South Africa Outlines Support Measures for Local Companies Affected by US Tariffs
South Africa on Monday outlined support measures for local companies that will be hit by a 30% U.S. tariff this week, including exemptions from some competition rules and financial support facilities.
Africa’s biggest economy has tried for months to negotiate a deal with Washington, offering to buy U.S. liquefied natural gas and invest $3.3 billion in U.S. industries in a “framework deal” proposed to Trump’s team.
But the effort was unsuccessful, even after Pretoria made a last-minute attempt to improve its offer.
South African officials say the U.S. tariff could cause tens of thousands of job losses, especially in the agriculture and carmaking industries.
Addressing a press conference, South Africa’s trade and foreign ministers said a “block exemption” from some aspects of the Competition Act was being developed that would allow competitors to collaborate and coordinate.
They said the exemption would be published by the end of this week.
The government is also working on a support programme, which will include a working capital facility and plant and equipment facility, and ways to cushion the impact of job losses via the Unemployment Insurance Fund.
Trade officials added that an export support desk would try to help companies enter new markets by linking them up with embassies and potential buyers. A more detailed set of support measures will be discussed at a cabinet meeting on Wednesday.
