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The Standing Committee on Appropriations has noted that South Africa’s export sector continues to face significant pressure, largely due to the 30 percent trade tariffs imposed by the United States government since August 2025.
 
The committee received a briefing from the Department of Trade, Industry and Competition (DTCI) on the 2026 Appropriation Bill. The committee also engaged with the DTCI on economic growth, industrial support and the challenges facing South Africa’s export sector and the impact of its incentive programme.
 
The committee noted that the economic sector is further constrained by unresolved inefficiencies in the country’s ports and rail network, as well as rising global oil prices linked to the blockage of the Strait of Hormuz and ongoing tensions in the Middle East.
 
The DTCI also told the committee that work is continuing to stabilise and support the sugar industry, particularly in KwaZulu-Natal, where the sector remains a major source of jobs and economic activity.
 
The Chairperson of the committee, Dr Mmusi Maimane, said South Africa must urgently pursue stronger economic growth to meet the needs of a growing population and reduce dependency on the social welfare system. Dr Maimane said economic growth of at least 3.6 percent is necessary if the country is to create meaningful employment opportunities and expand economic participation.
 
He welcomed the department’s interventions in key industries, especially the steel sector, noting that many industries are deeply connected to the survival of entire towns and communities.
 
“When a factory or steel plant closes, the impact goes beyond the loss of jobs. Entire towns are affected, local economies collapse and communities are left without opportunities,” said Dr Maimane. He added that state investment in strategic industries should not only be viewed as support for economic growth, but also as an important tool to prevent greater social and economic hardship.
 
“We cannot separate economic development from the growing pressure on the welfare system. The long-term goal must be to reduce the number of people dependent on social support by creating pathways into economic participation and decent work,” he said.
 
Dr Maimane said the country must position itself to compete with the rapidly growing economies such as China and India by supporting industries that have the potential to drive growth, innovation and employment across different regions of the country.

Issued by the Parliamentary Communication Services on behalf of the Chairperson of the Standing Committee on Appropriations, Dr Mmusi Maimane.