Star 2025-02-13

The South African Chamber of Commerce and Industry (Sacci) has raised alarms over a potential downturn in the country’s economic confidence, attributing the cause to shifting policies under the new administration of US President Donald Trump. Sacci on Wednesday warned that this uncertainty could stall gains made in the domestic business climate, particularly following a diplomatic spat that erupted after Trump signed Executive Orders that cut crucial funding for South Africa’s health programmes. The cutbacks have been linked to the government’s controversial land expropriation policy. Survey results released on Wednesday indicated a slight dip in the Business Confidence Index (BCI), which fell to 120.0 points in January 2025, down from December’s 121.0. While this represented the second consecutive month of decline, the index had previously achieved its highest level since…

Old Mutual chief economist says CPI inflation is expected to average around 3.8% South African economists and agricultural leaders Wednesday revealed expectations of a notable recovery for the country’s economy, anticipating a gross domestic product (GDP) growth of close to 2% in 2025. In a panel discussion, Old Mutual Group chief economist, Johann Els, set the tone by forecasting a GDP growth rate of 2.2% for the coming year. Els noted that consumer price index (CPI) inflation was expected to average around 3.8%, alongside predictions of two further interest rate cuts of 25 basis points each in 2025. Furthermore, he expressed confidence in the strengthening of the rand against the US dollar, with a target of R17 by the close of 2025. “Currently holding a credit rating of 'stable', I…

Consulting Engineers South Africa (Cesa) has called for the government to walk the talk and better account for the use of infrastructure funds in the upcoming National Budget next week. Chris Campbell, the CEO of Cesa, said that when it comes to funds and allocations for infrastructure, Cesa wants local government to account more for unspent infrastructure funds, not just rely on the Auditor-General’s report. This comes as billions of rands allocated to infrastructure spending often remain unspent by municipalities due to various reasons, as frequently highlighted in the Auditor-General’s report. South Africa’s 257 municipalities frequently lack the necessary capacity, skills, and resources to manage infrastructure effectively. Cesa said the solution lies in public-private partnerships to ensure implementation. Campbell also called for a realistic budget, adding that it would likely…

Sources close to the South African Post Office Business Rescue Practitioners (BRPs), Anoosh Rooplal and Juanito Damons, have revealed that efforts were being made to verify reports that the Department of Communications and Digital Technologies (DCDT) has asked National Treasury to reallocate unused funds from the SA Connect programme to the South African Post Office (SAPO). This initiative seeks to aid the beleaguered postal service as it grapples with the threat of shutdown within weeks. This is at the height of strong debate between Parliament’s Portfolio Committee on Communications and Digital Technologies, and the Communications Workers Union (CWU) over the effectiveness of the business rescue process of the SAPO, which the latter has warned could shut down in the next two weeks. According to Kwena Moloto, spokesperson for Communications Minister…

At the inception of South Africa's sixth administration in 2019, government took a bold decision to replace the annual Industrial Policy Action Plans (IPAPs) with sector-specific master plans. These were envisioned as blueprints for individual industries, designed to catalyse growth, generate economic opportunities, and align sectoral strategies with the broader objectives of industrial policy. Much can be debated about the effectiveness—or lack thereof—of these master plans. Yet, regardless of their outcomes, they marked a critical moment of recognition by government of the need to prioritise strategic sectors as the engines of economic renewal. The years since have not been kind. Between 2021 and 2023, inflation soared across advanced and emerging markets alike, fuelled by a confluence of factors: surging commodity prices, supply chain disruptions, rising transport costs, rebounding demand, and…

Several academics and law firms have weighed in on the spectacular collapse of Steinhoff, which resulted in multiple people being arrested for fraud and the company’s listing being removed from both the JSE and Frankfurt Stock Exchange. Associate Professor and director of Rhodes Business School, Professor Owen Skae, has investigated whether Steinhoff’s board structure contribute to the scandal. His research made the point that, with its primary listing being in Frankfurt and its corporate address in Amsterdam, Steinhoff follows the Dutch corporate governance code. Previous articles ran by Business Report have shown how Steinhoff only followed corporate governance rules in theory as, in practise, scant regard was paid to business oversight. The corporate scandal, often called South Africa’s largest, led to then CEO Markus Jooste’s apparent suicide, former directors being…