Mcebisi Jonas, former deputy finance minister and current MTN chair, urged South Africa to diversify trade partners and adopt a free-trade approach to guard against the "weaponization of trade." He recommended deepening ties with the US and EU while exploring markets such as Canada and parts of Asia. Jonas said the country must rebuild state capacity — negotiating depth, regulatory agility and export competitiveness — to escape a chronic low-growth trap. Recent U.S. tariffs and diplomatic friction have underscored the urgency of reform.
South Africa Must Diversify Trade to Counter 'Weaponization of Trade,' Special Envoy Warns
Mcebisi Jonas, former deputy finance minister and current MTN chair, urged South Africa to diversify trade partners and adopt a free-trade approach to guard against the "weaponization of trade." He recommended deepening ties with the US and EU while exploring markets such as Canada and parts of Asia. Jonas said the country must rebuild state capacity — negotiating depth, regulatory agility and export competitiveness — to escape a chronic low-growth trap. Recent U.S. tariffs and diplomatic friction have underscored the urgency of reform.
09:02 PM, 11/19/2025Economy
Mcebisi Jonas, former deputy finance minister and current chair of MTN, urged South Africa to broaden its trade relationships and adopt a freer-trade approach to shield the economy from the growing "weaponization of trade." Speaking at a Johannesburg event, he said the country must move beyond an exclusive focus on investment treaties and pursue a more outward-looking, export-led strategy.
Why this matters
Earlier this year the United States imposed a 30% tariff on certain South African imports, citing concerns about discriminatory laws. President Cyril Ramaphosa described the measure — which analysts warn could cost as many as 100,000 jobs — as a "wake-up call." The tariffs and the U.S. decision to skip the upcoming G20 summit in Johannesburg have underscored how geopolitical shifts can translate quickly into economic pain.
Jonas' prescription
Jonas argued that South Africa must diversify its commercial ties: strengthen existing links with the US and EU, but also deepen relationships with other markets such as Canada and parts of Asia. He called for a structural reset of the country’s trade doctrine to meet a more transactional, multipolar world.
"Growth depends on a strong and dynamic private sector… but for that to happen you also need a strong and dynamic state," Jonas said, urging renewed investment in negotiating capacity, regulatory agility, and export competitiveness.
That rhetoric challenges decades of defensive industrial-policy instincts in Pretoria. Jonas warned that remaining locked into a 1990s policy framework will leave South Africa exposed as global trade becomes more fragmented and politically charged.
What needs to change
Jonas called for rebuilding state capability to negotiate trade deals, streamline regulation, and support exporters — not by retreating from global markets but by diversifying partners and modernizing policy tools. The goal is to create an environment where private-sector dynamism and a capable state reinforce each other to drive sustainable growth.
Ramaphosa has echoed the urgency of adapting to new trade realities, saying recent tariff actions were a wake-up call to broaden and strengthen South Africa’s international economic ties.