Star 2025-05-02

Steelmaker ArcelorMittal warned Wednesday that tariff uncertainty could cause further economic disruption as its global footprint helped it weather the turbulence in the first quarter. The Trump administration has slapped 25 percent tariffs on imports of aluminium and steel, but its wider tariff measures on its major trade partners -- many of them on hold as negotiations are under way -- threaten to stall global economic growth as both businesses and consumers hold back on purchases. "Heightened uncertainty around the terms of global trade is hurting business confidence and risks causing further economic disruption if not quickly resolved," ArcelorMittal's chief executive Aditya Mittal warned. However, the company beat analyst expectations by posting a net profit of $805 million in the first quarter, although that was a decline of 14 percent…

Electricity and Energy Minister Kgosientso Ramokgopa has put forth a bold proposal aimed at rethinking the global approach to energy finance. Speaking on the G20 Transition Working Group, Ramokgopa urged the Summit to consider practical frameworks for concessional financing, de-risking energy infrastructure, and unlocking transmission grids—all crucial enablers for fostering inclusive growth across the globe. Speaking at the second day of the G20 Electricity Energy Summit in Cape Town, which focused on global energy efficiency strategies and affordability challenges, Ramokgopa said these were not abstract goals but preconditions for energy justice. Ramokgopa said the G20 countries were the next frontier of opportunity, representing more than 85% of global GDP and nearly 80% of global emissions, which brought responsibility, not only to immediate constituencies, but to the billions of people whose…

Minister for Trade Industry and Competition (the dtic), Parks Tau, has clarified that the newly proposed R100 billion Transformation Fund will not leverage Competition Commission settlements as a means of financing. This statement comes in light of growing concerns regarding the Fund's financial structure and its necessity given ongoing black empowerment programmes already in place. During a media briefing on Wednesday, Tau asserted that the establishment of the fund is not intended to undermine existing empowerment initiatives. On the contrary, he described it as an aggregator of all current efforts, designed to augment resources from both government and private sector empowerment allocations, including direct equity contributions. "Competition processes with large transactions, mergers and acquisitions date from a process that fundamentally deals with competition issues and you cannot predetermined the outcome…

The revised budget includes processes as set out in the Money Bills and Related Matters Act Finance Minister Enoch Godongwana has assured the country the National Treasury has already commenced work on developing a new fiscal framework that will maintain the trajectory toward debt stabilisation. This is a crucial element in strengthening the country's public finances amidst deteriorating fiscus. In March, Treasury projected that gross debt-to-GDP will stabilise in at 76.2% of GDP in the 2025/25 fiscal year, compared with 76.1% in the 2024/25FY, before declining gradually thereafter. It comes after Godongwana decided to rescind his decision to implement a 0.5 percentage points increase in the value-added tax (VAT) following litigation. The VAT increase proposal was in a bid to raise about R60 billion for the fiscus, which is facing…

The recent April 2025 Household Affordability Index released by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) has revealed that the average cost of the Household Food Basket has increased by R90.94 (1.7%) from R5 329.36 in March to R5 420.30 in April. This increase has ignited concerns from various civil society organisations regarding the affordability of food amidst rising living costs. According to the PMBEJD, of the 44 foods tracked in the basket in April, 24 foods increased in price, and 20 foods decreased in price. Mervyn Abrahams, PMBEJD programme co-ordinator, said food affordability remained a pressing issue, particularly in light of the year-on-year comparison, where the Household Food Basket has risen by R83.99 (1.6%) since April 2024 Abrahams said the details of the increases were stark, with…

The Jobs Fund has announced a new funding round aimed at tackling the pressing employment challenges facing South Africa's green and informal economies. As unemployment rates soar, particularly among the youth and women, this initiative represents a concerted effort to stimulate job creation and foster inclusive economic growth. According to the National Treasury, the Jobs Fund has made significant strides in transforming the labour landscape since its inception, disbursing R7.4 billion to various partners. Treasury on Wednesday said the previous funding rounds resulted in the creation of more than 210 000 permanent jobs, alongside 114 534 short-term positions and internships. The support extended to more than 63 000 small, medium, and micro-sized enterprises (SMMEs) and approximately 16 000 emerging farmers speaks volumes of the Fund's commitment to economic upliftment. With…