Star 2025-01-07

The manufacturing sector in South Africa ended the year on a dull note as private sector firms registered the first decline in business activity in four months and fell into contractionary territory. After signalling growth in each of the previous four months, the S&P Global South Africa Purchasing Managers’ Index (PMI) dropped below the 50.0 neutral threshold at the end of 2024 to 49.9 in December, down from 50.9 in November, signalling a fractional decline in private sector business conditions. According to S&P Global, muted demand conditions led to a stalling of sales growth and a pull-back in hiring. S&P yesterday said that the sector was also influenced by a rise in inflationary pressures, as quickening cost burdens drove a solid uptick in firms' selling prices. The drop-off in growth…

The latest outbreak in human metapneumovirus (HMPV), which was first detected in 2001 by Dutch scholars, is causing concern across the world as infection rates in China increase. However, a local economist told Business Report yesterday that the current situation cannot be used as an economic base-case as it was too soon to determine the extent of the epidemic. The respiratory disease has recently caused many people to become ill, especially children, with reports emerging of Chinese patients queuing outside of hospitals and concerns in India that there may be a lockdown on the way. Such news is reminiscent of the outbreak of the coronavirus (COVID-19) towards the end of 2019. “There’s lots of uncertainty around this because we know that's how the COVID virus started and expanded relatively quickly,”…

Kobus Verster, CEO of Amsa says efforts over the past year had not translated into a solution ArcelorMittal South Africa’s (Amsa) closure of its longs steel business will affect 3 500 employees who are set to lose jobs and will impact iron ore suppliers such as Afrimat, with further effects on the local local automotive industry that relies on the company for supplies, leaving a serious dent on the country’s industrial sector. This comes as Amsa in November 2023 announced a decision to suspend operations at its longs steel businesses although it kept the Vereeniging and Newcastle factories operational after widespread stakeholder concerns. This paved the way for engagements and negotiations with the government and other affected parties. However, Amsa yesterday said there has been no respite or significant improvements…

Energy experts yesterday said they were positive that an improved Eskom performance will see load shedding stay away for the foreseeable future after last week marked 285 days of no rotational power cuts. Experts said that improved performance can be attributed to strategic and well-managed leadership at Eskom. Craig Morkel, chairperson of the Gas Economy Leadership Team at Saoga (SA Oil and Gas Alliance), said that the successful suspension of load shedding for the last 285 days was a reflection of the strategic leadership by Minister of Electricity and Energy, Kgosientsho Ramokgopa, and the operational management led by Eskom Group CEO, Dan Marokane. “The successful implementation of the Energy Action Plan by the National Electricity Crisis Committee (NECOM), comprising Eskom, other organs of state, and the private sector, has resulted…

Small to medium-sized enterprises (SMEs) often face challenges in managing payroll and recruitment due to limited resources. With budget constraints, these businesses may find it difficult to invest in advanced payroll software or establish a dedicated HR team. However, the complexities of payroll processing, coupled with the need to recruit the right talent and labour resources, can create significant strain on SMEs striving for growth and operational efficiency. Complex challenges require simple solutions Overcoming the complexities of payroll and recruitment can be a daunting task for SMEs. Limited resources and tight budgets often hinder the ability to invest in advanced payroll software or establish a dedicated HR team. However, a streamlined solution exists: partnering with a Temporary Employment Services (TES) provider. A TES provider offers a comprehensive, bundled service that…

The rural economy has been neglected and left to its own demise, once an exciting and soulful place to visit during the holiday season. Local stores and halls have become dilapidated structures that only pleasure us through nostalgia. Growing up most South Africans would purchase their basic household needs at a local general store. The owners of these general stores were mainly locals and those families were considered more well-off than most families in the community. Despite that, the community has a sense of comradery that garnered unreserved supported by consumers in around their jurisdiction. The rise of shopping centers in rural areas promising access, convenience, variety and job creation came at the detriment of rural entrepreneurial activity and self-sufficiency of locals. Previously, the wages locals would earn or working…