One of South Africa’s richest women sends a warning back home
Sygnia co-founder and CEO Magda Wierzycka has cautioned that South Africa faces significant economic risks should Donald Trump return to the White House in 2025.
Her warning, delivered in Sygnia’s 2024 annual results and integrated report, underscores the importance of South Africa remaining neutral in an increasingly polarised global trade environment, especially as part of the BRICS bloc alongside Brazil, Russia, India, and China.
Reflecting on Trump’s first term, Wierzycka highlighted his dismissive approach to Africa, warning that South Africa would likely receive little attention—or favour—under another Trump presidency.
“As we know from his last administration, Trump has little time for Africa, generally, and he will have no time for South Africa,” she said.
She urged the South African government to follow India’s example by maintaining neutrality to avoid being drawn into global trade wars. “It is not what you say but what you do that matters,” she stressed.
South Africa’s alignment with BRICS, coupled with its economic ties to China and Russia, places it in a vulnerable position should Trump escalate trade measures against BRICS nations.
Trump’s previous presidency demonstrated his willingness to use tariffs and other trade barriers as tools of economic warfare.
During his first term, the Trump administration raised average US import tariffs from 2.6% to 16.6% across 12,043 products, impacting goods worth over R5.9 trillion ($303 billion) annually.
Among the most significant moves was a 25% tariff on Chinese imports worth approximately R970 billion ($50 billion).
These protectionist measures, aimed at safeguarding American industries and countering China’s influence, had ripple effects on global trade.
Sygnia Chair Haroon Bhorat described these policies as harmful not only to the countries targeted but also to the US and global economies.
“This is bad for final consumers, inflation, and, ultimately, global economic growth,” Bhorat said.
The tariffs increased costs for American households, added inflationary pressure, and disrupted global supply chains, creating economic challenges for interconnected economies like South Africa.
If Trump returns to power, analysts predict he could intensify such policies, potentially targeting BRICS nations more aggressively.
South Africa’s role within BRICS could make it a collateral target in a broader effort to counter China and Russia, even if the tariffs are not directly aimed at South Africa.
This poses a significant risk to key sectors such as mining and manufacturing, which rely heavily on exports to sustain the country’s fragile economy.
South Africa is already grappling with severe economic challenges, high unemployment and slow growth.
The potential imposition of US tariffs or other punitive measures would add further strain, undermining efforts to stabilise and grow the economy.
Wierzycka emphasised the uncertainty surrounding Trump’s policymaking, describing him as unpredictable.
“With Trump in charge of the world’s largest economy, it is fair to say that we should expect the unexpected,” she said.
This unpredictability complicates South Africa’s ability to plan effectively, particularly as it seeks to balance its BRICS commitments with broader international trade relationships.
Despite the risks, some experts note that Trump’s campaign rhetoric may not always translate into action.
Domestic political pressures, opposition from US businesses, and resistance from international trade bodies could limit his ability to implement sweeping tariffs.
However, the potential for heightened tensions and economic disruptions remains significant, particularly if South Africa is perceived as aligning too closely with China or Russia.
To mitigate these risks, Wierzycka advised South Africa to emulate India’s pragmatic neutrality.
India has skillfully navigated its relationships with major global powers, avoiding entanglement in their disputes while pursuing its economic interests.
By adopting a similar approach, South Africa could reduce the likelihood of being targeted in a potential trade war while positioning itself as a stable and reliable partner in the global economy.
Haroon Bhorat echoed this sentiment, predicting that a second Trump term could bring substantial policy changes, including further tariff hikes, tax reforms, and climate change policy reversals.
For South Africa, the stakes are high. Its economic recovery depends on careful navigation of global trade dynamics, particularly as BRICS nations become increasingly entangled in geopolitical rivalries.
Neutrality, paired with strategic diplomacy, may offer the best chance to shield the country from potential fallout.
As Wierzycka noted, 2025 could prove pivotal for South Africa’s future.
“I hope that 2025 is a pivotal year in shaping South Africa’s economic recovery and growth trajectory for the coming years,” she said.
Her warning underscores the importance of proactive planning and measured diplomacy in an uncertain global landscape.
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