clarifying the roles of partner countries, the bloc seeks to expand its global influence without compromising its core mission of promoting economic cooperation among its members.



As the 2024 BRICS Summit progresses, the decisions made in Kazan will set the stage for the bloc’s future, particularly as Brazil prepares to take over the presidency in 2025.

Russian President Vladimir Putin meets with South African President Cyril Ramaphosa in Kazan

Ramaphosa Meets With Putin At BRICS 2024 In Russia: Pushing For Global Governance Reform Amid Shifting Geopolitical Tides

President Cyril Ramaphosa has signed the contentious Basic Education Laws Amendment (BELA) Bill into law, sparking debate over its potential impact on mother-tongue education and school governance in the country.



President Cyril Ramaphosa signed the Basic Education Laws Amendment (BELA) Bill into law on September 13, 2024, marking a significant shift in South Africa’s education landscape.



The new legislation, aimed at addressing inequalities and improving educational standards, has been met with both support and fierce opposition, particularly concerning its provisions on language policy and school admissions.



A Landmark Bill with Controversial Provisions



The BELA Bill introduces a range of significant changes to South Africa’s education system. It grants the government authority over school admissions and the language of instruction, ensuring centralized regulation.



The bill also tightens homeschooling regulations, requiring parents to follow stricter registration procedures. In cases where parents fail to ensure their child’s school attendance, they could face legal penalties, including jail time.



Another key provision is the introduction of Grade R as the compulsory school starting level for children aged four to five, shifting the entry age to earlier than before. The bill reinforces the abolition of corporal punishment, further solidifying South Africa’s commitment to a non-violent educational environment.



The African National Congress (ANC) has championed the bill as a necessary step toward addressing educational inequalities inherited from apartheid, especially in schools serving Black communities, which continue to lag in resources and outcomes compared to historically white institutions.



Language Policy at the Heart of the Debate



The most contentious aspect of the Bill — government’s increased control over language policies — has ignited backlash from coalition partners and civil rights groups.



The Democratic Alliance (DA), now a key member of the ruling Government of National Unity (GNU), has criticized the bill for undermining the right to mother-tongue education, particularly in schools where Afrikaans is the medium of instruction.



John Steenhuisen, leader of the DA, argued that the bill, while targeting underperforming schools, unfairly penalizes well-functioning institutions, particularly those offering instruction in Afrikaans.



“Successful single-medium Afrikaans schools are under continuous pressure to accept learners who want English instruction, while single-medium English schools face no such demands,” adds Alana Bailey, Head of Cultural Affairs at AfriForum.



The Case for Centralization



The ANC’s defense of the language provisions is rooted in its argument that some schools have used language policies to exclude learners, especially Black students.



“The BELA Bill seeks to ensure that every South African child, regardless of race or background, has equal access to quality education,” said ANC Member of Parliament Elleck Nchabeleng, who chairs the Parliamentary Portfolio Committee on Basic Education.



However, critics argue that this approach risks erasing cultural diversity in schools. Afrika Tikkun, a leading youth development organization, supports the bill’s goals but cautions that it must not come at the expense of local autonomy and cultural sensitivity.



Navigating the Future of South African Education



The passing of the bill has exposed reported rifts within the GNU, with President Ramaphosa facing accusations of unilaterally pushing through the legislation without adequately consulting coalition partners.



As the government moves forward with its implementation, the next three months of consultations on language and admission policies will prove critical. While it holds promise in addressing historic inequalities, its success will depend on how well the government balances the need for standardization with the importance of preserving South Africa’s rich linguistic and cultural diversity.

South Africa Signs New Health Law

The BELA Bill: Potential Turning Point For South Africa’s Education System

South African President Cyril Ramaphosa is currently in China for his second state visit, along with his participation in the Summit of The Forum on China-Africa Cooperation (FOCAC) this week. This visit underscores a deepening of bilateral relations, focusing on trade negotiations, political alignment, and strategic financial cooperation, signaling a strengthening of both political and economic ties between the two nations.



&#8220;We are seeking to shift the structure of our trade profile and deepen our investment relationship,” President Ramaphosa emphasized during his address to the SA-China Business Forum. “It is up to us to seize these opportunities and take the economic relationship between our two countries to the next level.&#8221;



Since the formalization of diplomatic relations in 1998, the partnership between South Africa and China has grown significantly. The cooperation has expanded year-on-year, not only in trade and investment but also through broader strategic initiatives, such as their mutual membership in the BRICS bloc. China is South Africa’s largest trading partner, with bilateral trade reaching almost $40 billion in 2023.



Veteran economist Dawie Roodt is clear in highlighting the import of strengthening trade relations with such an economic powerhouse, but also makes clear the importance of shifting the nature of such trade in a manner beneficial to South Africa.



“By purchasing power parity, the Chinese economy is the largest in the world,” says Roodt in an interview with FORBES AFRICA. “I do hope that something will come from this in terms of China actually importing more manufactured goods from South Africa.”



China appears to have listened. During today’s session of the FOCAC Summit, Chinese President Xi Jinping pledged nearly $51 billion in new funding for Africa over the next three years, signaling a strong commitment to deepening China-Africa relations.



This funding includes support for 30 infrastructure projects and 30 clean energy initiatives across the continent, emphasizing China&#8217;s strategic shift toward sustainable development. &#8220;China is ready to deepen cooperation with African countries in industry, agriculture, infrastructure, trade, and investment,&#8221; President Xi stated in today’s address, underscoring the importance of building a &#8220;China-Africa network featuring land-sea links and coordinated development&#8221;. South African exports to China are primarily focused on minerals and agriculture, while imports from China consist largely of manufactured goods. However, the trade imbalance remains a concern, with South Africa importing about twice as much from China as it exports. President Ramaphosa reiterated this concern during his meetings with Chinese leaders, stating, &#8220;We would like to narrow the trade deficit and address the structure of our trade.&#8221;



China’s increasing economic footprint in Africa is also a critical factor in the relationship. With loans totaling $4.61 billion to the continent last year and a growing number of developmental projects, China’s influence in Africa continues to expand. This expansion is not without strategic implications. As part of the broader Belt and Road Initiative, China&#8217;s investments in infrastructure, technology, and renewable energy align with its goals to build stronger ties with African nations.



For South Africa, this means leveraging these investments to boost local manufacturing and job creation. &#8220;We urge for more sustainable manufacturing and job-creating investments,&#8221; President Ramaphosa said, reflecting South Africa&#8217;s push for development that extends beyond raw materials and goods.



This goal appears to be reciprocated, with China aiming to expand market access and facilitate technology transfers, which could benefit South Africa by boosting local industries and creating jobs. With a promise to create at least one million jobs in Africa and to provide $70 billion in fresh investments by Chinese companies as part of the overall funding package, these commitments align with South Africa&#8217;s goals to diversify its economy and reduce its trade deficit with China. This development presents opportunities for South Africa to enhance its export profile, particularly in manufactured goods and value-added products.



On the political front, both nations operate under the framework of a Comprehensive Strategic Partnership (CSP). However, discussions during this visit included a proposal to upgrade the relationship to an All-Round Strategic Cooperative Partnership in a New Era. This new level of partnership would not only increase trade ties and commercial commitments but also enhance political alignment, a move clearly indicated in the joint statement issued by both countries on Monday. The statement reaffirmed South Africa’s support for the “One-China policy” and recognized Taiwan as &#8220;an inalienable part of China.&#8221;



Despite this greater political closeness, Roodt is not cynical as to how this might affect South Africa’s broader international relations, but highlighted that this step should not be seen as the sole point around which the country’s trade pivots. “I don&#8217;t think this is going to be an obstacle to our trade and our relationship with other countries, especially the West… As a small, developing, and open economy, South Africa would like to do business with everybody, and establish similar agreements with other countries as well.”



Additionally, both leaders agreed to strengthen cooperation in governance, green technologies, and digital transformation, underscoring the importance of mutual learning and technological exchange. This aligns with South Africa&#8217;s goal to modernize its economy and move towards sustainable development.



As discussions continue, South Africa is poised to advocate for better terms in its economic dealings with China, seeking to balance its trade deficit while expanding cooperation in critical areas such as renewable energy, technology, and infrastructure. The outcomes of these negotiations will likely shape the future trajectory of China-South Africa relations and their collective impact on the African continent&#8217;s economic landscape.

2024 Summit Of The Forum On China-Africa Cooperation – Day 3

South Africa And China Deepen Ties With $51 Billion Commitment And Strategic Partnership Upgrade During State Visit

President Cyril Ramaphosa&#8217;s second term begins with a historic Government of National Unity, sparking cautious market optimism. While the Rand rallies and JP Morgan upgrades South Africa’s rankings, some warn that deep-seated structural issues and potential policy conflicts could impede sustained economic growth.



Today marked the second-term swearing-in of South Africa’s President Cyril Ramaphosa of the African National Congress (ANC), which has for the first time since 1997 been forced to form a Government of National Unity (GNU). The ANC, having lost its parliamentary majority for the first time since the dawn of democracy in the country, has formed a coalition with the opposition Democratic Alliance (DA) among others, an odd set of bedfellows between the proclaimed socialist ANC and neoliberal DA, and a direct response to the more economically left-leaning established Economic Freedom Fighters (EFF) and newly-formed Umkhonto we Sizwe (MK) party led by South Africa’s former President Jacob Zuma.



The move has sparked cautious optimism as well as more deliberate takes from markets and economists. Following the announcement of the GNU, the South African rand rallied 0.44% against the dollar against its previous close. Yesterday, global bank JP Morgan upgraded South Africa’s rankings from underweight to overweight. As Ramaphosa took his oath of office on a crisp winter’s morning in the country’s capital Pretoria, the rand broke below R18 to 1USD for the first time in almost a year.



“We affirm our resolute quest to build a growing and inclusive economy that offers opportunities and livelihoods to all people,” said Ramaphosa in his inauguration speech. “They want a transformed, growing, and inclusive economy.”



Unmeasured optimism isn’t the only sentiment, however, despite the short-term reaction of the markets. While noting the positive response, economist Dawie Roodt makes clear that the underlying structural problems are not only to be fixed overnight but that even these short-term benefits are unlikely to be realized for the majority of the populace.



A Problem of Structure



“The recent market optimism, it’s really good news,” said Roodt, Chief Economist of the Efficient Group, to FORBES AFRICA. “But you have to remember that the financial markets are not going to spill over that much into the real economy.”



South Africa has long been grappling with long-term challenges that have hampered economic growth; a battling state-owned electrical utility has meant regular outages to both business and public for nearly two decades. Railways and basic service delivery have redoubled these challenges, and coupled with a shrinking tax base, the short-term economic response will not necessarily lead to any strong long-term economic gains.



“The basic problem in South Africa is service delivery. Unfortunately, the damage that has been done to all levels of government over the past couple of years is really extensive – fixing that is going to be a major issue,” says Roodt. “The GNU’s commitment to infrastructure development and basic service provision is a positive step, but the extent of its impact will depend on the government’s ability to implement these changes effectively.”



There Might Be a Will, But Not a Way



“The people of South Africa have spoken about the land they want to farm, about the businesses they want to run,” said Ramaphosa today. “&#8230; about the things and products they want to make, about the skills they want to learn.”



It&#8217;s unclear at this point politically from where these results will come.



Despite both the DA and ANC appearing to make strong commitments toward the GNU, it’s early days yet. Both parties compromised extensively to achieve the agreement, with the DA confirming it would not support a motion to re-investigate President Ramaphosa over the Phala Phala farm scandal, whilst the ANC is open to negotiating with the DA on top cabinet positions.



The free-market-leaning DA, and the ostensibly more left-leaning ANC are also joined by the Zulu nationalist Inkatha Freedom Party (IFP) and conservative but stated economically centrist Patriotic Alliance (PA) in the GNU, all of whom have crucially different stances on economic and social policy.



Long-Term Ramifications



Therein lies the challenge to long-term success, comments Roodt; not only are underlying structural problems unlikely to be solved easily, but what is likely is that a divergence of views could cause inaction and strife within the GNU.



“There are major challenges ahead. Both the DA and the ANC will try to prevent conflicts over policies and ideologies, but inevitably, conflicts will arise,” he comments. “What concerns me is that these conflicts could lead to the end of the coalition and even instability within the ANC itself… I doubt we will see a full five-year term for this new government due to these inevitable policy conflicts.”



In the most economically-unequal country in the world, the consequences of such a lack of action could be dire.



First Surety, Then Credit



As South Africa navigates this new political landscape, the long-term ramifications of the GNU’s policies are uncertain. President Ramaphosa&#8217;s commitment to economic reform is evident in his inauguration speech where he stated, &#8220;We affirm our resolute quest to build a growing and inclusive economy that offers opportunities and livelihoods to all people.&#8221; This commitment is crucial for addressing the country&#8217;s deep-rooted economic challenges, but it will require effective implementation and unwavering political will.



Roodt highlights the significant hurdles ahead, particularly the need for structural adjustments. &#8220;In order to fix the real economy, we need to make some structural adjustments,&#8221; Roodt emphasized. These adjustments, while necessary, are politically challenging and could lead to tensions within the coalition government. The ability of the GNU to navigate these challenges will be a key determinant of its success.



Delivering What The People Want



Ramaphosa&#8217;s vision for a more inclusive and just society also hinges on effective governance and anti-corruption measures. &#8220;The people have demanded an end to the theft of public funds and the capture of the state,&#8221; Ramaphosa asserted. Ensuring transparency and accountability in government operations will be essential for gaining public trust and fostering a conducive environment for economic growth.



As South Africa moves forward, the world watches closely. The GNU represents a bold step towards inclusive governance and economic reform, but the journey is fraught with challenges. The initial market optimism must be tempered with the reality of the structural issues that need to be addressed.



Roodt&#8217;s cautionary words serve as a reminder of the uphill battle that lies ahead. &#8220;This is not going to be an easy route. It is still a serious uphill battle ahead of us,&#8221; he warned. The coalition&#8217;s success will largely depend on its ability to navigate internal conflicts and make the tough structural adjustments needed to revive the economy.



Ramaphosa&#8217;s pledge to work with all sectors of society to address these challenges is a positive sign. &#8220;As the President of the Republic, I will work with everyone to reach out and work with every political party and sector that is willing to contribute to finding solutions to the challenges our country faces as we transition to a new decade of freedom,&#8221; he declared. In this pivotal moment, South Africa has the opportunity to forge a new path. The coming months and years will reveal whether the GNU can deliver on its promises and steer the nation towards sustainable economic growth and social justice. Only time will tell if this new era will truly bring about the transformative change that South Africans so desperately need.

Cyril Ramaphosa Starts New Term As President Of South Africa

Ramaphosa Sworn In For Second Time: Can South Africa’s GNU Deliver On Economic Reforms?

The country’s National and Provincial Elections marked a significant shift in the political landscape, this as the African National Congress (ANC) lost its parliamentary majority for the first time, along with the rapid rise of the uMkhonto weSizwe (MK) Party, among others.



The 2024 elections in South Africa have been described by some as the most hotly-contested since the end of apartheid in 1994. The results have ushered in a new era of coalition politics, challenging the dominance of the African National Congress (ANC) and highlighting the rapid emergence of the uMkhonto weSizwe (MK) Party.



For the first time in 30 years, the ANC has lost its parliamentary majority, securing only 40.18% of the National Assembly vote and the most of the 400 available seats. This represents a significant drop from its previous standing, necessitating coalition talks with parties such as Democratic Alliance (DA) and Economic Freedom Fighters (EFF), to form a stable government.



The rise of the MK Party, led by former president Jacob Zuma, has been a remarkable development in South African politics.



Gustavo de Carvalho, a Senior Researcher on African governance and diplomacy at the South African Institute of International Affairs (SAIIA), explains to FORBES AFRICA that “the rise of the MK Party as the third-largest political party in South Africa is largely reflective of the internal conflicts and factional behaviors within the ANC over the past 15 years”.



“This development is significant as it creates a major split for the ANC in KwaZulu-Natal (KZN) and requires the party to rethink how to reach out to those bases,” he adds.



The MK Party secured 14.58% of the national vote and has become the largest party in KZN, although it fell short of an outright majority in the province. This shift underscores the fragmentation of the traditional ANC electorate.



The MK Party’s success has largely come at the expense of the ANC and EFF, both of which have seen a significant decline in support. There have been concerns about potential unrest in KZN, particularly due to Zuma’s comments challenging the election results and alleged vote rigging. The authorities are closely watching the situation to prevent any escalation of violence and to maintain peace as the political landscape continues to shift.



Voter turnout was another critical aspect of this election, with a participation rate of 58.64%, down from 66% in the previous elections.



“The lower turnout is due to several issues. Many still feel disenchanted with the options provided to them and are reluctant to vote for any party. This is a similar declining trend we have seen in South Africa for at least ten years,” De Carvalho notes.



The IEC (Independent Electoral Commission) reported handling 579 objections and 24 recounts, none of which were significant enough to alter the election outcome. Despite the objections and accusations of vote-rigging from some quarters, the IEC maintained that the elections were free and fair.



“The IEC’s handling of the election has been commendable despite minor glitches,” says de Carvalho.



“Their emphasis on accuracy and speed, even with the additional ballot, demonstrates their commitment to maintaining the integrity of the elections. This should positively impact public trust in the electoral process.”



The election has set the stage for a period of coalition governance, with significant challenges and opportunities ahead.



De Carvalho highlights the complexity of forming these coalitions, noting, “Parties will consider how these coalitions will impact their ideological stances, particularly identifying views of the ANC that may oppose their own. The DA and the IFP (Inkatha Freedom Party) seem to be more pragmatic than ideological in their approaches, while the MK has specific demands related to the Ramaphosa-Zuma battle.”



Coalition talks are currently underway, with the ANC engaging in discussions with both the EFF and DA.



The provincial results further underscore the shift in South Africa’s political landscape. In Gauteng, the ANC lost its majority, securing only 36.48% of the vote, followed by the DA with 26.63% and the EFF with 12.47%.



In KZN, the MK Party emerged as the largest party with 45.93% of the vote, followed by the ANC with 17.62% and the IFP with 16.28%.



“I grew up loving the ANC because of how they fought for the freedom we have today,” says Skhumbuzo Mnyandu, a business owner from KwaMashu.



“But this year, I have changed because of the problems with the ruling party, and so I have become a member of the MK Party.”



The Western Cape remains under the control of the DA, which secured 53.05% of the vote, while the ANC garnered 21.34%. The Northern Cape is also set for coalition politics, with the ANC losing its outright majority in the province.



President Cyril Ramaphosa, in his address at the IEC Election Results Announcement, called for unity and cooperation, stating, “The people of South Africa expect their leaders to work together to meet their needs. They expect the parties for which they have voted to find common ground, to overcome their differences, to act and work together for the good of everyone.”



The final seat allocations in the National Assembly reflect the new political reality: the ANC holds 159 seats, the DA 87, the MK Party 58, and the EFF 39. Other parties like the IFP, the Patriotic Alliance (PA), and the Freedom Front Plus (VF Plus) have also secured notable representation.



As South Africa navigates this new political landscape, the emphasis remains on working together for the good of the country. The 2024 elections have not only redefined the political dynamics, with the future of the country now hinging on the ability of its leaders to navigate these changes and build a government that truly reflects the will of the people.

ANC Fails To Win Majority For First Time Since 1994

South Africa: The Era Of Coalition Politics Begins

With the country’s democratic voting process set to take place later this week, FORBES AFRICA speaks to several analysts about the mindset of the citizens and what may unfold in the coming days.



As South Africa prepares to head to the polls on May 29, social media has been abuzz with rhetoric and political memes in equal measure. But despite the light-hearted approach to the challenges they face, South Africans know that the decisions made later this week are no laughing matter.



A MarkData poll released by eNCA on May 20, showed that the ruling party is likely to receive 43.4% of the national vote. The figure is slightly higher than that of the Ipsos opinion poll from April that had the ANC attaining 40.2%.



“This is the party which liberated the country, which ended apartheid. This is the party which gave many voters their first house, electrification, running water, the opportunity of freedom. And I think that still lingers for many voters, certainly older voters,” says election analyst, Wayne Sussman, who was involved in the MarkData study.



The past few years have seen the unemployment rate soar, with it standing at 32.9% in the first quarter of 2024, numerous allegations of corruption and obstruction of justice, and 332 days&nbsp;of load shedding in 2023 alone. Yet, the ANC still has a significant element going for them, according to political analyst Asanda Ngoasheng.



“The ANC continues to have the widest range of policies that cover the widest range of South Africans. They have a lot of diverse representation within them.”



Despite the governing party appealing to the broadest sphere of the population, many voters remain undecided as to where to cast their ballot.



“To a large extent, people do not feel close to political parties in the same way as they once did,” explains Collette Schulz-Herzenberg, an associate professor in the department of political science at the Stellenbosch University.



“Party identification has declined across the electorates. There&#8217;s just less people with a party identification. And we know from global studies that party identifiers are more likely to vote because they are motivated to do so.”



“The ANC has hurt the South African electorate so much that they mistrust it,” notes Ngoasheng.



“People don&#8217;t believe the government when it says loadshedding is over or when it says they&#8217;ve solved XYZ. We almost live in a situation of permanently waiting for the other shoe to drop. Even when there is potentially good news, people kind of wait for like, well, what&#8217;s the negative that&#8217;s going to come out of it?”



“What we&#8217;ve seen is that people tend to leave the ANC because they just feel dissatisfied with the performance of the party in government, but they don&#8217;t necessarily switch their vote to an opposition party,” explains Schulz-Herzenberg.



Despite past trends, those contesting the elections — especially first-time candidates — will be hoping the discontent motivates voters to try something new.



“There are 52 parties in the ballot. We’re in a very fragmented environment, and there&#8217;s a scenario that the five biggest parties in Parliament will all go backwards in this election,” Sussman says.



A showdown is expected in KwaZulu-Natal where former President Jacob Zuma is likely to take away votes from both the ANC and EFF with the Umkhonto weSizwe (MK) party.



“MK will be the big story in this election, even if they don&#8217;t reach their potential,” says Sussman. Based on the previously-mentioned MarkData predictions, the party will achieve 46.4% of the provincial vote.



It also remains to be seen whether the DA maintains its national position as the official opposition, or whether a loss of support will pivot the EFF to that spot.



“Rise Mzansi seem to be capturing quite a lot of the middle class vote across the racial line, which is interesting to observe considering that most Africans vote along racial lines,” says Ngoasheng.

South African Election Campaign Posters

A Look Ahead As South Africans Prepare For 2024 Elections

In an address to the nation, Cyril Ramaphosa announced that in celebration of an electrifying win by the country’s national rugby team at the Rugby World Cup, there would be an extra public holiday in December.



Following Saturday’s exhilarating Rugby World Cup final match between the Springboks and New Zealand’s All Blacks in France, South Africa waited with baited breath as to how the country would be celebrating the 12-11 win.



“South Africans watched with pride and joy as our national rugby team, the Springboks, became the world champions for the fourth time since the advent of democracy in our country,” President Cyril Ramaphosa said on Monday.



“I know that many of us want us to have a holiday now to celebrate.”



He also commended the Proteas who are currently “performing well” at the Cricket World Cup in India, with the president noting that he intends to travel to Mumbai to watch the team in the finals.



Furthermore, Ramaphosa celebrated the performance of Banyana Banyana, the South African women&#8217;s national soccer team, in the Women’s Africa Cup of Nations and their progress to the knockout stages of the FIFA Women’s World Cup.



In celebration of the Springboks’ momentous achievement and the achievements of the country’s sports men and women – and as a tribute to the resolve of the nation – Ramaphosa announced in his address, “I am declaring Friday the 15th of December 2023 as a public holiday. We declare this to be a day of hope, a day of celebration and unity.”



“As a people, we have shown before what is possible when we are united, when we are determined, when we try hard and when we refuse to give up,” Ramaphosa said.



“Together, we overcame apartheid, ended centuries of conflict and gave birth to a thriving democracy. Together, we confronted and overcame the deadliest global pandemic in over a century. We are indeed stronger together. Our sports men and women have shown us what is possible. We will succeed and we will ensure that we leave no-one behind.”



After leading his team to victory, captain Siya Kolisi said in a press conference: “I don’t think that people who aren’t from South Africa understand what this means for our country. It’s not just about the game on the field. Our country goes through so much and we are the hope that they have.”



Prior to the news by Ramaphosa, a lot of assumptions were made that the holiday would be on Monday, October 30, but it was made clear with the announcement only scheduled for that evening, that it would be business as usual.



Social Media has somewhat mixed feelings about the announcement. 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/FamilyMeeting?src=hash&amp;ref_src=twsrc%5Etfw">#FamilyMeeting</a> Cyril: I declare the 15th of December a Public Holiday… South Africa: <a href="https://t.co/qt60Bi3i5m">pic.twitter.com/qt60Bi3i5m</a>&mdash; Roboto x3 (@Robot_Boii) <a href="https://twitter.com/Robot_Boii/status/1719061108361679154?ref_src=twsrc%5Etfw">October 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Okay khe we need to have this public holiday on the 15th of December for the next 4 years.<a href="https://twitter.com/hashtag/FamilyMeeting?src=hash&amp;ref_src=twsrc%5Etfw">#FamilyMeeting</a> <a href="https://t.co/WsPUd4cJxf">pic.twitter.com/WsPUd4cJxf</a>&mdash; Like-Car not Laeeqah 🇵🇸 🇿🇦 (@LaaiqahEbrahim_) <a href="https://twitter.com/LaaiqahEbrahim_/status/1719060559780356129?ref_src=twsrc%5Etfw">October 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Can&#39;t we have two holidays? One for us adults this week and for everybody on the 15th of December? This Boks victory must be celebrated while it&#39;s still fresh. <a href="https://t.co/qrjMw1uMv3">pic.twitter.com/qrjMw1uMv3</a>&mdash; Lord of 4IR 🌍 (@Qali___) <a href="https://twitter.com/Qali___/status/1719063543683649922?ref_src=twsrc%5Etfw">October 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">15th of December ? we have been schucks&#39;d <a href="https://t.co/ycjMSw2xHE">pic.twitter.com/ycjMSw2xHE</a>&mdash; A&#8230; (@AndileMqoqi) <a href="https://twitter.com/AndileMqoqi/status/1719063015239147631?ref_src=twsrc%5Etfw">October 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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CHOGM London 2018 – Day 2

Social Media Reacts To Public Holiday Announcement By South Africa’s President Following Springbok World Cup Win

At day three of the 15th BRICS Summit, the bloc’s expansion, welcoming Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, heralds a new phase of global collaboration and influence.



In a significant move that has captured global attention, the BRICS bloc is set to welcome new members for the first time since the adoption of South Africa in 2010, ushering in a chapter of expanded collaboration and shared markets. Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) are poised to become full members of the BRICS family, amplifying the possible leverage the bloc is able to implement globally, as well as increasing the entity’s capability as a counterbalance to the West.



“The world is changing,” commented South African President Cyril Ramaphosa in his closing remarks at the three-day BRICS Summit in Johannesburg. “New economic, political, social, and technological realities call for greater cooperation between nations. These realities call for a fundamental reform of the institutions of global governance, so that they may be more representative and better able to respond to the challenges that confront humanity.”



The expansion announcement was made by Ramaphosa, who chaired the summit. It represents a carefully deliberated and agreed-upon step signifying consensus among the existing BRICS members – Brazil, Russia, India, China, and South Africa – to broaden the bloc&#8217;s scope and deepen its collaborative efforts.



The BRICS grouping, which collectively represents a significant portion of the global economy, trade, and population, has garnered attention not only for its economic significance but also for its potential to shape international discourse and policy. The inclusion of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE extends this influence to regions that bring unique perspectives, resources, and challenges.



The invitations to join the bloc are particularly significant given the close relationship between Saudi Arabia, the UAE, and the West, for which BRICS has increasingly come to counterbalance. The expansion indicates a clear view for a multipolar world order characterized by equitable development, sustainable growth, and collective security. It is a testament to the bloc&#8217;s commitment to fostering cooperation in areas such as trade, investment, technology exchange, and cultural understanding. By embracing these new members, BRICS solidifies its role as a platform for dialogue and collaboration, even as the global geopolitical landscape continues to evolve.



This multipolar support was no clearer than in the addresses of China’s President Xi Jinping, noting the event&#8217;s historic significance; “The expansion is also a new starting point for BRICS cooperation. It will bring new vigor to the BRICS cooperation mechanism and further strengthen the force for world peace and development.”



President Vladimir Putin too gave a closing address via video call.



Prime Minister Narendra Modi of India, a key player in the BRICS partnership, emphasized the expansion&#8217;s significance in his address; “India has always supported the expansion of BRICS. India has always believed that adding new members will strengthen BRICS as an organization.” Modi highlighted that the inclusion of these nations is a symbol of openness, inclusivity, and cooperation that extends beyond national boundaries. This sentiment resonates with the BRICS ethos of mutual respect and the pursuit of common goals for the betterment of all member nations.



The BRICS expansion holds the potential to foster economic growth, innovation, and the sharing of best practices among member nations. It is anticipated to enhance trade ties and investment opportunities. This enlargement positions the BRICS bloc as a resilient and collaborative force, capable of influencing economic outcomes and promoting stability.



Beyond the economic realm, the expansion offers an avenue for constructive dialogue on pressing global issues. By incorporating nations from different regions, the BRICS bloc can diversify its perspectives and responses to challenges such as climate change, cybersecurity, and geopolitical tensions. The inclusion of nations like Iran, Saudi Arabia, and the UAE brings a heightened focus on Middle East dynamics, allowing for enhanced dialogue and understanding.



Of note regarding the attempts at the bloc&#8217;s expansion are the inclusion of offerings of membership of the UAE and Saudi Arabia, which have long-established relationships with the West, with which the Russian Federation and China find themselves opposed with the war in Ukraine and trade conflicts, respectively.



As the world watches this expansion unfold, it&#8217;s worth noting that BRICS is not merely an economic or political grouping but a lever of global diplomatic influence.

Brics Summit in Johannesburg, South Africa August 22-24, 2023

New Name For BRICS? Summit In South Africa Unveils Newer Members In The Bloc

South African President Cyril Ramaphosa has been cleared by the country&#8217;s reserve bank in the ongoing Phala Phala scandal, ruling that there was no contravention of exchange control regulations based on the available information. The South African Reserve Bank (SARB) revealed its findings in a short release posted on its website today.



The Phala Phala scandal, as it has become known, involved a police report filed by South Africa&#8217;s former Head of State Security against the President, alleging that an undetermined amount of undeclared foreign currency was stolen from Ramaphosa&#8217;s game farm in early 2020, and that the President failed in his duty to report this crime.



The origin and purpose of the money, as well as its conformation with currency exchange laws, have all been the subject of investigation and have placed immense strain on the career of the President, almost leading him to resign his post in late 2022.



The money was alleged by the President to have been proceeds from a game sale by his farm, later identified as $580,000 for a prize bull, paid by Sudanese businessman Hazim Mustafa.



After the initial theft, Ramaphosa is alleged to have briefed his head of security, Major General Wally Rhoode, on the incident. Rhoode then reportedly proceeded to conduct an unsanctioned investigation, tracing the suspects of the theft in both South Africa and Namibia, before allegedly paying them off.



SARB’s exculpation of Ramaphosa comes after an independent report compiled by a retired judge, as well as a parliamentary vote for Ramaphosa&#8217;s impeachment, which failed to pass late last year.



Acting Public Protector Kholeka Gcaleka also absolved Ramaphosa in her own report in June of this year, which was widely panned by opposition parties and is currently the subject of a court challenge.



However, of note in the Reserve Bank&#8217;s media statement is that no violation of exchange controls for the transaction were found due somewhat to a technicality – namely, that since the goods, in this case, the bull for sale, were not actually delivered, no transaction took place, and thus no finding regarding a contravention could be made.



&#8220;SARB has concluded that the transaction in question was subject to conditions precedent which were not fulfilled, and therefore there was no legal entitlement… to the foreign currency,” continued the press release.



While the report is yet another in a long line of investigations that have left President Ramaphosa in the clear, it will likely remain a strong topic of discourse as the country prepares for both the BRICS summit this week and a hotly-contested general election next year.

South African Reserve Bank Clears President Ramaphosa in Phala Phala Scandal

Africa’s secret weapon in the global energy race – green hydrogen. The continent has the potential to flip the script, transitioning from a fossil fuel consumer to a green energy titan.



The global energy transition has a burgeoning champion – green hydrogen. Often overshadowed by solar and wind, this renewable resource is increasingly crucial for a sustainable future.



The current global hydrogen market is over $130 billion. The World Bank predicts an annual growth of over 9%. Although the surge is likely niche until 2030, the growing demand for renewable energy means that green hydrogen could accelerate rapidly thereafter. Regions with low-cost markets and abundant renewable resources, like Africa, become attractive production markets.



The principle is straightforward. Use renewable energy sources to split water into hydrogen and oxygen. The result? A fuel source that releases only water upon consumption. The applications are limitless, from powering cars to heating homes.



<h3 class="wp-block-heading" id="h-what-is-green-hydrogen">What is green hydrogen?</h3>



At its core, green hydrogen is simple. It’s hydrogen, the universe’s most abundant element, produced environmentally friendly. But how do we make it, and why does it matter?



Green hydrogen is generated via electrolysis, which splits water into hydrogen and oxygen using electricity. But for the hydrogen to be ‘green’, the electricity must come from renewable sources, like wind or solar power. The only byproduct is oxygen, a harmless gas we breathe every day.



In contrast, most hydrogen produced today is ‘grey’ or ‘blue’. It’s derived from fossil fuels, mainly natural gas, and the process releases significant amounts of carbon dioxide, a harmful greenhouse gas. Green hydrogen represents a shift away from this environmentally damaging status quo. However, green hydrogen faces challenges. Currently, it accounts for less than 1% of all hydrogen production. The main obstacle is the production cost, which is not yet competitive compared to grey or blue hydrogen. Most green hydrogen is used in energy-intensive industries like steel and chemical manufacturing.



The path to economic viability for green hydrogen lies in a combination of technological advancements, increased global development investment, and legislative commitments. These factors are expected to make green hydrogen a serious market contender in the coming decades.



Africa is fast becoming a frontrunner in the green hydrogen race.



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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“FROM SOLAR TO BIOGAS, FROM WIND TO BATTERY STORAGE, THESE INVESTMENTS ARE LEADING ONE OF THE MOST IMPORTANT GROWTH INDUSTRIES IN OUR COUNTRY.&#8221;
<cite>—South African President Cyril Ramaphosa</cite></blockquote>
</div></div>



Blessed with an abundance of sunlight and wind, Africa is ideally positioned to exploit green hydrogen’s potential. Groundbreaking projects are taking shape across the continent.



From the ambitious SA-H2 venture announced recently in South Africa to a green hydrogen initiative between Namibia and Botswana, these projects signal profound economic opportunities for job creation, growth, and sustainable development.



The Africa Green Hydrogen Alliance (AGHA), established in 2022, emphasizes Africa’s competitive edge due to low production costs. Masopha Moshoeshoe, Green Economy Specialist at the Investment and Infrastructure Office in the Presidency of South Africa, stated in a press release issued by the United Nations Framework Convention on Climate Change on the launch of the alliance: “Green hydrogen has the potential to marry South Africa’s significant mineral endowment with its significant renewable revolutionize its energy sector. The SA-H2 fund, which aims to establish a hydrogen ecosystem in South Africa, is at the forefront of this exciting transition.



The $1-billion fund was announced in June as part of a joint effort between the Netherlands, Denmark and South Africa.



“From solar to biogas, from wind to battery storage, these investments are leading one of the most important growth industries in our country,” said South African President Cyril Ramaphosa at the announcement in Pretoria.



Blended finance is a key concept underpinning this project.



Andrew Johnstone, the CEO of Climate Fund Managers, explains to FORBES AFRICA that it refers to the strategic use of public



or philanthropic funds to mobilize private sector investment in sustainable development. In the context of SA-H2, this means bringing together private and public funding to make projects economically viable.



“They (the funds) act as a “spark” to ignite and mobilize belief, technology, and other forms of capital,” says Johnstone.



“The SA-H2 project should be seen as part of a larger effort across the region to leverage blended finance for sustainable energy development.”



The project is financed by a combination of different forms of capital, each with a different return requirement. This includes donor capital, commercial capital, and guarantees. By bringing these diverse sources of funding together, the project achieves a lower average cost of capital.



Johnstone explains, “Blended finance means in this context&#8230; to bring in capital in defined proportions in pursuit of a low average cost of capital.” Notably, this blended finance model also allows



for differential risk sharing. If a project underperforms, certain investors may not receive a return, thus sharing the risk in a structured and agreed-upon manner.



Once a project is up and running, it has an obligation to repay its funders, whether those are lenders through equity or energy loans, or others through dividends. Johnstone describes this repayment as a “waterfall”, with those who took the least risk and accepted a lower return being repaid first.



It’s important to highlight the transparency and regulation of these funds. They operate similarly to companies, are regulated by appropriate bodies, and are overseen by advisory boards and investment committees populated by investors or independent representatives. This governance structure ensures a high level of oversight and accountability.



Another key aspect of the SA-H2 project is the co-existence of different funds. The development side of the project is planned with public contracts and equity funds in mind. This co-existence helps redefine what “bankable” means in the context of these projects, potentially accelerating the implementation process.



These blended finance projects aim to create scalable, replicable, and improvable markets, serving as a catalyst for broader change in the energy sector.



South Africa’s SA-H2 initiative is not alone in its ambition.



Namibia is also making significant strides in the green hydrogen sector.



Noteworthy is a project in the Tsau Khaeb National Park, near Lüderitz, with the Namibian government proactively confirming a 24% equity stake in this $10 billion project, almost equivalent to the country’s gross domestic product.



This initiative, led by Hyphen Hydrogen Energy, is gaining momentum with several key partners signing a Memorandum of Understanding to collaborate on the necessary infrastructure for Namibia’s green hydrogen production ambitions.



“Namibia is perfectly positioned to produce low-cost green hydrogen and ammonia for domestic and international markets,” said Frans Kalenga, Technical Advisor to the Minister of Mines and Energy of Namibia on Namibia’s joining of the AGHA, in a press statement. “[It] provides a platform for us to collaborate with neighboring countries. AGHA’s report reaffirms the potential, and provides important recommendations on how we can work together to unlock the extraordinary potential.”



This potential is estimated to generate 15,000 jobs during the direct construction of the project, and a further 3,000 created permanently when the project is fully underway.



Namibia’s Vice President Nangolo Mbumba acknowledged the global transition toward green hydrogen, as well as the country’s abundant natural resources and landscape assisting in the suitability of its development as an industry.



“We are now approaching new fields of economy. Everybody is talking about green hydrogen. Three-four years ago, even the pronunciation was not known,” he said, speaking during the Forbes Under 30 Summit Africa in Botswana in April. “People need energy, and plenty of it,” he continued, acknowledging the international collaboration, local training and investment in education to develop the skills needed for green hydrogen initiatives.



“If we succeed, we will produce enough energy for the whole region of southern Africa,” added Mbumba.



<h3 class="wp-block-heading">Policy and profitability</h3>



A confluence of factors is propelling the growth of green hydrogen in Africa. The continent’s abundant natural resources, particularly sunlight and wind, provide an ideal setting for green hydrogen production. Escalating global demand for clean energy is creating opportunities for African nations to emerge as green hydrogen exporters. Moreover, policymakers are increasingly recognizing green hydrogen’s potential in achieving climate goals and fostering sustainable development.



The advent of green hydrogen presents a substantial opportunity for job creation across the African continent.



With Africa positioned as a potential global exporter of green hydrogen, the sector could become a significant contributor to the continent’s GDP. Moreover, the revenues generated from green hydrogen exports could be reinvested into local communities, improving infrastructure, education, and healthcare.



An analysis by McKinsey on behalf of AGHA identified a possible increase in GDP for member countries of between $66 billion and $126 billion by 2050, as well as up to 4.2 million new jobs as a result of green hydrogen investments.



The potential offers a pathway for nations to build a more resilient future, mitigating economic risks tied to unpredictable oil and gas prices. By developing a green hydrogen industry, nations could foster local technological innovation and enhance their manufacturing capabilities.



This prospect could shift Africa’s role in the global energy landscape, transitioning from a net importer of fossil fuels to a significant exporter of clean energy.



However, the promise of green hydrogen is not solely economic. It also offers a sustainable solution that addresses the pressing issues of economic development and climate change simultaneously.



<h3 class="wp-block-heading">Green Hydrogen is a tool for survival</h3>



As the world stands on the brink of a pivotal moment in its fight against climate change, green hydrogen emerges as a powerful ally. As a clean, carbon-free source of energy, green hydrogen can replace fossil fuels in various sectors, leading to a dramatic reduction in greenhouse gas emissions.



In Africa, where climate change threatens both people and ecosystems, investing in green hydrogen will not only enable nations to contribute to global emission reductions but also helps them build resilience against climate change impacts at home.



Even though Africa is responsible for only a fraction of global carbon emissions, the continent is actively taking steps to reduce its carbon footprint.



Green hydrogen can play a significant role in these efforts, replacing carbon-intensive fuels across the economy and leading to substantial emission reductions.



Moreover, exporting green hydrogen to other continents could further reduce global carbon emissions, enhancing Africa’s contribution to the global fight against climate change.



Renewable energy has been identified by many African countries as a key element of their climate change mitigation strategies. Incorporating green hydrogen into these strategies could hasten their progress towards achieving climate goals.



By offering a means to store and transport renewable energy, green hydrogen could solve one of the significant challenges of the energy transition: the intermittency of wind and solar power. This could facilitate a more extensive and efficient use of renewable energy, driving further emission reductions.



At the heart of the global energy transition, green hydrogen stands out as a beacon of hope. This renewable resource, making waves in the energy sector worldwide, has found a promising home in Africa. The continent, blessed with abundant wind and sunlight, is quickly gaining recognition as a potential global leader in green hydrogen production.



Pioneering projects across the continent signify Africa’s commitment to embracing green hydrogen.



Yet, the narrative of green hydrogen extends beyond economics. It is a tale of resilience and innovation in the face of climate change. Looking ahead, it’s clear that green hydrogen could reshape Africa’s energy landscape, transforming the continent from a net importer of fossil fuels to a major exporter of clean energy. Such a transformation could not only stimulate economic growth but also enhance Africa’s influence in global energy and climate policy discussions.



For Africa, the opportunity is now. It’s an opportunity that calls for further research, investment, and policy support, for the sake of the continent and the world.

Aerial view of hydrogen tank terminal at sea

The Rise Of Green Hydrogen In Africa

South Africa is confirmed as the host country for the 15th BRICS Summit in August, featuring Brazil, Russia, India, China, and South Africa, however, the event will not be attended by Russian President Vladimir Putin, which alleviates the complex diplomatic challenge faced by South Africa in enforcing an arrest warrant against him.



South Africa&#8217;s readiness to welcome leaders from influential nations has been demonstrated through diligent preparations and consultations. The decision not to arrest President Putin, who faces an International Criminal Court (ICC) indictment for war crimes in Ukraine, has posed a conflict of interest for South Africa, being a member of the ICC. The country&#8217;s historical relationship with Russia, particularly its support for the ruling African National Congress (ANC) during apartheid, adds further complexity to the situation.



To navigate these challenges, President Cyril Ramaphosa has engaged in talks with Chinese President Xi Jinping, highlighting South Africa&#8217;s active diplomacy in addressing this delicate matter. The focus is on finding a balance between enforcing the arrest warrant and maintaining important diplomatic and trade relations with Russia and other non-aligned countries such as China.



In an announcement by South Africa&#8217;s Presidency Spokesperson Vincent Magwenya, it was confirmed that Putin will not be attending the BRICS summit. Instead, Russia will be represented by Foreign Minister Sergey Lavrov. This “mutual agreement” avoids the need to enforce the arrest warrant and eases the diplomatic quandary for South Africa.



“President Ramaphosa is confident that the Summit will be a success and calls on the nation to extend the necessary hospitality to the many delegates who will arrive from various parts of the continent and the globe” said Magwenya in a statement issued today.



The decision not to arrest Putin raises questions about South Africa&#8217;s non-aligned status in the Russia-Ukraine conflict. As a signatory to the ICC&#8217;s Rome Statute, South Africa is obligated to follow the court&#8217;s rulings, including arrest warrants. However, not arresting Putin could strain relations with the United States, adding to the already tenuous diplomatic landscape.



The South African government has taken diplomatic actions to navigate this complex situation. Previous discussions with China have been initiated to explore the possibility of a change in the summit&#8217;s venue. Ramaphosa&#8217;s talks with Jinping also focused on an African-led peace proposal for Russia and Ukraine, demonstrating South Africa&#8217;s commitment to finding peaceful resolutions.



The BRICS alliance holds significance for South Africa, fostering investment, economic cooperation, and financing through institutions like the New Development Bank. However, maintaining positive relations with the US is crucial, as South Africa benefits from tariff-free trade under the African Growth and Opportunity Act (AGOA), which generates substantial annual revenue.



Allegations of arms sales to Russia have strained the AGOA agreement and could have domestic implications. South Africa&#8217;s position is not entirely clear, and decisions made in the coming weeks will have far-reaching implications for the country&#8217;s global standing and economy. Balancing international justice, historical relationships, trade ties, and membership in BRICS is a delicate task that South Africa must navigate to maintain its diplomatic equilibrium.

Tag: Cyril Ramaphosa

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