Author:chris-hattingh

Improve systems and predictability first; more trade will flow August 29, 2022 South Africa has lost R1.25 billion in revenue due to lengthy customs duty investigation delays (of up to two years), according to a new XA Open Cases Report released by XA Global Trade Advisors. These delays don’t bode well for the future success of the country, says CHRIS HATTINGH. Originating from the International Trade Administration Commission (ITAC), investigations are delayed at various stages, both in the Department of […]

Declining EU performance spells trouble for SA August 4, 2022 Declining growth prospects across the Eurozone – exacerbated by the Russian invasion of Ukraine and continued global supply chain stickiness – spell decreased economic activity and vitality for South Africa, reveals CHRIS HATTINGH. Along with China, the EU is one of South Africa’s biggest trading partners, especially in terms of raw materials and fresh produce. As consumers in EU countries are squeezed, so will their need for South African materials […]

SA ports continue downward trend July 14, 2022 South Africa’s port facilities have been ranked near the bottom of the 2021 Container Port Performance Index (CPPI), released by the World Bank and S&P Global Market Intelligence, reveals CHRIS HATTINGH. The latest edition of the report ranks 370 facilities, an increase from 351 in the 2020 edition. Cape Town comes in at 365thand Durban at 364th. Gqeberha was the highest-ranked South African facility, at 312th. The low rankings point to the […]

Fix basic infrastructure issues before going after localisation June 6, 2022 Localisation is not the way in which to rescue South Africa. Instead, basic infrastructure issues need to be addressed and fixed. So says CHRIS HATTINGH. Continued rolling blackouts (at time of writing, Eskom has resorted to Stage 4 of a potential eight), renewed strike action, and the ongoing decline of Transnet’s ability to move freight have all put paid to the government’s much-hyped Localisation Master Plans. Without cheap and […]

Rail reform in name alone? May 12, 2022 For all the government’s talk and idealism – promoting Localisation Master Plans as the solution to South Africa’s manufacturing decline – politicians and bureaucrats may be better served by focusing on low-hanging reforms… to focus on just one area: rail. So says CHRIS HATTINGH. Selling Transnet’s rail networks to private competitors in practice, not merely in name, would be a great start towards unlocking the country’s real trade potential. Doing so would […]

The future of SA trade: what lessons can be learned from Ramaphosa’s 2022 SONA? March 22, 2022 Can localisation plans and the Africa Continental Free Trade Area (AfCFTA) go hand-in-hand? CHRIS HATTINGH doesn’t think so… During his 2022 State of the Nation address, President Ramaphosa reiterated the government’s commitment to Localisation Master Plans. At the same time, he talked of the potential of the Africa Continental Free Trade Area (AfCFTA), as well as how the continent-wide area could spur economic […]

Transnet must reconsider unconscionable tariff increase March 22, 2022 To spur meaningful, transformative trade growth, Transnet should urgently reconsider its decision to increase tariffs by up to 24%, says CHRIS HATTINGH. The decline of South Africa’s rail and port infrastructure has been well documented – it is unclear how the increase in tariffs would alleviate the myriad problems afflicting said infrastructure. These higher tariffs will need to be incorporated by importers and exporters, manufacturers, and businesses across industries that need […]

SA would do well to heed IMF’s anti-protectionism warning February 10, 2022 If South Africa is to address the extremely worrying levels of unemployment in the country, warnings from the International Monetary Fund (IMF) must be heeded. However, CHRIS HATTINGH points out that these warnings are currently being ignored. That the South African economy faces myriad challenges has been well-documented. Whether the political will exists to change course from a position of state controls and interventions towards more economic freedom […]

Low-hanging fruit policy reforms for SA trade in 2022 January 17, 2022 South Africa is still the biggest economy on the African continent and stands poised to fully benefit from increased openness and trade as more and more countries emerge from Covid-19. But protectionist policies such as Localisation stand to undermine the potential of the Africa Continental Free Trade Area (AfCFTA), warns CHRIS HATTINGH. South Africa stands to benefit from more trade – with the accompanying capital investment and job […]

Time for government to cut fuel taxes and tariffs! December 9, 2021 As we face yet another rise in the fuel price, CHRIS HATTINGH says it’s high time that government cut fuel-related taxes and tariffs On November 3 this year the price of a litre of petrol increased by R1,21, and the price of a litre of diesel increased by R1,48. The price of illuminating paraffin increased by R1,45 a litre. After the increase, a litre of petrol now costs […]