Cape Times 2025-04-30

The announcement of substantial tariff hikes by the US administration marked a turning point in global economic outlook, as reflected in the latest Global Risk Survey conducted by Oxford Economics. Launched on April 3, just hours after the US declared 'Liberation Day,' the survey revealed a significant deterioration in business sentiment, continuing a trend of pessimism that lasted throughout the three-week sample period. The latest quarterly survey, completed by 125 clients across sectors, reveals a complex landscape driven by fears of imminent trade wars, economic sluggishness, and shifting global dynamics. The Global Business Sentiment Index, derived from these surveys, indicated a worrying forecast: global gross domestic product (GDP) growth is projected to decelerate to just 1.2% by late 2025. This is half the growth rate businesses anticipated in January and…

Minister expected to host a media briefing to explain Budget 2025 technical process Finance Minister Enoch Godongwana could be preparing for an unprecedented third budget speech after the reversal of a 0.5 percentage points increase in value-added tax (VAT) last week. This comes as Godongwana on Wednesday will host a media briefing to explain the technical process that must now be undertaken regarding the 2025 Budget. This decision follows a court challenge brought forward by the Democratic Alliance and the Economic Freedom Fighters regarding the proposed VAT hike in the 2025 Budget. The Western Cape High Court ratified an agreement reached out of court on April 27, allowing Godongwana to rescind the increase, which was initially set to take effect on May 1. Waldo Krugell, an economics professor at the…

The Agricultural Business Chamber of South Africa (Agbiz) has expressed optimism over China's intentions to bolster its imports of South African agricultural products. This development comes on the heels of a recent statement from Wu Peng, the current Chinese Ambassador to South Africa, who emphasised the need for enhanced bilateral trade and economic cooperation through social media platform X. Peng further said that the Chinese government welcomes more South African agricultural and industrial products to enter the huge Chinese market. Wandile Sihlobo, chief economist at Agbiz, underscored the significance of such statements from Chinese officials, particularly regarding trade matters. “China has profound importance in global agriculture. In 2023, China was a leading importer, accounting for 11% of global agricultural imports, with imports valued at $218 billion," he said. Sihlobo noted…

Phillipines-based shipping container lines conglomerate, International Container Terminal Services, Inc. (ICTSI), has reaffirmed the legitimacy of its partnership with Transnet for the development of Durban's Pier 2 terminal. The dispute with Danish shipping giant Maersk, which returned to the KwaZulu-Natal High Court for two days of deliberation, could significantly impact one of South Africa’s crucial trade gateways. The High Court issued an interdict last year, temporarily halting the collaboration following Maersk's legal challenge. Despite ICTSI's bid being announced as the preferred option on 11 April 2023, the court's previous decision led to significant frustration regarding delays in critical upgrades to the terminal. ICTSI has since expressed concern that the ongoing legal disputes could further postpone necessary enhancements. In a statement on Tuesday, ICTSI emphasised their readiness to commence implementation of…

Johannesburg is set to host the World Union of Wholesale Markets (WUWM) Conference from May 14-16, 2025, at the Sandton Convention Centre. The event aims to highlight Africa’s growing significance in the global fresh produce industry while addressing critical issues such as food security, climate change, and the modernisation of markets. The conference, themed “The African Edition: Shaping the Future of Fresh Produce through Sustainability, Innovation and Inclusivity,” is being organised by Joburg Market, the largest fresh produce market on the African continent. It is expected to draw industry leaders, policymakers, and innovators from over 200 member countries. Discussions will focus on global agriculture value chains, Africa’s potential for exports and imports, and the integration of advanced technologies to improve market efficiency. Joburg Market plays a central role in South…

The global economy showed resilience in 2024, but signs of weakness are emerging against a backdrop of slower growth, persistent inflation, and an uncertain policy environment, according to the OECD’s latest Interim Economic Outlook. The report highlights risks, notably that further tradefragmentation could harm global growth prospects.The outlook projects global growth slowing to 3.1% in 2025 and 3.0% in 2026, with significant regional variation. Inflation is expected to remain higher than previously forecast, though still moderating asgrowth slows. The US economy entered 2025 in good shape, marked by cooling inflation, solid growth, andexpectations of rate cuts. However, US consumer sentiment dipped in January for the first time in six months, hitting a three-month low, driven by growing concerns about unemployment and the inflationary effects of the new tariffs. The escalation…