South Africa is actively engaging with the United States to maintain open trade routes, having submitted the Framework Deal in May. A key development is South Africa’s signing of a condition precedent document with the U.S. Trade Representative, which is essential for advancing negotiations, according to Minister of Trade, Industry and Competition, Parks Tau.

Tau highlighted the importance of the collective effort between business, organized labor, and civil society in engaging the U.S. Congress. These efforts are integral to maintaining South Africa’s status in the Africa Growth and Opportunity Act and addressing the U.S.-South Africa Bilateral Relations Review Act.

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Industry and Competition Minister Parks Tau

In discussions with Asia, South Africa is progressing on initiatives with China, focusing on Green Industrialisation and enhancing industrial supply chains. The agreement with China also includes efforts to process critical minerals locally, which aims to unlock the potential of South Africa’s Special Economic Zones (SEZs) and Industrial Parks. Tau emphasized their strategic role in advancing the reindustrialisation agenda.

The South African government, through InvestSA and the Japan External Trade Organisation (JETRO), is renewing its partnership with Japan.

Tau expressed concerns about the Carbon Border Adjustment Mechanism (CBAM), which could potentially reduce Africa’s GDP by 1%. South Africa underscores the necessity of sustaining the multilateral trading system centered on the World Trade Organisation and the United Nations.

“This is the message we will take to the 14th Ministerial Conference in Cameroon next year. Our announcement on the Clean Trade and Investment Partnership (CTIP) with the EU in March is to be welcomed by our provinces and municipalities. For one, CTIP will enable us to execute our decarbonisation agenda and maximise the R90 billion facilitation funding that has been initially committed,” Tau said.

Deputy Minister Zuko Godlimpi of the Department of Trade, Industry, and Competition (DTIC) noted the Industrial Development Corporation (IDC) revised its commitments for 2025/2026 to allocate R12 billion ($779 million) towards transformation-focused funding. This includes R7.4 billion ($480 million) for black industrialists, R3.5 billion ($227 million) for women-owned businesses, and R1.5 billion ($97 million) for youth-led enterprises.

Godlimpi also outlined regional support, highlighting various projects across provinces, such as SME canegrower support in KwaZulu-Natal, funding for black grain producers in North West, and green hydrogen initiatives in the Eastern Cape.

Infrastructure funding represents 10.2% of the Dtic budget, with R5.2 billion ($337 million) underpinning the incentive program. Business incentives account for 35.15% of the R11 billion ($714 million) budget, reflecting an increase from R9.6 billion ($623 million) in 2024/2025.

Source: Business Report