Cape Times 2025-03-26

Significant drop highlights a grim outlook for consumers grappling with higher taxes and economic uncertainty Sentiment among shoppers in South Africa has plunged to its lowest point in nearly two years as consumers were shaken by the recent budget proposal to increase the value-added tax (VAT). The latest FNB/BER Consumer Confidence Index (CCI), released on Tuesday, revealed a steep decline to -20 for the first quarter of 2025, down from -6 in the previous quarter, marking a troubling trend as sentiment has now fallen for two consecutive quarters. This significant drop, the lowest recorded since the second quarter of 2023, highlighted a grim outlook for consumers grappling with higher taxes and economic uncertainty. The fieldwork for the first quarter CCI survey commenced only days after the Finance Minister Enoch Godongwana’s…

Retail group Pepkor plans to acquire hundreds of Retailability's Legit, Swagga, Style stores and the Boardsmans business as it gains further traction in its strategy to build market share in the adultwear market. Pepkor’s management, which did not disclose an explicit value of the transaction on Tuesday except to say that it is not less than R1.9 billion, has previously said they want to expand the group's market share in adultwear through organic and acquisitive growth strategies. The launch of the new Ayana womenswear brand in 32 stores at the end of February 2025, and the recent acquisition of Choice Clothing, are further examples of the group’s adultwear growth strategy. “These businesses are a natural fit for Pepkor Speciality and we are looking forward to integrating them and unlocking benefits…

President Donald Trump appeared to invent a new economic statecraft tactic this week by threatening what he dubbed “secondary tariffs” on countries that buy oil from Venezuela to choke off its oil trade with other nations. The threat, delivered via Truth Social post then confirmed in an executive order, said countries could face 25% tariffs on trade with the US if they purchase oil and gas from Venezuela, which is already under heavy US sanctions. The move was meant to pressure Venezuela for the “tens of thousands of high level, and other, criminals” that Trump said Venezuela has sent to the US. The novel approach adds to a growing list of tools that Trump has been eager to deploy as part of a push to use America’s economic clout as…

Statistics South Africa’s latest job growth figures, which showed a slower decline in the number of jobs lost in the formal sector, excluding the farming sector, is still uninspiring given the slow pace of economic growth, with key economic growth drivers losing ground. When compared with the September period, jobs lost in the formal economy, excluding farming, declined 0.1% quarter-on-quarter when compared to the September period. Statistics South Africa said that the reason behind the flat figures in the three months to December was due to gains in sectors such as trade, business services, transport, and electricity. However, the agency’s print noted that there were again declines in community services, as well as the key sectors of manufacturing, construction and mining. Year-on-year, job losses were more pronounced, with a 0.8%…

The Citrus Growers of Southern Africa (CGA) have released a mixed outlook for citrus exports in 2025, highlighting expected increases in orange and grapefruit exports, while lemon exports are predicted to take a downturn. This nuanced forecast reflects a careful analysis of current agricultural conditions and market demands, as revealed by CGA chairman, Gerrit van der Merwe, during a recent industry briefing. Van der Merwe on Tuesday said that all available data projected exports that were in line with the five-year average, which means there will be sufficient fruit for global markets. "The outlook suggests no oversupply or undersupply. Overall, the quality of the fruit for 2025 looks to be excellent. The breakdown of various variety estimates indicates a balanced season ahead," he said. "The current prediction is that 32.9…

The Agricultural Business Chamber of South Africa (Agbiz) has expressed growing concern over alarming statistics from Statistics SA that revealed an unsettling increase in food insecurity across the nation. Data released in February showed that the percentage of food-insecure households rose significantly from 15.8% in 2019 to 19.7% in 2023, raising serious questions about the well-being of millions of South Africans. According to Wandile Sihlobo, chief economist at Agbiz, an increasing number of households were struggling to secure basic food needs although South Africa stands as a formidable leader in agricultural exports within Africa. “If you look at Agricultural Trade Data, South Africa is the only country from Africa in the top 40 global exporters. In 2024, South Africa's agricultural exporters reached a record $13.7 billion (R248bn). Some of the…