Star 2025-03-11

The Public Investment Corporation (PIC) on Monday remained silent as further reports emerged that Daybreak Farms is in deep financial trouble, leading to its CEO, Richard Manzini - who was tasked with turning around the state-owned poultry enterprise - quitting. Daybreak's financial viability as a going concern is in question with the prices of chicken on supermarket shelves potentially at stake. Daybreak is one of South Africa's largest independent, integrated poultry producers. The exit comes as the PIC allegedly rejected a request for an additional R250 million loan to aid the financially stressed company, according to a TimesLIVE report over the weekend. The PIC, the largest asset manager on the continent, oversees assets on behalf of the Government Employees Pension Fund (GEPF), the Unemployment Insurance Fund (UIF), and the Compensation…

Government urged to explore more efficient channels for savings before resorting to a tax increase Chairpersons of various Parliamentary economic committees have advised the government to explore more efficient channels for savings before resorting to a controversial increase in value-added tax (VAT). This comes as finance minister Enoch Godongwana on Wednesday will table the 2025 Budget Review in Parliament after it was posptponed on 19 February as the political parties rejected the 2 percentage points increase from 15% to 17%. During a pre-budget breakfast media meeting on Monday, leaders from the Standing Committee on Appropriations (SCoA), Select Committee on Appropriations, Standing Committee on Public Accounts (Scopa), and Standing Committee on Finance (SCoF) voiced their collective concern regarding the nation’s fiscal health. Sonzezo Zibi, Scopa chairperson, said the government property portfolio…

The latest analysis from NIQ South Africa reveals a cautious but notable momentum in the country's retail sector, despite economic headwinds. For the calendar year 2024, South African consumers spent nearly R637 billion on fast-moving consumer goods (FMCG), reflecting a year-over-year growth of just 3.4%. This increase was primarily attributed to rising prices rather than higher consumption levels. The Technology & Durables (T&D) market displayed a contrasting trend, achieving a modest sales value increase of only 1.8%, totalling R90bn. A significant 2% drop in the telecoms sector—accounting for over half of the T&D market's value—dampened overall performance. However, washing machines shone as a bright spot, with consistent monthly sales growth culminating in a remarkable 16% increase in both sales value and units sold. Zak Haeri, managing director for NIQ in…

US foreign policy expert, Prof. Michael Walsh, has warned that South Africa should expect that the Trump Administration will demand that the government completely abandon bilateral trade and investment cooperation with Iran. This comes as the US has threatened to collapse Iran’s economy by shutting down its oil industry. US Treasury Secretary Scott Bessent last week said that the US was deploying sanctions against Iran aggressively for “immediate maximum impact” with the aim to slash Iran’s oil exports of 1.5 million barrels per day to a trickle. Iran is one of the world’s major Brent crude oil exporters and a member of the BRICS+ bloc of nations. Walsh on Monday said no one should doubt whether the Trump Administration was committed to putting maximum pressure on the government of Iran,…

The United States Treasury Department has announced the immediate suspension of the Corporate Transparency Act, which took effect on January 1, 2024, under the Joe Biden administration. This key piece of Anti-Money Laundering (AML) legislation required business owners to disclose corporate reports with information about Ultimate Beneficial Ownership (UBO). The Trump administration has positioned this move as a step to reduce red tape for American taxpayers and businesses. It may be rooted in the misplaced perception that smaller entities are less likely to be used to move illicit funds. Many observers will be concerned that it is a setback for efforts to increase transparency and combat illicit financial flows. Less UBO transparency will make it easier for corporate structures, networks, and advantageous stakeholders involved in moving funds to evade…

2024 was the biggest election year in human history where over 70 countries representing more than half of the global population held elections. It is estimated that over 80% of incumbent parties lost voter support in 2024 compared to the previous election, making it a significant year for global democracy. Economic challenges, especially inflation, and overall dissatisfaction with incumbent governments were key drivers behind voters' decisions to oust incumbents leading to key electoral outcomes such as the return of Donald Trump to the White House and here at home the ANC losing its majority for the first time since 1994. One of the consequences of the elections anti-incumbent theme is that the world is now scattered with a host of newly installed governments seeking to change the status quo, with…