Global trade dynamics are shifting, and South Africa’s sugar, energy, diamonds, and livestock industries are facing significant challenges. The country’s sugar industry, for instance, has been flooded with foreign sugar due to delayed adjustments to import tariffs, resulting in unprecedented amounts of imports. In 2025, South Africa imported a record 55,213 tons of sugar, compared to just 20,924 tons in 2020.
Energy and Chemical Sector
Another major industry under stress is the energy and chemical sector, where Sasol operates. The company’s profits crashed from R7.22 per share to just R0.38 per share in the six months to 31 December 2025, a 95% drop. Turnover of R112.4 billion remained flat compared to the prior period, despite a 3% increase in sales volumes.
The constant threat to oil supplies due to Middle East tensions has also affected the energy sector. A solution to the Iran/USA standoff could lead to a significant drop in crude oil prices, adding pressure to the Sasol share price. Natural gas is piped by SASOL from onshore gas fields from Temane, Mozambique, to Secunda, and then to the Gauteng network.
Diamond Industry
De Beers, Africa’s largest diamond miner, posted a sharply wider $511 million (R8,2 billion) loss in 2025 due to weak Chinese demand, U.S. tariff pressures, and softer global prices. Total rough diamond production fell by 12% to 21.7 million carats as the company adjusted to lower demand and higher inventories.
The company stated that this was due to weak prices, softer Chinese demand, and competition from lab-grown diamonds. In Botswana, operations are conducted through the Debswana joint venture. Here are some key facts about the diamond industry:
- Weak Chinese demand has affected diamond sales
- U.S. tariff pressures have increased costs for diamond miners
- Softer global prices have reduced revenue for diamond miners
For more information on the diamond industry, visit the De Beers website. To learn more about the impact of global trade on South Africa’s industries, read the TRALAC website.
