Star 2024-08-14

Deputy Finance Minister, David Masondo, has committed the National Treasury to help stabilise financially- struggling municipalities deliver basic services, by strengthening the regulations and oversight for appointing competent administrators at municipal level. Masondo said the first task will be to stabilise the performance of local government in addressing the immediate challenges in delivering electricity, water, and other basic services as part of the second phase of Operation Vulindlela. Speaking at the Old Mutual Leaders Forum, Masondo said without these services at municipal level, businesses cannot function and investors cannot invest. In the long term, he said, the institutional structure and funding model for local government will be reviewed to ensure that municipalities are financially and operationally sustainable. “The ultimate objective should be to balance the need for truly local government…

Transnet Group CEO Michelle Phillips said yesterday the utility was engaging its funders to renegotiate its debts to longer term as it was hampered by an R1 billion a month interest repayment, which confined legroom. Transnet has a staggering debt burden of R120bn. Phillips said the government was not clear on not providing further subventions which necessitated proactive steps to manage the debt risk. Transnet has seen a decline in profits from R5bn in 2019 to a net loss of R5.7bn in 2023. Speaking at a PSG Think Big webinar, Phillips said debt was still a huge burden for Transnet although the group was in a better financial position with R27bn of the R47bn credit guarantee from the government in hand for the reform and recovery programme. “Debt is a…

Unemployment has risen to its highest in two years to 8.4 million. This means the rate of joblessness in South Africa is expected to remain at historic highs if economic growth is not addressed. Statistics SA said yesterday that the official unemployment rate rose to 33.5% in the second quarter of 2024, up from 32.9% in the first quarter, as more than 92 000 jobs were lost in the three months to June while the labour force continued to expand. Narrowly defined, this means that one in three of the working-age population in South Africa is now unemployed. The Quarterly Labour Force Survey (QLFS) from Stats SA showed that the number of unemployed individuals increased by 158 000, reaching 8.4 million, marking the highest figure since comparable records began in…

The South African Association of Ship Owners and Agents (Saasoa) has warned that rising shipping costs and longer journey times around the Cape of Good Hope would exacerbate rate hikes. There was no reason to expect any financial relief in the short term. Saasoa, which represents the maritime and shipping industry, said as ships spend more time at sea, more space was required which meant companies had to charter or buy vessels which required additional personnel. Vessels were not readily available which caused freight rates to rise. Another side effect of longer routes was gas emissions as ships had increased speed, leading to a rise in fumes. Peter Besnard, Saasoa CEO, said the Red Sea route for global trade was “enormous”, but for six months to date vessels had been…

Poultry farming remains one of South Africa’s largest agricultural sectors despite multiple challenges, including load shedding, water shortages, and avian influenza. These complexities have led the poultry industry to seek alternative solutions, like solar power to combat the energy crisis, and innovative measures to ensure the hygiene of their facilities. When it comes to tackling the difficulties that arise from absenteeism and staffing shortages, the right Temporary Employment Services (TES) partner is invaluable. A TES partner provides an agile and flexible workforce, with appropriate skills and experience, that is necessary to ensure poultry producers can continue to meet their distribution and retail contracts while ensuring ongoing continuity. A trifecta of challenges Load shedding has proved incredibly disruptive to the poultry sector. During these power outages, the machinery at abattoirs will…

E-commerce is a key part of global shopping, offering huge opportunities for traders and consumers everywhere. In 2020, a Deloitte study found that more than 70% of South Africans were shopping online compared to the previous year, probably due to Covid-19 lockdowns. By 2022, online spending reached R59 billion. This year, the e-commerce sector expanded to R71bn, accounting for 6% of total retail. Projections suggest the figure could rise to R225bn by 2025, reflecting significant growth in online retail. The e-commerce boom in South Africa, driven by the digital revolution, is causing diverse reactions: euphoria among consumers, excitement among small and medium-sized enterprises (SMEs) and panic among established retailers and manufacturers. In the current economy, price sensitivity greatly influences consumer shopping. Brands offering convenience, competitive pricing and variety will be…