Star 2023-09-01

SOUTH Africa’s producer inflation moderated further to 2.7% year-on-year (y/y) in July from 4.8% in June, its lowest level since October 2020, mainly on cooling fuel prices, a welcome relief to South Africans that have been confronted with a cost of living crisis. The producer price index (PPI), which measures changes in the prices of locally produced commodities, was lower than the market’s forecast of 3% y/y. Statistics South Africa (StatsSA) said on a month-on-month basis, the PPI was at 0.2% in July from -0.3% the previous month. The coke, petroleum, chemical, rubber and plastic products grouping, which makes up 22.7% of the PPI basket, detracted -2.5% points from the headline reading in July, versus -0.8 of a percentage point in June. This as petrol price inflation slid by -18.5%…

PUBLIC Enterprises Minister Pravin Gordhan’s eleventh-hour excuse not to attend a session with the Portfolio Committee on Public Enterprises to explain himself on allegations raised by fired director-general Kgathatso Tlhakudi for his dismissal got Parliamentarians hot under the collar as they said he was not prioritising his appearance to the oversight committee. They questioned the minister’s reason for not appearing before the committee – a medical emergency – when he had been able to attend a lengthy Cabinet meeting earlier on Wednesday and had previously excused himself from accounting to the committee on several occasions, citing various reasons. On Wednesday night, Gordhan sent a letter to committee chairperson Khaya Magaxa indicating he wouldn’t be available for the session scheduled for 10am yesterday as a doctor had advised him that he…

Thousands of jobs at risk if proposed Health Promotion Levy takes effect THOUSANDS of jobs in the sugar sector were at risk, warned the SA Canegrowers yesterday as it noted the recently published Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, which included an increase in the Health Promotion Levy (HPL), due to take effect in April 2025. The association’s CEO Thomas Funke said in a statement: “The publication of the increase in the absence of such consultation is, therefore, a bad faith move by the National Treasury that will have far-reaching negative implications for the already struggling industry, its stakeholders, and workers throughout the value chain.” He said the increase in the HPL, first announced in February last year, was intended to be implemented,…

THE GOVERNMENT is set to unveil fiscal measures to support companies producing electric vehicles in October, David Masondo, the Deputy Minister of Finance, said yesterday. He was speaking at the National Asso- ciation of Automotive Component and Allied Manufacturers (Naacam) Show. This as the the government eyes greater localisation to create jobs amid the challenges of new skills being required due to technological advances such as artificial intelligence. “However, whatever the proposals on a new set of incentives to spur the production of New Energy Vehicles (NEVs), we should bear in mind that this comes at a time when the fiscus is particularly stretched, making it difficult to put resources towards every priority,” he said . The measures to support the growth of NEVs should aim to complement the extensive…

NAMPAK yesterday informed its shareholders that the JSE had approved its R1 billion proposed rights offer. In a statement, the debt-laden group said all suspensive conditions to the rights offer had now been fulfilled. The group sought the rights offer in a bid to embark on its turnaround strategy, which involves the transformation of workstreams, right-sizing initiatives and the asset disposal programme. The offer would be through the issue of new Nampak shares at R175 each. “The subscription price of R175 represents a discount of approximately 23.49% to the 30-day volume weighted average traded price of Nampak’s ordinary shares as at close of business on Wednesday, August 30, 2023,” it said. Nampak said it had received commitments from certain of its major shareholders, to follow their rights in terms…

This is the fourth article in a series on planning for retirement, focusing on the different phases of the journey. Our first article looked at pre-retirement planning considerations, the second looked at navigating the transition phase of retirement, and the third explored the active phase. In this article, we look at the fourth, or passive, phase of retirement and making sure your retirement funding goes the distance. We sometimes hear people say their retirement savings will last for as long as they live – if they’re lucky. While it’s true you can’t predict how long you’ll live, and you can’t predict how investment markets will perform, there are ways to minimise the role of luck in your retirement planning. One of the reasons luck plays a role in whether your…