KEY POINTS
- South African rand weakens by 0.2 percent against the dollar.
- Ministers to update on trade talks with the U.S. today.
- President Ramaphosa hints at support measures for affected industries.
South Africa’s currency started the week on a weaker note, trading at 18.0525 against the U.S. dollar, down by about 0.2 percent from Friday’s close. Investors await updates from trade minister Parks Tau and foreign minister Ronald Lamola, who will address the ongoing negotiations over the U.S trade pact.
The South African rand has had a hard time because of tariff pressures. When commodities from South Africa are brought into the U.S., they have to pay a hefty 30 percent levy. This is the highest rate in Sub-Saharan Africa, which has led to calls for a cut.
Pretoria pushes for U.S. tariff reductions
South African officials have been lobbying Washington to lower the tariff, which could jeopardize thousands of local jobs. President Cyril Ramaphosa also emphasized the country’s commitment to safeguarding its export industries, stating that continued engagement with the U.S. is essential for preserving market access.
“Our foremost priority is protecting our export industries,” he said in a recent statement. Ramaphosa further suggested that diversifying export markets through deeper intra-African trade could help mitigate the impact.
South Africa plans support for affected workers
Furthermore to support vulnerable industries, the South African government is working on a comprehensive support package. Ramaphosa confirmed that details of the package, which will aid companies, producers, and workers affected by U.S. tariffs, will be announced in due course.
Meanwhile, South Africa’s benchmark 2035 government bond saw a slight increase in value, while the dollar index strengthened in global markets.
