Star 2024-12-11

Government’s protectionism measures in the scrap metal industry are costing the economy some R8.5 billion a year without any tangible benefits in terms of job creation. This is according to XA Global Trade Advisors’ second Scrap Metal Report, which was released yesterday. The report details how companies that wish to sell scrap are penalised both for trying to sell the material locally as well as when they seek to export it. “Few sectors of the economy demonstrate the unintended consequences of industrial policy better than the scrap metal sector in South Africa,” read the report. “We have market failures, attempts to correct those failures with subsidies, export duties and preferential finance, resulting in suboptimal outcomes for almost everyone.” Donald MacKay, founder and CEO of XA Global Trade Advisors, told Business…

522km of cable has been lost by the utility and cost Transnet about R4bn in lost revenue Transnet’s rail network is at a crucial juncture as the utility has indicated that it needs over R70 billion to address significant deterioration caused by financial underinvestment and rampant theft and vandalism. This stark revelation was made by Transnet chairperson Andile Sangqu, who detailed the challenges facing the state-owned company and its newly established unit, the Transnet Rail Infrastructure Manager (TRIM), which is tasked with overseeing rail infrastructure and operations. Sangqu on Monday confirmed that the year-to-date figures, week 37, showed that 522km of cable has been lost by the utility and cost Transnet about R4bn in lost revenue. “As TRIM, we envisage that a minimum of R70bn is required to fix it…

After days of more fuel supply disruptions and flight delays at South Africa’s busiest airport, OR Tambo International, Tourism Minister Patricia de Lille yesterday appealed to Airports Company South Africa (Acsa) to “identify the immediate causes and implement robust contingency plans that can be swiftly activated”. Acsa, now caught in a maelstrom of operational issues and legal claims, also yesterday vigorously denied reports that it was insolvent and that it owed money to service providers. De Lille’s appeal followed hard on the heels of other issues that have dogged the airport operator, not least being several applications for its liquidation by service delivery operators who claim they have not been paid for services rendered, and claims that its financial statements were “fake”. Yesterday, OR Tambo International experienced disruptions due to…

China’s green economy will boost growth in 2024 and 2025. In 2023 the clean energy sector emerged as a key driver of gross domestic product (GDP) growth, as government policy pivoted to making China the global powerhouse for green economy products. The pivot was aimed at compensating for the downturn in real estate. The move meant that the green economy accounted for some 40% of 2023’s economic expansion. The green economy is now estimated to be a $1.6 trillion (R29trl) behemoth. This pivot highlights that the green transition is not an obstacle, but a new engine for growth. President Xi Jinping has emphasised that green development is integral to the broad goal of “high-quality development,” positioning it as a core driver of China’s economic future and this policy directive was…

South Africa's agricultural sector is diverse and export oriented, shaped by market policy reforms enacted in the mid-1990s. Over the past three decades, South Africa has maintained its position as a net exporter of primary agricultural products, gaining market access in over 181 countries. It remains the largest food producer and exporter in Africa. Despite the sector’s resilience and growth over the years, it continues to be plagued by several issues, namely adverse climatic conditions; biosecurity challenges; low gross capital formation; and infrastructure constraints. According to Statistics South Africa (Stats SA), South Africa’s real gross domestic product (GDP) contracted by 0.3% in the third quarter (Q3) of 2024. The agricultural sector was among the main contributors to this decline along with transport, trade and government services sectors. The…

Sentiment in the business sector in South Africa has surged to its highest in nine years, buoyed by economic prospects since the formation of the Government of National Unity (GNU). The South African Chamber of Commerce and Industry (Sacci) said yesterday that the Business Confidence Index (BCI) climbed to 118.1 in November 2024, the highest since October 2015, up from 114.2 in the prior month. The BCI has, since the formation of the new administration in June, improved gradually from a low level of 107.8 in May to 118.1 in November – a 10.3 index-point improvement. Over the year to November, the BCI improved by 6.6 index points. Sacci said the broader political representation in the administration of national government has facilitated a positive assessment of economic prospects by business,…