Ford Motor Co., Glencore Plc, and ArcelorMittal SA have recently disclosed plans to reduce their workforce by thousands across operations in South Africa, highlighting the ongoing struggles within the nation’s industrial sector. The country, Africa’s most advanced economy, continues to grapple with sluggish growth and high unemployment. Key obstacles include an unstable and expensive energy supply, which hampers manufacturing efficiency, and growing competition from producers in Asia. Additionally, the introduction of 30% tariffs on certain South African exports to the United States has intensified pressure on export-dependent industries. Critics, including opposition groups and labor organizations, argue that government policies have failed to reverse the decline in industrial output, leaving workers vulnerable to further job losses.
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Ford, Glencore Cut Jobs as South Africa’s Economy Stagnates
Ford Motor Co., Glencore Plc and ArcelorMittal SA this week announced plans to cut thousands of jobs in South Africa, dealing a further blow to an economy contending with mass unemployment and lackluster growth. n nIndustry in Africa’s most-developed economy faces constraints, including a costly and unreliable electricity supply as well as increased competition from Asian manufacturers. The imposition of 30% tariffs on some South African exports to the US has exacerbated the challenges. Opposition parties and labor unions accuse the government of failing to stem an industrial decline.