It does not help to go on making plans to handle the US tariffs only. We should be planning for trade to grow our economy.
It is time for South Africa to put the US tariff wars behind us and start building tomorrow’s trade foundations. What the world needs now is certainty, as the global economy thrives on predictability.
Busisiwe Mavuso, CEO of Business Leadership South Africa, says that when certainty evaporates, businesses must adapt or perish. “South Africa is aiming to do two things: restore some level of predictability by engaging with the US, but simultaneously securing international partnerships and building the infrastructure foundation that enables South Africa to be competitive in global trade.”
She says President Cyril Ramaphosa made this case powerfully last week at the United Nations General Assembly. Speaking at a South Africa-US trade and investment dialogue, he outlined clear goals for the US relationship: to sustain and expand trade flows, keep our companies competitive, and ensure that workers and consumers in both countries benefit from our partnership.
The practical steps he announced matter, Mavuso pointed out. “A South Africa-US Trade and Investment Forum will be held alongside next year’s annual investment conference. The US Chamber of Commerce will take over B20 chairmanship from South Africa, providing another way for the two countries to work together on improving trade relationships. These moves can generate real mutual benefit.”
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Policy uncertainty hammering SA economy
However, she pointed out that Ramaphosa also confronted an uncomfortable truth that unprecedented trade policy uncertainty is hammering the global economy, with sharply negative consequences for development.
“The US remains our second-largest trading partner after China, yet current tariff policies are forcing countries like ours to diversify risk by seeking new markets. As the president noted at the Council on Foreign Relations, South Africa is actively upgrading trade relations worldwide. This is an economic necessity. We hope Ramaphosa’s message landed clearly with his US counterparts.
“Those of us in business cannot wait for political breakthroughs. The short-term pain is real. We saw retrenchment announcements as companies freeze production lines when orders halt. But we must focus on opportunities we can unlock in new markets and through successful structural reforms.”
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SA should work on logistics, the most critical domestic trade issue and trade foundation
This, she says, brings us back to our most critical domestic trade issue: logistics. Last week’s World Bank and S&P Global port rankings again placed South African ports among the world’s worst. That headline stings, but it misses the transformation already underway.
“The rankings rely on dated information that does not capture our complex port systems’ recent performance. Current data shows our container ports are tracking 2025-26 targets for units shipped. Durban, ranked last of 403 ports in the World Bank report, now performs in line with global benchmarks.
“Handling time, measured from lifting a customer’s container off a vessel and transporting it into their facility, dropped from 21 days to two days since 2023. That is not just an improvement but a fundamental shift in trading costs.”
Beyond ports, Mavuso says the broader logistics picture is brightening.
“Rail has seen 15% volume increases. Border post queues have been slashed by 83% during peak periods, notwithstanding a 13% increase in the number of vehicles processed daily.
“Combined, these improvements mean materially lower trade costs for South African companies. Those are achievements of the business/government partnership that has been formed through the National Logistics Crisis Committee.”
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Trade foundation Transnet is improving although it is missing milestones
According to Mavuso, the president’s efforts may reduce tariff barriers with the US, and even if they do not, we are mitigating the impact through new global partnerships and logistics improvements. “But we can do much more domestically to boost competitiveness and make trade a job creator again.”
She points out that Transnet’s performance improved, although the Auditor General reported that it missed over 60% of its recovery plan milestones in the last financial year. Rail improvements are notable but still behind target.
“We expect a 5% shortfall this year.
“August brought a major breakthrough: eleven train operating companies, including Transnet Freight Rail, were chosen to operate routes across the network. This introduces meaningful competition and should dramatically improve service levels. I hope contracts are concluded speedily and we see the first privately operated trains running soon.”
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Now for the ports as trade foundation
Mavuso says our ports need similar treatment. “Concessioning port infrastructure will introduce competition, driving service levels up and costs down. On that front, progress has been slow, with the concessioning of the Durban container port embroiled in litigation and the bringing of other private sector participation opportunities to market delayed by the analysis required for the unexpected volume of responses received.
“More needs to be done across the ports and reforms actually concluded to get private sector operators investing and working.”
She points out that US trade tariffs have been disastrous but says she is confident that logistics advances and new market engagement are creating a better medium-term outlook even as we work through short-term pain. “This reflects our ability as South Africans to confront crises together and overcome them.
“The foundation we build today of stronger ports, competitive rail and diversified partnerships will serve us well regardless of which political winds blow tomorrow.”
