South Africans should expect higher inflation in the coming months, according to economists, as higher diesel prices and input costs ripple through the entire producer supply chain. The Bureau of Economic Research (BER) forecasts CPI to be around 7% year on year for the next few months, on the back of continued annual producer price inflation (PPI). The final manufactured goods PPI fell to 16.3% in September from 16.6% in August. However, the BER stated that this is significantly higher than the consensus forecast of 15.6%. The most significant contributors to the annual increase, according to the economists, were coke…
Author: Thandile Thobela
Following the government’s commitment to pay billions to settle Sanral’s e-toll debt, Gauteng Premier Panyaza Lesufi wants Soweto’s nearly R5 billion debt to Eskom cancelled. The Premier went on twitter and wrote, “Minister Godongwana, we truly appreciate how you respect negotiations. Can we safely assume that the Soweto Eskom electricity debt and that of other townships is also scrapped as per our intensive lobby?” According to Lesufi, immediate debt relief is required for the development of “townships,” informal settlements, and hostels. “Our argument remains, if Eskom debt is taken over by the central government, what our people owe Eskom in townships,…
TikTok, the short video-sharing platform, has turned its success into a money-making machine after gaining massive popularity over the last two years. TikTok’s revenue growth has propelled it past other established social media behemoths. According to data compiled by Finbold on October 27, TikTok generated $2.5 million per day in September 2022 via in-app purchases and subscriptions (excluding advertising) on Android and iPhone devices worldwide, excluding the iPad. The value equates to approximately $104.000 in hourly revenue. The social media platform earned $75.8 million in total revenue during the month. Notably, TikTok had the highest revenue among social media platforms,…
Despite signs of increasing stress among state-owned enterprises, Finance Minister Enoch Godongwana delivered his second Medium-term Budget Policy Statement (MTBPS) on Wednesday, calling it a “positive” document. Transnet, Denel, and Sanral all received billions, while Eskom’s R400 billion debt remains unresolved. Prior to the main Budget in February, the MTBPS updates Treasury’s economic forecasts, provides policy guidance, and adjusts various government department budgets. Here are some highlights from the MTBPS this year: South Africa’s debt situation is improving. Government debt has skyrocketed in recent years, rising from R577 billion in 2007/08 to R4.75 trillion this year. Because of volatile financial…
The owner of the Sandton City and Nelson Mandela Square malls, Liberty Two Degrees, says it is taking a possible terror threat in the area seriously and has put “appropriate” security measures in place. “The safety of all our shoppers, tenants, service providers and stakeholders is of paramount importance,” it said in a statement. “In partnership with the authorities, we are actively monitoring the situation and have appropriate security measures in place in and around Sandton City, which includes Nelson Mandela Square, offices, hotels and the Sandton Convention Centre. “The malls are currently trading as normal.” The US Embassy in…
Under a new Treasury plan, the fate of e-tolls and the Gauteng Freeway Improvement Project (GFIP) will be handed over to the Gauteng province. Finance Minister, Enoch Godongwana stated that the national government would assume 70% of Sanral’s debt and the Gauteng government would assume 30%. Sanral has been struggling to raise funds due to a massive debt hole in its book caused by non-payment of e-tolls. Gauteng will cover the costs of maintaining the 201km and associated interchanges of roads under the new agreement, and any additional investment in the road will be funded through either the existing electronic…
MTN, Africa’s largest mobile operator, has lost a court battle over when it must account for VAT on prepaid vouchers, as the Supreme Court of Appeal (SCA) dismissed its appeal costs on Monday. According to a summary of the judgement, MTN had previously sought a private binding ruling from the Commissioner of the South African Revenue Service (SARS) that the prepaid voucher fell under the provisions of section 10(18) of the Value-Added Tax Act rather than section 10(19), which had previously been applied. Section 10(18) essentially attracts VAT when the voucher is used to obtain services by the customer rather…
Mineral Resources and Energy Minister Gwede Mantashe, has called for a reduction in carbon emissions. Mantashe has long argued against being rushed into a just transition, citing the economic cost of a quick transition away from coal. Speaking at the Council for Geoscience Summit on Tuesday at the Durban International Convention Centre, Mantashe stated that an energy transition was the future for South Africa, and that the world’s economic trajectory demanded a change. However, he added that coal and storage could still be a viable power source to consider. “Our transition from high- to low-carbon emission might be achieved with…
With a month until Black Friday 2022, retailers in South Africa are preparing for a busy weekend that will kick off the holiday shopping season. Black Friday 2022 occurs on November 25th, which is pay day for many people, and follows a period in which lockdowns due to the covid-19 pandemic kept crowds away and spending low. Retailers anticipate a “return to normal” for the holiday shopping season, as well as great deals. Although black Friday deals and specials are expected to be announced in the in the coming weeks, major retailers such as Game, Shoprite, and Woolworths are already…
Following a crippling strike at Transnet last week, the Democratic Alliance says it is seeking answers from the national government as soon as possible. While the strike has ended, the party stated that ports and transportation networks have been severely disrupted, and fuel industry players have warned that the country is on the verge of a major fuel supply crisis due to a lack of refined fuel stocks. Transnet employees returned to work last week Friday (21 October), but the company warned that clearing immediate backlogs would take several weeks, with analysts projecting that operations would not resume until early…
