Latest news with #Nyika
IOL News
4 days ago
- Business
- IOL News
Understanding the cost implications of the US-South Africa Bilateral Relations Review Act on the property sector
If foreign investors exit the South African property market, property prices may cool. Image: Leon Lestrade, Independent Newspapers. The US-South Africa Bilateral Relations Review Act of 2025 will negatively affect the local property sector's investment dynamics and have cost implications if it becomes law. The bill was introduced by Ronny Jackson, a congressman from Texas, in April. For it to become a law, it will need to be approved by the House and Senate before being signed by President Donald Trump. It accuses South Africa of undermining the United States' interests by maintaining close relationships with the People's Republic of China and the Russian Federation, nations that are Pretoria's strong allies and key trading partners. On investment dynamics, Dr Farai Nyika, an academic programme leader in the School of Public Administration at the Management College of Southern Africa(MANCOSA), says South Africa's property sector depends significantly on both domestic and international investment. He said foreign involvement includes not only direct investment in physical developments but also the purchase of South African property-related shares on the Johannesburg Stock Exchange (JSE). 'Should the bill become US law, the geopolitical risks associated with doing business in South Africa may deter foreign investors. This could result in a slowdown in physical property developments by foreign investors and a sell-off of South African property stocks. "Such a sell-off would constrain these companies' ability to raise capital, potentially leading to reduced profitability, operational cutbacks, and, disastrously, job losses,' Nyika told "Independent Media Property". The academic leader said it is key to note that the bill, in its current form, may change to broaden penalties beyond what is currently stated, so they could only speculate on its current form. He said it should be remembered that the bill is really targeting South African individuals, rather than the country as a whole. 'However, perceptions matter more than reality and legal precision; for example, though Zimbabwean politicians were the target of U.S sanctions in 2003, the Zim government claimed that the country's subsequent economic hardships were the result of the entire country being sanctioned. "By extension-sanctions that target individuals indirectly harm the economy. Because many property investors will say that they do not want to do business in a country that the 'US is sanctioning'. "Perversely, there could be some economic benefits to the local property market from the U.S sanctioning local politicians. If foreign investors exit the market, property prices may cool. "This could make housing more affordable for locals who have previously been priced out-particularly in urban centres like Cape Town, where gentrification has greatly limited social mobility and access to property ownership,' Nyika said. 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 With regards to cost implications, he said a large proportion of building materials, especially high-end fixtures for luxury properties and solar technologies, are imported. He said in a country that has been grappling with persistent load shedding and a transition to cleaner energy, the demand for solar and energy-efficient solutions is rising. 'However, if the bill disrupts trade relations or leads to broader sanctions, the cost of these imported materials may increase, raising construction and development costs. This could slow down South Africa's Just Energy Transition in the short term.' With that said, Nyika said economic pressure often fosters innovation. He said historical precedents show that sanctions or trade restrictions can trigger industrial growth-as was the case in both Zimbabwe and apartheid-era South Africa during the 1960s and 70s. 'In the long run, if the South African government were to prioritise industrial policy and local manufacturing, the country could reduce reliance on imports. "This would benefit the property sector by fostering domestic production of certain formerly imported building materials and solar items, improving resilience, and potentially creating new economic opportunities to expand local property.' Asked whether the South Africa property sector will have resort in this regard, Dr Thandile Ncwana, also an Academic Programme Leader at the same institution, said but some of the possible strategic play for South Africa in this situation should the bill be approved, is to mitigate escalation and maintain its relationship with the US by considering engaging in high-level bilateral diplomacy aimed at clarifying its foreign policy positions while reaffirming its commitment to democratic values, trade and multilateral cooperation. She said proactive parliamentary diplomacy, Track II dialogue forums, and regular engagement with the US Congress and civil society actors could help reframe South Africa's stance as one of principled non-alignment rather than strategic antagonism. 'Because reinforcing bilateral economic ties and highlighting areas of mutual benefit, such as climate action, infrastructure development and health, can serve as diplomatic buffers. The government also have a chance to carefully balance between asserting its foreign policy independence and avoiding diplomatic or economic isolation. "This can be achieved by adopting a transparent foreign policy communication strategy, clearly articulating the principles behind its international engagements, and avoiding actions that may be interpreted as tacit support for states or groups under U.S. sanctions,' Ncwana said. She added that multilateralism should remain at the heart of South Africa's diplomacy, and efforts must be intensified to build consensus with African partners, BRICS allies, and Western institutions alike to maintain strategic flexibility and avoid becoming a casualty of great-power rivalry. Politically, she said South Africa should adopt a dual-track diplomacy strategy that preserves its non-aligned international stance while actively engaging U.S. policymakers to dispel misconceptions about its foreign policy positions. 'This includes convening high-level bilateral dialogues, leveraging multilateral platforms like the United Nations and African Union to clarify its principled positions, and re-establishing structured parliamentary exchanges with the US Congress. "South Africa's leadership can also benefit from a strategic public diplomacy campaign that communicates its commitment to constitutional democracy, human rights, and peaceful conflict resolution principles historically shared with the US. "These efforts can de-escalate tensions and rebuild political trust, allowing space for honest disagreement without undermining the broader relationship.' Ncwana said that overall, the South African government can lastly play a strategic move by enhancing interdepartmental coordination, particularly between the Departments of International Relations and Cooperation (DIRCO), Trade and Industry, and National Treasury to ensure cohesive messaging and responsiveness to external developments like the US legislative process. Independent Media Property
IOL News
20-06-2025
- Business
- IOL News
What the US Fed's interest rate decision means for South Africa's property sector
Further rate cuts this year would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. Image: Tracey Adams/Independent Media The United States Federal Reserve's decision to maintain interest rates may influence the South African Reserve Bank's (SARB) Monetary Policy Committee when it meets to announce its decision on the local repo rate at the end of next month. On Wednesday night, the US Federal Reserve kept interest rates steady but signalled possible cuts later this year. Fed chairperson, Jerome Powell, warned that rising tariffs could push inflation higher and delayed any easing - much to the dismay of President Trump, said Bianca Botes, Director at Citadel Global. She said Asian markets retreated as investors grew cautious, with stocks and currencies weakening amid uncertainty over US involvement in the Israel-Iran conflict. 'Oil prices slipped after President Trump's unclear stance on the Middle East conflict. US equity futures have edged lower, while trading in Treasuries has paused for the US Juneteenth holiday. The rand is on the back foot given the current cautious setting. It starts the day at R18.04/$, R20.68/€ and R24.19/£,' Botes said on Thursday morning. Early indicators from the SARB and various economists suggest that a rate cut may be considered at the upcoming meeting, aligning with the global trend toward a monetary easing cycle, says Dr Farai Nyika, an Academic Programme Leader at the School of Public Administration of the Management College of Southern Africa (Mancosa). He said that notably, other major economies such as Switzerland and Norway have recently cut interest rates, while the United Kingdom has opted to maintain its current rates. 'The European Central Bank also reduced its rates on June 5, 2025, reinforcing the broader trend of declining interest rates,' Nyika said. The academic said further rate cuts would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. However, he said this optimistic outlook remains uncertain. With the recent geopolitical tensions, including the outbreak of hostilities between Israel and Iran, he said this may exert inflationary pressures through increased imported fuel costs. 'This phenomenon of 'imported inflation' could compel the SARB to delay any anticipated rate cuts in July. Nonetheless, the local property market is in a stronger position than it was one or two years ago, largely due to previous rate cuts. As such, even a decision to maintain the current repo rate in July would likely be welcomed by the sector,' Nyika said. The fact that SA interest rates are higher than in the US is the result of many different factors, but in practical terms, it makes the country an emerging market investment destination, says Professor Waldo Krugell, an economist within the School of Economic Sciences at the North West University (NWU). He said it creates a demand for SA bonds, and by implication, for rands. 'To maintain the exchange rate, we don't want that differential to narrow too much. The implication is that if the Fed holds rates, the SARB is also more likely to hold rates,' Krugell said. He added that if the Fed does end up cutting rates later in the year and inflation stays low in SA, the country might see another cut or two and that would benefit the property sector. However, he said that there is a lot of uncertainty at the moment with real wars, trade wars and possibly a new inflation target in SA. Independent Media Property
IOL News
20-06-2025
- Business
- IOL News
What the US Fed's interest rate decision means for South Africa's property sector
Further rate cuts this year would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. Image: Tracey Adams/Independent Media The United States Federal Reserve's decision to maintain interest rates may influence the South African Reserve Bank's (SARB) Monetary Policy Committee when it meets to announce its decision on the local repo rate at the end of next month. On Wednesday night, the US Federal Reserve kept interest rates steady but signalled possible cuts later this year. Fed chairperson, Jerome Powell, warned that rising tariffs could push inflation higher and delayed any easing - much to the dismay of President Trump, said Bianca Botes, Director at Citadel Global. She said Asian markets retreated as investors grew cautious, with stocks and currencies weakening amid uncertainty over US involvement in the Israel-Iran conflict. 'Oil prices slipped after President Trump's unclear stance on the Middle East conflict. US equity futures have edged lower, while trading in Treasuries has paused for the US Juneteenth holiday. The rand is on the back foot given the current cautious setting. It starts the day at R18.04/$, R20.68/€ and R24.19/£,' Botes said on Thursday morning. Early indicators from the SARB and various economists suggest that a rate cut may be considered at the upcoming meeting, aligning with the global trend toward a monetary easing cycle, says Dr Farai Nyika, an Academic Programme Leader at the School of Public Administration of the Management College of Southern Africa (Mancosa). He said that notably, other major economies such as Switzerland and Norway have recently cut interest rates, while the United Kingdom has opted to maintain its current rates. 'The European Central Bank also reduced its rates on June 5, 2025, reinforcing the broader trend of declining interest rates,' Nyika said. The academic said further rate cuts would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. However, he said this optimistic outlook remains uncertain. With the recent geopolitical tensions, including the outbreak of hostilities between Israel and Iran, he said this may exert inflationary pressures through increased imported fuel costs. 'This phenomenon of 'imported inflation' could compel the SARB to delay any anticipated rate cuts in July. Nonetheless, the local property market is in a stronger position than it was one or two years ago, largely due to previous rate cuts. As such, even a decision to maintain the current repo rate in July would likely be welcomed by the sector,' Nyika said. The fact that SA interest rates are higher than in the US is the result of many different factors, but in practical terms, it makes the country an emerging market investment destination, says Professor Waldo Krugell, an economist within the School of Economic Sciences at the North West University (NWU). He said it creates a demand for SA bonds, and by implication, for rands. 'To maintain the exchange rate, we don't want that differential to narrow too much. The implication is that if the Fed holds rates, the SARB is also more likely to hold rates,' Krugell said. He added that if the Fed does end up cutting rates later in the year and inflation stays low in SA, the country might see another cut or two and that would benefit the property sector. However, he said that there is a lot of uncertainty at the moment with real wars, trade wars and possibly a new inflation target in SA. Independent Media Property
The Advertiser
04-06-2025
- Sport
- The Advertiser
What happens when you go toe-to-toe with a 'monster'
Good luck going toe-to-toe with a "monster". Jai Opetaia's most recent victim has offered a chilling warning to the Australian's Italian title challenger as he prepares for his own ring return. David Nyika, New Zealand's former Olympic silver medallist and flag bearer, was humbled in a furious Gold Coast slugfest that left him bloodied and sprawled on the canvas in January. The 29-year-old (10-1) will return to the ring against countryman Nik Charalampous (23-6-2) on the Paul Gallen-Sonny Bill Williams card in Sydney on July 16. In a cautious return from concussion, Nyika is yet to complete heavy sparring but is confident and reflective after those ferocious four rounds with the IBF and The Ring cruiserweight champion. "I had my fingers crossed for rounds six, seven, eight ... predicting a later stoppage because I knew he was going to be an absolute monster for four to six rounds," Nyika told AAP. "I was just trying to be sensible, but not doing a great job of it. "The old saying, everyone has a plan until they get punched in the face ... but for me, I got buzzed right off the bell by a head clash. "He's the man and the guy to beat and nothing changes - I still want to knock his head off the block. "It was good to get a full re-set, but I'm back now, A-OK and putting a target on July 16." Opetaia (27-0) faces the unbeaten Claudio Squeo (17-0) on the Gold Coast on Sunday. He hopes a blockbuster unification clash with Gilberto Ramirez in Las Vegas later this year is next. The Australian is wary, though, not expecting Squeo to heed Nyika's warning despite only two of Opetaia's last eight fights going beyond six rounds. "He's dangerous; there's no mystery to what this guy's going to try to do," Opetaia said. "(He will) walk forward and try to take my head off. "He's been icing people, knocking them out cold. His game plan will be to go forward and throw bombs, because he obviously can't box with me. "It's serious - for a world title - so in no way am I taking it lightly." The pair faced off for the first time on Wednesday on the Gold Coast and will complete public workouts at Pacific Fair shopping centre on Thursday night. The Convention Centre card also features Brisbane-based Irish light heavyweight world title prospect Conor Wallace, rejuvenated super welterweight Ben Mahoney, and entertaining Paris Olympic heavyweight Teremoana Teremoana. Good luck going toe-to-toe with a "monster". Jai Opetaia's most recent victim has offered a chilling warning to the Australian's Italian title challenger as he prepares for his own ring return. David Nyika, New Zealand's former Olympic silver medallist and flag bearer, was humbled in a furious Gold Coast slugfest that left him bloodied and sprawled on the canvas in January. The 29-year-old (10-1) will return to the ring against countryman Nik Charalampous (23-6-2) on the Paul Gallen-Sonny Bill Williams card in Sydney on July 16. In a cautious return from concussion, Nyika is yet to complete heavy sparring but is confident and reflective after those ferocious four rounds with the IBF and The Ring cruiserweight champion. "I had my fingers crossed for rounds six, seven, eight ... predicting a later stoppage because I knew he was going to be an absolute monster for four to six rounds," Nyika told AAP. "I was just trying to be sensible, but not doing a great job of it. "The old saying, everyone has a plan until they get punched in the face ... but for me, I got buzzed right off the bell by a head clash. "He's the man and the guy to beat and nothing changes - I still want to knock his head off the block. "It was good to get a full re-set, but I'm back now, A-OK and putting a target on July 16." Opetaia (27-0) faces the unbeaten Claudio Squeo (17-0) on the Gold Coast on Sunday. He hopes a blockbuster unification clash with Gilberto Ramirez in Las Vegas later this year is next. The Australian is wary, though, not expecting Squeo to heed Nyika's warning despite only two of Opetaia's last eight fights going beyond six rounds. "He's dangerous; there's no mystery to what this guy's going to try to do," Opetaia said. "(He will) walk forward and try to take my head off. "He's been icing people, knocking them out cold. His game plan will be to go forward and throw bombs, because he obviously can't box with me. "It's serious - for a world title - so in no way am I taking it lightly." The pair faced off for the first time on Wednesday on the Gold Coast and will complete public workouts at Pacific Fair shopping centre on Thursday night. The Convention Centre card also features Brisbane-based Irish light heavyweight world title prospect Conor Wallace, rejuvenated super welterweight Ben Mahoney, and entertaining Paris Olympic heavyweight Teremoana Teremoana. Good luck going toe-to-toe with a "monster". Jai Opetaia's most recent victim has offered a chilling warning to the Australian's Italian title challenger as he prepares for his own ring return. David Nyika, New Zealand's former Olympic silver medallist and flag bearer, was humbled in a furious Gold Coast slugfest that left him bloodied and sprawled on the canvas in January. The 29-year-old (10-1) will return to the ring against countryman Nik Charalampous (23-6-2) on the Paul Gallen-Sonny Bill Williams card in Sydney on July 16. In a cautious return from concussion, Nyika is yet to complete heavy sparring but is confident and reflective after those ferocious four rounds with the IBF and The Ring cruiserweight champion. "I had my fingers crossed for rounds six, seven, eight ... predicting a later stoppage because I knew he was going to be an absolute monster for four to six rounds," Nyika told AAP. "I was just trying to be sensible, but not doing a great job of it. "The old saying, everyone has a plan until they get punched in the face ... but for me, I got buzzed right off the bell by a head clash. "He's the man and the guy to beat and nothing changes - I still want to knock his head off the block. "It was good to get a full re-set, but I'm back now, A-OK and putting a target on July 16." Opetaia (27-0) faces the unbeaten Claudio Squeo (17-0) on the Gold Coast on Sunday. He hopes a blockbuster unification clash with Gilberto Ramirez in Las Vegas later this year is next. The Australian is wary, though, not expecting Squeo to heed Nyika's warning despite only two of Opetaia's last eight fights going beyond six rounds. "He's dangerous; there's no mystery to what this guy's going to try to do," Opetaia said. "(He will) walk forward and try to take my head off. "He's been icing people, knocking them out cold. His game plan will be to go forward and throw bombs, because he obviously can't box with me. "It's serious - for a world title - so in no way am I taking it lightly." The pair faced off for the first time on Wednesday on the Gold Coast and will complete public workouts at Pacific Fair shopping centre on Thursday night. The Convention Centre card also features Brisbane-based Irish light heavyweight world title prospect Conor Wallace, rejuvenated super welterweight Ben Mahoney, and entertaining Paris Olympic heavyweight Teremoana Teremoana.
Perth Now
04-06-2025
- Entertainment
- Perth Now
What happens when you go toe-to-toe with a 'monster'
Good luck going toe-to-toe with a "monster". Jai Opetaia's most recent victim has offered a chilling warning to the Australian's Italian title challenger as he prepares for his own ring return. David Nyika, New Zealand's former Olympic silver medallist and flag bearer, was humbled in a furious Gold Coast slugfest that left him bloodied and sprawled on the canvas in January. The 29-year-old (10-1) will return to the ring against countryman Nik Charalampous (23-6-2) on the Paul Gallen-Sonny Bill Williams card in Sydney on July 16. In a cautious return from concussion, Nyika is yet to complete heavy sparring but is confident and reflective after those ferocious four rounds with the IBF and The Ring cruiserweight champion. "I had my fingers crossed for rounds six, seven, eight ... predicting a later stoppage because I knew he was going to be an absolute monster for four to six rounds," Nyika told AAP. "I was just trying to be sensible, but not doing a great job of it. "The old saying, everyone has a plan until they get punched in the face ... but for me, I got buzzed right off the bell by a head clash. "He's the man and the guy to beat and nothing changes - I still want to knock his head off the block. "It was good to get a full re-set, but I'm back now, A-OK and putting a target on July 16." Opetaia (27-0) faces the unbeaten Claudio Squeo (17-0) on the Gold Coast on Sunday. He hopes a blockbuster unification clash with Gilberto Ramirez in Las Vegas later this year is next. The Australian is wary, though, not expecting Squeo to heed Nyika's warning despite only two of Opetaia's last eight fights going beyond six rounds. "He's dangerous; there's no mystery to what this guy's going to try to do," Opetaia said. "(He will) walk forward and try to take my head off. "He's been icing people, knocking them out cold. His game plan will be to go forward and throw bombs, because he obviously can't box with me. "It's serious - for a world title - so in no way am I taking it lightly." The pair faced off for the first time on Wednesday on the Gold Coast and will complete public workouts at Pacific Fair shopping centre on Thursday night. The Convention Centre card also features Brisbane-based Irish light heavyweight world title prospect Conor Wallace, rejuvenated super welterweight Ben Mahoney, and entertaining Paris Olympic heavyweight Teremoana Teremoana.
