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The Citizen
11-06-2025
- Business
- The Citizen
Economic activity picked up for the first time in 8 months in May
It is good news, but there are still many risks that could bring the economic activity down again. Economic transactions picked up in May for the first time in eight months, bringing some relief after months of stagnation. A part of May's improvement stems from wiping out the weakness evident in the index in April. According to the BankservAfrica Economic Transactions Index (BETI), which measures the value of all electronic transactions cleared through BankservAfrica on a monthly basis at seasonally adjusted real prices, economic activity rebounded in May, although it is too early to tell if this positive trend will hold. Shergeran Naidoo, head of stakeholder engagements at BankservAfrica, says the BETI improved to an index level of 138.3 in May, up from the 136.2 recorded in April, breaking an eight-month trend of sideways movement. Despite the shift, notable risks remain, and more evidence of sustained higher economic activity must be delivered before the narrative of a subdued growth environment can change. 'The number of transactions cleared through BankservAfrica in May reached an all-time high of 176.3 million compared to 167.9 million in April, surpassing the previous record of 172.4 million in March 2025.' ALSO READ: Economic activity in SA struggling to gain momentum Too early to call a change in the trend for economic activity Elize Kruger, an independent economist, says while the latest figure is encouraging, it is too early to call an imminent change in trend as the economic environment has not changed materially in May, and notable risks remain. 'In addition, the recovery in economic activity in May followed the month of April when the world was hit by the US announcement of punitive import tariffs, and subsequently an evolving trade war developed with a great deal of volatility from day to day as markets plummeted and global and local growth forecasts were slashed. 'Confidence levels across the globe and in South Africa were knocked by the sheer uncertainty that these developments brought. 'However, with some tariffs put on ice and several countries entering, more favourable trade agreements, averting a worst-case scenario. Markets responded with relief rallies and a cautious return of confidence, albeit from a low base.' However, she says, the BETI is still 1.4% higher, and the uptick remains encouraging as all of its components increased in value terms during May. 'The most notable performances were the heavily weighted EFT credits, Real Time Clearing and PayShap transactions. 'The standardised nominal value of transactions also increased to R1.351 trillion in May compared to R1.320 trillion in April, with the resultant average value per transaction covered in the BETI increasing to R7 618, higher than April's R7 485. 'All payment streams increased in both volume and value terms during May.' ALSO READ: Economic activity still moving sideways but optimism increases Two PMIs and new car sales also added to increased economic activity Kruger says two other timeous economic indicators also posted stronger readings. The S&P Global South Africa Purchasing Managers' Index increased to 50.8 in May, driven by the sharpest uplift in private sector output in four years. Naamsa also reported that the strong momentum in the local vehicle sales market continued into May 2025. Total vehicle sales increased by 22%, with year-to-date sales up by 12.6% compared to the same period a year earlier. New car sales surged by an impressive 30%, while year-to-date, sales were a notable 21.2% higher. On the other hand, she points out that the seasonally adjusted Absa Purchasing Managers' Index (PMI), reflecting on prospects in the manufacturing sector, remained in contractionary territory for a seventh consecutive month at 43.1 index points. 'Furthermore, the BETI rebound is a timely development, given that the economy started 2025 on the backfoot as seasonally adjusted quarterly growth of only 0.1% was registered in the first quarter with sectors such as mining, manufacturing and construction now in technical recession.' says Kruger. ALSO READ: Structural reform is silver bullet needed for SA economy to grow – OECD Economic growth adjusted downward, but inflation stays low While economic growth forecasts for 2025 have been revised downward, with the latest Reuters consensus among economists now projecting real gross domestic product (GDP) growth at 1.2%, down from 1.7% in January. Carpe Diem Research offers an even more cautious outlook, forecasting growth at just 1.0%. On the more positive side, Kruger says local inflation remains well under control, with headline inflation at 2.8% in April, below the target band of the South African Reserve Bank (SARB) of between 3-6%, with the average 2025 forecast around 3.4%. 'The favourable inflation environment created ample scope for the Sarb to cut interest rates. Even after a 25 basis points cut in May, the repo rate remains quite high at 7.25%, as real interest rates are still considered punitive for an economy muddling along, unable to gain meaningful momentum.' Kruger also points out that, helped by some weakness in the US dollar, the rand exchange rate recovered all of its losses after the US 'Liberation Day' announcements and trading at fairly strong levels. 'The low inflation rate will play a key role in supporting the recovery of salary earners' purchasing power. With average salary increases expected to be between 5% and 6%, 2025 will be the second consecutive year of real increases in salaries, which should support consumer spending.'
The Citizen
28-05-2025
- The Citizen
Locals fell prey to fraud worth thousands of rands
Fraudsters over the past weekend left more than three locals stunned after scamming thousands of rands through electronic transactions. According to the police, the scams varying from digital theft to in-person deception, have robbed individuals of their hard-earned money, proving that fraudsters are becoming increasingly sophisticated in their tactics. 'To protect yourself from fraud and cyber threats, never respond to emails or phone messages claiming to be from your bank that request personal details, as legitimate banks will never ask for this information via email. Never share your online ID, password, or PIN with anyone, and avoid writing them down or saving them on your desktop. Always ensure you log off or sign out after completing an internet banking session, and never leave your computer unattended while logged in. Avoid doing online banking in public areas or on computers accessible to strangers. Regularly change your PIN and passwords, set reasonable transaction limits on your accounts, and only provide credit card details to trustworthy companies. Lastly, if an offer seems too good to be true, it probably is – always remain cautious and vigilant when dealing with financial transactions,' said Captain Eddie Hall, spokesperson of SAPS Witbank as he warns the public against cases like this. For one unsuspecting victim in Watermeyer street on May 23, a simple phone notification turned into a nightmare. According to police a man was woken up by the sound of his phone beeping, and checked his account only to find that R18 700 had been withdrawn via a PayShap transaction—an app he never authorised for such use. The realisation was sudden as the reality of cyber fraud hit home. On May 22, there were a few cases reported. In Strydom Street a man encountered three individuals – two women and one man – who claimed to be employees of a national fuel company. They assured him they were assisting customers with their points cards for petrol purchases. Trusting them, he allowed them to take his picture and handed over his ID details. What followed was financial devastation – R81 000 was withdrawn from his bank account across multiple locations. In another incident in Uthingo Park, Tasbet Park, a woman found herself unknowingly tricked by a scam that exploited trust and familiarity. According to police she received a message on WhatsApp, supposedly from her pastor, requesting an urgent money transfer due to a network issue. Without questioning the legitimacy of the request, she transferred R3 000 to the provided account number, only to later receive confirmation that her pastor's number had been hacked. 'I never suspected it was a scam – I genuinely believed I was helping my pastor. My trust in him made me certain that his request was genuine, and I acted with a kind heart, simply wanting to support someone in need. It never crossed my mind that I could be deceived,' she said. In another incident, a resident in Bankenveld Estate fall prey to an attack which came in the form of unexpected online money transactions. On May 14, he noticed unusual deductions from his Absa account. Upon contacting the bank's fraud helpline, he was informed that his account had been cloned, resulting in a staggering loss of R39 524.64. Breaking news at your fingertips … Follow WITBANK NEWS on our website, Facebook, Twitter, Instagram or TikTok Chat to us: info@ At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
25-04-2025
- Business
- IOL News
Simple and affordable: Capitec disrupts bank fees
Capitec is making banking even simpler and more affordable in 2025 with a groundbreaking new fee structure. Capitec, South Africa's leading digital bank, has launched a new, simplified fee structure for 2025. The revised fees make banking more affordable and accessible for clients. By reducing costs for key services, Capitec continues its commitment to financial inclusion. "By consolidating our fees into clear, simple tiers and reducing costs for essential services like debit orders and immediate payments, we're making it easier for South Africans to understand and manage their banking fees," says Francois Viviers, Group Executive: Marketing and Communications at Capitec. Back to basics: Keeping it simple More than 30 pricing points have been streamlined into five key fees: R1, R2, R3, R6 and R10. R1: Payments between Capitec accounts, including Capitec Pay Payments between Capitec accounts, including Capitec Pay R2: Payments to other banks using EFT or PayShap Payments to other banks using EFT or PayShap R3: Debit orders Debit orders R6: Immediate payments to any bank in SA Immediate payments to any bank in SA R10: Cash withdrawals per R1 000 at Capitec or other banks' ATMs Another industry first: Same fees for personal and business banking Business banking clients will benefit from the same affordable transaction rates as personal banking clients, reinforcing the bank's commitment to fostering growth for entrepreneurs and small businesses. A notable difference is the monthly fee: personal banking remains R7.50, while business banking has a monthly fee of R50 and requires a minimum balance of R150. Business account holders also receive personalised support and access to a dedicated relationship suite with 24/7 availability. Viviers adds, "Traditional banking is complex and expensive, often at the expense of most South Africans. We believe pricing should be affordable, simple, and transparent so that our clients know exactly what they pay and what they get. This philosophy extends across our entire product range – from everyday banking to insurance and Capitec Connect. By maintaining competitive premiums on our insurance products and offering affordable mobile data rates, we ensure that comprehensive financial services remain within reach for all South Africans." Reducing costs with smart tech Capitec's groundbreaking pricing structure is also the result of continued investment in innovation. By leveraging cloud computing solutions, particularly through Amazon Web Services (AWS), the bank has improved efficiency, strengthened system resilience and accelerated service delivery. These advancements have enabled Capitec to cut costs and pass the savings onto its clients. Supporting economic growth through financial inclusion Capitec's initiative aligns with SARB's Vision 2025, which aims to enhance financial inclusion by making digital payments more accessible, secure and efficient. By reducing costs and simplifying banking, Capitec is actively contributing to broader economic empowerment. "When more South Africans and businesses have access to affordable banking services, it creates a ripple effect throughout the economy. Our simplified fee structure is more than just pricing – it's about removing barriers to financial services and fostering economic growth for all South Africans," concludes Viviers. For more details on Capitec's 2025 banking fees and services, visit
