Star 2024-10-18

Local auto industry needs to transform or face prospect of becoming obsolete The motor industry will be breathing a big sigh of relief after President Cyril Ramaphosa announced yesterday that government policy will in future allow for a tax incentive to make new energy vehicles (NEVs) more affordable for local consumers. Speaking at the South African Auto Week held in the International Conference Centre in Cape Town yesterday, Ramaphosa said that the incentives for electric-powered vehicles will also apply to hybrid vehicles (which use normal fuels and electricity batteries), as well as potentially other fuels, such as hydrogen. The government announced its first incentives for NEVs in the Budget in February, a 150% investment allowance for expenses in the initial year of investment, effective from March 1, 2026. Additionally, the…

South African Reserve Bank (SARB) Governor Lesetja Kganyago yesterday challenged widely-held beliefs about the relationship between inflation, unemployment, and economic growth. Delivering a special guest lecture at Stellenbosch University yesterday, Kganyago – who also has an honorary doctorate for his contributions to policy making from the university – argued that diminishing inflation rates did not necessarily equate to stagnant economic growth or climbing unemployment rates. “We have an opportunity to achieve permanently lower inflation and therefore permanently lower interest rates. Executed effectively, a lower target could be achieved at little cost, just as we moved to 4.5% at little cost,” he said. The Governor noted that the globe has recently experienced the biggest surge in inflation in a decade. “People really hate inflation. We always knew inflation was bad, and…

GLOBAL mining giant BHP has announced a substantial increase in its investments, committing $104 million (R1.8 billion) to exploration and evaluation expenditure during the quarter ending last month. This represents a notable rise from the $93m allocated in the same period the previous year. Of the recent commitment, about $91m has been expensed, indicating robust momentum in projects. As BHP progresses, the company has also revealed plans to direct more than $300m towards the operation of its burgeoning potash ventures throughout the financial year, set to conclude in June next year. The lion’s share of the funding is earmarked for the first and second stages of its Jansen potash project in Canada, which is projected to produce an impressive 8.5 million tons annually. Stage 1 of the Jansen project is…

The board of the Public Investment Corporation (PIC) has officially commenced its search for a new CEO to succeed the incumbent, Abel Sithole, whose term is set to conclude in July 2025. The PIC is South Africa’s largest asset manager with R2.69 trillion assets under management. This strategic initiative reflects the board’s dedication to ensuring a smooth transition in leadership and maintaining momentum as the organisation continues to thrive in a dynamic investment landscape. The official call for applications for the CEO position will be published in media outlets over the weekend and will also be accessible on the PIC’s website. PIC chairperson David Masondo expressed gratitude towards Sithole, commending his “exceptional leadership and invaluable contribution” during his tenure. Under his stewardship, the PIC has not only stabilised but also…

As the world commemorates the International Day for the Eradication of Poverty - an observance celebrated annually across the world on October 17th – it is deeply concerning that Africa has the highest poverty rate in the world, despite all efforts to eliminate the scourge on the continent. Eradicating extreme poverty for all people everywhere by 2030 is a pivotal goal of the United Nation’s 2030 Agenda for Sustainable Development. To this effect, billions are being spent by well-meaning organisations and governments, developmental groups, corporations, and philanthropists across the world In June 2023, the United Nations Development Programme (UNDP) and Oxford Poverty and Human Development Initiative (OPHI) released the 2023 Global Multidimensional Poverty Index (MPI) report titled Unstacking Global Poverty: Data for High-Impact Action. This comprehensive report, using pre-Covid-19 data…

South Africa’s food security has plummeted to its lowest levels in over a decade, as outlined in the South African Food Security Index 2024 compiled by economists at Stellenbosch University. The Index, which peaked at 64.9 in 2019, has dropped to a disheartening 45.3 in 2023, reflecting a serious surge in food insecurity across the nation. The implications of this downward trend are serious. For the first time in recent years, the Index indicates that on average, more South Africans are experiencing greater levels of food deprivation than any year since records began in 2012. The journey towards ending hunger in South Africa requires unity and action from all sectors of society, to ensure that no child goes to bed hungry in a country rich in resources. Sanjeev Raghubir, chief…