Browsing: South Africa

In terms of the fiscus, South Africa expects to run a deficit of -4.1 per cent in 2023, however, the deficit is expected to narrow for the next 3 years closing 2026 at -3.6 per cent. This demonstrates significant fiscal consolidation.

Over the next 3 years the South African government expects to consolidate its public finances and reduce its deficit by inter alia increasing revenues and or managing or containing costs. According to Investec, “The current fiscal year (2022/23) has seen a substantial boost to nominal (actual) GDP due to high inflation, which has eased both the fiscal debt and deficit projections as a per cent of GDP, although does not boost real GDP, which is the measure of the country’s growth and has the distorting effect of inflation removed.”

Among countries in Africa, South Africa is getting its public financial act together. The country is paying down its debts, inflation has been showing a strong downward trajectory. What remains to be seen is whether this decreasing inflation rate will continue.

A recent index report showed that Tanzania’s agro sector is mechanizing rapidly on the back drop of value addition mini-factories, the revolution is not unique to Tanzania, it is happening continent wide and North Africa is leading.

Evidence to this fact lies in the pages of the Africa Industrialization Index (AII) report that show more than 35 of Africa’s 52 countries have become more industrialized over the span of the last decade.

The multi-stakeholder report, prepared by the African Development Bank, the African Union and the United Nations Industrial Development Organization (UNIDO), attests to an ongoing industrial revolution in Africa.

The Africa Industrialization Index (AII) uses 19 indicators to rate each country’s level of industrialization ranging from performance of its manufacturing sector, capital, labor to a country’s business environment, its infrastructure and even its entire macroeconomic status.

Seasonal adjustment is a means of removing the estimated effects of normal seasonal variation from the series so that the effects of other influences on the series can be recognised more clearly. Seasonal adjustment does not aim to remove irregular or non-seasonal influences which may be present in any particular month. According to Stats SA, seasonally adjusted estimates are generated each month using the X-12-ARIMA Seasonal Adjustment Program developed by the United States Census Bureau.

Seasonally adjusted manufacturing production increased by a total of 1.9 per cent in the third quarter of 2022 compared with the second quarter of 2022. Seven of the ten manufacturing divisions recorded positive growth rates over this period.

The largest positive contributions were made by motor vehicles, parts and accessories and other transport equipment division which increased by 21.1 per cent. The food and beverages division increased by 4.0 per cent contributing 0.9 of a percentage point. The 3.7 per cent jump came from basic iron and steel, non-ferrous metal products, metal products and machinery division thereby contributing 0.8 of a percentage point.

The largest negative contribution was made by the petroleum, chemical products, rubber and plastic products division which decreased by 9.2 per cent and contributing negative 2.0 percentage points.

Seasonally adjusted mining production increased by 2.2 per cent in the third quarter of 2022 compared with the second quarter of 2022. The largest positive contributors were gold with 9.6 per cent; diamonds with 20.4 per cent; coal 3.2 contributing per cent; and manganese ore with 10.2 per cent and contributing 0.7 of a percentage point according to Stats SA.

Mineral sales at current prices increased by 20.7 per cent year-on-year in September 2022. The largest positive contributors were: coal with 63.1 per cent and contributed 14.1 percentage points; gold contributed 122.4 per cent and contributed 10.0 percentage points; ‘other’ metallic minerals 164.0 per cent and contributed 3.1 percentage points; and manganese ore with 33.0 per cent and contributing 1.7 percentage points.

South Africa produces over 250 million tonnes of coal every year. It is estimated that almost 75 per cent of this coal is used domestically. Nearly 80 per cent of the energy needs of South Africa are taken care of by coal and over 90 per cent of the coal consumed on the entire African continent is produced in South Africa. The biggest coal deposits can be found in the Ecca deposits, a vein of the Karoo Supergroup in South Africa.

The Kenya-South Africa visa deal will take effect on January 1.

At the time of the announcement, South African President Cyril Ramaphosa was in Kenya for his first official trip to the country at the invitation of President Ruto.

Ramaphosa said they discussed the visas issue between Kenya and South Africa to allow Kenyans to visit the Southern African nation visa-free basis.

“This will officially start on January 1, 2023, and it will be available to Kenyans for a 90-day period per year,” he said.

In addition, the Kenyan and South African leaders directed their respective trade ministers to work on removing barriers limiting trade between the two African countries. The two countries are also working to address trade barriers to increase business and trade cooperation.

Heineken notes that this embedded grid-connected solar project incorporates single axis tracking technology that enables the panels to move with the rise and setting of the sun.

Single-axis tracking systems tilt on one axis, tracking the sun as it moves from east to west during the day.

A solar tracking system adjusts the position of a solar panel along an axis. This is done to ensure a small angle of incidence or the angle that sunlight hits a solar panel.

Delivering the Medium-Term Budget Policy Statement (MTBPS), the Minister increased the revenue collection estimate that SARS must collect to R1.682 trillion from R1.598 trillion.

SARS is central to tax revenue collections in the country and allows for adequate fiscal space to attend to social and investment spending priorities while keeping an eye on debt service costs. It provides about 90 per cent of all government revenue, which makes this increase in the revenue to be collected by SARS very significant.

The South African Revenue Service (SARS) has welcomed Finance Minister Enoch Godongwa’s emphasis on ensuring that government finances are spent in an equitable, efficient and flexible manner to support South Africa’s development objectives.

The agreement was finalized during a visit to the NYSE by a South African delegation including JSE Group CEO Dr. Leila Fourie and South African Reserve Bank Governor Lesetja Kganyago. The signing ceremony took place shortly before the delegation rang the Closing Bell, followed by a keynote address by Kganyago on monetary policy.

“The New York Stock Exchange is pleased to sign this collaboration agreement with the Johannesburg Stock Exchange in support of the important economic and trade relationship between our two markets,” said Lynn Martin, NYSE president.

“Exploring the dual listings of companies on our two exchanges stands to increase opportunities for investors on both continents, underscoring the value public companies and our capital markets generate in the global economy. We look forward to collaborating on new product development with the JSE team and to the innovation that comes when two great organizations work together.”

The EasyEquities investment portfolios integrate directly into Discovery Bank’s Vitality Money programme, automatically counting towards the client’s Vitality Money status.

On September 30, 2022, Discovery Bank announced several new products and changes at its annual product update event with financial advisors. However, the CEO Hylton Kallner said that the new features will be made available from October and through the first quarter of 2022 on a phased basis.

According to Business Tech, Discovery Bank clients can use the Discovery Bank app to transact and trade in real-time in these currencies. With the Multicurrency FX Account, clients can also receive international payments and choose to pay in more than 60 currencies, Kallner said.

Switching from coal to renewable energy is vital for South Africa to stabilize its power output and to create employment. The switch from coal to renewable energy is costly and many African nations are dragging their feet.

The situation is further exasperated by the fact that of recent years, many African nations have been discovering oil and many more are conducting explorations offshore. The potential of changing their economies from the sale of crude oil is far too promising to forgo.

This is a point that will be driven home at the upcoming COP27 in Egypt later this year. Africa will be looking to push the West to provide funding for the renewable energy transition. This time around, the South Africa deal stands as a concrete example that with sufficient funding, the transition is not only doable but plausible and strung with multifaceted benefits including employment.