We need innovative ways to stimulate economic growth
PIETERMARIZBURG - Finance minister Enoch Gondongwana has finally tabled his budget,
at the third time of asking.
WATCH | Budget 3.0 | Alarm over rising debt costs
A proposed VAT hike forced a delay, largely due to political pushback that rejected the hike.
It remains at 15 percent, but the fuel levy goes up in June.
The Portfolio Committee on Finance is worried about budget cuts that could affect education, health and bulk infrastructure.
Mervyn Abrahams from the Economic Justice and Dignity Group spoke to eNCA.
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The South African
3 days ago
- The South African
REMINDER: Here's how much you'll pay for petrol at the pumps from TODAY
The Department of Petroleum and Mineral Resources has confirmed the official fuel price adjustments for June 2025. May saw volatility in the oil price and the strengthening of the rand against the dollar relative to April. This resulted in a slight over-recovery in fuel prices. However, a hike in the general fuel levy announced at Budget 3.0, undercut this by around 15 cents per litre . The net effect is that this translated to a small reduction in petrol prices in June – and a slightly bigger one for diesel. Petrol will be cut by 5 cents per litre for 93 and 95, and there will be a decrease of 37 cents per litre for diesel from Wednesday, 4 June . FUEL PRICE CHANGE Petrol 93 decrease of 5 cents Petrol 95 decrease of 25 cents Diesel 0.05% decrease of 37 cents Diesel 0.005% decrease of 37 cents Illuminating Paraffin decrease of 56 cents FUEL PRICE IN SOUTH AFRICA IMPACTED BY TWO MAIN FACTORS: 1. The international price of petroleum products, driven mainly by oil prices 2. The rand/dollar exchange rate used in the purchase of these products Oil price At the time of publishing the brent crude oil price is $65.75 a barrel. Exchange rate At the time of publishing the rand/dollar exchange rate is R17.79/$. The next price changes for both petrol and diesel will be confirmed early next month with the new prices taking effect at midnight on Tuesday, 1 July 2025. Go easy on the accelerator until then, Mzansi. INLAND June Petrol 93 R21.24 Petrol 95 R21.35 Diesel 0.05% R18.53 Diesel 0.005% R18.57 Illuminating Paraffin R12.49 COASTAL June Petrol 93 R20.45 Petrol 95 R20.56 Diesel 0.05% R17.70 Diesel 0.005% R17.81 Illuminating Paraffin R11.47 Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
TimesLIVE
4 days ago
- TimesLIVE
Reduce food prices and add food wastage laws, urges anti-hunger movement
With more South African families being forced to cut nutritious food from their plates because of rising costs, advocacy movement United Against Hunger has initiated a nationwide petition campaign to exert pressure on government and retailers to reduce food prices on nutritious best buys. This comes as the latest Household Affordability Index report by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) showed a 3.1% year-on-year increase in core staples such as brown bread, cooking oil, maize meal, tea, potatoes, frozen chicken pieces, white sugar and sugar beans. United Against Hunger, which comprises the Nelson Mandela Children's Fund and the Healthy Living Alliance , is demanding through its petition that retailers drop food prices for '10 best buys' including rice, long-life milk, soya, eggs, tinned fish, dried beans, peanut butter, fortified maize meal, maas and lentils. 'These foods are full of protein and energy. That doesn't mean that other foods are not important. These foods could provide high nutritional value at the lowest cost, especially for families living below the poverty line.' The movement also called on government to implement legislation on food wastage in South Africa, saying companies 'can't just throw away fresh food when people go to bed hungry'. 'We demand more public engagement in the government's draft National Food Security and Nutrition Plan. Over the years, many organisations have built public pressure to increase and top up social grants. But even if we get the significant social grant increases we have been demanding, the cost of living will undermine these victories and keep people in poverty. The R370 [grant] is hardly enough to travel to a job interview or start a small business, let alone buy enough food for the month.' According to the Household Affordability Index, core foods are bought first to ensure families don't go hungry. 'When the prices of core foods increase, there is less money to secure other important nutritionally-rich foods, which are essential for health, wellbeing and strong immune systems. These include meat, eggs and dairy which are critical for protein, iron and calcium; vegetables and fruit, which are critical for vitamins, minerals and fibre; and maas, peanut butter and pilchards, which contain good fats, protein and calcium essential for children,' said Mervyn Abrahams of PMBEJD. The data shows that the core foods contribute 54% of the total cost of the household food basket. 'At an average cost of R2,955.34 in May, these foods are relatively very expensive in relation to the total money available in the household purse to secure food. These foods must be bought regardless of price escalations. 'The high cost of core staple foods results in a lot of proper nutritious food being removed off the family plates. The consequences of high costs on the core foods has a negative impact on overall household health and wellbeing, and child development,' said Abrahams. Overall the latest Household Affordability Index report, which tracks the prices of 44 basic foods from 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town,Pietermaritzburg, Mtubatuba in Northern KZN, and Springbok in the Northern Cape, shows that in May the average cost of the household food basket is R5,466.59 — a 2.6% increase from R5,330 a year ago. Foods that increased by more than 5% include potatoes, onions, tea, carrots, butternut, spinach and peanut butter, while items that increased by 2% or more include samp, frozen chicken portions, fish, wors, cabbage, bananas, apples, margarine and apricot jam. Abrahams said food is bought after transport and electricity have been paid for or money set aside. 'PMBEJD calculated that workers' families will underspend on food by a minimum of 45%. In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family.'
Daily Maverick
4 days ago
- Daily Maverick
South African GDP grows by a paltry 0.1% in Q1, but agriculture shines
One thing that is as certain as the changing seasons is that as the year progresses, forecasts for South African economic growth in 2025 – which are mostly around 1.2% – will be downgraded, which in turn will blow out of the water many of the revenue and debt projections in Budget 3.0. South Africa's sluggish economy barely grew in the first quarter (Q1) of this year, expanding a pathetic 0.1% from Q4 of 2024, according to data released on Tuesday by Statistics South Africa (Stats SA). This 'growth' – at a pace that a snail could slither past – would have been a contraction of 0.3% were it not for a stellar performance by the agricultural sector, which grew its production by a hefty 15.8% in the first three months of the year. Following gross domestic product (GDP) growth of just 0.4% in Q4 of 2024 – revised down from an initial estimate of 0.6% – the data underscores the woeful state of South Africa's economy, which simply cannot seem to expand at a rate that exceeds population growth and creates jobs. Against this backdrop, it's no surprise that South Africa's unemployment rate rose one percentage point in Q1 to 32.9%. Worryingly, only four of the 10 industries on the production side of the economy posted growth, led by agriculture, a sector that is also extremely volatile. Agriculture biggest growth driver South Africa's descent into deindustrialisation was writ large in the data, with the manufacturing and mining sectors the biggest drags on the read, declining 2.0% and 4.1% respectively. Consumer spending perked up – helped by lower interest rates, slowing inflation and early pension drawdowns under the two-pot reforms – but it hardly shot the lights out. 'Consumer activity was stronger, with trade, catering & accommodation expanding by 0.5%. Retail trade, motor trade, accommodation and food & beverages contributed positively,' Stats SA said. Changes in GDP contributions Gross fixed capital expenditure – a key measure of investment – maintained its downward trajectory, falling 1.7%. And without investment growth, the economy will remain stuck in a rut. 'Consumer demand likely received a small boost from lower rates, higher disposable incomes given still-low inflation and pension reform. But none of this is sufficient to offset the soft outlook still painted by dismal investment. From this data alone, there is no clear indication that it might be reasonable to expect more robust growth going forward,' said Razia Khan, Chief Economist Africa at Standard Chartered Bank in London. Indeed, the outlook for Q2 is already troubling. What this means South Africa cannot attract investment, create jobs and reduce poverty without significantly faster rates of economic growth. Many of the country's crippling social ills, including rampant crime, are at least partly a reflection of this woeful pace of growth. This deprives the government of revenue, forcing it to borrow more, raising its debt-servicing costs – leaving it with less to spend on things such as education, welfare and health – in a vicious cycle that shows no sign of ending soon. The Absa Purchasing Managers' Index (PMI) fell 1.6 points in May to 43.1 – pointedly, its lowest level since the Covid-19 pandemic. This marked the seventh consecutive month that the PMI was in contractionary territory below the neutral 50 mark and bodes ill for the sector's performance this quarter. The return of the rolling power cuts, popularly known as 'load shedding', after a 310-day pause in Q1 did not help matters, but the economy has been trapped in slow-growth mode for years. There are a range of reasons for this depressing state of affairs, which continues to fuel the terrible trifecta of poverty, unemployment and inequality. Policy uncertainty continues to deter investment, along with mounting concerns about reliable water supplies and a crumbling road, rail and port network. Transnet is showing promising signs of a management turnaround, but it still has a mountain to climb. A high tax burden with little to show for it hardly inspires confidence. Sky-high levels of violent crime and the security costs that go with that are constraints to growth, while South Africa's failing public schools add up to a chronic skills shortage. And amid these domestic challenges and many more, the outlook for the global economy has been souring, not least because of US President Donald Trump's bewildering tariff 'policies' that top the ANC and the GNU in the League of Uncertainty. One thing that is as certain as the changing seasons is that as the year progresses, forecasts for South African economic growth in 2025 – which are mostly around 1.2% – will be further downgraded, which in turn will blow out of the water many of the revenue and debt projections in Budget 3.0.
