Latest news with #Capitec
The Citizen
28-05-2025
- Business
- The Citizen
Salaries decreased by 2% in April, but higher than a year ago
If you feel that your wallet was a bit emptier in April than the month before, you are not alone. Salaries did decrease in April. Salaries decreased by 2% in April compared to March, but are still higher than a year ago, as take-home pay slowed again. Mounting pressure on salaries also puts this week's interest rate decision in the spotlight, raising hope for relief among salary earners. According to the Bankservafrica Take-home Pay Index (btpi), the average nominal take-home pay recorded a second consecutive month of moderation in April. The Index reflects data from approximately 3.8 million salary earners. 'The nominal average take-home pay declined to R17 495 in April 2025, down 2.0% from R17 846 in March. 'Despite this deceleration, levels remain significantly higher than the R15 370 recorded a year ago,' Shergeran Naidoo, BankservAfrica's head of stakeholder engagements, says. He points out that the upward trend in take-home pay from the middle of last year marks a positive development after years of sluggish growth and salaries lagging behind inflation. However, he says, the escalating global trade war has dampened sentiment worldwide, affecting confidence in South Africa and slowing economic activity as investors and households pull back on their spending. ALSO READ: Here's what some of South Africa's SOE bosses earn Economic forecasts not great, affecting salaries too Elize Kruger, an independent economist, says although the worst-case scenario for the trade war impact seems to have been averted, economic growth forecasts were trimmed notably for the global economy, while local growth prospects are also expected to disappoint. 'This could hurt employment and earnings prospects of salary earners in South Africa in the coming months.' Real take-home pay, adjusted for inflation, also moderated by 2.2% to R15 005 in April 2025, compared to R15 344 in March, but is still notably higher than a year ago. 'The significant moderation in consumer inflation during 2024 had a positive effect on the buying power of salary earners and the scenario is continuing into 2025, with the latest headline inflation figure at only 2.8% for April 2025,' she says. With headline CPI now forecast to average to be around 3.4% in 2025 compared to 4.4% in 2024, it will be the lowest annual rate since the 3.3% recorded in 2020. The recent increase in the rand exchange rate, combined with a lower international oil price will result in further fuel price declines in June despite the increase in the fuel levy, while the sluggishness in the economy keeps demand-driven pricing pressures well contained. ALSO READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay 2025 expected to be a good year for salaries 'With this favourable inflation scenario, 2025 will likely be the second consecutive year of positive real take-home pay growth, supporting demand in the economy,' Kruger says. However, with the elevated cost of living, additional taxes announced in Budget 2025, with no adjustment to tax brackets and an inflation-related fuel levy increase, as well as continuing high interest rates, salary earners remain under pressure. Early indications are that the real gross domestic product (GDP) growth rate for the first quarter of the year will likely be zero, or even negative. With the current repo rate at 7.5%, the real repo rate stands at 4.1%, which is a very restrictive stance if the neutral real repo rate of 2.8% is considered, Kruger says. 'A decrease in the cost of credit could go a long way to offer relief to households and the business sector, boosting confidence levels somewhat, while also lowering the hurdle rate on capital expenditure programmes. 'While a more aggressive cut would have been welcomed, the South African Reserve Bank (Sarb) is likely to cut interest rates by only 25 basis points at best at its Monetary Policy Committee meeting on Thursday.' ALSO READ: Increase in take-home pay in January shows positive start to 2025 Slightly higher salaries not enough – we need repo rate cut With the economy stalling in the first quarter and global pressures mounting, accelerating structural reforms is now critical. Tackling energy, logistics and governance challenges will help to unlock growth and buffer against external shocks. 'The current low inflation environment, supported by lower international oil prices and the rand's notable recovery in recent weeks, provides an opportunity for monetary policy to play a role in offsetting some of the pain inflicted on the economy by recent global developments, as many developing and developed economies have already done,' Kruger says. 'While the debate about lowering the inflation target band is ongoing, it should not prolong the pain inflicted on the economy by exceptionally high interest rates.'
News24
26-05-2025
- Business
- News24
Capitec cuts data prices as poll shows 87% feel limited by high costs
A recent Capitec poll involving thousands of South Africans revealed that 87% of respondents feel the high cost of data limits their access to crucial work, education, and other opportunities. This poll reinforces Capitec Connect's decision to reduce prices across its prepaid data bundles significantly. Capitec Connect is South Africa's fastest-growing mobile virtual network operator (MVNO), onboarding roughly 180,000 new active clients monthly. The latest price updates make it even more accessible for South Africans to stay connected, particularly as we face increased living expenses. Capitec Connect's updated prices on popular bundles are as follows: · 500MB (1-day): R10 · 1GB (7-day): R25 · 2GB (7-day): R35 · 5GB (7-day): R85 · 5GB (30-day): R100 · 10GB (30-day): R150 Dr Dalene Steyn, Head of Capitec Connect, notes that Statista projects South Africa's mobile internet users will grow from 13.82 million in 2024 to 25.83 million by 2029, underscoring the critical role data access plays in citizens' daily lives. 'Understanding the economic climate is crucial, and we know many South Africans are carefully managing their expenses. That's why we're proactively lowering costs to provide tangible savings for our clients. Affordable data is vital for work, education, and staying connected to loved ones. This price reduction is part of our ongoing commitment to providing simple and affordable solutions that empower our clients.' Why affordable data matters now more than ever The decision to lower data prices comes at a crucial time. Capitec's poll underscores the financial pressures associated with data costs. Confirming data as a lifeline beyond entertainment, most respondents reported using the most data during the afternoon (43%), often for work, study, or online shopping. Evening usage (binge-watching and scrolling) followed at 32%. When asked what consumes most of their data, 62% pointed to social media, with 27% citing streaming music and videos. 'These insights reveal that data has become an essential enabler of careers, education, and staying informed. By making data significantly more affordable, we're not just cutting prices, we're investing in our clients' ability to participate fully in the digital world. We understand that these savings can make a meaningful difference in our clients' lives,' adds Steyn. Lower data prices to keep clients connected 'We listen to our clients and are constantly looking for ways to offer them more value. By lowering our data prices, especially on the larger, longer-validity bundles, we hope to alleviate some financial pressure and ensure more South Africans can stay connected using some of South Africa's best-priced prepaid bundles,' concludes Steyn.
The South African
16-05-2025
- Business
- The South African
Lotto Plus 2 jackpot winner to retire to the coast after R12.7 million pay day
ITHUBA, operators of the National Lottery in South Africa, have announced that the lucky winner of over R12.7 million in the Lotto Plus 2 jackpot has come forward to claim their winnings. The winning ticket was purchased through the Capitec banking app with a R20 wager using the Quick Pick selection method, on Wednesday 30 April 2025 in draw number 2537. The winning numbers were 4, 6, 17, 18, 21, 40 while the bonus ball was 1. The exact amount won was R12 721 735. The winner, a pensioner, was over the moon when he discovered he had won, but above all, he was deeply relieved. 'My wife and I have been facing significant medical challenges, and the financial burden has been overwhelming. 'Now, we'll finally be able to access the quality care we need – this win couldn't have come at a better time,' he said. The winner explained that he first shared the news of his multimillion-rand win with his wife, and later with their son, who has been caring for them selflessly. He added: 'My wife was completely thrilled, and my son – who's been looking after us with such grace, driving us to all our medical appointments willingly – was just so relieved that we will finally be able to afford better health care.' Elaborating on how he plans to spend his winnings, he added: 'We are packing our bags and moving to the coast to spend the rest of our retirement there. I am so grateful that we will spend the golden years of our lives in peace and tranquility,' he concluded. ITHUBA's CEO, Charmaine Mabuza, shared her sentiments on the winner's story, saying: 'This winner's story is very heartwarming. 'All National Lottery participants have their one big reason why they play. 'For this winner, he wanted to enjoy his golden years in peace without worrying about the basics. 'We are so glad that the Lotto Plus 2 jackpot will help him achieve that,' said Mabuza. All winners have 365 days from the draw date to claim their prize, and all National Lottery winnings are tax-free. ITHUBA is dedicated to responsible gaming and responsible winning and offers trauma counseling and financial advice for winners of R50 000 and above. ITHUBA encourages all participants to keep their tickets safe and, for those playing with physical tickets, to write their name and ID number on the back for security purposes. Players must be 18 years or older to play. Play responsibly. 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.
The South African
15-05-2025
- Entertainment
- The South African
'The Taste Master SA' returns with a sizzling sixth season
South Africa's beloved cooking competition, The Taste Master SA , is back for its sixth season. This season promises to deliver even more excitement, creativity, and mouth-watering flavours to viewers across the nation. Renowned chef and TV personality Zola Nene returns as the lead judge. Zola will be bringing her signature warmth and culinary expertise to mentor ten passionate contestants. These talented foodies will battle it out in a series of dynamic cooking and baking challenges, aiming to impress the judges. They also get the chance to win the grand prize of R200,000 from Capitec, alongside the coveted title of Taste Master SA, according to Your Alter Ego. After two seasons focusing mainly on baking, Season 6 shifts gears to celebrate both cooking and baking equally. Contestants must showcase versatility, mastering savoury dishes, sweet treats, and everything in between. This fresh approach ensures a feast for the senses and a true test of culinary skill. Zola Nene shared her excitement for the new season of The Taste Master SA : 'I'm so thrilled to be guiding a new generation of culinary talent. This season is not just about skills – it's about storytelling through food. We have incredible contestants, amazing guest judges, and challenges that will truly push creativity to the edge.' Her presence adds a special flavour to The Taste Master SA , as she leads a rotating panel of guest judges. These include her mother, Chef Anwar Abdullatief, Daniel Blignaut, Nathan Clarke, and other top names in South Africa's food scene. The show's headline sponsor, Clover, is proud to support local talent. Chipo Kamukwamba, Clover's Brand Manager, had this to say, 'As a proudly South African brand, Clover is passionate about platforms that champion local creativity through food. The Taste Master SA embodies homegrown excellence and showcases quality, innovative food truly made with love.' Food Lovers Market, the category sponsor for fresh produce, echoes this sentiment. CEO Travis Coppin adds, 'We're excited to be part of this season. Whether you're a home cook or a contestant, we offer everything needed to make meals delicious and affordable.' This partnership enriches the show's commitment to fresh, quality ingredients. SABC 2 Head of Channel Yonwaba Pangeni emphasised the show's impact: ' The Taste Master SA not only entertains but uplifts and educates. It highlights the incredible culinary talent in South Africa. It's a beautiful blend of heart, tenacity, and homegrown excellence.' You can watch the show every Tuesday at 7:30 PM on SABC 2, with repeats on Wednesdays at 1 PM and Sundays at 4 PM. This season promises unforgettable moments, fierce competition, and a celebration of South Africa's rich culinary heritage. The kitchen is heating up – who will rise to become the next Taste Master? 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.
The Citizen
09-05-2025
- Business
- The Citizen
Do you still need cash? Banks closing ATMs, except Capitec
Those who earn less than R750 000 per annum have traditionally relied more on cash. The world is moving towards doing everything digitally, from shopping to attending meetings, paying bills, taking out loans and even consulting a doctor. This is no different in South Africa. Even many fast-food stores, such as KFC, McDonald's and Burger King, have transitioned to self-service machines that only accept bank cards or vouchers. If most of the things consumers need money for can be paid without having physical money in hand, is there still a need for automated teller machines (ATMS)? Based on the information gathered by The Citizen from Capitec, Absa, FNB and Standard Bank, the decision to keep ATMs is influenced by customer behaviour, location and how much people in certain areas earn. ALSO READ: Challenges and opportunities of becoming a cashless society Capitec getting more ATMs Many banks in the country are gradually reducing their ATM footprint nationwide as they observe a rise in digital transactions. However, Capitec told The Citizen it will be doing the opposite. 'We are driven by a simple belief: banking should be transparent, affordable and accessible for every South African. That's why, even as many others scale back, we are continuing to grow our physical presence,' said Francois Viviers, group executive of marketing and communications at Capitec. By end of February 2025, Capitec had more than 8 797 ATMs and cash-accepting devices across the country. Viviers said they are passionate about encouraging digital adoption, but they cannot ignore the fact that millions of South Africans still depend on cash to manage their daily lives. Digital wallets growth He added that for them, it is not about choosing one channel over another; it is about ensuring no one is left behind. 'We are seeing strong momentum in digital usage. As of Tuesday, 13 million of our clients actively use our app and in the past year alone, card payments increased by 18%, totalling more than 2.4 billion transactions. 'E-commerce transactions surged by 47% and more than one million clients now use digital wallets such as Apple Pay, Google Pay and Samsung Pay.' Goal of building a digitally led model However, things are different at Absa. The bank's spokesperson told The Citizen in 2024 it reduced the number of ATMs by 2% to 5 138 due to the shift to digital-first banking transactions. 'This strategic shift supports Absa's long-term goal of building a digitally led, future-ready banking model by allowing us to reallocate resources to platforms that serve a broader range of customer needs with greater efficiency.' The spokesperson added that its approach is data-driven, customer-centric geographic analysis, which considers transaction volumes, customer preferences, crime patterns and the availability of alternative cash access points (such as partner retailers) in each area. ALSO READ: Tap-and-pay becomes more popular among South Africans High digital adoption Absa has observed that in regions with high digital adoption or proximity to alternative cash access points, ATM usage is generally consistently low, which allows it to optimise its operations in these environments. In some locations, Absa has removed ATMs as it enhances partnerships with retail outlets and enable alternative cash access points through cash at the till functionality. 'Over the past few years, particularly since the pandemic, we have seen a consistent decline in ATM usage as more customers embrace digital and card-based transactions. 'Digital transaction volumes have grown by double digits year-on-year, while the demand for cash transactions continues to decline.' The need for cash decreasing Zibu Nqala, CEO for FNB pointspof Presence, told The Citizen it had noticed a significant shift in transactional behaviour among its customers with a decreasing need for cash. For its customers who earn more than R750 000 per annum, cash has historically played a minor role, accounting for only 4% of their total payments. 'This trend has remained consistent, reflecting a preference for digital and card-based transactions,' Nqala said However, those who earn les than R750 000 per annum have traditionally relied more on cash. 'However, this figure has now decreased to 25%, indicating a clear downward trend.' This shift is accompanied by an increased use of cards and real-time payments, due to the growing adoption of digital payment methods. ALSO READ: South Africans move to contactless payments Urban customers Nqala added that FNB sees urban customers migrating to digital payments more aggressively than rural customers. 'That is why we ensure that we have representation for rural customers through our various points of presence and retailer partnerships. We therefore empower our customers by giving them a choice in how they transact, regardless of their preference for cash or digital transactions.' The below year-on-year look at FNB's self-service device (SSD) numbers as of December 2024 helps to paint the picture of how it has reduced its footprint. Three-year view of SSD numbers (December 2024): Device Type 22 Dec 23 Dec 24 Dec Automated Deposit Tellers (ADTs) 2 007 2 102 2 166 ATMs 2 484 2 394 2 319 Retailers 185 183 171 Statement Printing Kiosk 103 101 97 Bulk Deposit Taking 10 10 17 Total 4 789 4 790 4 770 Table: Supplied by FNB 'FNB's decisions on footprint have been primarily driven by local market alignment, customer trends, device economics and the bank's continuous evaluation of device placement,' said Nqala. She added that if FNB removes any devices, it is done with a calculated approach to ensure there are sufficient alternative points of presence in the local markets so that there is no impact on customers. Standard Bank upgrades its ATMs According to Standard Bank's annual integrated report for the year ended 31 December 2024, the bank has reduced its physical branches and in-store kiosks from 1 206 in 2023, to 1 168 in 2024. When it comes to ATMS, it has reduced its footprint from 6 014 in 2023 to 5 562 in 2024. 'Our clients benefit from our extensive network of branches, cost-effective kiosks, ATMs, dedicated call centres and retail partners,' reads the report. NOW READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay
