Latest news with #R3.5bn
TimesLIVE
3 days ago
- Business
- TimesLIVE
World's biggest climate fund ramps up investment plans
The world's biggest multilateral climate fund said it will make its largest investments and speed up deal making as it looks to help poorer nations respond to global warming. The Green Climate Fund's (GCF) plan to release about $1.2bn (R21bn) for 17 projects mostly in Asia and Africa follows approval by shareholders, including the US, at a meeting this week against a fractious political backdrop that has seen development aid slashed. Official development assistance could fall 17% this year after a 9% drop in 2024, the Organisation for Economic Co-operation and Development said in a June report, led by hefty cuts to US aid by President Donald Trump. 'At a time when collective climate action is more needed than ever, GCF is stepping up to deliver on its mandate,' said GCF co-chair Seyni Nafo. The GCF disbursement includes $227m (R4bn) for an initiative to expand green bond markets in 10 countries. Green bond markets are where companies raise capital for projects that limit climate change or otherwise benefit the environment. In South Asia, it will invest $200m (R3.5bn) in the India Green Finance Facility to scale renewables and energy efficiency, while in East Africa it will invest $150m (R2.6nn) in the food system to support nearly 18-million people. All the projects will bring the GCF investment portfolio to $18bn (R315bn) across 133 countries. So far, countries have pledged $29.9bn (R523bn) to the GCF and paid in $21bn (R367bn) The GCF board also approved plans to speed up its work with partner organisations which can include accredited entities such as other multilateral lenders and direct access entities in developing countries. From an average 30 months to accredit a direct access entity, the aim is to shorten the time to nine months or less by overhauling its procedures, including carrying out much of the due diligence at the project stage.
TimesLIVE
22-05-2025
- Business
- TimesLIVE
Budget's revenue-generating measures could affect citizens: DaVinci Institute
The DaVinci Institute has expressed concern that the budget's revenue-generating measures, especially a proposed fuel levy increase, could negatively affect ordinary citizens. Finance minister Enoch Godongwana, in his budget speech on Wednesday, announced an increase in the fuel levy for the first time in three years, set to take effect on June 4. The levy will rise by 16c/ l for petrol, bringing it to R4.01/ l, and by 15c/ l for diesel, bringing it to R3.85/ l. The fuel levy increase is expected to generate about R3.5bn to R4bn in this financial year. The business school said this will probably increase the cost of living, including food and transport. 'Yet, there is no clear mechanism to create sustainable jobs and grow the economy at the rate at which it could absorb most of the people of working age in South Africa.' It said the National Treasury's revised budget featured some cuts and lower revenue predictions due to a reduced forecast for GDP growth. The revised budget forecast an average annual spending growth of 5.4%, increasing from R2.4-trillion in 2024/2025 to R2.81-trillion in 2027/2028. 'This is a decrease from the previously proposed 5.6% growth in March, resulting in an estimated reduction of about R200bn over the medium-term three-year period. The school said government's debt service costs consumed 22 cents of every R1 of revenue. The National Treasury has reduced gross tax revenue projections by R61.9bn for the 2025 medium-term expenditure framework period, though the figures still exceed those from the 2024 medium-term budget policy statement. 'For South Africa to achieve its previous 5% GDP growth target and reduce unemployment, [there is] a need for increased foreign direct investment (FDI). 'An additional 15% of GDP in fixed investment is required to reach this growth goal. South Africa's fiscal and industrial policies must be designed to attract foreign investment. Without this the long-term economic outlook will remain constrained.' The school said there was concern about a lack of accountability in governance, particularly at local government level, to ensure the budget led to tangible economic benefits. Poor governance and inefficiencies in state institutions remained a serious concern. 'More attention must be given to the unseen cost of governance failures in key state organs.' It said preconditioned measures for accountability, transparency and spending oversight should be followed up and reported on effectively to prevent leakages in the system. The budget speech laid out bold fiscal strategies but the true test lay in execution and alignment to the medium-term development plan 2024 — 2029. 'Sustainable economic growth, tax optimisation, increased FDI and accountable governance will be essential in shaping South Africa's financial future.'
Zawya
11-03-2025
- Business
- Zawya
South Africa's tourism recovery: Why geographical spread is crucial for future growth?
TRAVEL AND TOURISM Getty Images Comparing 2019 to 2024, we are currently at just under 82% recovery PHOTO As we step into 2025, South Africa's tourism recovery remains uneven. While overall inbound tourism sits at just under 82% of 2019 levels, the distribution of visitors is highly concentrated in just two key regions: Cape Town and the Kruger National Park. Meanwhile, other provinces—despite offering exceptional tourism experiences—continue to struggle. If we are to surpass pre-pandemic numbers and drive sustainable tourism growth, we must ask: How do we expand geographical spread and ensure a more balanced recovery? David Frost, CEO, Satsa Looking at overseas arrivals between 2000 and 2017, we saw steady growth—from 1,394,395 arrivals in 2000 to 2,725,855 in 2017. Since then, international arrivals have declined, followed by the pandemic years. Now, we measure our recovery against 2019, the last pre-pandemic year, although it was not our peak—2017 was. The state of recovery Comparing 2019 to 2024, we are currently at just under 82% recovery. Some source markets have rebounded faster than others—such as the United States (99.64%) and the Netherlands (91.91%)—while key European markets, including the United Kingdom (80.14%), Germany (79%), and France (76.24%), lag. This is concerning, as these markets traditionally contribute a good-value, mid-market segment that drives intrepid travel. Three of our top four source markets for South Africa are at 80% and under. While the national recovery rate sits at 81.79%, certain regions have surged ahead. The greater Cape Town area, hailed as a top global destination, has outperformed expectations thanks to a coordinated effort by stakeholders. Similarly, luxury lodges in the Kruger National Park have exceeded 100% recovery. But if Cape Town and Kruger are thriving, what does this mean for the rest of the country? A tourism imbalance To gain deeper insight, we turn to the data. SATSA has been engaging with leading Destination Management Companies (DMC) groups to assess turnover and bed nights per province as a barometer of geographical spread. The findings are stark. Travel Smart Crew's 2023 data shows that, of their R3.5bn turnover: • 76.4% was spent in the Western Cape (excluding the Garden Route) and the Kruger National Park region. • The Eastern Cape accounted for just 5%. • The Garden Route's share was 4%. • KwaZulu-Natal accounted for a mere 2.7%. • Mpumalanga (outside KNP) sits at a shocking 0.8%. This pattern is corroborated by Tourvest Destination Management, with a similar concentration of tourism spend in the Western Cape and greater Kruger National Park. Meanwhile, New Frontiers provided room-night data shows: • Cape Town and Kruger accounted for 60% of total room nights in 2019, rising to 69% in 2024. • KwaZulu-Natal's share fell from 8% to 5%. • The Eastern Cape declined from 6% to 5%. • Mpumalanga remained stagnant at 2%. Interestingly, data from Royal African Discoveries, who have a strong Indian and South-East Asian market, show a slightly better geographical spread. Western Cape (excluding Garden Route) and KNP lodges accounted for 61% of turnover. However, in terms of bed nights, the Garden Route accounts for 15%, North West 12%, and Gauteng 8.5%. Lessons from competitors How does our overall recovery compare to our East African competitors? In 2023, Kenya had recovered to 105% of its 2019 figures, reaching 134% in 2024. Tanzania saw a similar pattern, with recovery at 119% in 2023 and 142% in 2024. The reality is clear: we are stagnating at around 82% of our 2019 arrivals, and our geographical spread is becoming increasingly skewed. Does this concern us? It should. What needs to change? Everything we have done collectively—both from a public and private sector perspective—has led us here. But if we want to shift this picture, we must ask: What can we do differently? A properly structured partnership between the Tourism Business Council of South Africa (TBCSA) and its constituent associations, along with South African Tourism, is a fundamental first step. Many challenges lie beyond the immediate control of SATSA members—safety and security concerns, infrastructure issues, and domestic flight constraints, to name a few. However, the process of selling a holiday to South Africa is a private sector transaction, be it B2B or B2C. Long-haul visitors will naturally gravitate toward iconic destinations—Cape Town, Kruger, and Victoria Falls. We commend Cape Town's success and the efforts behind its positioning as a world-class destination. But what happens when peak season hits and availability in these destinations becomes scarce? This constrains growth and limits our ability to surpass the 2,6-million-arrival mark annually. To truly drive growth, we need to: • Showcase exceptional destinations beyond Cape Town and Kruger—this is not a short-term fix but a long-term investment, starting now! • Better data is also essential. South Africa has high repeater rates—visitors appreciate our affordability, service excellence, and world-class tourism offerings. Are we leveraging this to drive geographical spread? • Strengthen industry collaboration—our ability to find solutions lies in unified action. One key lesson from the pandemic is that when industry leaders collaborate, solutions emerge. Now, we must apply the same energy to driving a more equitable tourism recovery and, indeed, to facilitating growth going forward. Join the conversation Satsa is taking the lead in tackling these issues head-on. To advance this conversation, we invite industry stakeholders to join us for a critical discussion on Thursday, 13 March 2025, from 3.30pm to 5pm, focusing on geographical spread and tourism prosperity in South Africa. Key industry leaders will share their insights on how we can achieve this. The inimitable Natalia Rosa will facilitate a panel discussion with the following industry leaders: - Helen Bolton, head product and sales, New Frontiers - Illana Clayton, CEO, Travel Smart Crew - Suzi Benadie, sales director, Sense of Africa - Johan Groenewald, MD, Royal African Discoveries - Monika Iuel, CMO, Wesgro You can register for the webinar here. Access the data here. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
