Latest news with #Botha
IOL News
4 days ago
- IOL News
EFF expresses condolences for 12 supporters lost in tragic bus crash
Twelve EFF supporers were killed in a bus crash in Vryheid Image: KwaZulu Private Ambulance Service The Economic Freedom Fighters (EFF) has shared messages of condolences following the deaths of 12 people killed in a horror crash on the R34 highway in Vryheid, in KwaZulu-Natal, early on Tuesday morning. The members were on their way home after spending Youth Day at uMlazi, in the Durban south area. Craig Botha of KwaZulu Private Ambulance Service said a multi-service emergency response team worked to stabilise all patients before transport to nearby medical facilities for further treatment. "Nine occupants were declared dead at the scene, having sustained fatal injuries before emergency services arrived. Three critically injured patients later died at hospital despite intensive efforts by paramedics and medical staff," Botha said. Scenes from the bus crash Image: Supplied KZN MEC for Transport and Human Settlements, Siboniso Duma, said he is awaiting an updated report from the Road Traffic Inspectorate as well as the South African Police Service. "We have been informed that dismembered body parts of some victims are still missing. In view of this, the number of fatalities will either decrease or increase. In addition, some victims were taken to local hospitals and we are making all efforts to reach out to family members," Duma said. The bus has been taken to the Vryheid Road Traffic Inspectorate offices. The truck is still at the scene of the accident, and plans are underway to remove it.
The Citizen
4 days ago
- Politics
- The Citizen
Forsyth leaves big void
His stories often imitated his own life Master thriller writer Frederick Forsyth died last week. Many readers of a certain age will remember him for stories like The Day of the Jackal and The Odessa File. He wrote many other stories of course, all as successful, becoming one of those rare authors who was able to make two fortunes in one lifetime – after losing the first to his financial advisor. Forsyth, who had no pretensions about his writing – he wrote to make a living as all the best ones do – never strayed too far from his journalistic roots. He had incredible sources, went into the field to do his research and put in the hard yards in front of his typewriter. Forsyth's stories His stories often imitated his own life. In his 2015 memoir The Outsider: My Life in Intrigue, he admitted that he had done work for British intelligence. Much has been written since last week about assignations, à la James Bond with a sultry Czech agent, but not much about his role in this country, in particular, just before the transition to democracy in 1994. The British, like the Americans, were very curious about what would happen to the six nuclear bombs that the apartheid regime had built from the 1970s onwards. ALSO READ: Eddie Redmayne confirms second season of hit series 'The Day of The Jackal' [VIDEO] Forsyth's relationship with foreign minister Forsyth, who had developed a convivial relationship over the years with then foreign minister Pik Botha, was sent out in the South African winter of 1992, so tensibly on a hunting trip to the Kalahari with his two sons, when the British discovered that Botha would be spending part of the parliamentary recess shooting there. Booked into the same lodge, their paths would cross at meal times, until finally, on the last night around the braai, Forsyth broached the question as off-handedly as he could. 'Freddie,' laughed Botha, 'you can tell your government we are going to destroy the lot.' Botha had known precisely why Forsyth was there and made full use of the opportunity to send a very important message back to London. His work As a writer, Forsyth's work was often a case of life imitating art; Simon Mann's ill-fated Wonga coup to Equatorial Guinea felt like something straight out of The Dogs of War, which is, ironically, where Forsyth had set the novel, while the Jackal became the nom de guerre of the most infamous terrorist of his day, Ilich Ramírez Sánchez. They don't make writers like Forsyth anymore. We're all the poorer for that. NOW READ: Eddie Redmayne mesmerises in 'The Day of the Jackal'
IOL News
13-06-2025
- Business
- IOL News
How lower interest rates could boost house prices in South Africa
The depressed state of new residential building plans passed in most of the country's larger municipalities is likely to lead to a meaningful recovery of house prices as soon as demand recovers on the back of lower interest rates. Responding to an Independent Media Property enquiry, economist Dr Roelof Botha said although the residential property sector has welcomed the latest rate cut, the prime overdraft rate needs to be reduced by at least another 125 basis points for a sustained recovery. 'Hopefully, the Monetary Policy Committee (MPC) will become more aware of South Africa's most pressing economic policy objective, namely, to stimulate growth and employment creation,' Botha said. He said that in order to shed some light on what may be expected at the July MPC meeting, it is useful to reflect on the sterling performance of the rand. 'In its regular monetary policy statements, the MPC invariably addresses the issue of currency weakness, which leads to higher rand-denominated imports and adds to inflationary pressures - both directly and indirectly via the higher cost of intermediary inputs in manufacturing and other industries.' Botha said the news on this front is exceptionally good. With both the nominal and real exchange rates of the rand exhibiting strength, he said it is clear that domestic inflation is not being threatened by currency weakness, which should lead to further interest rate cuts in 2025. Botha said that between the end of 2019 and the first quarter of 2022, average home prices were rising at a marginally higher rate than building costs. He said parity in the annualised rate of change in the construction input price index (CIPI) and the BetterBond home price index was achieved in the second quarter of 2022, due to the negative effect of record high interest rates on the residential property market. 'Since then, the trend has been reversed, with both the CIPI and the BetterBond home price index increasing at lower rates than the consumer price index (CPI). At the end of the first quarter of 2025, the YOY increase in house prices was marginally negative, with the CIPI increasing by merely 1.5%, which is negative in real terms.'
IOL News
30-05-2025
- Business
- IOL News
Mixed reactions to Reserve Bank's 25 basis points interest rate cut
South Africa Reserve Bank (SARB) Governor Lesetja Kganyago announced a 25 basis point cut to the repo rate on Thursday - that was widely expected - bringing it down from 7.50% to 7.25% with some economists welcoming the cut and others criticising its timidity in addressing the nation's pressing economic woes. This decision, made by the Monetary Policy Committee (MPC) offers modest relief to borrowers in an economy grappling with sluggish growth and rising unemployment. The decision to cut rates was unanimous, with one MPC member voting a 0.5% cut. Kganyago said they have now trimmed GDP projections and currently expect growth of 1.2% this year, rising to 1.8% by 2027. 'The outlook for structural reforms remains positive, but there are also headwinds like lower global growth. Given the lower forecast, we assess the risks to growth as balanced. Inflation was below 3% again in April. Core inflation came in at 3%, at the bottom of our target range,' he said. Reza Hendrickse, a portfolio manager at PPS Investments, said the market has been divided regarding a rate cut. "Doves have argued inflationary pressures are subdued and real interest rates in SA are therefore too high. As such, there is ample scope to cut rates to support economic growth, without stoking inflation. Hawks on the other hand have argued that there is limited room for a cut, given rates are close to the SARB's neutral level, and global risks are elevated, posing risk to the rand. In addition, although inflation is well below the 4.5% mid-point level, it is currently in the region of where the SARB would like it to be longer term," Hendrickse said. Dr Roelof Botha, economic Advisor to the Optimum Investment Group, took the hawkish view. 'It should be glaringly obvious that South Africa's most pressing economic problem is not high inflation, but a lack of adequate economic growth and employment creation,' Botha said. He argued that the real prime rate - currently at 8% after accounting for inflation - remains historically high, representing a 156% increase in the real cost of capital compared to the era of former Governor Gill Marcus, when the economy grew at nearly 3% annually. Botha said the MPC might be oblivious to the latest Quarterly Labour Force Survey by Statistics SA, which contained the news of higher unemployment. 'A quarter of a million people lost their jobs during the first quarter of 2025, which will obviously have a negative impact on taxation revenues and aggravate an already alarming fiscal deficit, not to mention the hardship and increased levels of abject poverty amongst households where the bread-winner is now on the street.' Botha pointed out that the current economic climate presents an opportune moment for more aggressive rate cuts, similar to those seen during Marcus's tenure, when the real prime rate averaged 3.1%. 'The MPC seems oblivious to the dire unemployment figures and the fiscal deficit's strain,' he added, warning that the modest cut may fail to stimulate the economy sufficiently. In contrast North West University Business School economist Professor Raymond Parsons took a dovish view and welcomed the rate cut. 'At this stage, even a small reduction in interest rates can have a big positive impact on the national economic mood and on confidence levels. Although it is recognised that monetary policy cannot do the heavy lifting in SA's growth performance, lower borrowing costs are nevertheless supportive of SA's incipient but weak economic recovery,' he said. Parsons pointed out that the reduced growth projections remain indicative of the extent to which the implementation of much-needed structural reforms must be expedited to basically improve SA's growth prospects. Efficient Group Chief Economist Dawie Roodt said while reduction in interest rates was "pretty much expected" that he thought there is room for further reduction in interest rates. "The interesting thing is that the SARB is putting pressure on the Minister of Finance to reduce inflation targets because inflation is below 3% and the SARB would like to see inflation targets at around 3%. I don't think it would cost the Minister much to reduce inflation targets as inflation is below 3%. We should expect another interest rate cut in July or September,' he said. Frank Blackmore, the lead economist at KPMG, said that the reason for the rate cut was the low inflation rate. 'The Reserve Bank remains data dependent in that respect, as well as the easing of some of the risks such as the exchange rate. Probably another interesting scenario where they're reducing the target rate from a current, 4.5 % objective so the midpoint of the three to 6% range to the 3% objective so the bottom of their three to 6% range.' BUSINESS REPORT Visit:
IOL News
21-05-2025
- Business
- IOL News
South Africa's budget 3. 0: A year of fiscal upheaval and strategic changes
As the months slip into May, the fiscal landscape continues to evolve, presenting both challenges and opportunities for the economy. Image: Ziphozonke Lushaba / Independent Newspapers In a financial milieu punctuated by unexpected shifts, South Africa's Finance Minister, Enoch Godongwana, unveiled his third National Budget for the fiscal year, titled Budget 3.0. The intricate journey to this point has been nothing short of extraordinary, marked by the postponement of the first budget and the withdrawal of the second due to legal wrangles. As the months slip into May, the fiscal landscape continues to evolve, presenting both challenges and opportunities for the economy. Joubert Botha, Head of the Tax and Legal practice at KPMG in Southern Africa, offered insights into the key elements of this revised budget, focusing on the implications for taxpayers and the broader economic framework. 'This year's budget has been marked by a comprehensive reevaluation of tax revenue projections," Botha said, reflecting on the substantial R61.9 billion downward revision of anticipated revenues. This significant adjustment signals the government's cautious approach amid ongoing economic uncertainty. One of the most discussed aspects of Budget 3.0 was the decision to forego an increase in Value Added Tax (VAT) that had stirred controversy in public discourse. Botha said that there would be no expansion of the zero-rated basket nor any hike in VAT rates. Instead, the budget placed emphasis on an inflationary increase in the fuel levy, a move set to stimulate various facets of fiscal support. Moreover, amid the fiscal recalibrations, the government has allocated R7.5 billion in funding to the South African Revenue Authority (SARS). This infusion of resources aims to enhance tax collection efforts, with projections of raising an additional R20 to R50 billion. The strategic focus on modernisation of SARS is set to bolster efficiency, ensuring the institution can adeptly tackle its collections mandate in an ever-evolving economic landscape. Notably, Budget 3.0 does not accommodate inflationary adjustments to personal income tax brackets or medical tax credits, a feature that many taxpayers will keenly feel, particularly as inflation continues to challenge household budgets. In contrast, adjustments to excise duties on alcohol and tobacco have been made, symbolising the government's stance on ensuring that certain sectors contribute fairly within the tax framework. As the budgetary processes unfolds, there is an anticipation of new tax measures to be proposed in the upcoming disbursements. Botha elucidated that further adjustments in the budget could herald innovative approaches to stimulate growth and address national priorities more effectively. "In summary, South Africa's Budget 3.0 encapsulates the narrative of a nation grappling with economic challenges while attempting to chart a strategic path forward. The absence of immediate VAT increases, alongside targeted funding for SARS and moderated adjustments in other tax areas, creates a complex but compelling fiscal tapestry as the country endeavours to stabilise and grow its economy amid numerous headwinds," Botha said. BUSINESS REPORT Visit:
