Economy barely grows in first quarter
Africa's biggest economy has struggled to build momentum since the 2008-2009 global financial crisis, with annual growth averaging less than 1% over the past decade.
Business and consumer confidence has picked up since the formation of a government of national unity (GNU) last year, but that is yet to translate into higher levels of output.
Tuesday's data was marginally better than expected, as economists polled by Reuters had predicted GDP would be unchanged from the previous quarter in seasonally adjusted terms.
Analysts and the country's top statistics official said the weak growth was worrying.
'Our economy is not growing sufficiently, and at this state, it is easy for it to slide into the negative,' statistician-general Risenga Maluleke told a press conference.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald
an hour ago
- The Herald
Nelson Mandela Bay to receive R100m in grant funding after plea to minister
Nelson Mandela Bay is set to receive more than R100m for its delayed informal settlement upgrading grant funds after deputy mayor Gary van Niekerk's urgent plea to human settlements minister Thembi Simelane last week. Van Niekerk wrote to Simelane, urging her to approve business plans for two grants so they could be paid into the city's bank accounts. The metro was expecting a R139.4m tranche for the Urban Settlements Development Grant (USDG) and a R104.8m tranche for the informal settlement upgrading grant. The money was meant to be paid on July 22 and 24, respectively. In response, Simelane said the 2025/2026 ISUPG business plan had been approved with requirements under the Division of Revenue Act. However, the July 30 correspondence made no mention of the USDG funds. 'Noncompliance with the provisions may result in the withholding, reallocation or reprioritisation of funds as prescribed under the Division of Revenue Act.,' she said in her letter. 'The department will undertake quarterly engagements with the city to ensure plans are implemented accordingly and prepare for the 2026/2027 business plans due in August 2025. 'The city must ensure adherence to the prescripts of the Division of Revenue Act applicable for the 2025/2026 financial year, programmes in the Human Settlement Code, 2009 and no expenditures must be incurred outside the policy, regulations and framework that govern human settlements planning and development.' Some of the projects affected by the delay include the installation of toilets in Motherwell, the construction of roads in Bethelsdorp extensions 32, 34 and 36, as well as relocation plans for residents in KwaNobuhle and McCarthy in Kariega. For the 2025/2026 financial year, the metro is expecting a total of R663.8m from the USDG and R377.8m from the ISUPG. According to the minister's report, the metro's business plan for the USDG funds must align with the approved 2025/2026 Division of Revenue Act allocation of R663.8m. However, Simelane wrote that the metro submitted a procurement plan with a budget of R557.7m, which she said was not aligned to the Division of Revenue Act allocation. The outer-year allocations of R694.1m for 2026/2027 and R725.5m for 2027/2028 are also consistent with the MTEF projections. 'The metro has planned to deliver 1,200 serviced sites in the 2025/2026 financial year,' the report read. 'Catalytic projects [include] Jachtvlakte, with a budget of R574.6m, and KwaNobuhle, with R50m allocated, [which] are key catalytic projects supporting bulk infrastructure development in the business plan.' Van Niekerk, in his capacity as acting mayor, said on Monday he did not expect such a speedy reply. ' I'm ecstatic because we'll be able to start sooner with the projects. 'We know these are conditional grants and we won't spend outside the scope set out by the minister. I'm excited to get things done,' he said. Asked why the letter did not mention the USDG, Van Niekerk said the city would contact Simelane and the National Treasury soon. ' We're confident the letter relates to both grants. 'This is good news overall and makes one believe in the system again,' he said. The Herald
The Herald
an hour ago
- The Herald
Chamber initiative supports youth employment and conservation
A new initiative to tackle youth unemployment and environmental degradation was officially launched in Nelson Mandela Bay by the city's business chamber. In partnership with the Youth Employment Service (YES) and implementation partner Youth@Work, the initiative will place 17 unemployed youth in conservation-focused roles. The participants will work with the Zwartkops Conservancy, Friends of Van Stadens and the Sustainable Seas Trust (SST). These placements aim to provide practical experience while supporting ecological resilience in the metro. This initiative forms part of the Nelson Mandela Bay Business Chamber's broader risk management strategy, which seeks to identify and address social and environmental risks that affect both communities and businesses. Chamber chief executive Denise van Huyssteen emphasised the importance of collaboration across sectors. 'This programme reflects our commitment to integrated, long-term solutions that extend beyond job creation. 'It's about building resilience — economically, socially and environmentally,' Van Huyssteen said. 'Through our risk management desk, we've focused on tackling the root causes of vulnerability in our region. 'This initiative brings that vision to life by empowering young people to become active participants in restoring ecosystems and shaping their futures.' She said they viewed this initiative as a model for how business, civil society and development partners could collaborate to unlock potential, reduce risk and promote sustainable development. Spearheaded by the chamber through its risk management desk, the initiative is funded by Hollard. Hollard's head of environmental, social and governance (ESG), Deanne Bezuidenhout, said c reating value for business and society should not be mutually exclusive, adding this initiative proved that.
The Herald
an hour ago
- The Herald
South Africa outlines support measures in response to US tariffs
The government on Monday outlined support measures for local companies that will be hit by a 30% US tariff this week, including exemptions from some competition rules and financial support facilities. It also dismissed speculation that its failure to negotiate a lower tariff was because of its local affirmative action policies, which US President Donald Trump has criticised. South Africa has tried for months to negotiate a deal with Washington, offering to buy US liquefied natural gas and invest $3.3bn (R59.29bn) in US industries in a 'framework deal' proposed to Trump's team. But the effort was unsuccessful, even after Pretoria made a last-minute attempt to improve its offer. Government officials say the US tariff could cause tens of thousands of job losses, especially in the agriculture and car-making industries, as Trump pushes to reshape global trade in favour of the US. Addressing a press conference, trade, industry and competition minister Parks Tau and foreign minister Ronald Lamola said a 'block exemption' from some aspects of the Competition Act was being developed that would allow competitors to collaborate and co-ordinate.
