Star 2025-05-29

The global economic outlook has deteriorated significantly since the start of 2025, driven by volatile trade policies and the disruptive rise of artificial intelligence (AI), according to a World Economic Forum (WEF) report released on Wednesday. The Chief Economists Outlook highlights growing uncertainty, with 79% of surveyed economists viewing current geoeconomic shifts as a structural transformation rather than a fleeting disruption, posing risks to long-term growth and stability. The report underscores the impact of recent US trade policy shocks, which have shaken confidence in the global economic order. On April 2, the U.S. announced sweeping tariff hikes, including a 10% baseline on most global goods and significantly higher rates targeting countries with trade surpluses, notably China. This triggered market turmoil and retaliatory measures, with China imposing 145% tariffs on US…

The Association of Comms and Technology (ACT) has welcomed the recent directives from the Minister of Communication, Solly Malatsi regarding the alignment of ICASA's empowerment regulations with the B-BBEE ICT Sector Code. On Tuesday, Malatsi appeared before the Portfolio Committee on Communications and Digital Technologies to justify his directive, which seeks to “align” the Electronic Communications Act and the ICT Sector Code. "This policy development, coupled with a proposed inquiry into the necessity of I-ECNS licence applications, marks a pivotal moment for South Africa's telecommunications sector, potentially reshaping the landscape of competition and transformation," ACT said in a statement. As the industry stands on the brink of significant regulatory reforms, ACT said it urges that these changes be implemented with transparency, consistency, and equitable enforcement of the law. "If executed…

Absa Corporate and Investment Banking (CIB) has slashed its 2025 GDP growth forecast for South Africa by half, from 2.1% to 1.0%, due to heightened global uncertainties. The updated outlook was presented in the South Africa Q2 2025 Quarterly Perspectives report on Wednesday. Miyelani Maluleke, a senior economist at Absa CIB, said in Absa's Q1 Quarterly Perspectives, that they had forecast that real GDP growth could improve to 2.1% in 2025 supported by a combination of improved domestic infrastructure, household finances, higher levels of business confidence, recovery from drought conditions, and broadly stable global growth. However, this forecast has now changed. "While some of these factors seem likely to remain supportive, others have deteriorated. We still expect real GDP growth to improve from 2024, but we revise our forecast to…

Department of Agriculture bans chicken from Brazil due to avian influenza outbreak South Africa is grappling with potential food insecurity this winter after the Department of Agriculture’s has banned chicken from Brazil due to an avian influenza outbreak. The ban, effective since May 15, 2023, halts imports of live poultry, eggs, and fresh or frozen poultry meat, raising alarms over the supply of mechanically deboned meat (MDM) and poultry offal critical for affordable processed meats like polony, viennas, and sausages. The Association of Meat Importers and Exporters warned on Wednesday of serious economic and food insecurity consequences for South Africa as a result of the recent outbreak of Avian Influenza (HPAI) in Brazil. “Local producers cannot, and will not be able to meet the gap in supply of poultry offal…

In a stark reflection of the economic pressure faced by South African families, the latest Household Affordability Index for May 2025 revealed an increase in the cost of basic groceries across the country. The report highlighted the ongoing escalation of food prices as well as the widening gap between wages and the rising cost of living, particularly for the poorest households. Compiled monthly by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the food index showed that in May 2025, the average cost of a household food basket was R5 466,59. This was a month-on-month increase of 0.9% (R46.29) and a yearly increase of 2.6% (R136.29). Price movements signal ongoing struggles Of the 44 foods examined, 33 items saw price hikes in May 2025, with several staples experiencing increases of…

After fighting for 20 years, a woman from Soweto has finally regained ownership of her home, where she had lived for 23 years. The house was unlawfully auctioned by Standard Bank and bought by the bank itself for just R200. It was then sold to another buyer, who later obtained a court order to evict her. This happened despite Mogudi Batsile Mosai not having signed anything – as was meant to be the case under the law – nor having received eviction papers or being aware of the eviction. In fact, her family was so in the dark as to what was going on, they even improved the property. The lengthy court matter went on for so many years until landing up in the Johannesburg High Court to finally be…