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The Ford dealership network will see a R900-million-plus investment rollout over the next three years.

The money will not be spent by Ford, but by its partners and dealership owners, such as Motus, NMI and Super Group.

Ford Motor Company of Southern Africa (FMCSA) network operations manager Kuda Takura says the investment follows a rework of Ford's dealer design language.

The goal is to have an open, transparent facility that is less transactional, and with increased focus on customer relationships, social interaction, merchandise, accessories and lifestyle.

The US car-maker's in-house research shows that new-vehicle sales can increase by 26% at upgraded dealerships, with profits on average up 27%.

The three-year investment programme will kick off with 20 projects this year to the value of R292-million; 18 projects next year to the value of R300-million; and 19 projects in 2027 to the value of R310-million.

Ford has 118 dealers in Southern Africa and a vehicle parc of 527 000 vehicles. The group also has an engine, as well as vehicle assembly plant, in South Africa, and is one of the country's big-three auto exporters.

When considering local sales, the blue oval was number four in the local market for the first six months of the year.

Ford Motor Company Africa president Neale Hill says the dealership investment programme comes amid a "very, very competitive landscape", with the local market witnessing a plethora of new market entrants.

He believes the investment will serve as a boost for the 103-year-old company's competitiveness in the local market.

While the South African new-vehicle market has seen sales increase by 13.5% in the first six months of the year, Ford could not quite match this tempo, with sales up 7.9%.

Hill notes that the company had been lean on Ranger pickup inventory early in the year, with the situation improving from April onwards.

He adds, however, that the brand is still not "where we want it to be".

FMCSA sales operations director Ryan Searle notes that Ford has no vehicle on offer in the highly popular below-R500 000 category.

According to Hill, there is also no new Ford small car in the pipeline to ensure future participation.

Safeguard Local Manufacturing Hill regards the global automotive industry as finding itself in a "very interesting state of flux", with new brands increasingly doing battle with established brands, and petrol and diesel being challenged by new propulsion options.

US President Donald Trump has now also added to this already volatile mix by throwing "a rooikat" among the pigeons with his raft of tariff introductions.

"There is a lot of turmoil and it will take a while to settle down," says Hill.

"We [Ford South Africa] are not affected by the US tariffs, as we do not export to the US."

He warns, however, that the 25% tariffs imposed on South African-made vehicle and parts exports to US is of major concern to the local automotive industry in general, as well as the domestic economy.

He also warns against domestic auto industry production being displaced by imported goods, as this is the country's largest manufacturing base. "Once you lose your automotive manufacturing sector, you never get it back."

Engineering News editor Terence Creamer discusses the National Energy Regulator of South Africa's (Nersa's) start of a belated process to finalise rules for electricity traders and what this says about the state of South Africa’s energy transition and the regulator.

In a belated move, the National Energy Regulator of South Africa (Nersa) has announced an 11-month process to set rules for electricity trading, having already licensed ten trading entities, while also preparing to hold hearings on three more licence applications in August.

In terms of the timeline presented by the regulator, the intention is to have the rules Gazetted by June next year, and Nersa confirmed that that traders that were already licensed would continue operating while the rules were being finalised.

In a statement, Nersa indicated that it had the statutory authority, in line with Section 35 of the Electricity Regulation Act, to formulate a broad spectrum of rules governing the electricity supply industry, including electricity trading rules and import and export trading rules.

"These rules are designed to create a fair and balanced framework for electricity traders, supporting the structured growth of the electricity supply industry," Nersa said in a statement, arguing that the initiative would support a competitive and transparent electricity market.

The regulator would also seek to provide "clear guidelines for participation, compliance criteria and responsibilities for licensed traders, whether they own physical distribution assets or not".

"The development process will involve thorough research, benchmarking, engagement with stakeholders, public hearings and workshops to ensure a comprehensive and inclusive approach," it added.

It also outlined the following estimated timelines:

The presentation, in August, of position papers by members of a working group set up to develop the rules;Two working group sessions in September and October;A workshop, in November, on draft trading rules;A trading rules submission to the Nersa approval process also in November;A cross-border trading rules submission for Nersa's approval process in March 2026; andThe final Gazetting of the rules in June 2026.

The regulator's move to define the rules for trading follows a surprise indication from Eskom late last year that it intended to initiate a High Court review of Nersa's decision to grant four additional trading licences in what it described as its area of supply.

This, despite the fact that Nersa had already started approving trading licences in 2014 and had licensed five trading entities before Eskom's objection to the four additional licencees.

That legal process was yet to begin and it was not immediately clear whether Eskom would hold off now that Nersa had initiated a process to define the rules for trading.

Interestingly, the regulator is scheduled to hold hearings in August as part of an adjudication of yet more trading licence applications from Pioneer Power Trading, Nomusize and Red Rocket Trading.

To date licences have been approved for: PowerX, EnPower Trading, Neura Trading, Energy Exchange of Southern Africa, Envusa Trading, CBI Electric Apollo, Discovery Green, Green Electron Market and GreenCo Power Services. GreenCo Power Services has also been granted a cross-border electricity trading licence by Nersa.

In addition, Eskom Holdings' own National Transmission Company South Africa (NTCSA) also successfully applied for trading and cross-border trading licences from the regulator as part of its legal separation process.

Energy commentator Chris Yelland, of EE Business Intelligence, said establishment of a nearly one-year rule-setting process, more than ten years after having started licensing traders, raised questions, including about the role that the regulator was playing in helping South Africa advance beyond loadshedding to a more progressive electricity supply industry.

Yelland said it also raised a separate question about how long Nersa would require to approve the Market Code needed for the launch of the South African Wholesale Electricity Market, which is slated to be launched in April next year.

The NTCSA has also applied for a Market Operator licence, which still needs to be adjudicated by Nersa.

Eskom reports that repowering projects with a combined capacity of 5 GW are currently under development across six coal power station sites and that it is aiming to implement 2 GW by 2026, mostly through public-private partnerships (PPPs).

In a presentation to the Portfolio Committee on Electricity and Energy, the State-owned company said the projects formed part of the repowering component of its Just Energy Transition (JET) strategy, which was also central to "kickstarting" a broader aspiration to introduce 20 GW of clean generation by 2040.

Group executive for generation Bheki Nxumalo reiterated that the JET strategy - which involved both 'repowering' the sites using renewables, battery and even gas technologies, as well as 'repurposing' of power station assets for alternative economic activities, such as training, manufacturing and farming - had been decoupled from the coal shutdown plan to create "breathing space" for better planning and implementation.

The decoupling followed criticism that the closure of the Komati power station took place before the repowering and repurposing projects were fully funded or ready for implementation.

It has also been facilitated by the fact that Eskom received permission from government to continue to operate Hendrina, Grootvlei, Arnot, Camden and Kriel, which were meant to have been decommissioned during the 2020s, at existing minimum emission standards plant limits until March 31, 2030.

Group executive for renewables Rivoningo Mnisi revealed that, besides Komati, JET strategies had been approved for Hendrina, Camden, Grootvlei, and were at an advanced stage for Arnot and Kriel.

At Komati, where the repowering plan involved 122 MW of solar PV and a 150 MW battery energy storage system (BESS), contractors had been shortlisted for the supply and installation of a 72 MW solar PV plant and 150 MW BESS facility, with contract awards expected in the coming months.

However, Mnisi described developments at Grootvlei as "a living example of how JET should be implemented", explaining that the repowering and repurposing initiatives had been divided into two phases, with the first phase to proceed ahead of the plant's 2030 retirement.

For instance, the plan to build 195 MW of solar PV at the station had been broken into two, with the first 100 MW to be implemented by 2029 together with a 150 MW BESS project. The second 95 MW of solar PV would be implemented after the dead stop date for the station, where Eskom was also aiming to introduce two synchronous condensers; a technology that will help maintain grid stability as the penetration of variable renewable energy rises.

A similar staged approach would be adopted for the repurposing projects, which included a 5-ha climate-smart horticulture centre, a 15-ha commercial agricultural project, a training centre, and possible ash beneficiation projects.

Likewise two-phase development planning is under way at the other four stations to ensure the emergence of new electricity and non-electricity activities prior to decommissioning, and with plans to scale these up further following the ramp down of the final units.

Eskom again confirmed that the repowering initiatives being developed at the four stations included:

800 MW of solar PV at Arnot by 2030, alongside 200 MW of BESS and 168 MW of wind;680 MW of solar PV at Camden by 2028;587 MW of solar PV at Hendrina by 2028; and800 MW of solar PV at Kriel by 2030, together with 200 MW of BESS and 1 000 MW of gas to power.

Wind and BESS projects were also being developed for Camden and Hendrina.

Mnisi indicated that, owing to Eskom's balance sheet constraints, the projects would be pursued as PPPs and could involve blended finance that included both development and commercial finance.

"What is key is how we go to market with these initiatives and one of the key things we are working on very closely is around our PPP model," he reported.

"From what we see, there is no shortage of funding to support the clean-ene...

A strong global push towards using fully electric buses in cities, coupled with South Africa's lethargic progress - if any - towards clean fuel, may soon leave local city councils with no alternative but to buy electric buses, says MAN Truck & Bus South Africa (MAN SA) CEO Jan Aichinger.

South Africa's emission and fuel standard is set at Euro II, however, the global production of city buses using this level of dirty fuel may soon come to an end in favour of much cleaner and/or electric buses.

The European new-bus market is already at 50% battery electric year-to-date, says Aichinger, and this number is expected to reach 100% by 2030.

China has an even higher percentage of electric buses in use. As of 2024, battery electric, hybrid electric and fuel-cell electric city buses accounted for almost 100% of the Chinese new-bus market.

Also, Europe, currently at Euro VIe (the fourth enhancement of Euro VI standards), is set to go to Euro VII by 2027.

India and Brazil are at Euro VI, Russia is at Euro V and China is at China VI, which is equivalent to Euro VI, says Aichinger.

"South Africa is maybe going to Euro V in 2027 - nothing seems sure," says Aichinger.

"The problem is that nobody is going to keep on developing Euro II city buses for a very small right-hand-drive bus market buying small batches of vehicles, all with different specifications - high-floor for Rea Vaya in Johannesburg and smaller, low-entry for MyCiTi in Cape Town, for example.

"We, as a local industry, want to supply the local market with products of international standards, i.e. Euro V or Euro VI buses, which does not make sense if the equivalent fuel quality cannot be guaranteed.

"The authorities urgently need to roll out these standards.

"If South Africa imports more than 80% of its petrol and diesel, why are we not importing cleaner fuel?" he adds.

"Why order pizza with pineapple if you hate pineapple?"

Aichinger's remarks come as the City of Cape Town says bus companies have been alarmingly unresponsive to tenders for internal combustion engine (ICE) buses.

"These days, to build city buses in small batches, will take much longer than South Africa's local governments provide for in their traditional tender windows," notes Aichinger.

MAN SA is the local arm of the German truck and bus group. The company has a local bus chassis assembly plant in KwaZulu-Natal, as well as a bus-body-building operation in Gauteng, with a localisation of more than 90%.

Within the global MAN group, less than 10% of production are Euro II products.

"Only a fraction of the market is Euro II, and it's disappearing fast, which means there is no longer any research-and-technology spend to improve this technology; to improve these vehicles' fuel consumption," says Aichinger.

"This leaves South African operations at a disadvantage to most of their global peers as they are forced to pay more for fuel."

Cue the MAN Electric Bus MAN SA can still build its front-engine Euro II commuter bus, such as those found at eThekwini Transport or Golden Arrow Bus Services, but local governments procuring rear-engine city buses for operations such as MyCiTi and Rea Vaya may soon have no other choice but to go electric.

"City buses will soon all be electric - it is inevitable," says Aichinger. "This type of operation is the easiest use-case for electric vehicles, as it needs only one charge point, located at the depot.

"All of the journeys are also clearly mapped out and highly predictable, with a morning and afternoon peak and charging opportunity in the middle of the day."

In an effort to respond to changes in the local market, MAN SA has developed the MAN Lion's Explorer E in partnership with its German parent company.

The Explorer E is MAN SA's first fully electric commuter bus, with the option for this to also be transformed into a city bus.

"The beauty of electric buses is that they are far more modular than ICE vehicles, as you have far fewer moving parts," explains Aichinger.

Of the three unit...

Econometric modelling of the impact on South Africa of US tariffs - including the proposed 30% reciprocal tariff on all non-exempted goods, the 25% tariff on automotives and automotive components, and the 50% tariff on steel, aluminium and copper - indicates that yearly South African exports to America could decline by between $1.4-billion and $2.3-billion.

In 2024, South Africa exported goods to the US valued at $14.9-billion.

EY tax partner Duane Newman reports that its modelling suggests a potential fall in exports of between $1.4-billion and $1.6-billion yearly in 2024 prices. While Professor Lawrence Edwards, of the University of Cape Town's School of Economics, says its analysis points to a potential loss of $2.3-billion once the higher tariffs imposed on South Africa relative to competitor exporters are also taken into account.

Worryingly, the tariff figure imposed on South Africa could rise to 40% should President Donald Trump follow through on his threat to impose an additional 10% on countries that support the "anti-American policies of BRICS", of which South Africa is a member.

"Our real concern here is what our tariffs are relative to competitors, and if the competitors get lower tariffs compared to us, we could find that the export losses are accentuated," Edwards explained during a webinar held after Trump's July 7 letter to President Cyril Ramaphosa indicating that reciprocal tariffs would be implemented on August 1.

XA Global Trader Advisers CEO Donald MacKay, who hosted the webinar, noted that the US was an important market for South Africa, representing 8%, or R157-billion, of the country's yearly exports of R1.8-trillion. By contrast, South African exports to the US accounted for a mere 0.44% of America's yearly imports of R61.5-trillion.

While a good portion of the value of South Africa's exports were in the form of critical and precious minerals and metals currently exempted from the proposed 30% duty, exports subjected to existing and proposed US tariffs affected 1.3% of GDP.

Automotive and automotive parts, which were attracting tariffs of 25% under Section 232 of the Trade Act and which would not change should the 30% tariff be introduced next month, were seriously affected. While agricultural products such as citrus were vulnerable not only to the reciprocal tariff, but could lose further competitiveness should countries such as Chile and Peru face tariffs into the US that are significantly lower than the 30% to 40% now faced by South Africa.

However, Lawrence also highlighted the importance of the US to other smaller exporters, given that about 80% of the about 2 500 different products exported to the US would be subject to the reciprocal tariff, should it be implemented.

Lawrence, thus, encouraged the South African government to continue with its diplomatic efforts to avert the August 1 reciprocal tariffs given that Trump had left the door open in his letter for adjustments. This, despite South Africa's failure to secure concessions until now.

The country could also make unilateral moves to signal its intent to deal with some of the long-standing concerns raised by the US in relation to poultry, pork and beef and could even consider extending market access that was at least equal to what was currently available to EU and UK firms.

Newman added that South Africa could also seek to replicate the deal that the UK had reached with the US in relation to automotive exports, which included a quota allowing the first 100 000 cars exported to America yearly to enter under a 10% rather than a 25% tariff.

However, Newman also suggested that South African firms should begin preparing for a future where tariffs were increasingly the norm.

He argued that this would require a return to basics by initiating reviews of their vendor, customer and intercompany agreements on valuation, alongside customs classifications and rules of origin, so as to find ways of navigating what was poised to be a more protectionist era.

The South African Photovoltaic Industry Association (SAPVIA) is expecting the domestic market to recover this year to the record installation levels achieved two years ago, following a marked slowdown last year.

CEO Dr Rethabile Melamu tells Engineering News that installations fell by more than 50% to about 1 GW in 2024/25, covering the period from April 1 to March 31, from 2.4 GW in 2023/24.

The drop was most pronounced in the residential sector, which shrunk by more than 60% during the period, following substantial growth during South Africa's most intensive loadshedding years.

Residential, commercial and industrial (C&I) and private utility-scale installations have climbed to about 6 GW, with most of that capacity having been installed over the past five years when South Africa's power cuts became an almost daily or twice-daily occurrence.

That surge has contributed materially to the rise in the country's overall installed base to about 9 GW; a figure that stood at close to zero when SAPVIA was formed 15 years ago by its founding six members in anticipation of the first public procurement of renewables projects. Melamu reports that the organisation's membership currently stands at 701, having peaked at 783 in April 2024.

LARGE PROJECT UNDERPIN

SAPVIA, which monitors market activity using information collected from its members, alongside information provided by the regulator and academia, anticipates that installations could match the 2023/24 peak this financial year.

This recovery, Melamu reports, will be supported primarily by large C&I projects, both distributed and wheeling projects, as well as utility projects procured under government's Renewable Energy Independent Power Producer Procurement Programme.

However, there are also signs of a recovery in the residential market, spurred by rising Eskom and municipal tariffs, and the fall in prices for PV modules, batteries, and inverters. As an indication, 550 W PV modules are currently being sold for about R2 000 a unit, whereas their price was closer to R4 000 three years ago.

SAPVIA's bullish outlook is premised partly on an analysis of PV project registrations with the National Energy Regulator of South Africa, which reached nearly 15 GW by the end of June, with t 67% of these registered projects being solar PV based.

Melamu acknowledges the difficulties in tracking how many of these projects have advanced to construction and/or financial close, but says the accuracy of its market intelligence is being continually updated and enhanced by direct input from members, as well as through tracking by the University of Cape Town Business School, which is also monitoring developments in the pipeline.

The anticipated recovery is in line with SAPVIA's view that the South African PV market can sustainably add between 1.5 GW and 2 GW yearly across the three main market segments of residential, small C&I installations of below 30 kW, and large C&I and utility-scale installations.

The anticipated growth in the large C&I segment is being driven partly by the fact that these projects, which were conceived at the height of loadshedding, had matured to the point of a final investment decision. Most of these projects continue to be supported economically by the rise in tariffs and the fall in prices, and strategically because of moves by firms to decarbonise their production in response to consumer pressure or in anticipation of carbon border adjustment mechanisms in key export markets.

MARKET UNCERTAINTY

These tailwinds are expected to persist, but Melamu says there are also several uncertainties that could affect the outlook beyond 2025/26, including:

The possibility of lower-than-anticipated allocations to solar PV in the updated Integrated Resource Plan (IRP) post-2028, which is expected to be approved by Cabinet in the coming months;

Changes to the tariff structure that could unfairly discriminate against both small rooftop PV and electricity wheeled from utility plants;

Onerous and...

Electricity and Energy Minister Dr Kgosientsho Ramokgopa has provided the outline for an overhauled universal access strategy that employs a blended financing approach to electrify, by 2030, the more than 1.6-million households in South Africa that still do not have access to electricity.

Speaking in Parliament, Ramokgopa said the new model would move beyond the traditional grid-centric approach that had hitherto dominated South Africa's multi-decade electrification programme, so as to include micro- and off-grid technologies.

While 8.4-million households had been electrified under the previous model, raising electrification levels from 36% in 1994 to 94% in 2024, the momentum had slowed in recent years, and the Minister said a renewed effort was required.

The idea would be to use various technology solutions to address long-standing electrification backlogs, particularly in the Limpopo, Eastern Cape, and KwaZulu-Natal provinces, and especially in informal settlements, peri-urban areas and rural towns.

The new "comprehensive universal access strategy" was the outcome of a review by the Department of Electricity and Energy and would adopt a "coordinated, technology neutral framework that accelerates access delivery, integrates grid and non-grid solutions, and institutionalises implementation partnerships across all three spheres of government".

The new model would involve three core reforms, including: the consolidation of all access programmes under a single hybrid planning and funding framework; the tackling of overloaded or under-capacitated networks to facilitate load growth; and the integration of off-grid and micro-grid solutions, especially in rural areas and informal settlements.

"The universal access strategy reframes electrification as a developmental and rights-based obligation, rather than a legacy infrastructure backlog."

In addition, the funding model would be adapted to take account of the reality that the "scale of the challenge far exceeds the available fiscal envelope".

Under the strategy, government is proposing a repurposing of the Integrated National Electrification Programme (INEP) grant into a universal access grant, as well as to support the creation of a new blended-finance facility in collaboration with the National Treasury and development finance institutions.

A total of R13-billion had been allocated to INEP for the coming three years.

While INEP funding had traditionally been transferred to Eskom and municipalities to support electrification projects, Ramokgopa indicated that the funds could, in future, be used as a de-risking instrument to crowd in developmental and concessional finance, as well as private investment.

"By using public funds to de-risk private investments we are creating an infrastructure finance facility that will allow us to front-load the capital needed to accelerate roll-out."

The aim was to mobilise the financing, including debt financing, needed to accelerate the electrification roll-out in high priority provinces and municipalities, while creating a predictable project pipeline that was attractive to institutional investors.

"This approach positions universal access as a bankable development investment with measurable returns in health, education and economic participation," he asserted.

To ensure affordability, meanwhile, the department was reviewing the electricity pricing policy with he goal of creating a differentiated pricing structure "that protects vulnerable households, whilst also supporting large power users with internationally competitive tariffs for electricity intensive, locally beneficiated exports".

Public Works and Infrastructure Minister Dean Macpherson has used his Budget Vote speech to unpack a vision for migrating government departments that collectively spend R6-billion yearly on private leases back to State properties.

The plan involves restructuring the underperforming Property Management Trading Entity (PMTE) into a revenue-generating and investable entity, and to "ensure the asset base of the State is managed with professionalism, discipline and a return-on-investment mindset".

Through the PMTE, the department manages over 88 000 buildings and five-million hectares of land, making it the country's largest property portfolio.

"For decades, this portfolio has underperformed and been under-utilised, and we are going to change that," the Minister said.

Amendments would be made to the Immovable Asset Management Act to facilitate what he described as modern and flexible asset use, as well as to pilot innovation.

"This will mean, the State will finally start to generate revenue from its assets, either through co-development models or through investment into a property fund of A-grade property assets.

"There is strong demand and interest both domestically and internationally in this plan," the Minister averred.

The department had started identifying government leases that could be migrated back to government buildings from private properties.

While acknowledging that it would be a difficult process, he argued that departments should not be paying R6-billion a year on leases when there were empty government buildings.

"For too long, the State has sat on thousands of unused buildings and parcels of land that are not put to either economic or social use.

"This, while government departments are in some cases paying R120/m in private leases, while our own buildings cost just R26/m."

In parallel, investigations into failed property projects would continue, including the R600-million purchase of Telkom Towers between 2015 and 2016 to house the South African Police Service's national head office.

"The draft investigation reveals a significant loss in terms of the value of the property owing to a series of damages to its infrastructure, and whether the project is still viable.

"The report should be finalised by the end of July, and where individuals have been implicated, we will not hesitate to act."

Macpherson also elaborated on his oft-stated vision for turning South Africa into a construction site by formalising Infrastructure South Africa (ISA) into the single-entry point for infrastructure projects.

An Infrastructure Development Amendment Act Bill would be introduced to Parliament in support of the proposition by providing ISA with the legal authority to lead project planning and execution.

In the meantime, seven large priority projects had been identified for implementation in 2025/26, including: the Boegoebaai Port and Rail Development, the Durban-Johannesburg Container Corridor, the City of Ekurhuleni Wastewater Conveyance and Treatment Systems Regionalisation, the Coega SEZ 100 MW Solar Farm, the South Africa Water Reuse Programme, and the Gauteng Urban Upgrade Programme in the,Johannesburg central business district.

President Cyril Ramaphosa says South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the US after having received a letter from President Donald Trump indicating that a 30% tariff will be imposed on South African goods from August 1.

In a July 7 letter, Trump said the 30% tariff had been implemented to address "long-term, and very persistent, trade deficits engendered by South Africa's tariff, non-tariff, policies and trade barriers" that meant the relationship was "far from reciprocal".

No specific mention was made of a threat to impose an additional 10% on countries that support what Trump termed the "anti-American policies of BRICS", of which South Africa is a member.

Similar letters were sent to several other countries and came despite recent calls from South Africa for a 90-day pause on the imposition of the reciprocal tariff announced by Trump on April 2 to be extended to allow time for a deal to be finalised, after South Africa submitted a proposed framework agreement to the US on May 20.

In the final paragraph of his letter, the US President indicated that adjustments could be considered to the tariff outlined, should South Africa "open your heretofore closed trading markets to the United States, and eliminate your tariff, non-tariff, policies and trade barriers".

In his response, Ramaphosa welcomed the commitment by the US government indicating that the "30% tariff is subject to modification at the back of the conclusion of our negotiations with the United States".

"South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States," Ramaphosa noted, while adding that South Africa still awaited a "template" from the US in relation to its approach to sub-Saharan Africa on matters of trade.

South Africa became aware of the template at a meeting held on the sidelines of the US-Africa Summit on June 23 in Luanda, Angola, but had not been provided with details.

Therefore, Ramaphosa had instructed South Africa's negotiators to urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on May 20, the day before his hostile Oval Office meeting with Trump, which was televised internationally.

The proposed agreement included what South Africa has termed "reciprocal benefits", including buying gas from the US and addressing long-standing disagreements in the areas of beef, pork and poultry, in return for concessions for South African steel and automotive exports, as well as an intensification of counter-seasonal agricultural trade.

"This framework deal addresses the issues initially raised by the US, including South Africa's supposed trade surplus, unfair trade practices and lack of reciprocity from the US."

However, Ramaphosa also continues to contest the accuracy of the 30% 'reciprocal' tariff calculation.

"South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data.

"In our interpretation of the available trade data, the average tariff on imported goods entering South Africa stands at 7.6%.

"Importantly, 56% of goods enter South Africa at 0% most favoured nation tariff, with 77% of US goods entering the South African market under the 0% duty."

However, in a possible indication that Ramaphosa was not entirely confident of a breakthrough with the US, he urged government trade negotiation teams and South African companies to accelerate their diversification efforts "in order to promote better resilience in both global supply chains and the South African economy".

Unless a breakthrough is made, however, the 30% tariff would apply to all South African exports, except those specifically exempted, such as products such as platinum group metals, gold, and chrome. Automotive, steel, and aluminium exports would be subjected to a separate set of tariffs of between 25% to 50%.

Meanwhile, Parlia...