Innholdsfortegnelse for 2025-11-13 i Mercury

South African Reserve Bank defends lower inflation target as key to boosting real incomes and spending power The South African Reserve Bank (Sarb) Governor Lesetja Kganyago has defended the government’s decision to lower the inflation target, saying the move is aimed at protecting the value of money, enhancing consumer purchasing power, and improving fiscal efficiency. This comes as Finance Minister Enoch Godongwana on Wednesday officially reduced South Africa's inflation target to 3% with a tolerance band of 1 percentage point on either side over the next two years in a bid to ease the elevated cost of living on consumers. This new target immediately replaces the previous target range of between 3 and 6% with a midpoint of 4.5%, which has been implemented since 2000. Over the past year, the…

Although Eskom reported an annual profit in 2024/25, for the first time in a decade, the improved financial performance remains at risk, partly due to escalating municipal debt arrears. In 2023/24, government initiated a debt-relief arrangement to strengthen Eskom's balance sheet, enabling it to restructure and undertake essential investments and maintenance required to ensure a stable electricity supply. As reported in the 2025 Budget Review, partly in response to Eskom's improved performance, the National Treasury revised the package, extending the support period to 2028/29 and reducing the total relief provided from R254 billion to R230bn. Legislation introduced in September 2025 provided for these measures. The fiscal risk associated with Eskom has eased, although continued implementation of operational and financial reforms is critical to sustain progress and ensure lasting stability. This…

The South African Revenue Service (Sars) has collected more tax revenue than projected by the National Treasury in the budget tabled in May 2025. According to the Medium-Term Budget Policy Statement (MTBPS) presented by Finance Minister Enoch Godongwana in the National Assembly, Sars collected just over R924 billion in the first half of the 2025/2026 financial year. “As indicated in the 2025 Budget, an additional R4 billion was allocated to the South African Revenue Service (Sars). This allocation was intended in part to strengthen debt collection, and thereby increase revenue collected, by between R20 and R50 billion per year. We will continue to monitor Sars’s revenue performance for the remainder of the year. "This assessment will inform whether the R20 billion in additional tax increases for the 2026 Budget, as…

Woolworths Holdings’ share price shot up 7.7% Wednesday morning after it said sales have increased in all its business segments in the 19 weeks to November 9, the higher-end retailer said Wednesday. The macro-economic environment is constrained across both South Africa and Australia, but the group managed to increase turnover and concession sales well above inflation at 6.2%, and by 6.8% on a constant currency basis, a trading statement to shareholders noted. The share price traded at R57.02 on Wednesday morning, while a year ago it was trading at R67 per share. A previously communicated share buyback programme started in September 2025, with 6.9 million shares repurchased to date, at an average share price of R51.22. The directors said in the update that Woolworths South Africa had delivered “very creditable…

Property group, economists and trade union have reacted positively to the Medium-Term Budget Policy Statement (MTBPS) delivered by Finance Minister Enoch Godongwana on Wednesday. Samuel Seeff, the chairman of the Seeff Property Group, said that the Medium-Term Budget Policy Statement (MTBPS) will provide some comfort to investors. “In particular, I welcome the news around public debt stability, and the potential to end on a primary surplus with a significant narrowing of the overall budget deficit.” Seeff added that he welcomes the new initiatives aimed at targeting efficiency and waste reduction, and of course the grey list exit. “Also welcome is the commitment to direct more resources towards infrastructure investments which could boost property values and development in areas receiving funding. A 1.2% growth rate would be welcomed, although not…

Finance Minister Enoch Godongwana yesterday said the government will phase out and scale down low-priority and underperforming programmes. Tabling the Medium Term Budget Policy Statement (MTBPS), Godongwana said there will be improved operations across departments and provinces while most expenditure will be directed towards social wage. “Moderate increases in provinces’ and municipalities’ share of revenue are intended to alleviate provincial health and education pressures and bolster local basic services, while grant consolidation, performance-based incentives and Targeted and Responsible Savings (TARS) (are intended to) improve spending efficiency. “Additional local government reforms, which are crucial to establish the sustainable provision of basic services to millions of South Africans, will begin to roll out over the medium term,” he said. Godongwana’s comment comes months after there were delays in approving the budget after…

Finance Minister Enoch Godongwana yesterday said the Madlanga Commission will be funded to the tune of R147m and the National Dialogue will receive R132m. He was speaking in the media lock-up briefing ahead of tabling his Medium Term Budget Policy Statement (MTBPS). He announced that R5.2 billion was allocated from the previous financial year and there was an unforeseen and unavoidable expenditure of R1.6 billion in the 2025 adjustment budget. Godongwana said the allocated amounts will cover disaster relief and funding for the Madlanga Commission of Inquiry. “It also includes spending announced at the time of the 2025 Budget for the National Dialogue, Statistics South Africa and the Office of the Chief Justice and confirms the provisional allocations for health and education, including early childhood development.” The allocations were proposed…

The Springbok midfield set to take the field against Italy on Saturday offers an exciting glimpse into the future — and don’t discount the man tasked with directing play at flyhalf in Turin. Springbok coach Rassie Erasmus confirmed in a television interview ahead of the clash with France that he intended to recall Handre Pollard at flyhalf, while testing a youthful midfield pairing of Ethan Hooker and Canan Moodie. Scrumhalf Morne van den Berg will also get an opportunity to showcase his skills. With Erasmus able to plan without recourse to panic selections following the positive result in Paris, Pollard will marshal a backline featuring Hooker and Moodie in the midfield, and a daring back three of Edwill van der Merwe, Kurt-Lee Arendse, and Damian Willemse. For rugby fans, this…

India is home to one of the largest film industries in the world. Bollywood yields figures in the region of $1.5 billion – second only to Hollywood and China. It produces close to 2000 movies annually. But tomorrow, the biggest showstopper in the land will feature at Eden Gardens in Kolkata when the world Test champion Proteas face up against their hosts India in the series premiere. It's the hottest ticket in town with reports emanating from India that the 65 000-seater stadium is already sold out. There may be multiple languages spoken in India, but cricket is the universal mother tongue. The thousands waiting outside the iconic Eden Gardens – despite the presence of heavily armed security – just for a glimpse of their heroes arriving in the bus…

The National Treasury has revised South Africa’s economic growth forecast for 2025 downward, citing weaker global and domestic conditions, but remains optimistic that ongoing structural reforms in energy and logistics will help the economy gain traction in the coming years. In its the Medium-Term Budget Policy Statement (MTBPS) tabled on Wednesday, Treasury said it now expects real gross domestic product (GDP) growth of 1.2% in 2025, down from 1.4% projected in February. The revision follows weaker-than-expected performance in the first half of the year, subdued consumer and business confidence, and a fragile global recovery. Despite the downgrade, the 2025 forecast still marks a recovery from the 0.5% growth recorded in 2024, with Treasury projecting an improvement to 1.8% on average between 2026 and 2028 as reform momentum builds and infrastructure…

Although Transnet has not yet met its own targets, the Medium- Term Budget Policy Statement (MTBPS) notes that progress has been made. In particular, the Treasury said that Transnet's freight rail volumes increased in 2024/25 and port volumes have stabilised. “Reforms in freight logistics focus on upgrading poorly maintained infrastructure and introducing private-sector participation in rail and ports. A rail infrastructure manager was established as a separate division of Transnet in April 2025 and has opened slots on the freight rail network to 11 private rail companies,” the MTBPS said. Transnet is addressing a financial and operational decline as rail volumes have declined from 226.3 million tonnes in 2017/18 to 151.7 million tonnes in 2023/24 due to derailments, inefficiency and infrastructure damage. In 2023/24, Transnet reported a net loss of…

BMW South Africa has reaffirmed its commitment to driving the country’s automotive sector into an electrified future — even as policy uncertainty threatens to slow down momentum across the industry. In an exclusive interview with Business Report on Tuesday, BMW South Africa CEO Peter van Binsbergen said the government’s delay in finalising and implementing the White Paper on New Energy Vehicles (NEVs) was holding back investment decisions for local automakers, warning that time is running out for South Africa to align with global trends. South Africa's NEV White Paper, released in December 2023, outlines a 10-year strategy for the automotive industry to transition to electric vehicles (EVs). It outlines a roadmap for the local EV production ecosystem, developing charging infrastructure and battery value-chain development, and stimulating market demand through phased…

2025’s Medium–Term Budget Policy Statement (MTBPS) saw debt ratios slightly higher, similar ratios for the fiscal deficit and an upwards revision to revenue projections for two years vs. May, and a lowering of the inflation target. Revised gross revenue projections now show 2025/26 at R2.005 trillion, from the previous estimate of R1.986 trillion, and a near R20 billion (R19.7bn) over-run as expected, due to higher VAT, corporate and dividend tax receipts. However, additional expenditure of R15.8bn is now proposed, and so the budget deficit only narrowed to -4.7% of GDP for this year (2025/26), versus -4.8% projected in May’s Budget, and the -4.5% of the Bloomberg consensus (all as a % of GDP). The fiscal deficit projection remained at -3.8% of GDP for 2026/27 with an estimated revenue overrun of…

In his Medium-Term Budget Policy Statement (MTBPS) speech Finance Minister Enoch Godongwana detailed the promises kept over the past few years. The focus now is on how to grow the economy faster and attract the investment needed to create jobs and improve the life of all South Africans. “Two years ago, we committed to stabilising public debt in the current year and then begin reduce it. Despite a challenging environment of persistently low economic growth, we are on track to achieve this goal. “We also committed to remove South Africa from the Financial Action Task Force grey list. We have delivered on this commitment in just two and a half years. This is thanks to collaboration across government departments, law enforcement agencies and the private sector. Exiting the grey list…

TOURISTS looking to visit the world heritage site, the iSimangaliso Wetland Park, could soon pay more for their stay as the accommodation facilities are set to be managed by commercial partners. The management of iSimangaliso is currently looking at public-private partnerships for those who can run the eco-tourism facilities. The facilities had previously been managed by KZN Ezemvelo Wildlife. In a statement, Ezemvelo said they will now only manage the conservation efforts. The move has been welcomed by tourism organisations, who said they have been calling for KZN Ezemvelo Wildlife to privatise the hospitality facilities. Ezemvelo spokesperson Musa Mntambo said the management of the eco-tourism facilities at the site resulted from the agreement between the two parties. He said that while by law KZN Ezemvelo Wildlife was the only authority…

The Newcastle Municipality has launched a major Debt Collection and Revenue Enhancement Drive to recover more than R2.3 billion owed by residents, businesses, and government institutions, a debt burden that has left the municipality facing a monthly shortfall of over R40 million. The campaign, led by Mayor Xolani Dube together with the Council and municipal officials, began in Wards 20 and 22 in Madadeni Sections 1 and 2. It forms part of an intensified effort to address what the municipality describes as a “growing culture of non-payment for municipal services,” which has severely impacted service delivery and infrastructure maintenance. The initiative, however, comes after some Newcastle residents took to the streets on November 6, raising concerns about their municipal bills. In their memorandum, the residents said estimated bills were causing…

The KwaZulu-Natal Department of Health is making significant strides towards improving HIV treatment outcomes, as recent data reveal a commendable performance in three leading districts. This was revealed at the KZN Provincial Council on AIDS yesterday. Jacqueline Ngozo, the acting chief director of the Strategic Health Programme at the KZN Department of Health, presented statistics highlighting the province’s progress in achieving its 95-95-95 targets. The targets mean 95% of all people living with HIV know their HIV status; 95% of those with HIV who know their status are on sustained antiretroviral therapy (ART); and 95% of those on ART have a suppressed viral load. “What is important is to highlight the three districts that are leading in terms of the 95-95-95 targets, which is uMkhanyakude. I think in the last…

Sourav Ganguly was a fierce rival of the Proteas in his heyday. But such has the times changed in modern-day cricket that the former India captain was seen in discussion with a couple of Proteas just a couple of days out from the first Test in Kolkata tomorrow. Was Ganguly, commonly referred to as the ‘Prince of Bengal’ and the newly re-elected president of the Cricket Association of Bengal, which oversees Eden Gardens, providing the tourists with confidential information on how the surface will play? Proteas coach Shukri Conrad was certainly not taking the bait, who believed it had more to do with the upcoming Betway SA20 where Ganguly is the coach of the Pretoria Capitals. “Obviously an icon like Sourav, if he's around and you want to learn whatever…

Finance Minister Enoch Godongwana has assured the markets that South Africa is on track to restore fiscal sustainability, stabilise public debt, and improve spending efficiency, even in a challenging low-growth environment. Delivering the 2025 Medium-Term Budget Policy Statement (MTBPS) on Wednesday, Godongwana said government remains committed to meeting the fiscal targets set out in the February Budget. This is despite the public debt now expected to peak at 77.9% of GDP in the current fiscal year, slightly higher than the 77.4% estimated in May. “I am pleased to inform the House and the country that we are on track to restore fiscal sustainability. Government debt will stabilise in 2025/26, at 77.9% of GDP,” Godongwana said. “This is the first time since the 2008 financial crisis that public debt will not…

The South African Post Office (Sapo) was not mentioned in the Medium-Term Budget Policy Statement (MTBPS), so I had to ask the Finance Minister Enoch Godongwana in his media briefing why that was so. He answered that this was because the Treasury and the Department of Communications and Digital Technologies had not yet finalised what the Post Office of the Future would look like in the digital age. Sapo was placed in business rescue on July 10, 2023. In 2023/24, Sapo reduced costs and met some operational targets, yet it remains financially stressed due to high net losses and low revenue. Sapo used the R2.4 billion allocated in 2022/23 to implement a business rescue plan. As part of this plan, it closed 354 branches and retained 657 branches. The Treasury…

Dipula Properties delivered a strong 5% increase in distributable earnings for the year to end-August and might even beat its guidance for the next financial year of 7% growth, CEO Iszak Petersen said on Wednesday. Full-year distributable earnings per share came to 57.26 cents. Petersen noted that although there was not much acquisition activity in the diversified retail, industrial, and residential REIT this past year - Dipula focuses on township and rural areas for its retail properties in particular - “there is a bit of a pipeline of potential acquisitions; we are excited about it,” he said in a briefing. He stated that the results reflected prudent capital allocation, “rigorous asset management, financial and operational discipline, and the reignition of acquisitive growth.” Dipula had finalised five acquisition agreements in August…

The government will launch a R15 billion infrastructure bond soon to help fund badly needed infrastructure projects, which, in turn, should provide a stimulus for faster economic growth and job creation in the economy. Finance Minister Enoch Godongwana said in the MTBPS that the government will also contribute R2bn to capitalise a Credit Guarantee Vehicle. Initially, this vehicle will support electricity transmission expansion - South Africa’s renewable energy rollout is being stymied by a shortage of thousands of kilometres of transmission lines, such as between the Northern Cape, where many new renewable energy operations are based, and other parts of the country. “This heralds a new era in PPPs (Public-Private Partnerships), where private investment in high-voltage transmission lines is enabled,” he said. South Africa has, for at least two decades,…

The race for the ANC presidency in 2027 is rapidly gaining momentum, with influential lobbyists reportedly approaching former presidents Thabo Mbeki and Kgalema Motlanthe, along with billionaire Patrice Motsepe, to contest the leadership. According to ANC insiders, the intense lobbying drive is framed as an attempt to arrest the party’s decline and restore its battered image ahead of next year’s local elections and the party’s elective conference in 2027. The internal campaigning is intensifying ahead of the ANC’s national general council in December, where potential contenders for the 2027 leadership race are expected to begin testing their support and forming slates. Mbeki, who was recalled from the state presidency in 2008, is reportedly at the centre of the succession battle, with lobbyists urging him to return to the top post…

National Director of Public Prosecutions Advocate Shamila Batohi has said the decision not to prosecute anyone in connection with the Phala Phala scandal was being reviewed. “It is in review. The matter is in head office. It is being dealt with by the Specialised Commercial Crime Unit (SCU),” Batohi said. The initial decision to decline to prosecute was taken by the Limpopo Director of Public Prosecution (DPP). Batohi was responding to a follow-up question by EFF leader Julius Malema at the parliamentary inquiry probing allegations made by KwaZulu-Natal police Commissioner Nhlanhla Mkhwanazi. Malema raised his concerns that Batohi came to the Parliament and did not know what was happening with the Phala Phala case. “It will be very worrisome if you come before this platform, and say you don’t know…

The R10 billion Insimbi Ridge Logistics Precinct is set to transform the Cato Ridge area into a logistics powerhouse. That is the view of the provincial government following the launch of this project this week. The development will introduce new inland staging and intermodal capacity that the developers say will directly relieve pressure on the Durban port and N3 corridor. It is being developed by Assore SA PropCo, a wholly owned subsidiary of Assore SA (Pty) Ltd, together with the Rail Development Corporation (RDC) as the development partner. The project forms part of the KZN government's strategy to integrate private investment into critical logistics infrastructure to decongest the Durban port, improve freight efficiency along major corridors, and stimulate regional industrial growth. KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs…

The aftermath of the Brazilian Grand Prix has sparked a fresh controversy in the Formula One paddock, with McLaren questioning whether Red Bull’s decision to fit Max Verstappen’s car with a brand-new power unit complies with cost-cap regulations. The issue emerged after Verstappen started the race from the pit lane, having taken a full set of new power-unit components and altered his car’s setup after a disastrous qualifying session. McLaren team principal Andrea Stella raised eyebrows when he publicly questioned whether Red Bull’s engine change was genuinely motivated by reliability concerns or if it was, in reality, a performance-driven upgrade designed to regain lost speed. “If the engine was changed for performance reasons, it should go in the cost cap,” Stella said, hinting that the move might exploit a grey…

The Premier League is never short of drama, and 11 games into the 2025/26 season, early predictions have already been blown out of the water, with new narratives emerging almost weekly. After a quarter of the campaign, the title race is shaping into a two-horse affair, while surprise performers continue to make waves in the tight scramble for European places, and promoted teams stubbornly refuse to follow the familiar up-and-down script. Arsenal have grabbed the headlines, capitalising on a meltdown by early pacesetters Liverpool to surge four points clear. Eight wins, two draws, and a single loss leave Mikel Arteta’s side top of the table with 26 points and a healthy +15 goal difference, propelled by their unmatched defensive record and depth of quality. With the top teams separated by…

KEVIN Lerena’s boxing career is still very much alive and looks set to reach even greater heights, yet South Africa’s fistic darling is already making a seamless transition into the promotional space. The WBC bridgerweight champion and his Aquilla Boxing Promotions (ABP) have enjoyed a stellar rookie year, hosting four hugely successful tournaments. In a world where athletes often face uncertainty at the end of their careers, Lerena has already taken steps to ensure he will not join those statistics. Fondly referred to as ‘Two Guns’ for his explosive punching power, Lerena is not only securing his own future but providing a platform for both established and rising fighters, increasing opportunities for competition through regular events. He has spoken openly about his ambition to raise the standard of boxing…