Innholdsfortegnelse for 2025-06-26 i Mercury

Six of the 10 industries on the production (supply) side of the economy recorded negative gains S&P Global Ratings has downgraded South Africa’s economic growth forecast for 2025 following a subdued gross domestic product (GDP) print in the first quarter. The South African economy kept its head above water in the first quarter of 2025, expanding by a marginal 0.1% compared with the fourth quarter of 2024. Six of the 10 industries on the production (supply) side of the economy recorded negative gains, with mining and manufacturing being the biggest drags in the first quarter. Mining weakened by 4.1%, with platinum group metals the most significant negative contributor. Coal, chromium ore, gold, copper and nickel also disappointed. Iron ore, manganese ore and diamonds recorded gains, but not enough to lift…

The Auditor General of South Africa (AGSA), Tsakani Maluleke has underscored the significance of the country’s distinctive mandate to audit all public institutions annually. This capacity, not commonly shared by her international counterparts, is increasingly admired globally as a model for promoting accountability and transparency in public finance. Addressing the media on the Supreme Audit Institutions of the G20 (SAI20) in Johannesburg, Maluleke expressed concern that the unique perspective of the AGSA often goes unnoticed. "Not every AG sees all the states in the way AGSA does. Sometimes I fear that gets lost when we issue a general report which gives you a sense of not just on municipality but what is happening across the country," she said. "It is the perspective that is unique to AGSA in this country…

THE Business 20 (B20) Task Force leaders are calling for the continent to address the pressing need for improved infrastructure across Africa as well as sustainable economic growth. Sim Tshabalala, chair of the Finance and Infrastructure Taskforce, said Africa holds significant reserves of critical minerals essential for the global energy transition yet currently collects only 40% of the revenue possible from these resources. “However, Africa collects only about 40% of the revenue that could be generated by these resources. Now, I ask you, how about if we got 60%? We need the right business environment, the appropriate social and environmental regulation, and the necessary infrastructure,” Tshabalala said. “In other words, our capacity to drive the world's growth depends to a large extent on our ability to maintain and expand our…

As we close of Youth Month, we’re reminded that the spirit of South Africa’s youth is as vital today as it was in generations past, with those who once fought for freedom paving the way for a new wave of young people who are now crafting their own futures through grassroots entrepreneurship and creating solutions that matter most to their communities. In 2025, many young South Africans are not just chasing jobs - far from it. They are crafting real solutions to power cuts, water shortages, school dropouts, and gender-based violence. From rural villages to township streets, these youth-led enterprises are grounded in the lived realities of the communities they serve. But for many, translating those impactful ideas into sustainable businesses remains difficult — even though support exists, from government…

When Armando Ernesto Chau straps on the futuristic smart glasses that a young Mozambican robotics student is developing in the family dining room, he has a vision of a life less confined to his modest home. Chau is the prototype tester for Joao Antonio Rego, a 24-year-old robotics and electronic engineering student driven to provide visually impaired Mozambicans with assistance that goes beyond a simple cane. Since he lost his sight 20 years ago, the 45-year-old father has not worked and rarely leaves his home in Matola, outside the capital Maputo. Rego's electronic glasses -- battery-powered devices embedded with sensors that scan for obstacles ahead and emit warning vibrations -- offer the promise of new possibilities. "It is vibrating ... it is those bushes," Chau said, demonstrating for AFP Rego's…

DESPITE some of the most progressive laws aimed at advancing the interests of people living with disabilities, South Africa is still lagging when it comes to implementing some of these legislative frameworks. According to Statistics South Africa, persons with severe disabilities experience difficulty in accessing education and employment opportunities, while households headed by persons with disabilities were found to have less access to basic services compared to households headed by persons without disabilities. The statistics also reveal that there are disparities in terms of access to assistive devices across population groups and geography. At the recent C20 South Africa Launch, which has mobilised 14 working groups to generate actionable policy considerations ahead of the G20 Summit, Sikelelwa Alex Msitshana, founder of the Deaf Empowerment Firm (DEF) and chairperson of the…

Tensions within the Tripartite Alliance between the ANC, the South African Communist Party (SACP) and the Congress of South African Trade Unions (Cosatu) have come to the fore after an incident in Mpumalanga where SACP members were asked to leave an ANC election workshop. The workshop, aimed at strategising for the 2026 Local Government Elections, has exposed deepening divisions within the alliance. At the event, ANC deputy secretary-general Nomvula Mokonyane issued a directive, asking SACP delegates to leave the workshop. She said the party would not strategise with a group intending to contest elections independently. This move has drawn criticism from senior SACP leaders, who accused Mokonyane of divisiveness and of breaking the longstanding relationship between the parties. Sources say there will be talks between the ANC and the SACP…

The world’s most developed economies have also burned the most oil and coal (fossil fuels) over the years, causing the most climate change damage. Preventing further climate change means a global fossil fuel phase-out must happen by 2050. For African countries to benefit, they must adopt long-term renewable energy plans and policies and secure finance from G20 countries to set up renewable energy systems. The G20 group accounts for 67% of the world’s population, 85% of global gross domestic product, and 75% of global trade. The member states are the G7 (the US, Japan, Germany, the UK, France, Italy, Canada), plus Australia, China, India, Indonesia, Republic of Korea, Russia, Türkiye, Saudi Arabia, South Africa, Mexico, Brazil and Argentina. Recent figures show that the G20 countries were responsible for generating 87%…

The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) on Wednesday warned that concerns have grown over affordability despite household food basket seeing a slight dip in June. The PMBEJD released its Household Affordability Index for June on Wednesday, revealing a marginal month-on-month decrease in the average cost of its tracked household food basket, now sitting at R5 443.12. This represents a decrease of R23.46—or 0.4%—from R5 466.59 in May. However, the annual comparison tells a different story: the cost has risen by R190.36 (3.6%) from R5 252.77 in June 2024, raising concerns among civil society groups about the adequacy of such a decrease for struggling households. Mervyn Abrahams, director of the PMBEJD, indicated that out of 44 foods monitored within the basket, 19 saw increases in their prices while 25…

In 2025, as global trade fractures under $1.7 trillion in new tariffs and climate-related losses reach $600 billion annually, South Africa steps into the G20 presidency. It does so not as a bystander, but as a pivotal actor in rebalancing an increasingly fractured multipolar world. With economic uncertainty, geopolitical polarisation and climate volatility redefining global relationships, South Africa's presidency could shape the terms of engagement for a new development compact. The global economy is entering a prolonged and disruptive transition. The United States faces unsustainable debt dynamics, with a debt-to-GDP ratio exceeding 122% and a budget deficit expected to reach 7% by 2030. Its rising tariffs on Chinese goods and intensifying rhetoric are pushing the global economy into a state of strategic decoupling. The resulting…

As small and medium-sized enterprises (SMEs) approach the midpoint of 2025, they have been urged to conduct a comprehensive financial health check. This proactive audit is essential for navigating the current economic climate and ensuring sustained growth in the second half of the year, according to SME services provider Lula. “The economic landscape continues to present a mix of challenges and opportunities for SMEs,” Garth Rossiter, chief risk officer at Lula said. South Africa’s SME enterprises are the backbone of the economy, contributing over 50% to employment and 34% to GDP, and the macroeconomic outlook in which they operate is certainly improving. The RMB/BER Business Confidence Index hit a five-year high in Q4 2024, while consumer confidence rebounded to pre-pandemic levels. “Positive shifts are definitely emerging, power supply is more…

Prosus has structured plans to increase earnings before interest, tax, depreciation, and amortisation (Ebitda) by 3.5 times in three years from the results reported this week, CEO of the Amsterdam based and JSE listed internet group, Fabricio Bloisi said Tuesday. He said in a presentation at the Naspers subsidiary’s Capital Markets Day that this target would likely also include some acquisitions. He stated that while this was not an overly “aggressive target”, the world remained a place of many uncertainties at present, and they did not wish to provide a detailed description of their plans. He also said that the share buybacks would continue. The group had already bought back 29% of its shares since it listed in 2019. “The discount (to net asset value) that the share is trading…

quarter due to high rainfall in four provinces Construction industry activity in the first three declined due to high rainfall and no meaningful impact from the marginal drop in the prime overdraft rate since September, according to findings of the first quarter, Afrimat Construction Index (ACI). The ACI is an index of the level of activity within the building and construction sectors, compiled by economist Dr Roelof Botha and commissioned by the mid-tier mining company that produces and supplies construction materials, iron ore, anthracite, phosphate, and industrial minerals, Afrimat. The year-on–year comparison with the first quarter of last year in the ACI showed a decline of 2.6%. Dr Botha said he believes the reading is an accurate reflection of the government’s lack of willingness to spend on economic assets. “Following…

KwaZulu-Natal has been flagged as one of the hotspots for school violence in the country. The Department of Basic Education (DBE) has stated that statistics show that half of the murders that occurred in schools in the last financial year took place in this province. Gauteng, KwaZulu-Natal, Eastern Cape and the Western Cape have been identified as the four provinces of concern regarding general crime and criminality in the country. The pressing issue was raised during a meeting between the Minister of Basic Education, Siviwe Gwarube and the Minister of Police, Senzo Mchunu, earlier this week. The two have signed a school safety protocol aimed at enhancing safety in schools. Gwarube said statistics show KZN is one of the provinces of particular concern. She noted that in the last…

President Cyril Ramaphosa yesterday described the failure by provinces and municipalities to spend their infrastructure budgets as treason against South Africans. "The issue of underspending is quite an important issue, particularly when it comes to spending on infrastructure allocations such as housing, education, water, and roads. I actually often characterise it as treason against the people of South Africa when monies that had been allocated are not spent and are returned to the National Treasury," Ramaphosa said. He was responding during a question-and-answer session in the National Council of Provinces. ANC MP Kenny Mmoiemang had enquired about whether the government has assessed the impact of inadequate spending by provinces and municipalities on their commitments to deliver quality and essential services to communities, particularly crucial infrastructure such as housing, schools, and…

THE pre-season player transfer window comes with performance analysis by numbers as teams look to offload and strengthen their arsenals for the upcoming season. For foreign players, this is usually means a great deal, with the Premier Soccer League (PSL) having foreign-player quotas in place. So,​ Independent Media looked at the best performing foreign nationals from the PSL’s 2024/2025 Premiership season. Boasting names like Peter Shalulile, Riaan Hanamub, Deon Hotto and Elmo Kambindu, it is fair to say that Namibia were yet again the best represented country outside South Africa in the past season. However, not all Namibian players make our top five list of the best performing foreign nationals... Riaan Hanamub (Defender, AmaZulu – Namibia) The 30-year-old left fullback was yet again one of the best, if not the…

The Agricultural Business Chamber of South Africa (Agbiz) has issued a stern warning regarding the early maize harvest, noting a significant decline compared to last season's yield. With the agricultural landscape shaped by unpredictable weather patterns, both farmers and agricultural associations are echoing concerns about the implications of the current harvesting conditions. Wandile Sihlobo, chief economist at Agbiz, said that South African farmers and farmworkers were hard at work across the country. “The maize farmers are busy harvesting the 2024-25 crop. In the week of June 13, South African farmers delivered 851 814 tons of the new season maize to commercial silos. This was the seventh delivery for the new season, bringing the overall maize deliveries so far to 3.3 million tons,” he said. Sihlobo said compared with the overall…

South Africa’s sugar industry, which supports over a million livelihoods and underpins the rural economies of KwaZulu-Natal and Mpumalanga, is at risk of being undermined by a flood of artificially cheap, subsidised sugar imports. These imports are not just distorting the local market – they are jeopardising the survival of small-scale and large sugarcane growers and the thousands of families whose lives depend on them. SA Canegrowers, which represents 1 200 commercial farmers and 24 000 small-scale growers, has raised the issue with the government, calling for action to raise the import tariff reference price and prevent further damage to an industry already under enormous strain. It is important to note that cheap imported sugar does not translate to cheaper sugar for retail consumers. Imported sugar ends up on retail…

Running a small business in South Africa particularly these days comes with its own set of challenges. Between rising input costs and increasingly price-sensitive customers, you can quickly find yourself between a rock and a hard place. If you feel like your bottom line is under more pressure than it can take, it might be time to streamline your business. At its core, operational efficiency is about removing unnecessary friction in your business and ensuring that every rand and every resource is working as hard as possible. Here’s how to go about it: Audit your current operations Before you can improve anything, you need to understand what’s actually going on. This means taking a hard look at all aspects of your business. Where are the bottlenecks and which processes are…

The nominal average take-home pay declined to R17 296 in May, 1.3% lower than the previous month as job opportunities and earnings outlook remain grim, according to the latest BankservAfrica Take-home Pay Index (BTPI). The index tracks approximately 3.8 million salary earners in South Africa. However, this figure remained significantly higher than the R15 903 recorded in May 2024. This was third consecutive month that take-home pay slowed reflecting the impact of a subdued economic environment with stalled growth in quarter and a weakening global outlook, currently fuelled by the heightened volatility in the Middle East. Elize Kruger, an independent economist, said, “The upward trend in take-home pay from mid-2024 to early 2025 has been a positive development. However, recent months reflect a U-turn, with 2025 proving to be a…

Non-profit organisations (NPOs) in KwaZulu-Natal are fearful that their work could be in jeopardy after the provincial Department of Social Development in KwaZulu-Natal warned them of a change to the payment schedule for their subsidies. The NPOs said they were concerned that the payment change might result in them not receiving payments on time, or at all, which would have a catastrophic impact on their ability to provide social services to the needy and vulnerable. The Mercury has seen the letter from the Social Development Department informing NPOs of the change and also spoke to representatives of two NPOs who received it. The NPOs did not want to be named for fear of reprisal. The letter, dated June 22, stated that part of the department's budget has been reallocated by…

THE Gauteng High Court, Johannesburg, has turned down an appeal by the City of Johannesburg following the court’s earlier declaration that the municipality’s rates policy is unlawful and constitutionally invalid to the extent that it regulated the categorisation and rating of educational properties. The ruling issued by the court earlier this year follows the City’s removal of a property category that applied to educational institutions and the adoption of a property rates by-law and policy that categorised private schools as public enterprises. This led to a drastic increase in property rates and taxes for private schools and other educational institutions. Various stakeholders, including Curro Holdings, the Independent Schools Association of South Africa, and AfriForum, launched the application following the drastic rate increase. The court found that the City’s public participation…

Minister of Defence and Military Veterans Angie Motshekga has defended spending in the department and denied that they were splurging on golf days and overseas trips. She was responding to the DA’s Nicholas Gotsell, who said there was a R7.7 billion Air Force shortfall and unfunded maintenance. Gotsell, DA National Council of Provinces Member on Security and Justice, said the party was seeking urgent clarity from the minister on the three-month deadline to present a plan for reprioritising defence spending and halting the SANDF’s collapse. The party is proposing drastic cost-cutting, including stopping lifetime medical benefits for retired VIPs, given the deterioration of 1 Military Hospital. During a Portfolio Committee sitting this week, Gostell questioned Motshekga about international trips and golf days. “We have seen the department hosting golf days,…

Orbit College have made history and booked their place in next season’s Premiership after defying the odds to defeat Cape Town City 1-0 in a tense PSL Promotional Playoff clash at Olympia Park Stadium in Rustenburg yesterday. The triumph took the North West-based team to an unreachable tally of eight points from four fixtures, leaving both City and Casric Stars with only one game remaining, set for next Monday, with the Cape outfit now relegated to the Motsepe Foundation Championship. City entered the clash with two matches still to be played, but were fully aware that anything short of a result would leave them in danger, especially after Orbit had seized control of the group with a dramatic late win over Casric the previous weekend. This was Orbit’s maiden appearance…