Latest news with #Lula
The Citizen
11 hours ago
- Business
- The Citizen
Mid-year financial check for SMEs: Tips to prepare for the next six months
'A thorough financial audit can now identify areas of strength to leverage and weaknesses to address, ensuring businesses are optimally positioned to thrive.' It is essential for businesses, particularly small and medium-sized enterprises (SMEs), to conduct a comprehensive financial health check as the year reaches its midpoint. This financial health check is important for navigating the current economic climate and ensuring sustained growth in the second half of the year. Garth Rossiter, Chief Risk Officer at Lula, said the economic landscape continues to present a mix of challenges and opportunities for small to medium-sized enterprises (SMEs). ALSO READ: Political events happening in June expected to affect South African SMEs Macroeconomic outlook for SMEs Rossiter said that the macroeconomic outlook in which SMEs operate is improving. 'The RMB/BER Business Confidence Index hit a five-year high in Q4 2024, while consumer confidence rebounded to pre-pandemic levels. Annual inflation has dipped below 3%, and the consensus appears to be that inflation will remain at lower levels for 2025; this will support the argument for lower interest rates,' he added. He highlights that the power supply is more stable than it was in the previous year, and consumer spending is showing signs of recovery. 'Despite lingering higher operating costs for businesses, the significant drop in inflation and declining interest rates make the future look brighter than it's been in recent times.' Access to finance for SMEs Rossiter notes that access to finance remains a significant hurdle for many SMEs, as traditional lending models often fail to meet the needs of smaller and early-stage enterprises. The global geopolitical events and domestic logistical challenges continue to impact supply chains and overall confidence. 'The agility and resilience of South African SMEs are consistently put to the test,' he added. Tips to check if your business is ready 'The halfway mark of the year is not just a calendar event; it is a critical juncture for self-assessment. A thorough financial audit can now identify areas of strength to leverage and weaknesses to address, ensuring businesses are optimally positioned to thrive,' said Rossiter. ALSO READ: Challenges and opportunities for SMEs in 2025 To measure SMEs' financial health and strategies for the second half of 2025, Rossiter recommends the following: 1. Revisit budget vs actuals: Compare your year-to-date income and expenses against your initial budget. Identify significant variances. Are revenues lower than projected? Are costs, particularly those influenced by inflation like fuel and utilities, higher than anticipated? 'Adjust your budget to reflect current realities and future projections.' 2. Assess cash flow: Analyse your cash inflow and outflow patterns. Are customer payments timely? Are you managing supplier payments efficiently? Calculate your cash flow runway – how many months can your business operate with its current cash reserves? 'In South Africa's environment, where payment delays can be common, robust debtor management is crucial. Consider offering early payment discounts or implementing digital invoicing to accelerate receivables.' 3. Review key financial statements: A. Income statement: Examine your gross and net profit margins. Are they shrinking? This could indicate rising input costs or ineffective pricing strategies. B. Balance sheet: Understand your assets versus liabilities. Are your debt levels manageable, especially with current interest rates? C. Cash flow statement: Provides a clear picture of how cash is generated and used within your business. Look for trends and potential bottlenecks. 4. Evaluate debtor days and working capital: A. Debtor days: How long does it take for your customers to settle their accounts? High debtor days can severely impact liquidity. B. Working capital ratio: Do you have enough short-term assets to cover short-term liabilities? This ratio is vital for operational liquidity. Adjust for any seasonality in your business. 5. External conditions: A. Interest rates: With current prime lending rates, assess the impact on existing loans and any plans for new credit. Explore fixed-rate options if suitable. B. Load shedding contingencies: Although greatly improved, consider any residual costs associated with power backup solutions (e.g., generators, UPS maintenance) and potential productivity losses that still impact your operational expenses and break-even point. C. Inflation and rand volatility: How are these impacting your procurement costs, pricing, and profitability? 6. Re-evaluate goals and forecast: Based on your financial review, are your initial business goals for the year still realistic? 'Adjust your targets and create a rolling forecast for the next six months, incorporating anticipated revenue, expenses, and capital needs. This foresight allows for proactive decision-making.' NOW READ: Entrepreneurship a solution to youth unemployment – but there are challenges
Bloomberg
a day ago
- Politics
- Bloomberg
Lula Says He's Up For Reelection If Healthy, Will Beat Far-Right
Brazilian President Luiz Inacio Lula da Silva insisted that he will run for reelection next year provided he remains healthy, pledging to block the far-right from regaining power in Latin America's largest nation. If successful in the 2026 vote, the leftist Lula would secure an unprecedented fourth term as president.
Kuwait Times
a day ago
- Business
- Kuwait Times
Brazil sells rights to oil, gas blocks near Amazon river mouth
RIO DE JANEIRO: Manoki Indigenous people take part in a demonstration in front of the hotel where an auction organized by Brazil's Oil and Gas Regulatory Agency (ANP) is taking place, in Rio de Janeiro, Brazil, on June 17, 2025. - AFP RIO DE JANEIRO: Brazil sold extraction rights to 19 oil and gas blocks near the mouth of the Amazon river Tuesday, at an auction slammed by environmentalists months before the country is to host a UN climate summit. Two consortiums - one comprising Brazil's state-owned Petrobras and US giant ExxonMobil, the other US multinational Chevron and China's CNPC - spent $153 million on exploration and production concessions for 19 blocks on offer in an area considered vulnerable to environmental harm. They are among 172 blocks, most of them offshore, that went on auction Tuesday as dozens of protesters gathered outside the venue under a banner reading: 'Stop the doomsday auctions.' Green groups have expressed particular concern over 47 blocks in the Atlantic, in an area near the mouth of the Amazon River that flows through the world's largest carbon-capturing tropical rainforest. The first 19 blocks to which rights were sold were part of these 47. In all, 34 blocks found takers at the auction, bringing in about $180 million for the state. Investments of more than $260 million are planned for exploration. Already Latin America's biggest oil and gas producer, Brazil is seeking to increase production from 4.68 million to 5.3 million barrels per day by 2030. At the same time, the country has pledged to reduce its emissions of planet-warming greenhouse gas emissions to 1.2 billion tons of CO2 equivalent (CO2e). By 2050, it is seeking to reach neutrality - meaning emissions do not exceed the amount captured, by forests, for example. Brazil's ClimaInfo research institute had estimated that the 172 blocks placed on auction would emit some 11.1 billion tons of CO2e. Leftist President Luiz Inacio Lula da Silva, seeking to position himself as a leader in the fight against climate change, supported the auction that will see the successful bidders pay royalties on whatever oil and natural gas they eventually do extract. 'If this wealth exists, we cannot ignore it, as it will help us to make the energy transition and secure funds to preserve our forests,' Lula declared in February. 'We must act responsibly. I do not want oil exploration to cause any harm to the environment,' he added. Before they can start exploration, the companies must obtain a drilling license from environment oversight body Ibama. The Climate Action Tracker has said Brazil 'is not on track' to meet its emissions targets and needed to 'peak and rapidly decrease emissions' if the world is to succeed in limiting global warming to 1.5 degrees Celsius. The auction went ahead despite Brazil's Federal Public Ministry, an independent rights-monitoring body set up under the Brazilian constitution, calling for it to be suspended pending 'adequate studies' on the potential impact of exploration. 'Brazil is missing an opportunity to be a leader in decarbonization and environmental protection,' Suely Araujo, a former president of Ibama and coordinator of the Climate Observatory NGO said ahead of Tuesday's auction. And the WWF's Brazil branch said the country 'already has enough oil reserves to meet its internal demand' while gradually transitioning to a greener energy mix. 'The climate crisis requires bold decisions and public policies focused on the future, not the past,' it added. Brazil will host the UN climate conference called COP30 in November in the Amazonian city of Belem.- AFP
France 24
2 days ago
- Politics
- France 24
'Simply apocalyptic' and 'too risky': Papers react to Gaza aid distribution deaths
With the press focused on news of the ongoing war between Israel and Iran, the humanitarian situation in the Gaza Strip is deteriorating. The New York Times reports that seeking aid has gotten "just too risky" for some Gazans. "I'll never try again" reads the headline, quoting a Palestinian man who says he saw many dead and injured people while trying to get aid. He tried to get supplies twice and didn't manage to get anything both times, the paper reports. According to The New York Times, more than 70 Palestinians were killed on Monday and Tuesday while trying to reach aid distribution points. Left-wing French daily Le Monde headlines with "In Gaza, humiliation and death to get food". The paper says that dozens of people die every day while trying to reach aid. The paper then talks about a video filmed on June 11 of starving Gazans on their feet for hours, waiting for the start of the aid distribution. When it finally begins, Le Monde describes an image of a "wild, desperate stampede". An Israeli activist interviewed by the paper describes the video as "simply apocalyptic", saying that "this is the hell we've created in Gaza". Finally, the British daily The Guardian has an editorial on what it calls "Gaza's engineered famine". "Stop arming the slaughter – or lose the rule of law", writes the paper. It says that while Palestinians starve, Western governments "defend Israel and dismantle the very rules they claim to uphold". We turn next to Kosovo, where it's been 26 years after the massacre carried out by Serbs in Pristina during the 1998-1999 war. Balkan Insight reports in collaboration with the BIRN (Balkan Investigative Reporting Network) that the trial over the Pristina massacre finally started on Monday. The analysis says it's still unclear whether justice is being served. Many of the defendants didn't show up in court and are being tried in absentia because they are out of reach to the Kosovo authorities. The paper says there is almost no judicial cooperation with the Serbian legal authorities. Pristina Insight reports that one Serb has since been found guilty of wartime rape of an ethnic Albanian woman. He has been sentenced to 15 years in jail. The trial was held behind closed doors to protect the victim's identity. The paper says that few wartime rape survivors in Kosovo have spoken out about what they went through because of the social stigma around sexual abuse that remains hard to break. In Brazil, actions threatening the Amazon contradict President Lula's environmental promises. The Conversation writes about Brazil's "bill of devastation" that's pushing the Amazon towards a tipping point in terms of temperature and longer dry seasons. The bill has Lula's implicit approval, despite his climate ambitions. The bill is said to relieve "low-impact projects" of unnecessary bureaucracy. But the paper says it will allow the state to attract investment by loosening environmental restrictions. Another project is putting the river in danger. French left-wing L'Humanité reports that Brazil is auctioning off oil and gas concessions "to the delight of the oil and gas industry". The concessions will be around the mouth of the Amazon River. Environmentalists believe that Brazil's credibility on climate issues has been seriously damaged and thatLula is betting on oil and gas expansion to stimulate economic growth. Finally, Brad Pitt has been working on a new film with a straightforward title: F1: The Movie. The Telegraph calls it Pitt's new 'spectacular racing drama' that's like "Barbie for Dads". Pitt's pre-premiere fashion is also dividing the papers The Times calls it "Brad's midlife crisis wardrobe" and according to Harper's Bazaar, he has unleashed his "inner fashion guy" with his latest outfits – velvet blue vest, an all-yellow fit and a tie-dye ensemble.
Bloomberg
2 days ago
- Business
- Bloomberg
Brazil's Lula to Push Fiscal Plan Forward Despite Setbacks in Congress
Brazil's government has no immediate plans to develop new fiscal measures amid setbacks in Congress, and will instead seek to persuade lawmakers against blocking proposed tax increases, according to two officials with knowledge of the situation. The lower house of Congress on Monday moved forward with an initiative to overturn a governmental decree that increases so-called IOF taxes on some financial transactions, threatening to deliver a blow to President Luiz Inacio Lula da Silva's efforts to meet fiscal targets and shore up Brazil's budget.
