SA Trade v USA – Ignore MSM - BRICS+ Grow - Expropriation Bill - Mozambique - Failed Province - SA & WEF - Health Aid Fail - Dump the Hegemon - Inflation Rises - Letter from South Africa - [02-08-25]

The book of Daniel relates to current events. It has fulfilment in the persecution of the followers of Christ, and Satan’s actions against the covenant between God and mankind. [Daniel 11:30-39]

SOUTH AFRICA FOCUSES ON REDRESSING THE PAST, SAYS RUMOURED TRUMP'S AMBASSADOR PICK, NEEDS ATTENTION

President Donald Trump's possible pick for US ambassador to SA, Joel Pollak, says the country must abandon race-based policies and align with the US on Israel and China if it is to continue to benefit from aid and special trade arrangements. Trump has yet to make his choice for ambassador. However, whether Pollak gets the job or not, he has great insight into how Trump sees SA.

In recent weeks, Pollak - editor-at-large at Breitbart News and an influential figure within the MAGA movement - has been vocal about the implications of the Trump administration for SA. On Monday, SA woke up in shock to a plummeting rand after Trump tweeted that he would cut all aid to SA due to the Expropriation Act, which he said had resulted in the "confiscation of land" and "massive human rights violations".

“We will not be bullied,” South Africa’s President Cyril Ramaphosa emphatically told his nation’s Parliament on Thursday. “We are witnessing the rise of nationalism, protectionism, the pursuit of narrow interests and the decline of common cause,” Ramaphosa said during his State of the Nation address. “But we are not daunted to navigate our path through this world that constantly changes. We will not be deterred. We are, as South Africans, a resilient people.”

While he did not mention any bully by name, Ramaphosa’s remarks came just days after Donald Trump threatened to cut all funding to South Africa, alluding to the long-running false narrative that white South Africans are being mistreated by the nation’s post-apartheid government.

In an interview from California, where he lives, Pollak says that Trump's seemingly out-the-blue tweet about SA on Sunday was not unexpected and the new president has a coherent and long-standing desire to force change in SA. "Trump is going to play hardball," says Pollak. "SA has adopted a set of economic and foreign policies that are at odds with Western norms, and he wants to see those policies change. For instance, black economic empowerment (BEE) is a huge problem for investors.

Closely linked to this is the land reform issue, a particularly strong concern of the American conservative movement, which has tracked SA's legislative developments around the expropriation act. Trade Union ‘Solidarity, which has campaigned against the Expropriation Act in the US, found a ready audience in the MAGA movement during Trump's last term.

In a piece for Breitbart on Monday, following Trump's tweet, Pollak accurately described the new Expropriation Act as similar to laws in the US, which enable the government to take land through "eminent domain" for public purposes. But at the same time, he threw into his introduction the spectre of land grabs, writing that "many fear (that the new law) could lead to Zimbabwe-style seizures of land owned by white citizens."

So, given the limitations the Expropriation Act has put on when land can be taken by the state, does he really think this is likely and possible? "I think it could happen, and given SA's long indulgence of Zimbabwe, it would be unreasonable to think it couldn't happen. The threat of expropriation has definitely discouraged American investment in South Africa.

The new administration strongly disapproves of SA's relationship with Russia and China through the BRICS+, the ANC's frequent displays of support for Russia in the Ukraine war, its support for Hamas, and the SA government's court action against Israel at the International Court of Justice (ICJ).

According to Pollak, concerns about SA are now broader and deeper. A general and widely held sentiment is that SA is not co-operating with the US on the international stage. Even Democrats have been asking why SA is included in AGOA if it constantly helps Russia at a time when Russia is disrupting the international order with the war in Ukraine and by, essentially, offering aid and comfort to Hamas.

One of Trump's big concerns is how China has succeeded by indirectly benefiting from AGOA through its involvement in African economies. The recent spat with Panama over the Panama Canal is instructive, where the US has said it will take back the canal, which it built because it is now operated by a Chinese company that has extended its influence over it.

As in many external relationships over the past 30 years, the ANC government has talked ‘Left’ but walked in ‘The Centre’. The pattern is well-established: ANC politicians and allies publicly spout anti-capitalist and anti-US sentiment to fire up their constituency but then belatedly send a delegation of moderates to Washington to explain and promote SA's "real" policy outlook and approach.

Pollak won't comment on rumours that he is shortlisted to represent Trump in SA. However, he can be considered well-placed, being both a Trump loyalist and someone with first-hand knowledge of SA. He was born in Johannesburg in 1977, shortly before his parents left the country for the US. He grew up in Chicago as a US citizen and returned to SA as an exchange student while at school. He also spent some time volunteering in Khayelitsha, where, among other things, he established a chess club in Site C, one of the township's poorest areas.

He returned to SA from 2000 to 2006, working in then-DA leader Tony Leon's office for four years. There, he met his future wife Julia, a labour economist and the daughter of prominent anti-apartheid activist, Rhoda Kadalie. Despite the disappointment at some of the failures of the transition to democracy, Pollak says the US would be wrong to write off SA. "There are enough people investing in SA, trying to innovate and who care about it, so that's something to work with." Sources

• On Monday, SA woke up in shock to a plummeting rand after Trump tweeted that he would cut all aid to SA due to the Expropriation Act, which he said had resulted in the "confiscation of land" and "massive human rights violations" https://www.news24.com/fin24/economy/the-world-is-tired-of-sas-focus-on-redressing-the-past-says-rumoured-trump-ambassador-pick-20250204?lid=efiat5b909yi

• DA leader says it is ‘unfortunate that individuals have sought to portray The Expropriation Act as an amendment to the constitution’ No one’s land will be confiscated, assures Dean Macpherso - Public works and infrastructure minister says there will be no land grabs in SA

MAKE NO MISTAKE, this Article from Biz-News is a ‘Typical MSM’ Standard Narrative. I am linking it to present the other side (The Global North), and to show that South Africa could embrace its future international trading relations with ‘The Global South’ and free itself from the chains of corporate America, as I wrote HERE on January 11, 2025.

NSN: "With Trump back, SA needs to urgently rethink its stance on Israel and BRICS+. "[Ed: Really? How about telling the Hegemon to get stuffed?] [January 10, 2025 by Linda van Tilburg [NB: She's a patsy for the MSM]. One of the architects of the African Growth and Opportunity Act (AGOA) has urged South Africa to avoid being a leading megaphone on issues related to Israel and BRICS+. Tony Carroll, a non-resident fellow with the Carnegie Endowment for International Peace Africa Programme, emphasised in an interview with National Security News that these positions clash with the views of the incoming Trump administration and leading Republicans.

Key Republicans are urging the incoming Trump administration to reconsider South Africa’s participation in US trade agreements with Africa, should the South African government maintain its current position on Russia, China, Iran, and Israel. At risk are South Africa’s duty-free exports to the US, such as automobiles and citrus fruits, under the African Growth and Opportunity Act (AGOA) and PEPFAR, the US-assisted health program to combat HIV/AIDS.

Carroll said a factor that could sway senators and congressmen in favour of retaining AGOA is “we’re replacing Chinese or East Asian production and for that there is no negative impact on U.S. domestic production.” African countries in general, and South Africa in particular, must demonstrate that there are strong diplomatic and economic benefits in AGOA. He also suggested that South Africa should get more boots on the ground in Capitol Hill to interact with the media, think tanks, business associations and Trump administration officials [Ed: aka mafiosi]

Read more: Johann Rupert urges action to save AGOA for South Africa

Further reading:

• https://businesstech.co.za/news/government/806593/south-africa-sitting-on-a-gold-mine-for-jobs-and-economic-growth/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

• [This article was first published by National Security News and is republished with permission]

• Why Trump and South Africa Are at Odds https://time.com/7213703/trump-south-africa-elon-musk-white-land-expropriation-act-explainer/

BRICS+, THE GLOBAL SOUTH-LED FORUM FOR ECONOMIC COOPERATION continues to grow in influence, as its seeks to de-dollarise and transform the international monetary and financial system. After admitting four new members in 2024, BRICS+ expanded with nine new members on January 1, 2025:

New Members are: Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Uganda, and Uzbekistan. With its nine members and nine partners, BRICS+ now makes up roughly half of the global population and more than 41% of world GDP (PPP). The group is an economic powerhouse, including top producers of key commodities like oil, gas, grains, meat, and minerals.

At the BRICS summit in Kazan, Russia in October 2024, 13 countries were invited to become BRICS partners, meaning they are on the path to full membership in the near future.

Nine of these 13 nations accepted the invitation. The remaining four did not give a formal response as at the end of 2024. These were Algeria, Nigeria, Turkey/Türkiye, and Vietnam.

The Russian government, in December 2024, announced the admission of the nine new partners, emphasising that “we expect in the near future responses will come from the other four."

• With such a powerful group of growing nations, in economics, resources, and with a young population, the West, led by the Hegemon, know that they can't compete in the 21^st century. It would be sensible for them to cooperate rather than continuing their bullying tactics of the last half century. My advice to South Africa is: dump the Hegemon and run with BRICS+ Source: BRICS expands with new partner countries https://geopoliticaleconomy.com/2024/12/25/brics-expands-9-partner-countries-population-economy/

STOP PRESS – Ramaphosa Signs Controversial Expropriation Bill Into Law

Understanding the implications of South Africa's Expropriation Bill signed by Ramaphosa. Neil de Beer, the President of the United Independent Movement (UIM), commented on the crisis in the Government of National Unity (GNU) following Cyril Ramaphosa's signing of the Land Expropriation Bill. He says Democratic Alliance (DA) leader, John Steenhuisen “can’t just now throw his toys out of the cot; he has to now go to the table and see if he can save the GNU”.

The Presidency said that local, provincial, and national authorities will use this legislation to expropriate land in the public interest for varied reasons that seek, among others, to promote inclusivity and access to natural resources. The Bill repeals the Expropriation Act and provides a common framework, in line with the Constitution, to guide the processes and procedures for expropriation of property by organs of State.

In terms of this law, an expropriating authority may not expropriate property arbitrarily or for a purpose other than a public purpose or in the public interest. The Presidency added that expropriation may not be exercised unless the expropriating authority has, without success, attempted to reach an agreement with the owner or holder of a right in property for the acquisition thereof on reasonable terms. “An expropriating authority is therefore obliged to enter into negotiations with the owner of a property required for such purposes."

An expropriating authority must also attempt to reach an agreement on the acquisition of the property before resorting to expropriation, except in circumstances where the right to use property temporarily is taken on an urgent basis in terms of a provision in the legislation.” The Presidency said that the law provides for disputes to be referred for mediation or to appropriate courts.

Farming association TLU’s SA general manager, Bennie van Zyl, said that President Ramaphosa has today signed the Expropriation Act, raising serious concerns about property rights in South Africa. But it should be noted that many other countries have such laws. In America it is called "Eminent Domain" and in Britain it is referred to as "Compulsory Purchase" Source

• Understanding the implications of South Africa's Expropriation Bill Signed by Ramaphosa https://www.iol.co.za/business-report/economy/understanding-the-implications-of-south-africas-expropriation-bill-signed-by-ramaphosa-208bffd8-5af1-4f99-b43f-dedb0b13d520

Public works and infrastructure minister Dean Macpherson, of the DA, opposed president Cyril Ramaphosa’s signing of the Expropriation Bill into law

NEWS FLASH - MOZAMBIQUE IS ON A KNIFE EDGE

Mr. Mondlane, arriving in Maputo earlier last month, said that the vote was rigged. [Credit: Regulo Cuna/Reuters]. When Daniel Chapo of Frelimo became president last month, he assumed the leadership of a country more dissatisfied with his party than at any point during its 50 years of independence.

Tens of thousands of people took to the street after the October election, which voters, international observers, opposition leaders, and rights groups have roundly criticised as fraudulent. The country of 33 million has been roiled by political chaos since the vote on the eve of the inauguration of President-elect, Frelimo’s Daniel Chapo.

In this interview, Tertius Jacobs, Focus Group’s Head Analyst for Mozambique and East Africa, describes how the local economy has lost billions of meticals due to protests disrupting road networks, especially between Komatipoort, the Lebombo Border and the Maputo Port, while South Africa – which uses the N4 through Mozambique to the Maputo Port extensively for exports – are losing millions of ZAR daily.

The “massive disruptions” have also devastated the tourist sector – and some travellers, who defied security alerts, have had to be relocated from “threatened locations” to safer areas. Meanwhile, expats are facing growing insecurity with some having suffered threats to their person and their assets. Jacobs says the protesting electorate has been “much more confrontational” than in previous elections. “We’ve had multiple reports of civilians or protesters overwhelming the security forces and even seizing their weapons.“

• Read more: https://www.nytimes.com/2025/01/15/world/africa/mozambique-chapo-frelimo-president-mondlane.html

THOUGHT FOR THE WEEK - IS THE 'NORTH WEST' A FAILED PROVINCE?

The small agricultural town of Coligny faces widespread water, electricity, and sanitation failures, making day-to-day living an increasingly difficult battle for residents. Coligny, is located in the North West along the railway line between Johannesburg and Lichtenburg, and is best described as a rustic small town with a strong sense of community.

Originally named Treurfontein, the town was renamed in 1923 to honour Huguenot leader Gaspard de Coligny, who died in the Massacre of St Bartholomew in 1572. It is located in a large maize farming area and continues to be a significant agricultural town, serving the surrounding farming community. The grain silo near the station was the first grain silo built in the North West province and is a fitting reminder that maize is now the most important product emanating from this area.

It is part of the Ditsobotla Local Municipality (DLM), which was established through the amalgamation of the former Lichtenburg, Coligny, and Biesiesvlei Transitional Councils.

However, like Lichtenburg and other neighbouring towns, residents and businesses have desperately pleaded for service delivery as taps run dry, lights remain out, and sewage runs in the streets. BusinessTech travelled to the town to see their challenges first hand and talk to the people living and operating in Coligny. With service delivery protests blocking entrances to the town mere days before we arrived, the troubles were instantly apparent.

BREAKING SOUTH AFRICAN NEWS: SOUTH AFRICA AND THE WEF AGENDA

Free Market Foundation (FMF) CEO, David Ansara says "Milei’s example shows South Africa's Government of National Unity (GNU) was a mistake that opposition parties should abandon." David Ansara said recent actions by President Cyril Ramaphosa [Passing the Expropriation Bill] expose the folly of opposition parties joining a ‘Government of National Unity’, which was a ploy by the minority ANC party to continue ruling as before.

He points to Argentinian president, Javier Millie's success as evidence that tinkering with reforms is a waste of time when circumstance demands that radical transformation is required, aka 'The Chainsaw', which is now yielding results. Watch the interview - probably the best 29 minutes that South Africans could spend this year:

CYRIL RAMAPHOSA AT 'SOUTH AFRICA NIGHT' - WEF, DAVOS 2025

Address by President Cyril Ramaphosa during 'South Africa Night' at the World Economic Forum, Davos, Switzerland, January 21, 2025

Transcript: https://www.thepresidency.gov.za/address-president-cyril-ramaphosa-during-south-africa-night-world-economic-forum-davos-switzerland AND how Davos investors would have questioned Cyril – if SA wasn’t off their radar: https://altnewsnetwork.co.za/cyril-ramaphosa-at-davos-2025-promises-failures-and-controversies/

SURVIVAL MONITOR – AS GLOBAL TENSIONS ESCALATE, US ATTACKS AFRICA'S HEALTH AID BUDGET

The US is a major donor for health in Africa. Across the continent ministries of health in Kenya, Zimbabwe and others that rely heavily on US government funding have been receiving notifications to cease all US funded activities, leaving health programming in jeopardy.

The order, sweeping in scope, also asks countries to review work done by third parties “and issue stop work, partial termination or suspension orders for work related to diversity, equity and inclusion”. "An appropriate response by Africa would be to increase domestic funding and drastically reduce reliance on aid funding, with the aim of eventually eliminating it entirely." Amen to that! Source.

OPINION : "S’THEMBISO MSOMI: Foreign policy to take centre stage in Cyril Ramaphosa’s Sona.

The ANC, DA and other GNU members have been guilty of playing to the gallery and deepening divisions on matters in which they are actually not too far apart. With the world’s most powerful nations expected to gather in SA in November for the annual Group of 20 (G20) summit, the country’s position on various international trade issues, as well as its sometimes-contentious stance on geopolitical subjects, will come under much sharper global scrutiny…Paywall."

Beyond the short-term volatility and uncertainty created by US President Donald Trump’s tariff machinations, it’s likely that the longer-term trend of the world splitting into two trading blocs is accelerating. Trump’s view of the world is that you are either with the US or against it. [Ed: Yeah, we know all about that - your rules, our orders!]

But it’s increasingly likely that, at some level African countries will have to decide whether they are more in the Trump camp, or whether they prefer to do business with the China-led BRICS+ group. There are risks and rewards under both scenarios, and the circumstances of each African country may cause it to lean one way or another.

Much of the debate at this week's Investing in African Mining Conference in Cape Town has effectively been about the best path forward for Africa’s miners and governments. My own take on this is for SA to go with BRICS+ bigtime and dump USA ASAP given their track record of exploitation of the continent since WW2, following the Europeans after a century or more of looting.

It can't be denied that US foreign policy of Full Spectrum Dominance remains in force under Trump - MAGA in spades! America wants to remain the Hegemon with "their rules, our orders". China wants cooperation with outcomes to mutual advantage of all parties. DUMP THE ANGLOSPHERE LOOTERS NOW! Source

• The increasing appetite of the world for minerals, especially to enable the energy transition [in the West], is likely to set off a new scramble for Africa, this time Africans will have more say in how it unfolds. READ ON.

• China backs South Africa's G20 presidency after Rubio threatens boycott - Yep the US are bullying us again. Do you know how to deal with bullies? https://www.news24.com/fin24/economy/china-backs-south-africas-g20-presidency-after-rubio-threatens-boycott-20250206?lid=dwq1lrb5tjbh

• South Africa is the first nation on the continent to host the G20 summit. President Cyril Ramaphosa wants to use his country’s leadership of the group to promote a more equitable global system, by focusing on issues such as easing the plight of heavily indebted African nations. READ | US skipping G20 talks due to South Africa's 'anti-American' agenda: Rubio.

INFLATION - South Africa's inflation rate rose for the second month in a row in December, but by less than expected.

JOHANNESBURG, Jan 22, (Reuters) - Headline consumer inflation ticked up to 3.0% year on year in December from 2.9% in November (ZACPIY=ECI) with housing and food major contributors, Statistics South Africa data showed last month. Economists polled by Reuters had expected a rate of 3.2%, still well below 4.5% - the level the South African Reserve Bank (SARB) aims for.

"The smaller-than-expected rise in South Africa's headline inflation rate, combined with the recent recovery in the rand, supports the view that the SARB can continue with its easing cycle," said David Omojomolo, Africa economist at Capital Economics. Average inflation for 2024 was 4.4%, the lowest level in four years.

Annual core inflation, which excludes food and energy prices, came in below expectations at 3.6% in December, reflecting modest underlying price pressures. "We expect inflation to drift higher in 2025 but remain below 4.5% for most of the year. The upward pressure will mainly emanate from food and fuel prices," Nedbank economists said in a research note. Guest Post by Eric Peters

• More about inflation from our TBP contributor this week https://www.theburningplatform.com/2025/02/05/a-measure-of-inflation/

NARRATIVE BATTLE – BANKING

FINALLY - SAFE & EFFECTIVE

COMING NEXT:

• BOOM Weekly Global Review - Tuesday, February 11, 2025

• The Financial Jigsaw Part 2 - Chapter 9 (39) – PSYCHOLOGY OF TOTALITARIANISM – Saturday, February 15, 2025

REFERENCES

• My Book: “The Financial Jigsaw” Parts 1 & 2 Scroll: https://www.researchgate.net/publication/358117070_THE_FINANCIAL_JIGSAW_-_PART_1_-_4th_Edition_2020 including regular updates.

• BOOM Finance and Economics Substack (Subscribe for Free) - also on LinkedIn and WordPress. Plus Covid Medical News Network CMN News and BOOM Blog -- All Editorials (over 5 years) -- BOOM Finance and Economics | Designed for Critical Thinkers — UPDATED WEEKLY (wordpress.com)