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Apophenia

2nd May 2025

By: Riaan de Lange

     

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There is a belief that things – especially bad things – happen in threes, which both my grandmothers swore by. However, sceptics see this as mere superstition rooted in cognitive bias, where we tend to notice patterns, even where occurrences are random. The number three also holds symbolic significance across many cultures and religions.

Could it be that we all have apophenia, the tendency to see patterns in random data? It’s supposedly a common human trait. If you are a regular reader of this column, you might be wondering whether you have the condition. So, do you spot a trend? It might well be an unfair question – after all, this is only the second paragraph of this article. But a trend does emerge when you look at this column alongside the two previous ones. Granted, the columns’ titles might not make it obvious, but all three are about US ‘reciprocal tariffs,’ a topic that is still very much in vogue.

This time – hopefully the last – the focus is on a media statement released by the Department of International Relations and Cooperation and the Department of Trade, Industry and Competition on April 4, which was titled ‘South Africa’s Strategic Adaptation to US Tariffs: Advancing National Interests through Policy and Strategy’.

Spoiler alert: South Africa ‘intends’ to do six things in its ‘strategic response’ to the US tariffs. Want to take a guess? Come on – pause for a moment, grab a pen and a piece of paper and jot down your six. No cheating.

The departments’ six are: negotiate favorable agreements (yes, the American spelling – arguably, one has to adapt to the new world order); diversify and expand trade relations; enhance regional trade collaboration; focus on value-added production; stimulate domestic growth; and forge global alliances.

Anything new? Well, if there is, welcome back, Rip Van Winkle. (He’s a character – a Dutch-American villager – from a short story by Washington Irving who falls asleep in the Catskill Mountains and wakes up 20 years later to a changed world, having missed the American Revolution.) The American references are quite poignant, but you could argue that the South African version should involve a 31-year sleep.

As for its ‘strategic response’, “South Africa will continue to navigate the challenges and opportunities these measures present with resilience and innovation. Guided by its national interests and aligned with its broader trade and industrial policy, South Africa is committed to ensuring economic growth, industrial development, and the wellbeing of its citizens.”

In summary: “South Africa will work to secure opportunities in the context of a rapid withdrawal of favourable arrangements, giving South Africa’s exports preferential access to the US. This might involve securing additional exemptions and favourable quota agreements.

“Efforts will intensify to diversify export destinations, targeting markets across Africa, as well as in Asia, Europe, the Middle East and the Americas.

“This diversification supports South Africa’s industrial strategy and reduces dependence on single-destination markets for our exports or single sources for our intermediate input requirements, fostering resilience in line with national economic priorities.

“South Africa will leverage the African Continental Free Trade Area Agreement to bolster intra-African trade, fostering stronger regional economic integration and cooperation.

“Industries will prioritise transforming raw materials into higher-value finished goods, reducing tariff exposure and driving innovation to improve profitability. This supports South Africa’s industrial policy objectives of boosting local manufacturing and creating jobs.

“The government will invest strategically in industries impacted by the tariffs, supporting economic growth through modernisation and targeted infrastructure development. This aligns with the national interest of ensuring the wellbeing of South African citizens.

“South Africa will continue to build strategic partnerships with other nations, enhancing collaboration and our influence in international trade negotiations. This reflects the national interest in strengthening global diplomatic and economic ties. South Africa’s tariff and industrial strategy are designed to support industrial development, employment growth, and economic resilience. By aligning these policies with the national interest, South Africa will ensure that its economy emerges stronger, more diversified, and resilient in the face of global trade complexities.”

Nothing you have read has not been said before. The question remains: What is the pace at which the six courses of action will be implemented?

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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