22 Jan Interview with Andrew Whitfield, Deputy Minister of Trade, Industry and Cooperation, South Africa
The Department of Trade, Industry and Competition (DTIC) is central to South Africa’s economic growth.Could you share your strategic vision for the Ministry and your priorities?
South Africa’s Department of Trade, Industry and Competition (DTIC) is focused on reindustrializing the economy to address high unemployment and low growth. Our priority is driven by a revised industrial policy framework that addresses historical inequalities, including racial and gender disparities. We are committed to promoting inclusive growth and job creation, as outlined by the president’s Government of National Unity (GNU).
Export-led growth is central to our approach. We aim to support competitive South African industries in expanding globally, especially in markets like the U.S., while building new trade partnerships. Beyond manufacturing, we see significant potential in service exports, such as global business services, legal and financial services and tech-based solutions. South Africa is home to over 50 international companies offering global business services and it’s not limited to call centers. We have skilled software engineers, legal experts and financial professionals exporting high-value services worldwide. With eight million unemployed South Africans, including many graduates, expanding the services sector is crucial for job creation and economic diversification.
We have revised our annual performance plans to align with the new administration’s goals, emphasizing stronger engagement with the private sector. This collaboration is essential for driving investment, expanding market access, and positioning South Africa as a competitive player in the global economy.
With the formation of the GNU, the country is charting a new course toward stability and economic progress.What is your outlook for South Africa’s economy in 2025 and how do you see the new GNU impacting industry growth and direction?
The GNU has positively shifted both domestic and global sentiment towards South Africa. The change in international perception is notable. In recent visits to Washington, London and Dublin, I have seen major banks viewing South Africa more favorably. However, we know sentiment alone isn’t enough — we need tangible progress. We have seen positive shifts: inflation has dropped to 2.8%, interest rates are stabilizing and business confidence is rising. Credit rating agencies are also more optimistic. These factors, coupled with reforms, are creating a more favorable environment for investment and growth. Reforms under initiatives like Operation Vulindlela — focused on energy, rail and ports — are addressing key constraints.
For instance, while load shedding remains a challenge, improvements are underway. Success will be evident when we stop counting the days without outages. DTIC is focused on building resilient value chains, protecting jobs and creating new ones. Our core mandate is to make it easier for businesses to operate, hire and retain employees, ensuring long-term, sustainable growth.
How is the Ministry driving economic diversification and enhancing the competitiveness of South African industries? How do you see Special Economic Zones (SEZs) attracting investors?
The automotive sector is vital, but diversification is key. We see significant potential in developing the decarbonization value chain, particularly in battery manufacturing and assembly. Some local battery manufacturers have already received support from DTIC and we believe this sector can grow further. Green hydrogen is another promising area, with ongoing and upcoming investments. As carbon regulations like Europe’s Carbon Border Adjustment Mechanism come into effect, it’s essential for South Africa to embrace sustainable manufacturing while balancing our reliance on coal during the transition.
There are other sectors we see with opportunities for growth. Services exports remain an underexploited opportunity. Expanding this sector could provide significant economic benefits and further diversify our economy beyond traditional industries.
Special Economic Zones (SEZs) offer tax incentives and significant investment in facility development. To maximize their impact, we need an industry-specific SEZ strategy. For example, to compete in global business services, we must provide the necessary spaces, incentives and digital infrastructure. Digital infrastructure is a priority for SEZs as it is critical for economic competitiveness. Our recent annual performance plan emphasizes digitization. A good example is the Atlantis SEZ in Cape Town, which focuses on green industries, demonstrating the success of sector-specific SEZs.
How is the South African government improving the investment climate to attract FDI?
We are rebuilding state institutions weakened during the past decade to restore trust and create a secure environment for investment. A strong criminal justice system and effective governance are essential to attracting investors and protecting their interests. South Africa, as the most industrialized country on the continent, serves as a gateway to the African Continental Free Trade Area (AfCFTA). With a young population of 1.8 billion, Africa offers immense opportunities. The DTIC is focused on helping investors in South Africa access these markets and unlock their potential.
What do you see as the biggest areas for growth and cooperation in U.S.-South Africa trade relations and how do you envision this relationship evolving over the next few years?
Our trade relationship with the U.S. is strong and we currently enjoy a trade surplus. The African Growth and Opportunity Act (AGOA) has been vital for us and we encourage other African nations to maximize its benefits. South Africa’s role in AGOA is critical, particularly in supporting regional value chains for exports. Agriculture offers significant opportunities. Expanding market access will benefit farmers in both South Africa and the U.S. During our July visit to Washington, Minister Patel and I met with Ambassador Katherine Tai and agreed to revive the Trade and Investment Framework Agreement (TIFA). This bilateral platform will help address issues that may be overlooked in broader AGOA discussions.
The Minister’s focus on refining Broad-Based Black Economic Empowerment (B-BBEE) is crucial for attracting international investors. Programs like the Equity Equivalent Investment Program already allow multinationals, especially those with global policies preventing equity transfers such as automotive manufacturers, to earn B-BBEE points through alternative investments instead of direct ownership. Expanding such initiatives can create a more favorable investment climate across various sectors.
Improving digital infrastructure, especially in rural areas, is another key priority. For example, increased connectivity through initiatives like Starlink could boost South Africa’s GDP by 1.7% for every 10% improvement in access. Addressing the lingering effects of apartheid spatial planning, which isolates many from economic opportunities, is essential. Better connectivity can unlock market access for small businesses, stimulate rural economies and reduce rural-to-urban migration by creating jobs where people live.
AGOA needs to be renewed in 2025. How do you see its renewal impacting South Africa’s trade relationship with the U.S. and how can South Africa and the U.S. work together to align trade agreements with industrial policies?
AGOA has enjoyed bipartisan support in Washington for over 20 years, with Congress recognizing its mutual benefits. While recent security and foreign policy concerns were raised during our visit, we have made significant progress in resetting the relationship. In the past five months, the GNU has engaged extensively with U.S. leaders, including ministerial delegations and the president’s visit to New York.
South Africa plays a pivotal role in AGOA and our swift formation of a coalition government with ten political parties within two weeks after the election was highly praised in Washington, reflecting our commitment to democracy. This stability strengthens our position as a key partner for trade and investment. With a new U.S. administration taking office in January and major policy announcements expected in March, we are preparing a strategy to align our industrial policies. Understanding these policy shifts will be crucial for maintaining and expanding our trade relationship with the United States.
How is the DTIC supporting regional trade, and how can U.S. companies leverage South Africa’s position to access broader African markets?
Our trade branch has been working extensively with other African nations to navigate the complex legal and regulatory adjustments required for the AfCFTA. Last month, the Minister visited Addis Ababa to advance this process, which, once fully implemented, will offer significant opportunities for South African companies already operating here. Our goal is to support these businesses by facilitating their access to new markets across Africa. We have a dedicated team ready to help companies understand the benefits of AfCFTA and seize emerging opportunities.
A key focus will be improving communication about these advantages. Once details are finalized, we will launch a comprehensive outreach plan, including engagement with stakeholders like the American Chamber of Commerce in South Africa. We also discussed aligning AfCFTA with AGOA during our visit to Washington. While there are challenges, the newly established TIFA will help address obstacles and unlock growth potential across the continent.
What is your final message for USA Today readers about choosing South Africa as their next trade and investment destination?
South Africa’s democratic resilience and the maturity of our citizens send a strong message to investors: South Africa is open for business. We are committed to protecting the rights of citizens, investors and businesses while unlocking opportunities across the continent. South Africa offers an ideal gateway for companies looking to expand into Africa’s growing, young population, particularly in network industries that require significant investment.
We recognize our challenges, but are addressing them through initiatives like Operation Vulindlela. The Department of Trade and Industry, along with Invest South Africa, is ready to assist with regulatory issues, visas and other investment-related needs to accelerate growth and job creation. Over the past five months, we have increased engagement with the private sector, including U.S. companies, and are committed to creating a more favorable environment for investment. South Africa is ready and eager to partner with global investors.