Cape Times 2026-04-02

South Africa’s manufacturing sector showed tentative signs of stabilisation in March, but rising costs, weakening demand and declining business confidence continue to cloud the outlook. This is according to the latest Absa Purchasing Managers’ Index (PMI), compiled by the Bureau for Economic Research (BER) and sponsored by Absa, released on Wednesday. The headline PMI increased by 1.6 points to 49 in March, up from 47.4 in February. While the uptick suggests some improvement in activity, the index remains below the neutral 50-point mark, indicating that the sector is still in contraction territory. The modest recovery was largely driven by a slight improvement in business activity and a sharp rise in the supplier deliveries index. However, economists caution that the latter may not be a positive signal. Because the supplier deliveries…

A sharp increase of more than R7 in diesel price has sparked widespread concern across South Africa’s transport, logistics and agricultural sectors, with industry leaders warning of rising costs, higher inflation and reduced economic competitiveness. The increase, which came into effect on Wednesday, saw diesel prices jump by as much as R7.51 per litre. While government moved to cushion the blow through a R3 reduction in the general fuel levy, industry players say the relief falls short of offsetting the scale of the increase. Tonny Molise, deputy president of the Trucking Association of SA (Tasa), said the hike would place severe pressure on transport operators. Fuel is one of the largest cost components in road freight, and such a sharp increase is expected to squeeze already thin margins. “It is…

South Africa’s automotive sector delivered a strong performance in March, with new vehicle sales reaching their highest level for the month in nearly two decades, even as mounting global and domestic pressures begin to reshape the economic outlook. According to the Automotive Business Council (Naamsa) on Wednesday, aggregate domestic vehicle sales climbed to 58,060 units in March, marking a 17.3% increase compared to the same period last year. Naamsa said this represents the best March performance since 2007 and underscores the resilience of local demand despite an increasingly uncertain macroeconomic environment. The strong domestic performance comes against the backdrop of the 2026 South Africa Investment Conference held on Tuesday, where government reaffirmed its commitment to investment-led growth, infrastructure expansion and industrialisation. Industry leaders are of the view that the policy…

Sars Commissioner says improved revenue collection underscores recovery in tax administration The South African Revenue Service (Sars) has achieved a historic milestone, collecting more than R2 trillion in net revenue for the first time since the dawn of democracy, underscoring a significant recovery in the country’s tax administration capacity. Announcing the preliminary results for the 2025/26 financial year yesterday, Sars confirmed it had collected R2.01 trillion, marking an 8.4% increase from the previous year and exceeding earlier projections by R24.7 billion. The outcome reflects steady growth in collections over the past seven years, supported by improved compliance, administrative reforms and targeted enforcement efforts. Sars Commissioner Edward Kieswetter described the achievement as the result of sustained institutional rebuilding and the dedication of thousands of employees. “Collecting over R2trln is not an…

South Africa is intensifying discussions around the creation of a sovereign wealth fund. Policymakers, economists and development finance leaders on Tuesday highlighted the fund's potential to unlock long-term investment, strengthen economic sovereignty, and accelerate infrastructure development across the country and the broader African region. Speaking at a high-level investment dialogue during the 6th SA Investment Conference, participants emphasised that while South Africa has long debated the idea of a sovereign wealth fund, the time has come to move from concept to implementation—anchored by strong institutional design and clear policy direction. A central theme emerging from the discussion was the need for a robust legislative and governance framework to ensure credibility and effectiveness. Panellists argued that without enabling legislation and strong oversight, a sovereign wealth fund risks failing to attract the…

The South African Nuclear Energy Corporation (Necsa) has launched a process to identify international and local partners for the development of small modular reactor (SMR) technology, marking a significant step in South Africa’s efforts to expand its nuclear energy capabilities. As the country continues to explore diverse energy options, SMRs could play a pivotal role in balancing reliability, sustainability and industrial development in the years ahead. In a statement, Necsa announced the opening of an Expression of Interest (EOI) process aimed at attracting qualified organisations, consortia and technology providers to collaborate on the design, development and eventual deployment of SMRs in the country. The initiative aligns with the country’s Integrated Resource Plan (IRP 2025), which outlines the role of nuclear energy in South Africa’s future energy mix. SMRs, which are…