No VAT hike but consumers still feel the pinch
JOHANNESBURG - After two delays, the much-anticipated 2025 Budget Speech was finally delivered this week.
While headlines focused on the scrapped VAT hike, South African consumers may still be in for a financial squeeze.
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IOL News
an hour ago
- IOL News
Meat shortages could hit your wallet hard
Karan Beef confirms a case of Foot-and-Mouth Disease at its feedlot Image: Ayanda Ndamane Independent Newspapers Aviation flu could impact the price of poultry in South Africa. Image: File South African consumers may face higher meat prices this winter as outbreaks of foot-and-mouth disease, an avian flu-related ban on Brazilian poultry imports, and financial turmoil in the local poultry sector tighten supply. Prices of mechanically deboned meat (MDM) have already surged by 140%, pushing up costs for processed products like polony, while disruptions in the beef sector create a complex picture for meat affordability - posing particular challenges for lower-income households. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Gordon Nicoll, chairperson of the South African Meat Processors Association (SAMPA), outlined the challenges: 'We're currently facing a serious supply issue when it comes to raw materials, specifically mechanically deboned meat from Brazil. The problem isn't just about price anymore; it's about whether you can get stock at all. That's the first issue.' Mechanically deboned meat is essential in the production of affordable processed meat products such as polony, viennas, russians, and tinned corned beef, which are staples for many South African households. Domestic production of MDM is minimal, making the country heavily reliant on imports, primarily from Brazil. 'South Africa imports about 19 000 tons per month,' Nicoll said. 'Brazil was the last open source. Now that is closed too, and other suppliers cannot meet our demand.' The suspension of Brazilian poultry imports since May 15, 2025, following an outbreak of bird flu in Rio Grande do Sul, has resulted in a shortage of MDM and increased prices. 'The price of mechanically deboned chicken has increased by 140% since the Brazilian import ban,' said Imameleng Mothebe, CEO of the Association of Meat Importers and Exporters (AMIE). 'Every day with no imports is another nail in the coffin of food security for millions.' At the same time, the outbreak of foot-and-mouth disease in South Africa has severely affected the beef sector. A confirmed case at a feedlot in Heidelberg, Gauteng, led to quarantine measures that cut animal slaughtering by nearly 75%. Despite the outbreak, Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), reassured consumers about food safety and supply. 'Although foot-and-mouth disease is a serious concern for producers, beef products are safe and consumers should not be alarmed,' he said. Sihlobo explained that because South Africa is typically a net exporter of beef, export suspensions result in increased domestic supply, which could place downward pressure on prices in the short term. However, producers bear the economic burden. 'Export bans force farmers to hold cattle longer, increasing feed and care costs,' Sihlobo noted. Minister John Steenhuisen announced that the Department of Agriculture has ordered vaccines to cover the KwaZulu-Natal area, while assessments, as well as forward and backward tracing of the outbreak in Gauteng, are ongoing. "Over 900 000 doses of vaccines were ordered, and the first batch is expected to arrive next week. 'These plans are not only about responding to outbreaks, but also about building permanent infrastructure to manage future risks. 'More broadly, we are establishing a Biosecurity Council that will bring together the South African Police Service (SAPS), veterinarians, scientists, the Border Management Authority, and industry. We are rolling out a farm-to-fork national traceability system for livestock.' The department is also preparing to establish a Biosecurity Council to improve disease surveillance and control. Red Meat Industry Services (RMIS) will open a centralised Operational Centre on June 9, 2025, to coordinate the FMD response. The centre will lead efforts in vaccination, movement control, and collaboration with government and industry stakeholders. 'RMIS was established precisely for a time like this, to provide coordinated leadership and technical expertise,' said RMIS CEO Dewald Olivier. The plan includes expanding veterinary service capacity and creating FMD-free livestock compartments to secure supply chains. The poultry industry is further challenged by the recent business rescue of Daybreak Foods, one of South Africa's largest integrated poultry producers, which had to cull 350,000 chicks amid financial difficulties. This has compounded supply pressures on chicken products. Arnold Prinsloo, CEO of Eskort, called the combined impact of foot-and-mouth disease, the Brazilian import ban, and the Daybreak poultry crisis a 'triple whammy' for food security. 'Meat is going to be more expensive for everyone this winter, but many people will also face the threat of hunger and malnutrition,' he warned, urging government to ease the ban by allowing imports from unaffected regions. The Department of Agriculture has committed to reviewing Brazil's regionalisation application and considering a partial lifting of the import suspension. 'We are following international guidelines which allow trade from zones free of avian influenza,' Steenhuisen said. This approach is aimed at protecting both animal health and food supply stability.
IOL News
3 hours ago
- IOL News
Equities on new record levels and Rand joins in
Investors on the South Africa equity and bond markets see the country still as an investment haven. Image: Pixabay Despite the news from Statistics South Africa (StatsSA) that the South African economy recorded disappointing GDP growth (0.1%) in Q1 2025, and the news that Goodyear will close shop in RSA, resulting in nine hundred permanent job losses, the JSE and the Rand keep on recovering. On the JSE the ALSI ended Friday on a new weekly close record of 96 366 or 2.1% higher than the previous Friday. The index broke quickly through the 95 000 level on Monday and through 96 000 on Thursday. The South African economy recorded worrying economic growth and employment numbers for the first quarter of 2005. The economy in real terms advanced by only 0.2%, with manufacturing (-0.2%), mining 9-0.2%), construction (-0.1%) contributing towards a worrying picture. Since 2022 three quarters of contraction were recorded. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The unemployment rate also shows a disturbing movement as it started to accelerate strongly in the fourth quarter of 2024, reaching 32.9% in Q1 2025. Prospects for economic growth for 2025 were downscaled to 1.4% for 2025 in the third national revised budget against the 1.9% forecast in the first budget proposals. Investors on the South Africa equity and bond markets see the country still as an investment haven. The continuous increase in precious metals prices, like gold, platinum and palladium, the lower inflation rate and expected lower inflation rate targets and the improvement in policy prospects under the national Government of Unity boost risky capital investments keep sentiment positive. The Rand consolidates on stronger levels. The exchange rate of the Rand improved last week. Against the US/$ the currency closed on Friday at R17.79/$. This is twenty cents stronger than a week ago and ninety-one cents better than the R18.70/$ at the beginning of the year. Against the Pound, the Rand appreciated by fifteen cents to R24.07/£ on Friday, trading still eighty-four cents weaker than on 2 January this year (R23.23/£). Against the Euro the Rand improved by fifteen to R20.27/€ but is still 104 cents weaker than R19.23/€ at the beginning of 2025. Gold gained $35 to $3323 per ounce and Platinum shot up by $92 to $1 164 per ounce. Given the steady oil price of around $66 per barrel, fuel prices since last Friday have improved further as the petrol price is now twenty-six cents per liter recovered and the diesel price is over recovered by forty-seven cents per liter. The decrease in fuel prices last Wednesday was based on the recovered value up to last Friday. Global equity markets On world markets, share prices also recovered last week. In the US, the Dow Jones industrial index gained 1.3% last week, S&P500 traded 1.5% higher and NASDAQ was up by 2.0%. On European markets and the UK, the FTSE 100 in London the FTSE100 shot up by 1.4%, the German Dax improved by 1.6%. I the east the hang Seng in Hong Kong gained 0.9% last week whilst the Nikkei 225 lost -0.19% Prospects for this coming week This coming week domestic and foreign investors await the release of the US inflation rate for May 2025, which will be released on Wednesday. The market expects the US annual core inflation rate to have increased marginally to 2.9% from 2.8% in April 2025. Domestically STATSSA will publish the manufacturing production data for April on Tuesday and the mining production data for April on Thursday. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. Image: Supplied
Daily Maverick
8 hours ago
- Daily Maverick
Future leaders headed to Cape Town in 2026 as global youth summit returns to SA
'One Young World exists to identify young leaders in 196 countries to connect and promote them,' said CEO and co-founder of One Young World Kate Robertson, in announcing that the 16th summit returns to Cape Town in 2026. One Young World, an initiative that empowers and develops young leaders across 100 countries globally to build a fair and sustainable future, is coming to South Africa in 2026 for the second time since 2013. At the summit, hosted in Cape Town, young leaders will confront the biggest challenges facing humanity in South Africa and globally. Making the announcement in Cape Town on 5 June 2025 – in front of influencers and leaders including director of Stellenbosch University's Centre for Social Justice Thuli Madonsela, former Springbok captain Francois Pienaar, Cape Town mayor Geordin Hill-Lewis and Miss SA 2020 Shudufhadzo Musida – summit co-founder and chief executive Kate Roberston said One Young World was established to look for young leaders in different countries to connect them and promote them. 'I say with a lot of emotion, we have learnt in our community of 18,700 young leaders all over the world that heroes move among us. Among that group of young people I have seen leadership that we dream of. It's real. It exists. It is in every single sector, and some of them are in the room tonight,' she said. One Young World was launched in 2009 and has turned into a major forum for governments, NGOs and businesses to engage young people and partner in tackling global challenges with the next generation of socially responsible entrepreneurs. Two young South African entrepreneurs, Cheyenne Fernanda Miller and Kagisho Masae, who are beneficiaries of the programme, were at the event and gave testimonies of their journeys. Ideas brought to life Daily Maverick spoke to Miller and Masae. Miller is now an owner of Ferna Tech, which helps start-ups, corporates and venture partners bring ideas to life through technical innovation. She said it was a difficult journey to start the business after quitting her job as a senior venture adviser, but went to Belfast in 2023. 'Our youth unemployment rate is ridiculous. Ferna is that home for founders that don't necessarily know where to go, but we will nurture them to help them with MVP, which is your minimal viable product. We'll essentially nurture the different phases that they're at and introduce them to things like Wonderworld, introduce them to investors and give them a soft landing when it comes to actually building a company,' Miller said. Masae is a CEO and founder of Matric Live, a mobile app designed to help high school pupils, particularly in grades 10 to 12, prepare for matric exams. He said he started the app to help children from his township in Itsoseng, North West. He attended the One Young World Summit in Ottawa in 2016. 'The inspiration was to help the kids in my township. I got a scholarship at 12 years old, so my life is significantly better than people I grew up with, and every time I go home I am reminded of that. I never thought about a business model and how it can grow… [after] I went to Canada for One Young World; that session showed me the design principles of bringing a problem solution to life. There are thousands of young people who are doing amazing things, and it is inspirational,' he said. The 2026 summit and impact on young South African leaders Madonsela, a former Public Protector, told Daily Maverick the summit will be a big boost and a gift that is needed in South Africa. 'We need an injection of hope. One Young World is a platform that shows that young leaders need not beg for jobs. Every young person will tell you that they saw a problem and they solved it for their community. I see over 1,000 young people feeling affirmed in terms of the little things they have been doing,' she said. One Young World will take place in Munich, Germany, from 3 to 6 November 2025, where more than 2,000 young leaders from more than 190 countries will gather around the city. Hill-Lewis said next year's summit will be most memorable, and Cape Town is ready. DM
