Debt servicing outpaces investment in SA
READ: Over 700,000 people under debt review
The 2023/24 budget saw a R15.7 billion increase in debt-service costs, signaling a worrying trend.
It is projected that debt interest rates are likely to reach 16-point-five percent in 2025/26.
Investec warns that this could drive critical investments out of the country. Investec's Corporate Social Investment (CSI) division head Setlogane Manchidi discussed this with eNCA.
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eNCA
5 hours ago
- eNCA
Debt servicing outpaces investment in SA
JOHANNESBURG - South Africa's fiscal situation is a cause for concern, with debt-service costs rapidly outpacing crucial investments. READ: Over 700,000 people under debt review The 2023/24 budget saw a R15.7 billion increase in debt-service costs, signaling a worrying trend. It is projected that debt interest rates are likely to reach 16-point-five percent in 2025/26. Investec warns that this could drive critical investments out of the country. Investec's Corporate Social Investment (CSI) division head Setlogane Manchidi discussed this with eNCA.
The South African
2 days ago
- The South African
Major Soweto mall closed due to killing and protests
Maponya Mall in Soweto has been forced to close its doors as protests erupted in response to the murder of an e-hailing driver outside the shopping centre. One e-hailing driver was shot dead, and two others injured in a violent attack outside the mall. Their vehicles were reportedly set alight in what residents claim was an escalation in tensions between e-hailing operators and taxi drivers – a rivalry that has led to repeated clashes in the area over the years. Enraged by the brazen violence, local residents, workers, and e-hailing drivers staged a protest at the mall, calling for: The closure of the mall for several days as a period of mourning The removal of the mall's private security company Greater accountability from authorities and mall management Protesters have also blocked roads near the mall, aiming to prevent minibus taxis from operating in the area. Many accuse the taxi industry of using violence and intimidation to monopolise local transport, and have labelled some actions by taxi associations as 'terrorism'. Despite remaining largely peaceful, protestors allege that mall management deployed additional security, a move viewed by many as provocative given the community's longstanding support for the retail centre. Workers at Maponya Mall have expressed deep concern over the long-term economic fallout, warning that the continuing violence and unrest could jeopardise jobs and drive away customers. 'If people don't feel safe coming here, we all lose – workers, stores, the whole community,' said one retail employee. Opened in 2007, the R650 million Maponya Mall was spearheaded by the late Dr Richard Maponya, a pioneer of black entrepreneurship in South Africa. The mall, spanning 65 000 sqm, was developed in partnership with Investec and Zenprop, and is now owned by Redefine Properties. Maponya Mall has long held a special place in Soweto's identity, widely credited with bringing formal retail to the township and contributing to the reversal of apartheid-era spatial inequalities. During the July 2021 unrest, which saw over 300 people killed and billions of rands in damage nationwide, Soweto residents formed human shields around the mall to protect it from looters. The community effort was hailed as a symbol of unity and resilience. Now, that same community is calling on authorities, mall management, and government to act decisively to end the violence and preserve the area's fragile economic infrastructure. 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.
eNCA
2 days ago
- eNCA
US tariffs could cost South Africa up to 100,000 jobs
South Africa is facing a potential employment crisis as new tariffs imposed by the United States threaten key export sectors, including agriculture and automotive manufacturing. According to the latest macroeconomic analysis by EY, up to 100,000 local jobs could be at risk if the country fails to mitigate the fallout. Speaking to eNCA, Duane Newman, EY's Sustainability Leader and Tax Partner, said that the severity of the impact will depend on how effectively South Africa can respond through a coordinated public-private effort. 'We have to take this seriously,' Newman said. 'The new tariffs, especially the 25% on automotive exports and 50% on iron, steel and copper, are already placing immense pressure on local producers.' Tariff Breakdown: Winners and Losers The newly enacted U.S. tariffs fall into three broad categories: Reciprocal Tariffs: A blanket 30% increase that came into effect in August. Section 232 Tariffs: Targeted tariffs including 25% on automotive exports and 50% on certain metals such as iron, steel, aluminium, and copper. Exempted Sectors: Some industries, such as critical minerals and platinum group metals, remain unaffected and could even benefit from improved U.S. market access. 'The worst-case scenario is a loss of 100,000 jobs,' Newman warned. 'But if government, business, and labour work together, we could reduce that figure to around 50,000.' Newman, speaking from an automotive component expo in Quebec, emphasized the importance of collaboration: 'What's encouraging is that South Africa's national and provincial governments, along with business and unions, are showing strong alignment in trying to tackle the issue head-on.' Government Response: Will It Be Enough? To support exporters hit hardest by the tariffs, South Africa recently launched an Export Support Desk. While Newman sees it as a positive move, he says much more will be needed. 'It's a start,' he said. 'Government has strong diplomatic ties, but now we need tangible support. There are proposals for collaboration exemptions under competition law, and struggling businesses may be able to access temporary relief through the Temporary Employer/Employee Relief Scheme (TERS).' This support is intended to help businesses retain workers for at least a year as they adapt to the new global trade dynamics. Diversifying Export Markets: A Long-Term Solution? In response to the U.S. trade squeeze, South Africa is looking to diversify exports to Asia and the EU. However, Newman says this will take time. 'Diversification is a strategic priority, but it's not an overnight fix,' he said. 'You have to fully understand your supply chain and collaborate across it, from OEMs to tier one and tier two suppliers, so you can identify and act on opportunities in new markets.' A Call for Urgent Coordination With thousands of jobs potentially on the line, the message from EY is clear. South Africa must act now, and it must act together. Business, government, and labour need to build a unified response,' Newman concluded. 'If we fail to act cohesively, the economic consequences could be far-reaching.'
