South Africa must widen trade ties, says Exxaro Chairman Geoffrey Qhena

In a recent interview with CNBC Africa Editor Godfrey Mutizwa, Exxaro Chairman Geoffrey Qhena emphasized the need for South Africa to seize the current global trade uncertainty as an opportunity to diversify its trade ties beyond traditional markets. Qhena highlighted the importance of exploring new markets and strengthening existing ones to navigate the evolving geopolitical landscape. He acknowledged the challenges posed by the unpredictable business environment but also underscored the potential for growth and collaboration in alternative markets. The conversation centered on leveraging the current crisis with the United States to broaden trade relationships within the African continent and beyond. Qhena stressed the significance of the private sector engaging with the government to ensure a conducive business environment. While he personally may not engage with government officials, he emphasized the importance of continuous dialogue between business leaders and policymakers. He commended the Department of Trade and Industry and Competition for understanding the business impact of policy decisions and encouraged further collaboration between the public and private sectors. Qhena's insights shed light on the need for alignment between foreign affairs and trade initiatives to bolster South Africa's economic prospects. One of the key themes that emerged from the interview was the untapped potential of the African Continental Free Trade Agreement (AfCFTA). Qhena expressed his support for the agreement and called for greater focus on implementation to harness the opportunities it presents. He highlighted examples of inefficient trade practices within the continent, such as importing products that could be sourced locally, underscoring the need for streamlined regulations and enhanced intra-African trade. Qhena urged South Africa to leverage its strengths and capabilities to maximize the benefits of regional economic integration. Furthermore, Qhena discussed the appointment of Ben Magara as Exxaro's new leader, emphasizing his extensive experience in the mining industry. Magara's role in stabilizing the company and driving diversification aligns with Exxaro's strategic vision for sustainable growth. Qhena outlined the expectations for Magara to implement the company's strategy effectively, address shareholder concerns, and steer Exxaro towards its carbon-neutral goals by 2050. The appointment of Magara reflects Exxaro's commitment to adapting to evolving market dynamics and environmental considerations. When reflecting on the departure of Dr. Tsengo, Qhena acknowledged the governance challenges that led to the decision to part ways. While acknowledging Tsengo's technical expertise, Qhena emphasized the importance of upholding governance standards and addressing differences in approach. The chairman expressed a sense of regret regarding the circumstances surrounding Tsengo's departure but underscored the board's responsibility to uphold governance principles. Overall, Qhena's insights underscore the need for proactive engagement, strategic diversification, and effective leadership to navigate the complex global trading landscape. By leveraging opportunities for collaboration, harnessing regional trade agreements, and prioritizing sustainable practices, South Africa can position itself for long-term economic resilience amidst evolving geopolitical dynamics.