EMS

Industry expert translates operational theory into real-world practice

BELINDA BANTHAM — Thu, 24 Apr 2025 06:28:19 +0000

Industry expert translates operational theory into real-world practice

BELINDA BANTHAM Thu, 04/24/2025 - 08:28

In a dynamic step towards bridging the gap between academic learning and real-world industry practice, the Faculty of Economic and Management Sciences at the Vanderbijlpark Campus of the North-West University (NWU) recently hosted an enriching guest lecture as part of the Operations Management (BMAN 213) module.

The session featured Khathu Maumela, manager for research and development at the Rand Water Institute. With more than 20 years of experience in the mining, energy and water sectors, Khathu brought a wealth of operational expertise and leadership insight. His current role at Rand Water has placed him at the forefront of innovation and sustainability in the water industry.

The session was made possible through the initiative of junior lecturer Reagile Raditsela from the School of Management Sciences, who saw the value of integrating industry voices into academic modules. “I invited Khathu because of his wealth of experience and his ability to translate operational theory into real-world practice. It is important for students to see how what they are learning connects to the industry.”

To ensure the lecture aligned with course objectives, Khathu was provided with the BMAN 213 study guide, outlining key learning outcomes and study units, and Reagile and Khathu discussed the importance of linking their professional insights directly to classroom content.

The result was a well-structured, thought-provoking presentation that explored the various operational functions at Rand Water – from process maintenance to systems design – all within the context of the students’ coursework. The lecture served as a tangible example of how operations management plays a critical role in organisational efficiency and sustainability. The overarching aim of the guest lecture was to inspire students to engage more deeply with their studies, not just as a step towards a qualification, but as a foundation for future careers.

According to Reagile, many students often view modules in isolation, and this session aimed to shift that mindset. “We want students to view this module not as a hurdle, but as a gateway into the industry. Operations management is more than just theory – it is the engine room of any successful business.”

Student feedback following the session was overwhelmingly positive. They praised the lecture for being interactive, relevant and inspiring. Many asked insightful questions during and after the session, with several students staying behind for further discussions – an encouraging sign of the impact the talk had had.

Looking ahead, future topics may include strategic and safety management, with plans to invite speakers from various business sectors to offer students a more rounded view of potential career paths.

“Events like these build bridges between the university and the industry, between theory and application, and – most importantly – between students and their future,” says Reagile.

“Beyond student engagement, such events also serve to strengthen the NWU’s relationship with industry leaders, encouraging collaboration, innovation and the co-development of relevant learning experiences. These relationships ensure that academic programmes remain responsive to the evolving needs of the workplace.”

The most rewarding outcome? Seeing students inspired.

“Watching them engage, ask questions and stay after the lecture showed me that we are not just teaching, we are transforming perspectives and preparing future leaders,” adds Reagile.

Junior lecturer Reagile Raditsela from the NWU’s School of Management Sciences with Khathu Maumela, manager for research and development at the Rand Water Institute.

AGSA’s chief risk officer shares insights on risk from an entrepreneurship perspective

BELINDA BANTHAM — Mon, 14 Apr 2025 09:59:08 +0000

AGSA’s chief risk officer shares insights on risk from an entrepreneurship perspective

by Belinda Bantham

BELINDA BANTHAM Mon, 04/14/2025 - 11:59

Bridging the gap between academic theory and real-world experience, the North-West University (NWU) recently hosted Mr Solly Segooa, chief risk officer at the Auditor-General of South Africa (AGSA), for a thought-provoking guest lecture titled “Understanding and managing risk in entrepreneurship”.

The session offered students a unique opportunity to gain practical insight into the complexities of financial oversight, governance, and risk management in both public and private sectors.

As the institution responsible for auditing government expenditure and promoting financial accountability across South Africa, the AGSA plays a vital role in ensuring the responsible use of public funds. Welcoming an expert from this esteemed office brought the realities of governance and risk into sharp focus for students of the Faculty of Economic and Management Sciences.

Mr Segooa, who brings decades of experience in finance, governance, and corporate risk, delivered a dynamic and engaging lecture far beyond textbook theory.

“Risk isn’t something to avoid,” he told students. “It’s something to understand, engage with, and, when possible, turn into an opportunity.” He illustrated his points with real-life stories from his career, highlighting the tough decisions and valuable lessons that come with managing risk in complex environments.

Dr Lerato E. Mdaka, a senior lecturer in the Faculty of Economic and Management Sciences, reflected on the significance of Mr Segooa’s visit. “At the NWU, we’re always looking for ways to bridge theory with practice, and inviting industry leaders is one of the best ways. Mr Segooa’s insights helped students understand the practical implications of risk and entrepreneurship in a way that is both accessible and globally relevant.”

The lecture also carried international importance, as the University of Kigali, Rwanda joined the lecture as part of an ongoing partnership with the NWU.

“Having the University of Kigali participate was particularly meaningful,” Dr Mdaka added. “When we talk about entrepreneurship, we’re discussing something that transcends borders. The risks an entrepreneur faces in Kigali might look different from those in Johannesburg, but the principles of risk management—facing uncertainty and threat head-on, minimizing it’s impact and unlocking its hidden opportunities—are universal.”

School of Industrial Psychology and Human Resource Management hosts a successful work readiness workshop

BELINDA BANTHAM — Fri, 11 Apr 2025 10:29:58 +0000

School of Industrial Psychology and Human Resource Management hosts a successful work readiness workshop

by Zenoyise John

BELINDA BANTHAM Fri, 04/11/2025 - 12:29

The North-West University’s (NWU’s) School of Industrial Psychology and Human Resource Management (IPHRM) recently hosted a pivotal work readiness workshop for its honours and master’s students.

This initiative brought together industry experts to share valuable insights on graduate employability, industry expectations, and effective preparation for the workforce.

The workshop featured a range of experts who offered guidance on crucial topics such as CV writing, digital presence management, and interview preparation. Students had the opportunity to engage with professionals, ask pressing questions, and gain insight into the current job market trends and future employment opportunities. This informative session aimed to equip students with the tools they need to transition smoothly from academia to the working world.

Notable speakers included Carla du Plessis from Fitt Talent, who discussed navigating the industrial psychology landscape, and Adri Louw from LabourNet, who provided insights on the journey from the classroom to the boardroom. Ayanda Nkosi, a People Partner at BCX, shared her journey of personal growth, while Olwethu Machine, founder of Ambitious Professionals Academy, inspired students to maximise their employability.

The workshop also included practical sessions led by Nombulelo Malunga, a registered career development practitioner, who focused on CV writing and interview techniques, helping students refine their professional profiles.

Debbie Mtshelwane, NWU lecturer, Human Resource Management programme leader and event organiser, expressed her satisfaction with the event. She said that the event successfully equipped students with essential career skills and fostered connections between budding professionals and established industry figures, setting the stage for their future success.

“The success of this workshop, with more than 65 students in attendance, reflects our commitment to bridging the gap between academia and industry. By providing our students with direct access to industry insights, we are ensuring they are well-prepared to embark on their careers.”

2025 SAICA and ICAN results reaffirm NWU as a leader in accounting education in South Africa

MARELIZE SANTANA — Mon, 07 Apr 2025 11:27:04 +0000

2025 SAICA and ICAN results reaffirm NWU as a leader in accounting education in South Africa

by Oscar Mosiane

MARELIZE SANTANA Mon, 04/07/2025 - 13:27

The North-West University (NWU) has again emerged as a leader in accounting education in South Africa. Its candidates achieved an overall pass rate of 95% in the January 2025 Initial Assessment of Competence (IAC) examinations of the South African Institute of Chartered Accountants (SAICA) and Institute of Chartered Accountants of Namibia (ICAN).

This compares to the national average pass rate of 70%, according to the results, which were announced on Friday, 4 April 2025.

“This year, a total of 141 candidates from the NWU passed the SAICA and ICAN exams, which is the highest number of successful passes in these exams in the history of the university,” says Prof Heleen Janse van Vuuren, director of the NWU’s School of Accounting Sciences. Among the university’s SAICA candidates, the pass rate was 95%, while the figure for ICAN candidates was 100%.

The latest results also reaffirm the NWU as a top contributor to the transformation of the chartered accountancy profession: 88% of the NWU’s African, coloured and Indian SAICA candidates passed, compared to the national average of 64%.

A total of 42 African, coloured and Indian candidates from the NWU passed the SAICA exam, 10 of whom are part of the SAICA Thuthuka programme. This is the highest number in the history of the university.

Prof Janse van Vuuren attributes these outstanding results to the support the faculty and its flagship programmes receive from the university’s management. “We celebrate our contribution to the transformation of the accounting profession, this year and over many years,” she says.

The January 2025 IAC exams were the first held under SAICA’s new Chartered Accountant of the Future Competency Framework. This updated framework reflects global trends in digital transformation and integrated thinking, focusing not only on financial but also on non-financial performance, ensuring a future-ready profession.

SAICA has applauded all the high performers and notes that the overall pass rate of 70% marks an improvement from the previous year’s overall pass rate of 67%, reflecting the effectiveness of SAICA’s initiatives aimed at supporting candidates.

TELIT-SA’s digital futures symposium explores how artificial intelligence is reshaping education

BELINDA BANTHAM — Tue, 01 Apr 2025 07:33:28 +0000

TELIT-SA’s digital futures symposium explores how artificial intelligence is reshaping education

by Angeline Marokoane

BELINDA BANTHAM Tue, 04/01/2025 - 09:33

The landscape of education is transforming at an unprecedented pace, driven by the rapid advancement of artificial intelligence (AI). This year’s iTLT Digital Futures Symposium, themed “Accelerating education through AI: Collaborative innovation for the future”, brought together leading experts from around the world to explore the ways AI is reshaping teaching and learning.

Held on 17 and 18 March at the Tsebonokeng Hall on the Vanderbijlpark Campus of the North-West University (NWU), the symposium was organised by the research entity Technology Enhanced Learning and Innovative Teaching in South Africa (TELIT-SA), housed within the Faculty of Economic and Management Sciences.

Prof Linda du Plessis, deputy vice-chancellor for teaching and learning at the NWU, officially opened the symposium. She emphasised the significance of AI in education and the need for collaborative innovation to drive meaningful change in teaching and learning practices. Her address set the stage for two days of thought-provoking discussions and knowledge-sharing.

AI tools can enhance learning and bridge gaps

The symposium started off with a compelling keynote by Prof Helen Crompton from Old Dominion University, USA. A globally recognised scholar and the executive director of the Research Institute for Digital Innovation in Learning, Prof Crompton emphasised the transformative potential of AI in education. She described how AI-driven tools can enhance learning experiences, personalise instruction and bridge educational gaps worldwide.

Drawing from her research, which spans collaborations with the United Nations, Oxford University and major tech firms such as Google and Apple, Prof Crompton provided a visionary roadmap for integrating AI into teaching practices.

Mario Paiano and Koen Suilen from Fontys University of Applied Sciences in the Netherlands then presented insights on integrating generative AI into education. Mario, an expert in mixed reality and emerging technologies, showcased how AI can revolutionise classroom experiences. The two presenters demonstrated AI-powered teaching methods that leverage visual storytelling to create engaging learning experiences.

The NWU’s Prof Wian Erlank, a distinguished legal scholar specialising in AI law, cyber law and property law in cyberspace, elaborated on the legal and ethical challenges surrounding AI in education.

Prof Liandi van den Berg, the director of TELIT-SA and organiser of the Digital Futures Symposium, provided valuable insights into the current research being conducted at the NWU on AI integration and usage by NWU students and staff. She showcased the AI student courses that have been developed, as well as preliminary research findings that indicate students are learning to use AI effectively and responsibility. Likewise, she briefly explained the structure and content of the innovative AI lecturer course being developed by TELIT-SA and collaborating colleagues within the NWU.

AI in challenge-based learning

On day two of the symposium, Prof Koen de Pryck of Montclair State University, USA, took the stage to discuss challenge-based learning (where students work together on real-life challenges) and how AI can be incorporated into it. With expertise in e-learning and competency-based education, Prof de Pryck stressed the importance of balancing technological advancements with effective pedagogy, ensuring that challenge-based learning enhances learning experiences.

Passionate IT educator Mark Mettler of Fontys University spoke about the importance of equipping lecturers with the skills to leverage AI’s potential. His hands-on session focused on designing creative AI-driven learning experiences that prioritise innovation and collaboration.

Koen Suilen, a curriculum specialist and co-author of Leven en leren met AI (Living and learning with AI), explored AI’s role in curriculum development. He detailed strategies for responsibly implementing AI tools in education, ensuring they serve as catalysts for critical thinking rather than passive consumption. His research underscores the need for educators to be well-informed on AI to guide students toward responsible and effective usage.

The symposium concluded with Prof Verona Leendertz, deputy dean for research and innovation in the Faculty of Economic and Management Sciences, delivering the closing remarks and vote of thanks.

She expressed her gratitude to the speakers, organisers, and delegates for their contributions and engagement throughout the event. A special word of appreciation went to Zama Chaacha, administrative and liaison officer of TELIT-SA for her massive contribution to organising and hosting the symposium together with various school and research administrative staff members who contributed. Prof Leendertz emphasised the importance of continued collaboration and research in AI and education, encouraging participants to apply the insights gained during the symposium to their teaching and learning environments.

The symposium concluded with Prof Verona Leendertz, deputy dean of research and innovation within the Faculty of Economic and Management Sciences, delivering the closing remarks and vote of thanks. She expressed her gratitude to the speakers, organisers, and delegates for their contributions and engagement throughout the event. A special word of appreciation went to Mrs Zama Chaacha, administrative and liaison officer of TELIT-SA for her massive contribution to organising and hosting the symposium together with various school and research administrative staff members who contributed. Prof Leendertz emphasised the importance of continued collaboration and research in AI and education, encouraging participants to apply the insights gained during the symposium to their teaching and learning environments.

Prof Linda du Plessis, deputy vice-chancellor for teaching and learning, addresses the audience.

Prof Helen Crompton from Old Dominion University, USA, interacts with the audience.

Prof Koen de Pryck of Montclair State University, USA, discusses challenge-based learning and how AI can be incorporated into it.

First-of-its-kind hunting study sheds light on hunters’ perspective

BELINDA BANTHAM — Mon, 17 Mar 2025 06:32:25 +0000

First-of-its-kind hunting study sheds light on hunters’ perspective

by Bertie Jacobs

BELINDA BANTHAM Mon, 03/17/2025 - 08:32

• Hunters, especially international hunters, believe that they benefit local communities.

• International hunters spend up to four times more per visit than local hunters.

• International hunters perceive their impact to be greater than local hunters.

• The perspective of the local community is still missing.

The target is in his sights. In his mind, the buck’s meat is already processed. He pulls the trigger gently and the shot rings loudly, echoing across the South African bush. For the hunter, it was an exhilarating experience, one he shares with thousands of hunters every year. But what does hunting tourism really mean for the local communities that live alongside it?

A recent study by North-West University’s (NWU) Tourism Research in Economics, Environs and Society (TREES) research unit examines this controversial and often misunderstood industry from an unusual angle: through the eyes of the hunters themselves. This first-of-its-kind study was conducted by Prof Peet van der Merwe and Prof Elmarie Slabbert and published in the journal Development Southern Africa under the title The (ir)relevance of hunting tourism to rural communities: A hunter’s perspective.

The findings are provocative: hunters believe they are not just participating in a recreational activity, but actively shaping the economies, infrastructures, and social dynamics of South Africa’s rural communities. Whether or not local communities share this perception remains an open question.

Hunting tourism is big business in South Africa. Each year, thousands of international and local hunters descend on game farms and reserves, spending large sums of money on guides, lodging and permits. International hunters visiting South Africa’s shores are mainly from the United States and stay an average of ten nights per trip, compared to just three or four nights for their South African counterparts.

The difference in spending is stark, with foreign hunters investing up to four times more per visit. Their financial footprint extends beyond the confines of hunting lodges, spilling over into local communities in the form of employment, service contracts and donations. According to the study, nearly a third of international hunters donate meat from their kills to local communities, and a quarter contribute to schools and public projects.

But is this enough to call it a lifeline for rural South Africa?

The study’s authors argue that hunting tourism does not exist in a vacuum, but sits at the intersection of economic survival, conservation policy and cultural preservation. More than 30% of South Africa’s population lives in rural areas, where unemployment and poverty are widespread. Here, hunting tourism is a rare source of formal employment. Game farms and lodges create jobs for trackers, lodge staff, cooks, and artisans, providing opportunities where few alternatives exist.

Hunters see themselves as the driving force behind this development. Their presence, they argue, leads to improvements in infrastructure, better maintained roads and increased security in the areas where they hunt. They claim that crime decreases in hunting zones and that local pride in traditional cultural practices – such as sustainable wildlife management – flourishes under the influx of revenue. However, these claims remain largely untested from the perspective of the communities themselves.

For all its perceived benefits, hunting tourism is a polarising issue. Its critics argue that it prioritises short-term economic gain over long-term sustainability. Research outside South Africa, notably in Namibia and Botswana, has found that banning hunting tourism can lead to job losses and increased poaching as communities lose a legal means of profiting from wildlife. The South African study echoes these concerns: hunters overwhelmingly see themselves as allies in conservation, directly funding anti-poaching initiatives and wildlife management efforts. Yet conservationists remain divided over whether hunting and biodiversity conservation can truly coexist in the long run.

The NWU study categorised the impact of hunting tourism into three main factors: prosperity, empowerment and revitalisation. Economic benefits ranked highest, with hunters citing job creation, income generation and improved living standards as their top contributions. “Revitalisation”– the idea that hunting tourism physically transforms rural areas through development – came last. Even among the hunters surveyed, expectations of direct infrastructure improvements remained modest.

There was, however, a clear divide between foreign and domestic hunters. International visitors were far more likely to see themselves as key players in community development. They highlighted their financial contributions, their role in maintaining game farms and their support for local projects. South African hunters, while recognising the economic benefits, were less inclined to see their role as transformative. This may be because they are local hunters and do not fully recognise their contribution. It's similar to people living by the coast not appreciating the ocean as much as people who visit the coast on holiday.

There is a simple reason for this. One of the findings of the study is that, although hunters are viewed as a collective, international hunters and local hunters have different perspectives on some of the impacts. The study showed that international hunting tourists perceive their impacts to be more significant than their domestic counterparts. Their spending may also influence their perceptions, as they spend three to four times more per hunt than domestic hunters. However, there are fewer international hunting tourists than local hunting tourists in South Africa; the impact of local hunting tourists is more important because they are more numerous. Local hunters should therefore be made more aware of their impact on communities. In simple terms, local hunters hunt more, which dilutes their own perceptions of their impact on local communities. They think less about the impact of their contributions.

The study suggests that South Africa’s hunting tourism model offers a potential blueprint for balancing conservation and rural development, but it also underscores how little is known about the actual on-the-ground effects. The voices missing from the conversation are those of local communities themselves. Do they see the same economic and social benefits as hunters? Are they benefiting equitably, or are the gains concentrated among landowners and tourism operators?

The study calls for further research, particularly from the perspective of those most affected. Until then, the debate about the place of hunting tourism in rural South Africa remains unresolved. But one thing is clear: for the hunters who return year after year, their impact is measured not just in the animals they hunt, but in the communities they believe they are uplifting.

Side Hustle Master Class promotes entrepreneurship

BELINDA BANTHAM — Fri, 14 Mar 2025 06:58:13 +0000

Side Hustle Master Class promotes entrepreneurship BELINDA BANTHAM Fri, 03/14/2025 - 08:58

By Gofaone Motsamai and Phenyo Mokgothu

The School of Management Sciences at the North-West University (NWU) hosted a Side Hustle Master Class at the Mahikeng Campus on 6 March 2025, bringing together students, lecturers and business professionals to explore strategies for developing and sustaining side businesses.

The event featured entrepreneur and author Willem Gous as the main speaker.

Prof Sonia Swanepoel, deputy vice-chancellor for community engagement and Mahikeng Campus operations, says such sessions are necessary to equip participants with practical skills to navigate the entrepreneurial landscape.

“We must move beyond the idea that a university degree leads only to employment. Students need to see entrepreneurship as a real option. Universities should not just produce graduates looking for jobs, but also individuals who can create economic opportunities for themselves and others.”

Willem encouraged participants to act despite uncertainty. “Fear stops many from starting,” he said. “Success begins with action, not hesitation. The key to a thriving side hustle is to embrace the journey, fuel ambition and turn passion into profit.”

To enhance the learning experience, participants received copies of Willem’s book as a practical guide to building sustainable side businesses. The School of Management Sciences also distributed bookmarks with key insights from the session.

“Entrepreneurship is not just about ideas; it is about execution. Now is the time to turn ideas into reality,” said Willem.

Entrepreneur and author Willem Gous led the Side Hustle Master Class.

International Symposium showcases a modern approach to academic discourse

BELINDA BANTHAM — Tue, 11 Mar 2025 09:28:55 +0000

International Symposium showcases a modern approach to academic discourse

by Zenoyise John

BELINDA BANTHAM Tue, 03/11/2025 - 11:28

The North-West University’s (NWU’s) School of Industrial Psychology and Human Resource Management recently held a successful international symposium that brought together esteemed academics and industry professionals from around the globe.

Prof Marissa Brouwers, deputy director of the school, says the need for the symposium was motivated by the visit of three distinguished international academics, Prof Charissa Freese and Prof Irmgard Borghouts from Tilburg University in the Netherlands, and Prof Nick Prince from Wyoming University, USA.

The highlight of the event was the public lecture titled “Towards new securities on an inclusive labour market”, delivered by the three visiting academics, and facilitated by the school’s Prof Bouwer Jonker.

With an audience comprising 13 in-person attendees and eight joining online, the symposium showcased a modern approach to academic discourse, ensuring inclusivity for participants regardless of their geographical location.

A variety of significant discussions emerged throughout the symposium. Key topics included the intersection of social security with social policy and industrial relations, emphasising the importance of job transitions and the role of human resource management in fostering a sustainable and inclusive labour market. Participants engaged actively on issues such as social security’s functions in prevention and income protection, as well as the influence of human resource management on social legitimacy and educational practices.

One of the most notable outcomes of the symposium was the establishment of future research collaborations on the inclusive labour market model between Tilburg University and the NWU. Delegates expressed their appreciation for the insightful discussions, noting the relevance of the content, particularly within the South African context.

Prof Brouwers adds that the symposium aligns with the NWU’s strategic priority of internationalisation. “By hosting this event, the School of Industrial Psychology and Human Resource Management harnessed global expertise and created a platform which will foster collaboration and enhance research. In addition, the International Symposium aligns with the Faculty of Economic and Management Sciences’ values of devotion to excellence and scientific involvement.”

The discussions at the symposium also shed light on the future of human resource practices worldwide. Participants agreed on the importance of adopting a sustainable social security perspective in human resources, enhancing social legitimacy, and nurturing international research partnerships to expand the inclusive labour market model.

In light of the symposium’s success, Prof Brouwers says the school is set to host an International Week on 26-27 May 2025, followed by the First Biennial Global People Practice Conference on 28 and 29 May. She adds that these upcoming events reflect a commitment to the continued fostering of international collaboration and knowledge sharing.

For more information on the upcoming events visit: https://commerce.nwu.ac.za/gppc.

The School of Industrial Psychology and Human Resource Management’s International Symposium was a great success.

GNU Budget should support growth-enhancing measures

MOIRA MULLER — Wed, 05 Mar 2025 06:53:26 +0000

GNU Budget should support growth-enhancing measures

by Willie du Plessis

MOIRA MULLER Wed, 03/05/2025 - 08:53

The fourth quarter (4Q) gross domestic product (GDP) growth figures that were released on 4 March are positive, but the mild recovery in the GDP in the 4Q of 2024 again confirms that the Government of National Unity (GNU) is right to have set much higher inclusive growth and stronger job creation as South Africa’s key overarching economic priorities.

In commenting on the growth figures, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the latest data again emphasises that growth in South Africa has been too low for too long and that the situation must be remedied by maintaining the right economic environment for investment and growth.

“With the figures coming on the eve of the presentation of the postponed Budget, the modest 4Q 2024 GDP growth of 0,6% must therefore also inform the tough choices facing the GNU in finalising an amended Budget. The GNU’s Medium Term Development Strategy itself has set an overall growth target of 3%, which is about the minimum needed for South Africa to begin to make a big dent in its unemployment levels and help to alleviate poverty.”

Prof Parsons says the GNU Budget on 12 March must therefore show a policy mix that carefully calibrates fiscal consolidation, avoids a negative tax-and-spend fiscal cycle, and supports growth-enhancing measures.

“Accelerated growth-friendly structural reforms, especially in infrastructure development, need to be implemented urgently to lift South Africa’s medium-term growth to 3%, say by 2027.”

According to Prof Parsons, fixed-capital formation remains a weak link in South Africa’s slow and uneven economic recovery, as it is still only at about 15% of GDP instead of the NDP’s target of 25% to 30%.

“Household spending has done most of the heavy lifting in South Africa’s economic upturn so far. Higher sustainable growth also helps to create the economic buffers and resilience needed to mitigate any external shocks caused by elevated global uncertainty,” he concludes.

Academic weighs in on possibility of South Africa losing AGOA trade benefits

BELINDA BANTHAM — Thu, 27 Feb 2025 09:38:09 +0000

Academic weighs in on possibility of South Africa losing AGOA trade benefits

by Mafumane Tlhapi

BELINDA BANTHAM Thu, 02/27/2025 - 11:38

The trade relationship between South Africa and the United States (US) faces uncertainty as tensions between Pretoria and Washington grow. The potential loss of benefits under the African Growth and Opportunities Act (AGOA) raises concerns about economic consequences for key industries.

"If South Africa loses AGOA benefits, the impact will be felt in manufacturing and agriculture," said Mpho Lenoke, an academic at the North-West University (NWU). "Increased tariffs will make South African products less competitive in the US market, affecting export revenue."

The removal of AGOA benefits may lead to job losses, particularly in manufacturing and agriculture. Companies dependent on AGOA benefits could struggle to maintain sales. Supply chain disruptions may occur, particularly in the automobile sector, where production relies on tariff-free access.

"Investor confidence could decline as companies reconsider their strategies," said Lenoke. "The uncertainty surrounding trade relations with the US could also affect the rand, increasing import costs."

Without AGOA, South Africa may seek trade alternatives with the European Union, BRICS nations, and the African Continental Free Trade Area (AfCFTA). The shift may not fully compensate for lost trade with the US.

"Increased dependence on BRICS, particularly China, could worsen trade imbalances," said Lenoke. "The AfCFTA offers opportunities, but the benefits will take time to materialise."

Exploring new trade agreements may become necessary. A bilateral free trade deal with the US could be an option, though negotiations could be lengthy. Enhancing South Africa’s economic partnership agreement (EPA) with the EU may help mitigate losses. Expanding trade with Asia and the Middle East could create additional export opportunities.

"South Africa must implement policies to support industries affected by the potential loss of AGOA," said Lenoke. "Investment in manufacturing, infrastructure and innovation is essential. Government support, including tax incentives and grants, will help businesses adjust to new trade conditions."

As uncertainty continues, industries reliant on AGOA benefits await clarity on future trade policies. The decisions made in the coming months may shape South Africa’s economic landscape for years to come.