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STELLENBOSCH BUSINESS SCHOOL
Stellenbosch Business School
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14 AUGUST 2025
Trade wars threaten Africa’s workers – Women hit hardest

Reciprocal tariffs of up to 50% levied by the USA on imports from more than 90 countries around the world have highlighted the precarious nature of employment and economic security for workers in the Global South.

As governments and employers in Africa move rapidly to negotiate more favourable trade agreements with the USA in order to protect domestic manufacturing and save jobs, economist Dr Nthabiseng Moleko of Stellenbosch Business School warns that the current crisis may worsen already fragile employment security on the continent.

“While there is an immediate need to protect employment, we must not lose sight of the longer-term need to ensure employment and social protections, quality employment and economic security for workers now and into old age,” she said.

Dr Moleko was speaking ahead of a workshop to be held on Friday, 15 August, at the Stellenbosch Business School, where the results of a joint Ghana-South Africa research project titled “Gendered Aspects of Economic Security” will be presented and policy recommendations made.

While the majority (32 of 54) of African countries received the global minimum US tariff of 10%, South Africa’s exports to the US are now subject to a 30% tariff, while Ghana is among the 18 African countries hit by a 15% tariff.i
The tariffs move by the US, which it deems as redress of perceived trade imbalances has negated the preferential duty-free access by African countries to the US market under the Africa Growth and Opportunity Act (AGOA), including South Africa as the largest beneficiary.

Dr Moleko said that this upending of global trade was the latest development arising from globalisation and increasing trade liberalisation that has eroded labour protections and led to increased “casualisation” of work in Africa and other Global South countries, under pressure to deregulate labour markets and reduce fixed labour costs in order to attract investment and trade with the Global North.

“Understanding the gendered dimensions is crucial for creating inclusive policies and frameworks in this rapidly evolving landscape of employment insecurity, complicated by policy and economic uncertainties.

“Economic security – encompassing aspects like employment security, income adequacy, and access to social safety nets – varies significantly for men and women, due to pervasive systemic inequalities. Women face unique challenges such as gender pay gaps, disproportionate caregiving responsibilities, occupational segregation into low-quality employment, pension inequality, and barriers to financial inclusion, all of which contribute to making them vulnerable to employment insecurity and perpetuating gender disparity in lifetime earnings,” she said.

She said pressure for economies to be more “business-friendly” had weakened the protections offered by unions and collective bargaining, and led to a rise in part-time or flexible work, open-ended contracts, and the use of employment agencies and labour brokers.

These working arrangements offer less protection and reduced access to remedies under labour laws, and are less subject to regulation and enforcement by the authorities – resulting in greater insecurity for workers.

“Direct employment is seen as constraining growth, as not helpful to business, but the impact of this casualisation of employment in workers has reduced the security and non-wage benefits such as paid leave and medical cover offered by permanent employment contracts,” she said.

The research project, funded by the Hewlett Foundation and conducted by researchers from Stellenbosch Business School, the University of Ghana and the Levy Economics Institute in the USA, aimed to address the lack of research on these issues in the context of the Global South and especially sub-Saharan Africa.

Dr Moleko said there were distinct differences between the Ghanaian and South African economies, with Ghana’s levels of women’s employment higher than South Africa’s but in an economy highly driven by the informal sector. The differences had strengthened the research, enabling understanding of similarities and differences with relevance to the broader sub-Saharan Africa context.

The research team will present a first-of-its-kind index of employment and income security for Africa, built on their research and econometric data from South Africa and Ghana’s statistical agencies, with a view to developing a measurement tool for sub-Saharan Africa.

South Africa’s Statistician-General Risenga Maluleke will deliver the keynote address.
Source:

Stellenbosch Business School
 The internationally accredited Stellenbosch Business School offers MBA, Master’s, MPhil and PhD programmes as well as executive education programmes – all focused on the development of business leadership. Visit our InfoCentre or website.

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