Star 2025-01-23

Stats SA says inflation for 2024 overall was substantially lower year-on-year at 4.4% As inflation continues to grow at a manageable rate, at the bottom end of the South African Reserve Bank’s (SARB’s) target range, economists expect a 0.25 percentage point cut in the interest rate next week, which would take the prime lending rate down to 11%. Statistics South Africa reported on Wednesday that inflation for 2024 overall came in substantially lower year-on-year at 4.4% compared with the comparative print of 6% in 2023. While December’s figure was marginally higher than that of November, the 3% recorded was substantially lower than the 5.1% number recorded in the last month of 2023. Investec chief economist, Annabel Bishop, said the SARB’s Monetary Policy Committee was expected to trim interest rates next…

The beleaguered Ithala Development Finance Corporation Bank, on the verge of liquidation, has won an order to claw back more than R10 million from Loyisa Consulting and Projects, which had been granted as a loan in 2011 ostensibly for a milk processing plant. This comes as the ANC and its alliance partners in KwaZulu-Natal will picket outside the Pietermaritzburg High Court on Friday when the Prudential Authority and Ithala Bank exchange legal blows inside. The High Court in Pietermaritzburg on Tuesday has ordered that the company, along with company principals Luyolo Lennox Makaula, Liziwe Pepeta and Donald Luthando Loyiso Pepeta, pay Ithala R10.1m jointly and severally and also pay interest at Ithala’s lending rate minus 2% or the maximum rate. The court also ordered that an over 810 hectares…

Thirteen prominent industrial clusters from around the globe have recently joined the World Economic Forum’s (WEF) Transitioning Industrial Clusters initiative. This global coalition now encompasses 33 clusters across 16 countries and five continents, showcasing an unprecedented commitment among co-located companies and public institutions to tackle greenhouse gas emissions while fostering economic growth and job creation. Initially launched at COP26 in 2021 in collaboration with Accenture and the Electric Power Research Institute (EPRI), the initiative represents a significant collective might, with the 33 signatories poised to reduce carbon dioxide-equivalent emissions by an impressive 832 million tons—equating to the annual emissions output of Saudi Arabia. Furthermore, they contribute approximately $492 billion (R9 trillion) to global gross domestic product (GDP) and sustain 4.3 million jobs worldwide. This month, a new report, co-produced by…

FlySafair has reaffirmed being steadfast in maintaining its efficiency as it confirmed making final representations to the International Air Services Licensing Council (IASLC) earlier this week. This comes as both Domestic and International Air Services Licensing Councils are currently deliberating on possible sanctions on the airline for breaching the foreign ownership threshold in both its operational divisions. The appearance this week, scheduled from a court ruling last year, was for the airline to make further submissions as the councils draw close to the matter, which may shift the South African landscape due to the airline’s dominant position. “FlySafair remains steadfast in its commitment to delivering uninterrupted service throughout this process. Our flights continue to operate as scheduled and are receiving strong customer support,” said Kirby Gordon, FlySafair chief marketing officer.…

If you want to link that at all to Trump and his policies, I would argue that, well, if Trump hits us with some trade tariffs as well, that will immediately add another layer to anybody that would like to come and open a factory here or make investments in South Africa, because then over and above just the normal local challenges that we face, those kind of investors will need to take into account that then they also need to deal with additional tariffs over another hurdle if they would like to trade and operate from. On inflation trends, maybe more broadly, I think some of the most important policy changes that's on the table is around trade, as we already said. Trade is generally growth negative because it…

Port congestion frequently makes headlines, as bottlenecks exporting and importing goods constrain multiple sectors of the economy including retail, mining, agriculture, and manufacturing. For years, systemic issues at the ports have remained unresolved, stifling growth, job creation, and tax revenue generation. Clothing retailers at times bemoan reduced sales due to insufficient seasonal or fashionable inventory in store as clothing stock gets stuck on ships waiting to enter the ports. Similarly, mining firms have been unable to fully capitalise on commodity booms, such as the surging coal prices of 2023 with minerals remaining in the ground despite demand for them abroad. Agriculture suffers equally. Fresh fruit or even wine destined for international markets frequently gets stuck in South Africa’s ports, arriving overseas too late to be sold. Cancellations and contract terminations…