For Creamer Media in Johannesburg, I’m Lumkile Nkomfe.

Making headlines: Cabinet to meet on support package for firms and workers exposed to 30% US tariffs; South Africa plans jail time, fines under new emissions rules; And, South Africa urged to firm up developmental vision for universal electricity access

Cabinet to meet on support package for firms and workers exposed to 30% US tariffs

Trade, Industry and Competition Minister Parks Tau will present Cabinet with a proposed support package for South African companies and workers that will be negatively affected by the 30% reciprocal tariffs to be imposed on South African exports to the US at August 7.

The package is being developed in parallel to ongoing attempts to negotiate a trade deal with the US, which accounts for 7.5% of all South African exports, making America South Africa’s third-largest global export market after the EU and China.

South African exports to America, which stood at $14.9-billion in 2024, could decline by up to $2.3-billion yearly, independent research has indicated.

Previous attempts at finalising a deal have failed, despite South Africa having proposed a framework deal in May, which included various concessions on agricultural exports to South Africa and even an offer to buy American liquefied natural gas.

Speaking during a joint briefing held in Ekurhuleni with International Relations and Cooperation Minister Ronald Lamola, Tau said his department was currently modelling the impact on industries and companies that were exposed to the 30% tariff and working on possible support measures with other government departments.

South Africa plans jail time, fines under new emissions rules

South Africa will seek jail time, fines and higher taxes for breaches of proposed rules to govern carbon emissions that will apply to almost all sectors of the economy.

The proposed regulations, due to take effect at the beginning of next year, will see the setting of so-called carbon budgets for emitters of climate-warning greenhouse gases. A failure to meet reporting requirements could see executives imprisoned, while exceeding emission limits may trigger a higher carbon-tax rate.

South Africa, the most carbon-intensive economy among the Group of 20 nations, is intensifying efforts to cut its dependence on coal for power generation. It’s also seeking to reduce its overall emissions, which rank 15th globally, exceeding those of much larger economies, including France and the UK.

The steps come as South Africa faces the prospect of having taxes levied on exports that rely on carbon-heavy industrial processes. Major markets such as the European Union and the UK are implementing so-called carbon border adjustment mechanisms.

While the proposals, which the environment department has opened for public comment, are broader than those of other nations that mainly target fossil fuels, its carbon price is much lower. Jarredine Morris, co-head of the Africa Office of Carbon Trust, expects the initial carbon budgets to be “realistic” and similar to current emission levels.

And, South Africa urged to firm up developmental vision for universal electricity access

A leading advocate for the provision of free basic electricity to poor South African households has welcomed moves by government to pursue its universal access goal through a “developmental” lens but believes more still needs to be done to firm up what affordable access means and the best ways of achieving that objective.

In his Budget Vote speech, Dr Kgosientsho Ramokgopa announced that government’s revised universal access strategy would reframe electrification as a developmental and rights-based obligation rather than a legacy infrastructure backlog.

He also announced that a blended finance approach would be adopted to mobilise the funding needed to connect the 1.6-million households in South Africa by 2030 that still do not have access to electricity. In addition, delivery would be broadened to include alternative technologies, including micro- and off-grid solutions, especially in rural areas, but also potentially in informal settlements and peri-urban areas.

Public Affairs Research Institute just transition programme head Dr Tracy Ledger, a vocal champion of the cause of affordable electricity access who has authored several research papers on the topic, believes the profile being given to both universal access and affordability by Ramokgopa is laudable.

In light of South Africa’s fiscal constraints, Ledger also agrees that it is important to pursue innovative financing models to address the electrification backlog, as well as the chronic infrastructure constraints in urban townships. This, so as to cater for the consumption growth that accompanies densification and the rise of economic activity in areas initially developed as dormitory towns, without resorting to so-called load reduction, which results in areas being cut during peak periods.

That’s a roundup of news making headlines today

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