PwC: South Africa’s business model reinvention amid global shifts
South African businesses find themself at a critical juncture – one shaped by global shifts but defined by the power of reinvention.
By Hannelie Gilmour, Consulting Leader, PwC South Africa and Christie Viljoen, Senior Manager, PwC South Africa
South African businesses find themself at a critical juncture – one shaped by global shifts but defined by the power of reinvention. Trade tensions are rising globally. Tariffs are taking their toll on the economy. The future of the African Growth and Opportunity Act (AGOA) is uncertain. And key industries, such as automotive, agriculture and manufacturing are under pressure due to reduced export competitiveness, rising input costs and uncertainty in global trade relationships. This is more than a crisis – it’s a turning point, offering South African businesses a chance to innovate, adapt and lead in a changing global landscape. South Africa has the chance to forge new economic paths through: Bold innovation. Strategic diplomacy. And sweeping business transformation.
Can South African business reinvent itself amid US trade pressure?
The recent imposition of tariffs on South African exports to the US has jolted the country’s trade landscape, threatening key sectors and testing the resilience of its export-oriented economic growth strategy. The US is South Africa’s second largest trading partner after China and a key market for exported metals, manufactured goods and agricultural products.
While the headlines have focused on diplomatic overtures – most notably President Cyril Ramaphosa’s high-level visit to Washington in May – the real story lies in how South Africa is positioning itself to adapt, evolve and lead through this period of global trade uncertainty.
At stake is more than just preferential access under the African Growth and Opportunity Act (AGOA) – a trade programme that provides South African exporters with duty-free access to US markets. The US tariffs expose structural vulnerabilities in South Africa’s export economy, particularly in agriculture and automotive manufacturing. These sectors – long reliant on favourable trade terms – now face the prospect of diminished competitiveness in one of their most important markets. The challenge is not only to preserve existing advantages but to build a more agile and diversified trade model.
In response, South Africa is embracing a multi-dimensional strategy. While diplomacy remains a critical tool – evidenced by Ramaphosa’s direct engagement with President Donald Trump and the inclusion of key ministers, business leaders and labour representatives in the SA delegation – the government is also accelerating domestic reforms. Investments in industrial modernisation, infrastructure upgrades and trade diversification are gaining momentum. These efforts aim to reduce dependency on any single market and to future-proof the economy against geopolitical shocks.
The shift is as philosophical as practical. South Africa is beginning to reframe trade not as a static set of agreements, but as a dynamic arena where innovation, competitiveness and strategic alliances determine long-term success. This includes exploring new markets in Asia and Latin America, leveraging the African Continental Free Trade Area (AfCFTA) and fostering public-private partnerships to drive export readiness.
President Ramaphosa’s US visit, then, is best understood not as the centrepiece of South Africa’s response, but as one element in a broader, forward-looking strategy. Whether or not AGOA benefits are preserved, the country’s ability to adapt to shifting trade winds will depend on its willingness to reinvent itself – through smart policy, resilient industries and a bold vision for global engagement.
For South African companies, the outcomes of SA-US talks could shape access to critical export markets and influence long-term investment decisions. As negotiations evolve, businesses should prepare for multiple scenarios – while also exploring new growth opportunities through regional trade and strategic diversification.