A hope for better days

Spring brings renewal, but South Africa faces headwinds. From US tariffs shaking exports to political scandals and pay reform, uncertainty looms. Can these challenges spark change, or will they deepen the crisis? SHARMINI NAIDOO is hoping for better days ahead…

September is here already, and spring is in the air. Typically known as a season of regrowth and renewal, Spring marks nature’s awakening from winter’s dormancy to vibrant life. It symbolises new beginnings, vitality, growth, and a fresh start for both the environment and people. Spring encourages reflection, transformation, and opportunities for both personal and professional advancement. With the recent “goings-on” in the country, we can only hope that this change (whilst not always pleasant) will bring new opportunities and better days for South Africa and its people.

Impact of the 30% US tariff

Since 8 August, the United States (US) tariff order on all South African products entering the US market came into effect. This blow came after the US withdrew significant funding for critical programmes in South Africa in an attempt to put pressure on the country to change its Land Act, Expropriation, and B-BBEE policies.

The withdrawal of US funding from South Africa earlier this year – from USAID and the PEPFAR programme – has already resulted in job losses for healthcare workers, disruptions to vital HIV and TB services, and the halting of crucial medical research and early-phase trials. Many NGOs heavily reliant on these grants have been severely impacted and face possible closure.

According to the Presidency, the decision by the US to impose a 30% tariff on South African imports has highlighted the urgency with which we must adapt to increasingly turbulent headwinds in international trade.

The US is South Africa’s second-largest trading partner by country, and these measures will have a considerable impact on industries that rely heavily on exports to that country and on the workers they employ, as well as on our fiscus. Domestic sectors such as agriculture, automotive, and textiles have historically benefited from duty-free access to the US market under the African Growth and Opportunity Act (AGOA). Wine, citrus, nuts, cars, steel, and machinery are especially vulnerable.

South Africa’s automotive exports to the United States have been a crucial component of the country’s export portfolio and the impact of the tariff should not be underestimated. In 2024, automobile exports accounted for 64% of South Africa’s exports under AGOA, with vehicles and parts valued at over $2 billion.

Amongst the first casualties of the 30% tariffs is Jendamark Automation, which employs 500 people at its South African factory in Gqeberha. Jendamark has already lost R750 million in contracts, which now puts its employees and some 3,000 local supply chain workers at risk.

Jendamark produces powertrains, catalytic converters, electric vehicle components, vehicle assembly systems, and software. Its customers include BMW, Ford, Mercedes-Benz, and Volkswagen – all of which build cars in South Africa.

It is expected that the impact of the tariff will also cascade down to the broader automotive sector, potentially leading to 100,000 job losses and reducing GDP growth by up to 0.3%. Many analysts believe that consumers can also expect higher prices, as goods such as food, cars, and items with imported parts could cost more.

According to the Presidency, our trade relations have historically been complementary in nature and our exports “do not compete with US producers and do not pose a threat to the US industry”. The statement continues: “South African exports are inputs into US industries and therefore support the United States’ industrial base. South Africa is also the biggest investor from the African continent into the US, with 22 of our companies investing in a number of sectors including mining, chemicals, pharmaceuticals, and the food chain.

South African imports ultimately benefit US consumers in terms of both choice and cost. For example, citrus production is counter-seasonal and does not pose a threat to US production. Furthermore, production by US companies has been on the decline for a number of years as the US sector grapples with low yields, citrus greening disease, and other factors unrelated to competition from imports. Imports from South Africa, the world’s second-largest citrus exporter, have filled a gap and contributed to stable supply and prices for US consumers.”

The SA government has pledged to protect our export industries and will continue to engage the US in an attempt to preserve market access for our products. The tariffs could potentially be an opportunity to diversify our export markets, deepen intra-African trade, and aggressively explore alternative markets.

Inaugural National Dialogue proceeds amidst controversy

Despite significant controversy and lingering questions over its budget, as well as the withdrawal of several prominent legacy foundations (due to a rushed timeline, inadequate preparation, loss of citizen-led focus, and the view that “dialogue cannot be built on haste”), the National Dialogue went ahead as planned.

Was it a success? Whilst some say that it may be too soon to tell, President Ramaphosa has hailed the inaugural National Dialogue Convention as a “resounding success”. The event hosted over 1,000 delegates from more than 200 organisations, including civil society groups, faith-based organisations, business leaders, and political representatives.

The Convention was the first phase of a broader dialogue process that will include public discussions across all nine provinces, culminating in a second national convention to consolidate citizen inputs into actionable plans. President Ramaphosa has urged all South Africans to engage actively to ensure that the process is inclusive and reflective of the nation’s diverse perspectives.

Arrests, suspensions, and charges continue…

You could be forgiven if you thought you were watching a rerun of SABC’s Police File – minus David Hall-Green – every time you turned on the news. The last few months’ headlines have reported more arrests, charges, and suspensions of politicians than ever before, as more of their shenanigans are revealed. Let’s look at a few of the incidents that have transpired.

The latest saga was the suspension of the Independent Development Trust (IDT) CEO Tebogo Malaka and spokesperson Phasha Makgolane after the Daily Maverick reported that journalist Pieter-Louis Myburgh was offered R60,000 in cash to suppress negative reporting. The Minister of Public Works and Infrastructure has now laid criminal charges against the IDT CEO and spokesperson following a well-orchestrated social media campaign, falsified news reports, and manipulated voice notes.

With the ink barely dry on his appointment, the new Higher Education and Training Minister, Buti Manamela, has come under fire after appointing administrators to three troubled Sector Education and Training Authorities (Setas). The appointments have drawn criticism from opposition parties and civil society, who have raised concerns over their links to the ANC and the potential for political interference.

It is alleged that some of the appointees have been implicated in forensic reports detailing fraud, corruption, and the mismanagement of public funds. The new minister may soon face the wrath of the National Assembly Portfolio Committee on Higher Education and Training for procedural irregularities and possible maladministration.

Even the tourism sector did not escape unscathed, as the Minister of Tourism suspended the SA Tourism Board on good cause shown. This was allegedly the result of the board exceeding its powers to convene an “unlawful” special meeting following the resignation of the chairperson. Prior to its dissolution, the board also suspended its CEO after the removal of the company secretary and chief marketing officer.

In Johannesburg, the newly appointed MMC for Group Corporate and Shared Services, Mr Sithembiso Zungu (who maintains his innocence), has been linked to the construction mafia for allegedly disrupting the refurbishment of the Inkululeko Yesizwe Primary School (R135 million project) in Vlakfontein and the Lehae housing project in Lenasia, and demanding a “facilitation” fee to proceed. A subcontractor reported that a fee in excess of R800,000 was paid. Earlier this year, Zungu was also named in court papers against an alliance of business forums and taxi associations which disrupted the repair of a vital part of the Golden Highway.

Equal pay for work of equal value

The Employment Equity Amendment Act 2022, which became effective on 1 January 2025, mandates employers to conduct a job evaluation and grading system to determine job-related responsibilities and effort for the purpose of achieving “equal pay for work of equal value”. This requirement, read with the new Code of Good Practice: Equal Pay for Work of Equal Value, compels employers to assess jobs based on skills, effort, and responsibility, and to ensure that pay differences are not based on unfair grounds such as race, gender, or age.

The game-changing Fair Pay Bill

If implemented, the new Fair Pay Bill will be a major game-changer for employers, employees, and job seekers, as it will radically change remuneration and recruitment practices in SA.

In June, the Bill was proposed to parliament by the political party Build One SA. It is aimed at eradicating salary discrimination and promoting pay transparency.

The key provisions of the Bill are as follows:

Prohibition on salary history
Employers will be prohibited from inquiring about or relying on a candidate’s past or current pay during recruitment, selection, and appointment. The only exception is if a candidate makes a written request for their previous remuneration to be disclosed, after an offer has been made.

Pay range disclosure
All job advertisements, transfer, or promotion listings will have to specify the salary or salary band up front – no vague reference to “market-related” remuneration will be allowed.

Right to discuss remuneration
Employees will be allowed to share and compare their remuneration details with other employees. Confidentiality clauses preventing such discussions will not be enforceable.

Remuneration transparency
Employers will be required to determine and document pay structures and ranges for each position, making it easier to justify pay decisions and spot unfair disparities.

The Bill is currently undergoing a legal review by parliamentary advisers, after which it will include an explanatory memorandum. It will then be gazetted for public comment, followed by consideration by the Portfolio Committee on Employment and Labour, before finally being introduced in the National Assembly for deliberation, amendment, and voting.

There is still a long way to go, but if the Bill is enacted it will mark a significant step towards equality and transparency in the workplace. Whilst there may be opportunities to attract the best talent and engage in fairer, more informed negotiations, it is bound to cause a few headaches for employers!