Star 2024-03-07

THE RMB/BER business confidence index (BCI) fell only marginally in the first three months, to 30 points from 31 points, but it is well below the neutral level of 50 points, as all five categories of business confidence readings were depressed. “Taking a slightly longer perspective shows a concerning picture, as less than four out of 10 survey respondents were satisfied with prevailing business conditions for seven consecutive quarters,” said RMB’s chief economist and head of research, Isaah Mhlanga. He said business conditions had deteriorated further in the first quarter. “The same supply constraints, including load shedding, logistical challenges, and heightened global and domestic policy uncertainty, keep South African businesses in a stranglehold,” he said. Another drag came from lacklustre demand, which was insufficient to sustain production…

DURING a media briefing on the advancements in the collaboration between the government and business to boost economic growth, the Presidency underscored the goal of achieving 3% to 5% economic growth and generating 2.5 million jobs by 2030, despite the significant challenges faced by South Africa. This goal seems unreachable after Statistics SA on Tuesday released GDP data which showed the GDP only increased 0.1% in the fourth quarter of 2023 over the previous three months, only narrowly avoiding a technical recession. However, logistics consultancy Gain said yesterday that the GDP last year would have been above 5% instead of the reported 0.6% if it did not have headwinds, such as logistics constraints that cost the country R1 billion a day, among other woes such as electricity. There…

DESPITE elevated demand for platinum group metals (PGMs), global supply levels of the precious and key auto-industry metal are set to fall this year, partly dragged down by mining companies, including big South African operators, that are closing loss-making shafts and laying off workers. South Africa, alongside neighbouring Zimbabwe, has the world’s largest reserves of platinum. The two countries have attracted heavy investment from miners such as Anglo Platinum, Impala Platinum and Sibanye-Stillwater, among other smaller players. But with the global platinum market less rosy, with prices continuously falling, investment and production sentiment is faltering. The World Platinum Investment Council (WPIC) said yesterday that global mine supply of platinum for 2023 marked a 1% uplift to 5.6 million ounces from reduced supply levels of the previous year. This…

THERE are many different paths entrepreneurs take to realise their dreams and fund a business idea. For some, the journey is a straight-forward trajectory from getting a business loan to selling the first product or service. For others, the journey to success takes many twists and turns, and necessitates an iteration – or even a pivot, to get the formula 100% right. Although there are many tried-and-tested principles that entrepreneurs use to get ahead, these four methods are invaluable steps in the process to the success of a small and medium enterprise (SME): 1. Assess and identify the opportunity Entrepreneurs are known to be eternal optimists – when you believe in a business idea wholeheartedly and have invested emotional and mental resources into formulating it, it can be hard…

SMALL AND MEDIUM enterprises (SMEs) in South Africa have weathered some severe storms over the past five years. The Covid-19 pandemic, the riots in KwaZulu-Natal, record levels of load shedding and extreme weather have put their resilience and adaptability to the test. This context highlights why every SME needs to be proactive in anticipating and mitigating threats to its business. Let’s look at some of the most common threats and risks SMEs face, as well as the steps they can take to protect themselves. Power outages and load shedding South Africans endured 332 days of load shedding in 2023, and so far, 2024 has not been much better. While load shedding has become a way of life for SMEs, proactive business owners need to plan for higher stages of load…

CAPE TOWN is gearing up to host the Global Entrepreneurship Congress Africa (GEC+Africa) on March 13 and 14 at the Cape Town International Convention Centre. This groundbreaking congress, powered by the Department of Small Business Development and African Bank, is poised to spotlight Africa’s entrepreneurial prowess by connecting visionaries with global opportunities. The GEC+Africa is a gathering of entrepreneurial champions and leaders in 43 countries on the continent, which will include international thought-leaders and practitioners who are part of a global movement to make it easier for anyone, anywhere to start and scale a business. With more than 3 000 delegates confirmed to attend, as well as more than 100 investors and thousands of entrepreneurs, it is a showcase not to be missed! In an exciting turn of events,…