Latest news with #EfficientGroup
IOL News
25-05-2025
- Business
- IOL News
A critique of the proposal to close public universities and convert them into colleges
Dawie Roodt, an economist, should keep in mind that, universities are not narrowly designed as he would think; to produce immediate job-ready graduates, but to fulfil a broader mandate that includes critical thinking, foundational knowledge, research and public service. says the writer. Dawie Roodt, an economist at the Efficient Group, has advocated that certain state universities in South Africa be closed and converted into colleges, claiming that they are not creating the "right skills" in comparison to private institutions. This concept stems from a worry about the skills mismatch in the South African employment market. However, the plan to close public institutions indicates a fundamental misunderstanding of the varied functions within the post-secondary education and training system, and it risks jeopardising public higher education's long-term developmental, democratic, and intellectual missions. Misunderstanding the Role of Universities Roodt should keep in mind that, Universities are not narrowly designed as he would think; to produce immediate job-ready graduates, but to fulfil a broader mandate that includes critical thinking, foundational knowledge, research and public service (CHE 2016, Badat 2010) and according to Manuel Castells, each with their own specific expectations and internal logic. Castells argued (2001:206) that 'universities perform a major role in the generation of new knowledge'. I assume that Roodt would have known that public universities are grounded in the idea of knowledge production, and innovation contributes to national development in ways that are not reducible to short-term market needs. A university graduate and, by his own admission, of UNISA, our land university, would have known this. His reckless claim that Unisa is underperforming was without facts. At least he should be aware that, in the last few years that UNISA, out of its 151-year history, has emerged as one of South Africa's and the African continent's premier scientific research and innovation institutions. As a dispute to his assumption and weird disinformation about UNISA, the institution has identified ten catalytic niche areas (such as Autotmotive Studies, Energy Studies, Space studies and the Square Kilometre Array, Fourth Industrial Revolution and digitization, etc) that will activate and enhance its academic agenda while remaining focused on the institute's vision of building Africa's Intellectual capacity. My view is that the role of public universities goes beyond 'immediate' skills production; their purpose includes fostering critical thinking. The failure of Roodt's argument was to realise that the skills gap cannot be solved by solely changing from public to private and from a public university to a private university.
IOL News
29-04-2025
- Business
- IOL News
Fuel price set to drop in May as VAT hike kicks in
Experts expect motorists to have some relief in May as a petrol price cut is on the cards Motorists in South Africa could expect to have some relief next month as a fuel price cut is on the cards on the back of easing global Brent crude oil price, benefitting consumers who will be facing the 0.5 percentage point VAT rate hike from 1 May. The predicted petrol price drop in May would mark the third consecutive drop in fuel prices in 2025. Old Mutual Group chief economist, Johann Els, on Friday said there has been an over-recovery on the petrol price of around 44 cents a litre. 'The weakness that we have seen in the rand over the last two weeks has been far overshadowed by the much lower oil price. So the rand price of a barrel of oil is down 16% since the beginning of April. That has led to the over-recovery in the petrol price,' Els said. He added that if conditions continued in the same direction, a fuel price cut of around 40 cents a litre was expected at the beginning of May. 'This is despite the weaker rand exchange rate that we have seen recently. The rand has since strengthened and stabilised from its weaker levels, which is good news for motorists and the economy,' Els said. As of 16 April, the Central Energy Fund reports a projected reduction in fuel prices of 21 cents for 95 unleaded petrol, 19 cents for 93ul and approximately 40 cents for diesel. However, the rand has also come under pressure during this period, averaging above R19 to the US dollar in April compared to R18.27/$ in March. Efficient Group chief economist Dawie Roodt is expecting a fuel price cut of around 20 cents a litre in May. 'The main reason for this is a significant reduction in international oil prices. Unfortunately, the rand weakening has pushed up the price of international oil. However, the impact is not enough to stop a fuel price cut of 20 cents per litre,' Roodt said. Waldo Krugell, an economics professor at the North-West University, said the analysis of the movement of the average over- or under-recovery of the basic fuel price showed that the lower Brent crude oil price has a bigger effect than the weaker rand-dollar exchange rate by mid-April. 'There is an over-recovery for all grades of fuel and we could see lower prices at the pump. Petrol could fall by between 17 and 20 cents per litre and diesel prices by 40 cent,' Krugell said. Tracey-Lee Solomon, an economist from the Bureau for Economic Research, said that since Liberation Day import tariffs on 2 April, oil markets have been hit with a double blow. 'Concerns over global economic growth have dampened demand expectations, while OPEC+'s decision to unwind output cuts more rapidly than anticipated has heightened fears of a supply glut. As a result, oil prices have declined significantly,' Solomon said. 'Brent crude has averaged around $67 (R 1261) per barrel (/bbl) so far in April, down from an average of $71.74 (R1 336)/bbl in March.' Investec chief economist, Annabel Bishop, said that Brent crude oil's price dropped to $63.33 (R1185)/bbl last week, as the oil price has collapsed from $81.30 (R1 524)/bbl three months ago. Bishop said the rand has seen a pullback which, along with the drop in the oil price, will mute effects. 'That is, if the oil price remains around current levels for the rest of this month, and the Rand does the same, or strengthens further against the US dollar, then the effect on imported petroleum products, and so the petrol price, will be limited,' Bishop said. BUSINESS REPORT
IOL News
25-04-2025
- Business
- IOL News
South Africa's average nominal pay dips as economic challenges loom
As real take-home pay, adjusted for inflation, also softened by 2.9% to R15 343, the challenges faced by salary earners in March are palpable—though notably, this figure still reflects an 8.1% increase over the previous year. South Africa's economic landscape is experiencing a nuanced shift, with BankservAfrica revealing that the average nominal take-home pay declined in March 2025. The figure slipped to R17 811 from February's R18 272, marking a 2.5% decrease. Despite this dip, when compared to R15 983 just a year ago, the average remains buoyed above last year's levels—highlighting both resilience and the effects of ongoing economic pressures. Shergeran Naidoo, head of stakeholder engagements at BankservAfrica, addressed the declining nominal pay, attributing it to intensifying economic headwinds that are impacting growth and consumer confidence. "This raises concerns over potential impacts on employment and earnings in the coming months. However, Thursday's announcement to scrap the proposed VAT increase offers some reprieve," Naidoo said. Elize Kruger, an independent economist affiliated with BankservAfrica, noted a tempered outlook moving forward, referencing both escalating trade tensions and growing political uncertainty as significant factors likely to affect consumer sentiment and, ultimately, the economy. As real take-home pay, adjusted for inflation, also softened by 2.9% to R15 343, the challenges faced by salary earners in March are palpable—though notably, this figure still reflects an 8.1% increase over the previous year. 2024 saw a significant moderation in consumer inflation, allowing salary earners a respite in their purchasing power. With the Consumer Price Index (CPI) dipping to a mere 2.7% in March—its lowest levels since June 2020—the outlook for 2025 appears cautiously optimistic. Kruger anticipated that if inflation remains under control, the current pattern of positive real take-home pay growth could persist, bolstering demand for goods and services in the economy. "This relief is much needed, as salary earners remain under strain from the high cost of living, persistently elevated interest rates, and additional tax burdens stemming from the unchanged tax brackets in the 2025 National Budget," added Kruger. The withdrawal of the proposed VAT hike by the Ministry of Finance has been described as a welcome development for consumers already faced with financial strains. On a broader scale, the effects of global economic instability, exacerbated by trade conflicts—particularly those instigated by US tariffs—are anticipated to ripple through the South African economy. Although the direct impact on total exports is limited, sectors reliant on duty-free access to US markets, such as automotive and agriculture, may face significant challenges, subsequently affecting employment and earnings stability. Efficient Dawie Roodt, chief economist at the Efficient Group, said that take-home pay was determined by how well the economy is doing. 'Currently the South African economy is not doing well. Estimates for the economic growth are being adjusted downwards and yesterday the IMF also reduced estimates for the rest of the year. If the economy grows, the take-home pay will increase as well,' Roodt said. Waldo Krugell, an economics professor at the North-West University, said that in terms of the year-on-year improvements, in real terms, it was good news for consumers and speaks to the importance of low and stable inflation. 'I can see how those uncertainties can weigh on consumer confidence, particularly when it comes to buying durable goods.' BUSINESS REPORT
IOL News
22-04-2025
- Business
- IOL News
May fuel price cuts for South African motorists despite VAT increase
Motorists in South Africa could expect to have some relief next month as a fuel price cut is on the cards on the back of easing global Brent crude oil price, benefitting consumers who will be facing the 0.5 percentage point VAT rate hike from 1 May. The predicted petrol price drop in May would mark the third consecutive drop in fuel prices in 2025. 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 ✕ Old Mutual Group chief economist, Johann Els, on Friday said there has been an over-recovery on the petrol price of around 44 cents a litre. 'The weakness that we have seen in the rand over the last two weeks has been far overshadowed by the much lower oil price. So the rand price of a barrel of oil is down 16% since the beginning of April. That has led to the over-recovery in the petrol price,' Els said. He added that if conditions continued in the same direction, a fuel price cut of around 40 cents a litre was expected at the beginning of May. 'This is despite the weaker rand exchange rate that we have seen recently. The rand has since strengthened and stabilised from its weaker levels, which is good news for motorists and the economy,' Els said. As of 16 April, the Central Energy Fund reports a projected reduction in fuel prices of 21 cents for 95 unleaded petrol, 19 cents for 93ul and approximately 40 cents for diesel. However, the rand has also come under pressure during this period, averaging above R19 to the US dollar in April compared to R18.27/$ in March. Efficient Group chief economist Dawie Roodt is expecting a fuel price cut of around 20 cents a litre in May. 'The main reason for this is a significant reduction in international oil prices. Unfortunately, the rand weakening has pushed up the price of international oil. However, the impact is not enough to stop a fuel price cut of 20 cents per litre,' Roodt said. Waldo Krugell, an economics professor at the North-West University, said the analysis of the movement of the average over- or under-recovery of the basic fuel price showed that the lower Brent crude oil price has a bigger effect than the weaker rand-dollar exchange rate by mid-April. 'There is an over-recovery for all grades of fuel and we could see lower prices at the pump. Petrol could fall by between 17 and 20 cents per litre and diesel prices by 40 cent,' Krugell said. Tracey-Lee Solomon, an economist from the Bureau for Economic Research, said that since Liberation Day import tariffs on 2 April, oil markets have been hit with a double blow. 'Concerns over global economic growth have dampened demand expectations, while OPEC+'s decision to unwind output cuts more rapidly than anticipated has heightened fears of a supply glut. As a result, oil prices have declined significantly,' Solomon said. 'Brent crude has averaged around $67 (R 1261) per barrel (/bbl) so far in April, down from an average of $71.74 (R1 336)/bbl in March.' Investec chief economist, Annabel Bishop, said that Brent crude oil's price dropped to $63.33 (R1185)/bbl last week, as the oil price has collapsed from $81.30 (R1 524)/bbl three months ago. Bishop said the rand has seen a pullback which, along with the drop in the oil price, will mute effects.
Yahoo
07-02-2025
- Business
- Yahoo
US, South Africa spat reveals a range of tensions
Heated exchanges between South Africa and the United States this week are an eruption of tensions over several policy issues that have come into focus under President Donald Trump's administration, analysts said. And more turbulence is in store, with South African-born billionaire Elon Musk a key ally of the new US president, they said. Even if the recent outburst seemed surprising, "the trigger goes some time back," said Dawie Roodt, chief economist at the Efficient Group consultancy firm. Senators in the previous US administration "were already questioning their relationship with South Africa", he said. For instance, in 2023 a bipartisan group of lawmakers called for former president Joe Biden to punish South Africa for not condemning Russia's invasion of Ukraine. "All of a sudden, those voices that were minority are now more important," said Roodt. Trump started the latest spat by accusing South Africa of "confiscating" land and treating "certain classes" of people badly, a likely reference to an expropriation act criticised by white farmers. The government rejected the claim as misinformed. Musk followed by charging that President Cyril Ramaphosa had "openly racist ownership laws". Secretary of State Marco Rubio then weighed in, saying he would not attend a G20 foreign ministers' meeting in Johannesburg this month because South Africa -- this year's president of the forum of top economies -- had an "anti-American agenda". America's biggest trading partner in Africa has also come under fire from Washington for leading a case at the International Court of Justice, accusing Israel of "genocidal" acts in its Gaza offensive, an accusation Israel has denied. Pretoria has also shown its loyalty to Beijing, over Washington's preference for Taipei, by issuing a March deadline for Taiwan's de facto embassy to move out of the capital. Trump has meanwhile threatened to place 100-percent tariffs on BRICS nations, of which South Africa is one, to dissuade them from replacing the US dollar with a rival currency. - 'Elon factor' - "The Elon factor is huge," political scientist Sandile Swana told AFP of the world's richest man, who left South Africa in the late 1980s when he was aged 17 and is now in Trump's government. "Certain high-profile white South Africans are whispering things in the ears of Trump which are not verified," he said. "White supremacist groups are gaining state power and using it to impose conservative right-wing views," he said, and South Africa is "an easy target". Musk's barb about "racist ownership laws" may have been a reference to a black empowerment policy that has reportedly been behind delays in the licensing of his Starlink satellite internet service in South Africa. Ramaphosa has not been shy about courting Musk's wealth as he seeks investment for the country. But "we will not be bullied," he said in an address to the nation on Thursday. Despite the brave face, commentators say South Africa lacks the leverage to stand up to the United States. "Trump has the US economy, technology, a number of billionaires, huge political movements behind him," Roodt said. "The big loser is going to be South Africa." - 'Age of darkness' - After Trump last month abruptly suspended US foreign aid funding -- which made up about 17 percent of the costs of South Africa HIV/AIDS treatment programmes -- there are renewed fears for the fate of the AGOA deal that gives some African products duty-free access to the US market. Enacted in 2000, the deal -- of which South Africa is the largest beneficiary -- is due for renewal this year. "If the Trump administration could shut down USAID in the way in which they have done, affecting the lives of millions, I don't think the AGOA has got a big chance to survive," Neil Diamond, president of the South African Chamber of Commerce in the United States, told AFP. "It would require a massive intervention from the African leaders to change Trump's view on this." The absence of the United States, the world's biggest economy, at the G20 summit at the end of the year would be a blow for South Africa's hosting of the key event. Despite the escalation, the whole saga could also just fade away, political scientist Susan Booysen said. "If it was pure provocation on the side of Trump, like he deliberately does, it seems it can end any time because he can just say, 'Oh, forget about what I said,'" she told AFP. But Swana was less optimistic. "Trump is taking us back into the age of darkness," he said. ho/br/kjm
