Latest news with #R100bn
IOL News
04-07-2025
- Business
- IOL News
Value of illegal booze market continues to grow, but not as fast as the legal sector
A legal shebeen in Alexandra township, Johannesburg Smuggling has dropped from one in three purchases of alcohol to one in every five, a new report by Euromonitor International in conjunction with the Drinks Federation of South Africa has found. Image: Nicola Mawson Fake booze volumes are growing faster than what smugglers are bringing into the country, although the value of sales in the illicit market are not gaining pace as fast as the legal one, with the cost of legal alcohol having been pushed up by price increases. This is according to the latest research from Euromonitor International in conjunction with the Drinks Federation of South Africa (DF-SA). It found that the market for illicit alcohol accounts for a fifth of total alcohol sales in South Africa. 'The drivers of illicit alcohol have changed over the last four years, with counterfeiting growing at the expense of smuggling. Since 2017, the market share for counterfeiting alone has grown from 24% to 31%. Its category value has almost doubled from R4.9 billion in 2017 to R9.8bn 2024,' their report said. In the report, they attributed this to the fact that demand has tapered off since the end of the COVID-19 pandemic and the resultant lockdown that saw sales of alcohol and cigarettes banned, leading to people turning to buying these items from providers who sourced them from over the border. Smuggling has dropped from one in three purchases to one in every five, the research found. 'However, counterfeit and illicit brands have grown substantially since the pandemic, becoming the largest illicit category by volume in 2024,' it said. Richard Rivett-Carnac, South African Breweries CEO and chairman of DF-SA said that the sale of illegal booze is 'not just a public health concern, but a direct threat to fiscal revenues and formal businesses that contribute significantly to the economy and job creation'. The legal alcohol sector supports around one in 31 jobs and generates over R100bn in tax revenue annually, said Rivett-Carnac. 'When illicit traders avoid tax, undercut the market, and exploit vulnerable consumers, we all lose, he said. Illegal booze cost the economy R16.5 billion last year, up from R11.3bn four years previously, when South Africa was in lockdown. The bulk of this amount came from illegal sales of spirits. When Finance Minister Enoch Godongwana presented Budget 3.0 in May, he was faced with a revenue hole of R75bn. The report stated that enforcement continues to be a challenge as both the South African Revenue Service and the South African Police Service 'have reported capacity and resource constraints, especially the illicit trade task team which deals with all illicit goods, not only alcohol'. However, it said that trade sources indicate that the greater involvement by industry in identifying culprits and working together with law enforcement agencies has resulted in positive outcomes. IOL
IOL News
04-06-2025
- Business
- IOL News
A new era for online shopping as Amazon expands product range in South Africa
Amazon has expanded its product offerings in South Africa, introducing groceries, pet food, and health supplements to compete with established retailers Image: File Just more than a year after landing on South African shores with a . domain, Amazon has expended its product range to take on entrenched retailers who have had a virtual presence since the COVID-19 lockdown spurred online and app-based shopping. started as a bookseller in 1995 out of founder Jeff Bezos's garage and, at launch last May, was set to compete with Takealot, and Makro. And now it's playing in the food and over-the-counter medicinal product space. In what the company said on Wednesday is a 'major milestone in Amazon's growth in South Africa,' it stated that it had added groceries, pet food, vitamins, and supplements to its offerings. Adding these categories, it said, 'brings thousands of new non-perishable food items, pet food products, and health supplements to customers across the country'. Amazon's new selection includes both international favourites like Nestle, Red Bull, and Starbucks, and beloved local brands like Beacon, Simba, and Koo, catering to the diverse needs of South African households. The e-tailer, which is globally the fourth most valuable company with a market capitalisation of $2.18 trillion, operates local websites in various countries, including Australia, Canada, India, and Mexico. The 2024 World Wide Worx report, sponsored by Peach Payments, Mastercard and AskAfrika, shows that South Africa's online retail surged to R71bn in 2023, with projections that it will surpass R100bn by 2026. Robert Koen, Amazon MD for sub-Saharan Africa, said, 'since our launch, we've been listening closely to customer feedback, and groceries, pet supplies, and health supplements have consistently been among their top requests'. Early data indicates strong customer interest across all three categories. In groceries, coffee, tea, cereals, pasta, cooking oils, and canned goods are emerging as top sellers. The pet food selection, which includes options for dogs, cats, birds, fish, and small animals, has seen particular demand for premium pet nutrition brands and specialty formulations, said Amazon. Amazon added that the vitamins and supplements category has attracted health-conscious consumers with its comprehensive range of multivitamins, minerals, sports nutrition, and specialty supplements. On launch, the e-tailer said it sought to support local independent companies and, to this end, hosted its inaugural Seller Summit, bringing together over 300 local entrepreneurs at its Cape Town headquarters last month. More than 60% of global Amazon sales stemming from independent sellers. This was preceded, last September, by 'Shop Mzansi', a curated storefront on showcasing unique local products that reflect South Africa's rich and diverse cultures. 'Shop Mzansi' features thousands of products across different categories – including toys, home and kitchen appliances, outdoor and braai, baby, luggage, and beauty. 'Shop Mzansi showcases more than 160 brands from new, emerging, and established South African businesses, each with their own unique story,' Keon said at the time. He added that it will continue adding to the Shop Mzansi selection as it onboard more sellers and helps them list their products. More than 60% of sales in Amazon's stores globally are from independent sellers – most of which are small- and medium-sized businesses. IOL
TimesLIVE
20-05-2025
- Business
- TimesLIVE
Government 'will remain committed to R100bn transformation fund'
Small business development minister Stella Ndabeni-Abrahams has encouraged women to participate in the public comment process for the government's R100bn transformation fund aimed at helping small businesses access funds and markets. Speaking on Tuesday at the Women's Dialogue and Stakeholder Luncheon in Paris, Ndabeni-Abrahams called on women to share their opinions of the fund despite criticism in some quarters that the concept was flawed. 'There are people hell-bent on undermining this transformational agenda that we want to drive. There are people already who are committed that they will take that process to court,' said Ndabeni-Abrahams. She said the government would stand by the fund despite opposition from some quarters, including major business organisations. 'Yes, we are a government that promotes nonracism, but we are a country with a particular history that is not going to be washed away. We are standing by our constitution in terms of addressing past imbalances,' said Ndabeni-Abrahams. The Transformation Fund was proposed by the department of trade, industry & competition. It aims to raise R20bn over the next five years and disburse R100bn, using a mix of contributions from enterprise and supplier development (ESD) obligations under B-BBEE codes of good practice and voluntary donations by big corporations. After anger that the fund would impose new obligations for corporations, trade industry & competition minister Parks Tau allayed fears, saying it would not replace existing ESD programmes and contributions would be voluntary. Ndabeni-Abrahams said the government was pushing its plan to allocate 40% of public procurement to women, however women needed strategic procurement opportunities. 'We do see that the government and the private sector still want to use women to only provide catering. We want to ensure that our role does not remain one that provides food and does the décor. We (women) are bigger than those services and that is why we are working with the department of trade, industry & competition to ensure access to funding for small business,' she said. The Women's Dialogue and Stakeholder Luncheon is the first formal engagement of the France South African Investment Conference led by Deputy President Paul Mashatile. Philisiwe Mthethwa, non-executive director at the Industrial Development Corporation, also speaking at the event, said gender equity was crucial and not only a women's issue but a societal imperative. 'Let us forge partnerships rooted not only in profits but in purpose. Let us walk out of this room with collaborations formed, capital committed, and courage renewed. We are not here because we were invited, we are ready to lead, ready to build, ready to change the story for every woman and every girl, every unseen hereon still waiting to be seen,' she said.
Eyewitness News
16-05-2025
- Business
- Eyewitness News
Trade Minister concerned by hurdles faced by black-owned enterprises in the country
JOHANNESBURG - Trade and Industry Minister Parks Tau has again raised concerns about the hurdles faced by black-owned micro, small, and medium enterprises in the country. Tau raised the frustrations impacting the growth of small businesses while speaking at a transport sector engagement session today, which focused on initiatives that support black-owned businesses across different industries. Tau said that launching the transformation fund will help resolve some of the barriers that exist for previously disadvantaged groups-- including funding requirements. Parks Tau published a draft concept document on the R100 billion fund last month. The fund is expected to be a catalyst for financial support. READ: Tau doesn't expect R100bn transformation fund to threaten existing B-BBEE legislation Tau said that it is important to ensure that there's also adequate support for small and medium businesses in the transport industry. 'By embedding clear targets for black ownership, management control and supplier diversity in our sector codes, we ensure that modernisation benefits all stakeholders. The transformation fund will be co-managed with private sector partners, creating accountability and shared commitment." He called on industries to align with the fund's objectives to achieve rapid and inclusive growth.
Eyewitness News
05-05-2025
- Business
- Eyewitness News
Mashatile welcome's private sector's commitment to help raise R100bn for Transformation Fund
JOHANNESBURG - Deputy President Paul Mashatile has expressed gratitude to the private sector for committing to help raise R100 billion for the Transformation proposed fund, which is currently open for public consultation, aims to support black-owned businesses and promote broader black participation in the economy. ALSO READ: Mashatile vows to shield R100bn transformation fund from corrupt hands The Department of Trade and Industry previously clarified that the R100 billion initiative was not intended to replace existing black economic empowerment efforts but rather to complement government has partnered with the private sector to raise the funds over the next five years. Speaking at a business breakfast in Pretoria on Monday, Mashatile welcomed the private sector's willingness to support black-owned enterprises.
