Latest news with #SimphiweMbokazi
IOL News
6 days ago
- Business
- IOL News
Property group urges SARB to cut interest rates for economic growth and job creation
Lower interest rates will reduce the cost of financing homes, thus enabling a higher affordability at a given monthly financing payment. Image: Simphiwe Mbokazi / Independent Newspapers. A South African property group has reiterated its call for the South African Reserve Bank (SARB) to step in with an interest rate cut as a vital stimulus for economic growth and job creation. National year-on-year house price inflation has maintained a modest pace of 2.8%, according to the latest figures from Lightstone's Property Index. This steady, albeit sluggish, trend is echoed in the RE/MAX National Housing Report for the first quarter of this year, which reveals a 2.1% increase in average house prices compared to the same period in 2024. With Consumer Price Inflation (CPI) sitting close by at 2.7% as of March, these figures paint a nuanced picture of South Africa's residential property landscape. As the economy stands at a pivotal juncture, a robust cut of at least 25 to 50 basis points is not just desirable but a critical imperative, according to Samuel Seeff, chairman of the Seeff Property Group. He said the country simply can no longer bear keeping the interest rate so high for so long. As it is, he said the overly cautious approach by the bank has missed at least two opportunities to provide relief to consumers and the economy. 'The pressing challenge of unemployment simply can no longer wait. A decisive move by the SARB now would signal a commitment to revitalising economic activity. It would also provide much-needed support to businesses and consumers, and facilitate an environment conducive to investment and job creation,' Seeff said. The property group said the case for such monetary easing is strongly supported by the current inflation landscape. It said despite the recent benign increase in inflation to 2.8%, it remains comfortably below the Reserve Bank's 3-6% target range. Despite headwinds out of Washington, it said the rand has also strengthened to below R18 to the US dollar. 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 At the time of the open yesterday, the USDZAR traded at R17.88, according to Reezwana Sumad, research analyst at Nedbank CIB. 'The USDZAR traded steadily weaker over the course of the session to close the session at R17.92. Since the close last night, it has traded incrementally weaker, and the USDZAR is trading at R17.98 currently this morning. "The major currency pairs have also lost ground to the USD, with the EURUSD trading at 1,1305 this morning and the GBPUSD at 1,3470. Possible trading range for the USDZAR today(Wednesday) is R17,80 to R18.15,' Sumad said. She added that the local markets have traded cautiously over the week thus far and are likely to remain so ahead of the SARB's MPC. On the international front, she said headlines from the US continue to provide the catalyst for market activity. Seeff said the prevailing remarkably low inflation level indicated that demand-side pressures are relatively subdued and the risks of igniting an inflationary spiral through a rate cut are minimal at this stage. He said the stability of the currency provides further mitigation, thus providing a valuable window for the SARB to implement a more accommodative monetary policy stance that directly benefits the domestic economy. According to data analysed by Lightstone, which evaluated property bought by a natural person and where the transaction was for a single property, young homeowners are entering the market later than they did in the past, and are opting for bonded, secure living. In 2024, people aged between 20-35 (youth) accounted for 30% of residential property purchases, down from 36% in 2019 and 41% in 2014, with tough economic conditions and changing lifestyles cited as the likely reasons behind the shift. While youth accounted for 30% (52 500) of residential property transactions in 2024, it was the second largest group behind the Settled category (36-50) at 43% (76 000). The Mature category (51-64) (38 000) accounted for 21%, while the Pension category (65 and older) accounted for 6% (10 000). While the recent rate cuts have provided some relief, Seeff said the benefits have now been eroded by keeping the interest rate at least 100 basis points above the pre-Covid rate. He said time is ticking and the country simply can no longer wait. Seeff said there is now a golden opportunity for the bank to act boldly within the available monetary policy space to address the urgent needs of economic recovery and expansion without jeopardising its price stability mandate. A rate cut would inject much-needed momentum into the economy by lowering borrowing costs for businesses and stimulating investment while adding more money into the pockets of consumers to spend in the economy, he said. The property group said while a 25bps cut would be most welcome, they urged the Bank to provide a more robust cut of at least 50bps as an immediate injection of economic confidence to kickstart the economy. 'Naturally, the property market, which currently lags the pre-Covid volumes, will also benefit from a more pronounced rate cut. Aside from enabling more first-time property buyers to get into the market, it is an important economic contributor with a significant economic multiplier benefit,' Seeff said. Independent Media Property
IOL News
20-05-2025
- Business
- IOL News
Small increases in defaults: what it means for property repayments and mortgages
For the Human Settlements Sector to achieve its housing delivery mandate, there is a need for all relevant stakeholders to integrate their infrastructure plans leveraging the Intergovernmental Relations (IGR). Image: Simphiwe Mbokazi Data from the credit bureau shows that defaults, however small, have increased in property repayments and mortgages in recent years. Benay Sager, Chairperson of the National Debt Counsellors' Association, told Independent Media Property that while it was still a very small increase, it has risen compared to a few years ago, driven largely by the pressure that homeowners are under. 'The movements are driven mainly by changes in the interest rates, and if you look at interest rates five years ago, they were very low in the midst of Covid. "This created a bit of an artificial boom, and since then, the property sector has really slowed down in terms of new purchases. Similarly, in terms of servicing debt in the property sector, things have become a little bit harder,' Sager said. He added that it is not so much debt levels but interest rates that really impact potential considerations when buying or investing in a property. The NDCA said interest rates really drive property ownership, and they were already seeing the slowdown here. It said that unless the interest rates drop significantly, which is unlikely to happen, they did not see this make-up changing much in terms of who can buy property and the other big dynamics happening there. 'Some parts of the country are becoming more unaffordable, like Cape Town, which probably means other parts that are more affordable will benefit.' Sager said that while the property sector is an open market, and that has to be seen playing itself out, rates are a big consideration from a government perspective. 'Rates have been continuing to increase above inflation over the last several years, so perhaps that should be curbed, as we see a significant portion of consumers' expenses going towards paying rates and electricity and other regulated factors. "If these increases can be curbed, and the entities that provide these services can become more efficient, it will definitely benefit consumers,' Sager said. Commenting on the release of the DebtBusters' Q1 2025, Sager said over the past nine years, electricity tariffs have increased by 135%, the price of petrol has risen by 88%, and the compound effect of inflation is 52%. He said as a result, consumers who applied for debt counselling in Q1 2025, on average, needed 69% of their take-home pay to service debt. This was a significant increase compared to previous quarters and the highest since 2017. The most vulnerable consumers, taking home R5 000 or less per month, use 76% of their income to repay debt. Those earning R35 000 or more spend 77% servicing debt. The ratios for these income groups are the highest since DebtBusters started analysing the data in 2016. 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. 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Advertisement Next Stay Close ✕ Speaking at the DEVAC Infrastructure Summit last week, Thembi Simelane, Minister of the Department of Human Settlement (DHS), indicated that the they were advancing legislative amendments to ensure fair access to home loans and eliminate discriminatory lending patterns, prevent illegal land invasions and fast-track formal township development and develop the Human Settlements Bill to reinforce a spatially just housing delivery system. Simelane said to improve efficiency across the sector, the department is currently expediting the process of developing the Digital Human Settlements 11 Management System (DHSMS), as part of the broader digital transformation strategy of the government, thereby addressing issues of inefficient beneficiary management and unreliable project data. The DHS minister also said that through their various funding sources and key deliverables, the human settlements sector was able to gazette 50 catalytic projects that are to yield 696 280 housing opportunities of mixed typologies such as RDP Walk-Ups, Free Standing BNGs, Social Housing Units, Affordable Rental Stock, Community Residential Units (CRUs) and Serviced Sites. She said typical examples of these projects include projects like Lufhereng in City of Johannesburg, Vista Park in Mangaung, Greater Cornubia in eThekwini, Matlosana N12 in North West and the N2 Gateway in the City of Cape Town. With these projects, the human settlements sector said it aims to accelerate the implementation of the spatial transformation of cities that is aligned with the Spatial Land Use Management Act 16 of 2013, whilst considering that there are limited land parcels that are located closer to work opportunities. Independent Media Property
IOL News
16-05-2025
- Business
- IOL News
Tiger Brands to sell Langeberg and Ashton Foods to local grower-led consortium, securing more than 3,000 jobs
Sale to a capable and committed consortium, which includes local fruit growers, paves the way for ensuring a sustainable business and protecting over 3000 permanent and seasonal jobs. Image: Simphiwe Mbokazi/Independent Media Tiger Brands, one of South Africa's prominent food producers, has formally announced its sale of the Langeberg and Ashton Foods business, marking a significant step in its strategy to align its portfolio with its broader vision. The sale agreement, which has been in the works for the last five years, will see the iconic business transition to a new owner, a newly formed company, known as NewCo, established by a consortium dedicated to the sustainability of the operations and the welfare of local fruit producers. Based in Ashton in the Western Cape, Langeberg and Ashton Foods has been a cornerstone of the local economy since its inception in 1940, employing over 3,000 permanent and seasonal workers. The decision to divest comes as part of a strategic move that Tiger Brands announced in May 2020, part of a larger effort to streamline its operations and focus on core business areas. The Consortium behind NewCo includes the Ashton Fruit Producers Co-operative, a collective of local fruit producers, alongside a development finance institution aimed at creating jobs and improving livelihoods for the community while transitioning towards sustainable practices. This collaborative effort underscores the consortium's commitment to preserving local interests, particularly regarding the sustainability of the deciduous fruit industry in the region. Remarkably, Tiger Brands will sell the Langeberg and Ashton Foods business for the nominal price of R1, symbolising a philanthropic commitment rather than a conventional financial transaction. In conjunction with this symbolic transfer, Tiger Brands has pledged R150 million to establish a Community Trust, intended to fuel socio-economic development within the Langeberg community. Notably, this Trust will hold a 10% beneficial interest in the newly formed company, ensuring ongoing community dividends from the business's operations. The CEO of Tiger Brands, Tjaart Kruger, expressed optimism regarding the sale, highlighting its importance not just for the company, but for the local economy. 'Today's announcement proves the company's commitment to securing an outcome that is in the best interest of all stakeholders,' he stated. 'The success of this sale will ensure the sustainability of the South African deciduous fruit industry and consequently improve the livelihoods of Langeberg and Ashton Foods employees, as well as the broader communities in these areas.' The sale process culminated in what Kruger called a 'long journey' to identify a partner capable of ensuring the business's sustainable future. Anthony Dicey, Chairman of the Ashton Fruit Producers Co-operative, echoed this sentiment, affirming that the establishment of NewCo is a pivotal moment that aligns with the region's agricultural heritage. In addition to the transition, Tiger Brands has committed to enhancing its environmental footprint by investing R31 million in an effluent plant upgrade, ensuring compliance with stringent environmental regulations. This step reinforces the firm's dedication to sustainable practices, even as it exits the deciduous fruit sector. The arrangement is contingent upon customary approvals from relevant competition authorities, and the completion of the sale is predicted within the latter half of the current year. As this transition unfolds, both the community and the industry are poised to witness a new chapter for Langeberg and Ashton Foods, continuing its legacy of quality products while fostering local agricultural livelihoods. Get your news on the go, click here to join the IOL News WhatsApp channel. IOL
IOL News
15-05-2025
- IOL News
FlySafair fines and bans passenger after in-flight altercation forces emergency landing
In a video of the incident, the man can be seen standing in the aisle and another passenger subdues him. Image: Simphiwe Mbokazi/Independent Newspapers A man has been banned from flying with FlySafair and will be liable for flight diversion costs after he became violent aboard a recent flight. According to FlySafair's Kirby Gordon, the man was onboard Flight FA600 from Johannesburg to Cape Town. "The flight was diverted to Bloemfontein due to the disruptive behaviour on board," Gordon, FlySafair's Chief Marketing Officer, explained. In a video of the incident, the man can be seen standing in the aisle and another passenger subdues him. After a few minutes, the passenger takes the man to his seat and a third person is seen putting cable ties on his hands. When the aircraft lands, the man can be heard shouting "police, police". He is then escorted off the flight. A TikToker who recorded the incident claimed that the man threatened passengers. WARNING: VIDEO CONTAINS SWEARING AT THE END "Following aggressive actions from the individual, the Captain made the decision to divert the aircraft in the interest of the safety and comfort of all passengers and crew. The passenger was met by the South African Police Service upon landing in Bloemfontein," Gordon explained. He said the man has been added to FlySafair's No-Fly list. "In accordance with the airline's Terms and Conditions, will be issued an invoice covering the full costs of the diversion — including fuel and landing fees — which could total up to R100,000," Gordon said. He further thanked the passengers on board who assisted the crew in de-escalating the situation.
IOL News
13-05-2025
- Health
- IOL News
Listeriosis victims closer to ‘justice'
Some victims of the 2017/18 listeriosis outbreak have slammed Tiger Brands for excluding them from the settlement offer. Image: Simphiwe Mbokazi/Independent Media IN WHAT has been hailed as a significant breakthrough in the ongoing battle to have Tiger Brands held accountable for the listeriosis outbreak, some of the victims could soon reach a settlement with the company, marking a step closer to justice. Tiger Brands through the company's lead reinsurer, QBE Insurance Group, presented a conditional settlement offer to the plaintiffs' legal team. The offer is said to apply to certain victims of the deadly 2017/2018 listeriosis outbreak. It specifically caters to victims who were affected by the ST6 strain of Listeria monocytogenes which is the same strain that was ultimately traced back to the Enterprise Foods factory in Polokwane. In 2017/2018, South Africa recorded the largest listeriosis outbreak in history, claiming the lives of 218 people - mostly children - and affecting over 1000 with the outbreak eventually traced to Tiger Brands' Polokwane facility. "Tiger Brands confirms that the attorneys representing its lead reinsurer (QBE Insurance Group Limited) have presented a settlement offer to the plaintiffs' attorneys as part of a roadmap to a possible overall resolution of the listeriosis class action. "The lead reinsurer, having primary conduct of the defense of the class action against Tiger Brands, has with Tiger Brands' support and agreement authorised the insurers' attorneys to make settlement offers to specific named persons who are members of the following classes of claimants who suffered damage as a result of listeriosis caused by genotype L1-SL6-ST6-CT4148 of Listeria monocytogenes (ST6)," the company said. The settlement offer will cover claimants who contracted (or whose mothers contracted) listeriosis caused by ST6, claimants whose legal breadwinners, on whom they were legally dependent, died of listeriosis caused by ST6; and claimants whose legal dependents, who were in their care, and who contracted listeriosis caused by ST6. In a statement, Tjaart Kruger, Chief Executive Officer, Tiger Brands stated: 'Today's announcement represents an important milestone and follows shortly on measures already taken in February 2025 to offer interim relief in the form of advance payments to identified claimants with urgent medical needs. It also demonstrates our commitment to continue to work closely with our insurers and their appointed attorneys to explore a resolution of the entire class action.' Reacting to this commitment by the food company, Nilesthra Padayachee who represents one of the two law firms that undertook class action against Tiger Brands, indicated that the settlement is a first step towards taking responsibility for the outbreak. "This commitment demonstrates the first step towards Tiger Brands taking responsibility for the devastating harm caused by the outbreak. It is a significant breakthrough as it is the first offer of settlement received since the class action was certified. This comes after their own experts have had an opportunity to review data provided by the NICD, which has conclusively traced the outbreak to the Tiger Brands Polokwane facility. "Tiger Brands is finally taking accountability by agreeing to compensate certain victims. The offer reflects a positive movement towards corporate responsibility and justice for all victims. We remain hopeful about the possibility of a structured and fair settlement agreement that encompasses all class members," said Padayachee. While the lawyers who represented more than 200 claimants of the 2017/18 listeriosis outbreak have welcomed the recent commitment, some victims have slammed the company for excluding them from the settlement offer. Candice Dupreez and Shereen Louw, the parents of two children who contracted listeria, have slammed Tiger Brands saying their children, who now have to contend with a series of long-term side effects, have not been compensated for the 2017/18 trauma. 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. 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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. Next Stay Close ✕ "Tiger Brands have not taken any responsibility for the pain and trauma they have caused us and our children. We are not part of the settlement even though we also took part in the class action against them. "We as the parents and party to the class action have tried to communicate with the lawyers but were told that this offer is for certain people while our children continue to suffer severe back pains and other health complications due to the outbreak," said Dupreez. The Department of Health welcomed Tiger Brands' decision to settle the listeriosis class action, calling it a crucial step towards closure for the affected families while it also urged families who lost loved ones to come forward if they have medical records that may support a valid claim. Health spokesperson Foster Mohale said that intersectoral coordination on food safety remains critical to prevent future outbreaks. "The outbreak highlighted the importance of consistent and strict adherence with food safety practices in the processing and handling of ready-to-eat foods, especially for mass supply. Food safety and hygiene practices remain crucial for public health, preventing foodborne illnesses, reducing food waste and avoiding costly food recalls." Cape Times
