Welcome to Matters of Mind (MM)
April 2025 first edition
President Donald Trump appeared to reach a tariff review climax on 2 April. However, in the past few days, he has withdrawn or relaxed some, extended the start dates of others and raised China exports to the US to 145%. This period has given the world a chance to rethink their economic alliances, albeit amidst geopolitical turmoil, natural disasters and for SA – domestic disputes and a currency historical low of R25 to the pound. J P Landman reminds us that:
“The US is often touted as SA’s second-biggest trading partner, but it must be pointed out that it takes less than 10% of SA’s exports. The East takes 35%, the European Union (EU) and Africa each 25%, the Middle East 4%, and South America and Australasia the rest. SA has already diversified its trade a lot and further diversification will no doubt follow.”
President and CEO of American Property and Casualty Insurance Association (APCIA) David Sampson posted his concerns on LinkedIn about the broader impact to U.S. relations to other countries which you can access here. He was also quoted in the Insurance Journal joined by others, including Economist, Robert Hartwig who made this appeal:
“The time has come for insurance and reinsurance CEOs to join a growing chorus of industry executives to make very clear to the Trump administration and Republicans in Congress that we are on a collision course for recession, potentially global in scale, and that a major course correction is required—and very soon,”
There are many questions being asked and the articles which raise them make for interesting and illuminating reading. Please read them and in particular Decoding tariffs: What’s the economic impact? in the Investments category, and No, that’s not what a trade deficit means – and that’s not how you calculate other nations’ tariffs in Economic matters.
But wait, there is more, Volume 9 (1) of The South African Actuary Magazine has been published and if you are earnest about qualifying, get to know the new ASSA Education Executive, Siobhain O’Mahoney and how her vision aligns with where the profession is heading (p63 onwards). You can access the magazine here.
Before you leave, the About YOU section is slightly different this edition. It takes you into the heart of the workplace to examine the implications of the VAT hike on wellbeing for employees and employers at a time when every cent counts and new research that confirms that no amount of alcohol is safe for our health. We close with James Clear’s post for this week, which asks you the question:
“What hard lesson keeps repeating itself in your life because you refuse to learn it?”
Enjoy!
MM Editorial Team
Economic Matters
Trump’s tariff hikes and South Africa: hunt for new agricultural markets must begin now
The reality is that new markets take time to establish, agricultural economist Wandile Sihlobo suggests three areas of focus to start with immediately.
4min read
New modelling reveals full impact of Trump’s ‘Liberation Day’ tariffs – with the US hit hardest
This article shows the increase and decrease in GDP of trading partners with the US and the US itself. A macro picture ideal as an overview if the tariffs remain as suggested on 2 April 2025.
3min read
No, that’s not what a trade deficit means – and that’s not how you calculate other nations’ tariffs
Two academics in International Trade demonstrate where Donald Trump or his advisors went awry. Read the article to inform yourself of the differences and come closer to understanding what the real US trade deficit means.
4min read
Gold price surge can’t heat up SA outlook after US cold shoulder
A good read citing differing opinions from investment experts and possible sector reactions to an end to AGOA.
3min read
Financial Services Industry
FSCA Fines 3 Firms For Money Laundering Compliance Failures
All three FSPs are licensed under the Financial Advisory and Intermediary Services Act and are accountable institutions under Fica, which aims to help combat money laundering, the financing of terrorism and other related criminal activities.
3min read
BRIAN BENFIELD: Fais Act has failed and belongs on the ash heap of history
An excellent place to start unravelling SA’s “excessive regulatory burden,” recently highlighted by the World Bank, is the 2002 Financial Advisory & Intermediary Services (Fais) Act.
Understand more about Fais and why in this writer’s opinion it has failed. 3min read
Press freedom linked to greater financial stability, finds global study
Press freedom is widely considered to be a cornerstone of democracy. It brings accountability, transparency and access to reliable information. But beyond its democratic role, press freedom is also a vital part of a stable economy. Research has shown that it acts as a kind of financial watchdog, ensuring balance and accuracy.
Enlightening 3min read
Insurance Industry Contemplates Knock-On Effect of Tariffs to Claims, Consumers
This article cites six top individuals in the American Insurance industry who show how and where the tariffs will hurt most.
2min read
The woman who was the youngest senior manager at Absa and now chairs one of its biggest competitors
Be inspired by Santie Botha and take some tips from her on making sure you produce the right results in your executive corporate role. In her words: “When you have B-team players, you’re going to get B-team results. So, get your A-team—like-minded individuals with different skills—and the sky’s the limit.”
2.5min read
Life Insurance
Suicide-related life claims surge by 62% over five years
During a recent online seminar exploring the company’s 2024 claims experience, Discovery shone a stark spotlight on South Africa’s worsening mental health crisis.
An in- depth review of Discovery’s data which is concerning. 5min read
General Insurance
An insurer’s guide to off-the-grid alternatives
Chief Actuary at Momentum Insure, Rudolf Britz, warns that solar panels, electricity inverters, battery chargers, battery packs, backup generators, and water storage systems provide much-needed relief but come with their own share of risks.
2min read
Health Insurance
Discovery allowed to appeal RAF medical claims ruling
Fin24 reports that Judge Dunstan Mlambo, Judge President of the Gauteng High Court, also awarded costs to Discovery in a judgment handed down yesterday. The dispute goes back to 2022, when the RAF instructed its staff to reject claims that have already been paid by medical schemes. In October 2022, the High Court ruled that this decision by the RAF was unlawful.
2min read
Affordable Healthcare for All: The Challenge and Solutions
In this insightful podcast, Martin Muller unpacks the complexities of healthcare funding, and the vital role financial advisors play in helping clients choose the right cover. Martin runs through the key differences between medical aid and insurance, why regular plan reviews matter, and how affordability impacts access to quality private healthcare.
12 min
The 6-monthly anti-HIV jab could end Aids in SA by 2032
Lenacapavir works by stopping HIV from making more copies of itself and so getting into someone’s immune cells and is 100% effective for teen girls and young women.
The Lenacapavir vaccination is a great breakthrough and, if implemented, would be highly effective, but once again funding will be the challenge. 4min read
Progress in reducing child deaths under threat, UN warns
Recent funding cuts have put decades of progress in child survival at risk, say global experts, calling for increased investments, service integration, and innovations to urgently scale up access to proven life-saving health, nutrition, and social protection services for children and pregnant mothers.
2.5min read
Investments
Tariffs, turmoil and trade-offs
South African investors have been hit by a double whammy of geopolitical and domestic political uncertainty. Neither is good, but before making rash decisions, perspective is necessary.
The article starts off with a global view and then narrows it down to SA and the investor. Particularly good read with graphic display of trends. 6min read
The future of investing: broader exposure without platform fees
At a recent Actuarial Society of South Africa Investments Seminar, the chief executive officers of four asset managers and an expert in listed products, revealed how the local investment industry is evolving and what it means for your portfolios and future returns.
5.5min read
Global executives rank South Africa among top emerging markets
South Africa has surged from eleventh to seventh position in Kearney’s 2025 emerging markets Foreign Direct Investment Confidence index, which was released on Tuesday, signalling a meaningful shift in global investor sentiment.
3min read
Catastrophe Bonds Among Few Asset Classes Withstanding Meltdown
Fermat Capital Management, a Connecticut-based hedge fund specialized in insurance-linked securities, says the market for catastrophe bonds “has been trading in an orderly fashion” and investors who bought them “are seeing the benefit.”
3min read showing just how resilient this market has been in previous meltdowns as well.
Decoding tariffs: What’s the economic impact?
Capital Group (investment manager of the PPS Global Equity Fund) has produced a four- box framework to refer to before making investment choices given the volatility of the tariffs being imposed (or not or delayed or increased) and this in our current global context which is fraught with geopolitical, financial and environmental challenges.
3min read
About YOU
VAT Hike Forces Rethink on Employee Benefits to Support Financial Wellbeing
A recent survey by the South African Depression and Anxiety Group (SADAG) revealed that 61% of employed South Africans would leave their jobs if they could afford to.
“This statistic underscores the reality that many employees stay in their roles out of financial necessity, not engagement, ultimately impacting productivity.” says Blessing Utete, Managing Executive of Old Mutual Corporate Consultants.
This article is an important read for employees as well as employers. 4min read
Alcohol causes cancer, and less than 1 drink can increase your risk − a cancer biologist explains how
Alcohol, whether consumed regularly or only on special occasions, takes a toll on your body. From your brain and heart to your lungs and muscles, to your gastrointestinal and immune systems. Alcohol has broad harmful effects on your health – including causing cancer.
Have an open mind on what the data tells us about alcohol consumption. At least you will be informed. 4min read.
3-2-1: Two steps for better results, the qualities of a great career, and how to handle good luck
This week’s post from James Clear is powerful, do not miss the opportunity to reflect on your habits!