A R3 Trillion Gambit: The ANC’s Blueprint to Sidestep US Tariffs

Confronted with punishing US tariffs that threaten key industries and jobs, the ANC is drafting an aggressive economic counter-strategy centered on a massive R3 trillion export diversification plan. The blueprint, presented at the party’s mid-term national general council, aims to radically reduce South Africa’s vulnerability to unilateral trade actions by Washington by supercharging investment in mining, manufacturing, agri-processing, and green industries.

The plan involves a fundamental shift for state development finance institutions like the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF). They would be repositioned from traditional lenders to proactive equity partners, directly mobilising capital for high-growth projects. “The global order has shifted from ‘rules-based multilateralism’ to strategic protectionism,” stated a document presented by ANC economic head Zuko Godlimpi, directly referencing the 30% US tariffs on vehicles, steel, aluminium, and citrus that now affect over a third of SA’s exports to America.

A Dual-Track Strategy: Diversify and Defend

The strategy operates on two fronts. Domestically, it seeks to “shore up the economy” through targeted state-backed investment. Internationally, it pursues a deliberate diversification of trade partners, moving beyond traditional Western markets.

The continental African Continental Free Trade Area (AfCFTA) is positioned as the anchor, with a focus on building pan-African value chains in vehicles, metals, and agriculture. The plan also aims to strengthen ties with BRICS+ nations, the Gulf, Latin America, China, and the EU.

Tense Talks and an Agoa Threat

While Trade Minister Parks Tau confirmed negotiations with the US are ongoing, he acknowledged they are “clouded” by geopolitical tensions. The stakes were raised this week when US Trade Representative Jamieson Greer told a Senate hearing he was considering excluding South Africa from the African Growth and Opportunity Act (Agoa), citing persistent tariff and non-tariff barriers.

ANC Secretary-General Fikile Mbalula struck a defiant tone, stating the party would “mobilise and defend our sovereignty” against the “aggression” from the Trump administration.

The R3 trillion plan is more than an economic document; it’s a political statement of intent. It acknowledges that the era of predictable global trade rules is over and that South Africa must urgently chart a new, less dependent course. Whether this ambitious pivot can be funded and executed swiftly enough to save threatened jobs in auto and steel plants, however, remains the multi-trillion-rand question.

{Source: BusinessDay}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com