The start of 2025 has ushered in a new global reality. President Donald Trump’s second term is not only reshaping the United States but also redefining its global position and the intricate interdependencies between nations. This shift forces us to confront a crucial question: how do we, as South Africa, adapt to a world that is rapidly changing?
When faced with seismic change, we have two choices—cling to outdated models or embrace a new approach. So far, many key players, both in the U.S. and South Africa, seem to be struggling with this decision. The private sector too seem to be grappling with the implications of the new global political reality, but also often have a far shorter timeframe to adapt. Exporters will feel the loss of preferential trade agreements immediately, and will continue the feel the impact over the many years it will take to replace or renegotiate treaties or market access
South Africa did not reach this crossroads with the election of US President Trump, but with the 2024 elections. The people of South Africa delivered a clear message: 30 years of ANC policy was not working and we demanded a new political direction. The formation of the Government of National Unity (GNU) has the potential to be a turning point. Yet, instead of crafting bold new policies, we seem stuck in a cycle of repeating past mistakes.
At the heart of South Africa’s challenges is the economy. A stagnant economy cannot support a thriving nation.
Growing the economy and creating jobs should be the GNU’s top priority. Instead, we see a continued reliance on overburdening an already small tax base. Finance Minister Enoch Godongwana acknowledges the need for economic growth, but the solution isn’t higher taxes—it’s expanding the tax base. That means job creation, business-friendly policies that enable people starting new businesses or expanding existing ones, and real investment and enabling policies in industries that can drive sustainable growth.
If the government is serious about change, it needs to focus on practical economic solutions. The government of national unity should have a unity of vision, and various departments should align to create policies that incentivise investment and unlock new business opportunities.
But domestic policy is one part of this puzzle. Just as our local context has changed since 2024, South Africa must recognise that the world stage has changed in just the past three months. Clinging to ideological positions of the past at the expense of economic opportunities is not a strategy — it’s a risk.
We must ask: Are we engaging with the world as it is, or as we wish it to be? The global economic and political order has shifted. Maintaining our moral high ground is important, but it cannot come at the cost of jobs, international trade, and economic stability.
We should aim to strengthen trade relationships across the board. South Africa is a country with immense growth opportunity, especially since we have the ability to export the fruits of our agricultural and industrial labour.
With domestic and foreign policy based on the singular principle to grow the economy, South Africa will be able to address many of our domestic social ills.
But economic growth won’t happen in a vacuum. Companies and individuals that use strategic communication and targeted stakeholder engagement to advocate for growth-oriented policies, build partnerships, and drive investment will shape South Africa’s future.
The GNU was formed out of necessity, but now it must prove its effectiveness in forging a new future for South Africa amidst unprecedented global shifts. We cannot afford to recycle policies that have failed before. Instead, we need leadership that is proactive, pragmatic, and prepared to navigate a new global reality whilst realistically dealing with the myriad of challenges locally.
The world has changed. So should we.
-Gerhard Mulder
Account Manager
