Cape Times 2024-07-02

SENTIMENT in the manufacturing industry in South Africa has risen to its highest in more than two years as business conditions are expected to improve significantly in the next six months. This is in spite of manufacturing activity shrinking for a second month in a row in June and remaining in contractionary territory amid subdued demand conditions. The seasonally adjusted Absa Purchasing Managers’ Index (PMI) inched up by 1.9 points to reach 45.7 points in June compared to 43.8 in May, remaining below 50 points which separates contraction from expansion. This May and June manufacturing print followed a very strong start to the second quarter of 54.0 points in April, which was also reflected in solid growth in official manufacturing production data. Absa said insufficient demand seemed to have weighed…

Domestic new vehicle sales fell substantially in June by 14% to 40 072 units compared with the same month a year ago as the ongoing downward slope in the market that started last August continued. The Automotive Business Council (Naamsa) said yesterday the decline was due to the constrained economic environment in the country, amplified by weak consumer and business demand. Monthly export sales increased marginally by 3.6%, to 28 306 units in June over the same month a year ago. The motor industry association congratulated the appointment of the new Cabinet in the Government of National Unity, and said the challenge was to put narrow political differences behind and for the seventh administration to create positive momentum and bring about tangible impact in the lives of South Africans. Naamsa…

Following a tense few weeks last month as the Government of National Unity (GNU) seemed set to fall apart given that the ANC and DA could not agree on ministerial positions, the Cabinet announcement helped lift both the local currency and the stock market yesterday. Particularly good news for the market was the return of Enoch Godongwana as finance minister, while President Cyril Ramaphosa allocated ministerial posts to business-friendly opposition parties, which provided certainty in terms of fiscal policy. Stocks on the JSE started the week off on a solid footing with the all share index rising 1.1% to near record highs at 80 581 points, halting three consecutive sessions of decreases, before moderating at 79 995 points by 5pm. The rand strengthened to its highest in a week and…

Labour has roundly welcomed the announcement of a Government of National Unity (GNU) by President Cyril Ramaphosa on Sunday night. The Congress of South Africa Trade Unions (Cosatu) has given approval to the surreptitious disbandment of the State-owned enterprises (SOEs) portfolio, which barely went noticed as President Cyril Ramaphosa announced that it would now report directly to the Presidency with reference to line departments on policy matters while government reviews its shareholder position in the entities. Cosatu spokesperson Matthew Parks said it had long advocated for the department’s closure as part of streamlining the government and ensuring greater coherence. “Having two or three ministers covering one entity just created chaos. The Department of Public Enterprises only supervised seven state-owned enterprises and so its continuation did not make sense,” he said,…

South Africans breathed a sigh of relief on Sunday night after a Cabinet was announced that was a mix of good and bad, and came a whole month after the election results. And although South Africans are well known to relish the finer details of political arguments and hold a robust debate, on the whole, the entire nation was getting fatigued waiting for the Cabinet announcement. And as per usual, media and citizens were fed up by the “normal” delay once more in waiting for the actual announcement by President Cyril Ramaphosa. The delays again tell a cautionary tale of how implementation of policy by the Government of National Unity (GNU) is going to be difficult. The joke of the day was that South Africa didn’t elect a Cabinet, it…

South African Revenue Services (Sars) commissioner Edward Kieswetter has been re-elected as chairperson of the World Customs Organisation (WCO) for a second term, 2024-2025. Kieswetter was re-elected over the weekend during the 143rd/144th sessions of the WCO Council, the highest decision-making body of the organisation, which saw the participation of directors-general of customs representing the WCO’s 186 members in Brussels, Belgium. At the meeting, the WCO council examined the work carried out by the WCO Secretariat and working bodies throughout the year in line with the WCO strategic plan 2022-2025. The review covered the technical work done in various areas that related to the main strategic objectives of the organisation, such as trade facilitation, revenue collection, protection of society and organisational development. Particular attention was paid to the progress in…