The South African Reserve Bank SARB has warned that the ongoing US tariffs on local exports and the end of the African Growth and Opportunity Act AGOA will eat away at already low growth and cost thousands of jobs.
The central bank noted in its Monetary Policy Review this week that it expects South Africa's economy to grow moderately in 2025 and 2026, but will not breach above 1.5.
The second half of 2025 has been hit by weak fixed investment and the implementation of the Trump administration's tariffs, meaning the economy is unlikely to grow by more than 1.2 in GDP growth.
While South Africa has been under the weight of tariffs since April, the first half of the year was only subject to the universal 10 tariff imposed by US President Donald Trump at that time.
