Latest news with #R4-billion
Daily Maverick
12-06-2025
- Business
- Daily Maverick
Retail giants step in with millions of rands to help entrepreneurs on their way up
South Africa's small businesses shoulder a heavy load, employing about 13.4 million people, and more than 70% of them don't make it past the seven-year mark. This week, Woolworths and Mr Price joined the growing queue of corporates trying to fix that, pledging millions towards entrepreneurship and empowerment. The business of doing good Woolworths is framing its new Inclusive Justice Institute as a practical demonstration of corporate empowerment, with the minister of small business development, Stella Ndabeni-Abrahams, endorsing it as a model for retail-led development. Backed by R300-million in funding — R200-million from Woolworths and R100-million from the Land Bank for emerging farmers — the institute will operate through two non-profit arms. One focuses on developing suppliers and the other on community programmes like food security and education. The retailer says it increased its procurement from SMMEs by 42% to R4-billion last year, and donated R816-million worth of surplus food to under-resourced communities. Woolworths' corporate social justice director, Zinzi Mgolodela, said: 'Our support for MSMEs [micro, small and medium enterprises] has helped stimulate economic growth by empowering beneficiaries to create jobs and expand their businesses. 'Through our NGO partnerships, we support rural and semi-urban communities to grow food and become self-sufficient, and our education initiatives have improved learning in under-resourced schools and promoted child safety, giving children the opportunity to thrive in safe, supportive environments.' The Land Bank's CEO, Themba Rikhotso, said: 'This initiative aligns directly with Land Bank's mission of empowering previously disadvantaged communities and to increase the inclusion of emerging farmers in the commercial agricultural sector, thereby enhancing the country's long-term food security.' Fishing for hustlers under 35 Meanwhile, Mr Price's Bindzu Youth Fund offers black and youth-owned businesses the chance to apply for R3-million in grant funding, spread across bootcamp training, mentorship and seed capital. The retailer's efforts seem to be focused on the right goal. Data from FinScope indicate that 30% of SMME owners are under the age of 35. To qualify, applicants must have been operating for at least 12 months, be between the ages of 18 and 34, and earn less than R5-million in annual turnover. The foundation says the goal is to help young entrepreneurs cross the resource chasm, which kills most early startups. 'The country has no shortage of young minds with bright ideas and business know-how,' said the foundation. 'So, although training and mentorship have been foundational to the success of young entrepreneurs, a greater need lies in real resources, and the willingness to release these resources to the youth.' The closing date to apply to the Mr Price Foundation is 30 June. Credit desert According to the Tips State of Small Business in South Africa 2024 report, SMMEs secure considerably less external funding than large corporations. They receive a paltry 13% of total bank credit. Corporations gobble up 51%, while regular consumer clients get 36%, which leaves small enterprises starved of working capital. The Woolworths and Mr Price programmes signal that retailers are no longer content to just manage supply chains but want to manufacture credibility. With government interventions slow and often mired in inefficiency, the private sector is positioning itself as both rescuer and reinforcer of South Africa's SMME ecosystem. DM
The Citizen
12-06-2025
- Automotive
- The Citizen
E-toll debt bites into traffic light repair budget
The DA has raised serious concerns about an imminent budget shortfall that will see Gauteng's provincial traffic light maintenance grind to a halt before the end of July. This looming crisis threatens the safety and mobility of millions of road users across the province, including key urban areas such as Pretoria. 'This will affect the whole of the province,' warned Evert du Plessis, DA Gauteng spokesperson for Roads and Transport. 'There are traffic lights that belong to and are maintained by the province in every metro and municipality. Pretoria will definitely be affected as well.' The budget shortfall was revealed during a recent Gauteng Provincial Legislature (GPL) Transport, Roads, and Logistics Committee meeting. Committee members were told that the allocated funds will be exhausted before the end of July, just three months into the financial year. In Pretoria, provincial roads, designated by the letter 'R', crisscross the city and act as vital connectors between suburbs and national routes. These include major corridors like the R55 and connecting streets, where intersections often depend on traffic signals to regulate the complex flow of daily commuters. The problem is exacerbated by the fact that provincial roads often intersect with national (Sanral) and municipal roads, creating shared responsibilities between all three spheres of government. 'We don't have a specific list for dysfunctional traffic lights on Tshwane's provincial roads as it changes on a daily basis,' explained Du Plessis. 'There are, however, a substantial number of provincial and national roads that cross metro boundaries. So all three tiers of government must take responsibility for their own infrastructure.' However, without a functional maintenance budget, Gauteng's provincial authorities will soon no longer be able to service their share of these intersections. Du Plessis said this shortfall is more than just an administrative hiccup. 'Non-functioning traffic lights pose a real threat to public safety, placing motorists and pedestrians at risk of collisions, violent crime at intersections, and delays that disrupt the daily routines of workers, parents, and emergency services. 'For the remaining nine months of the year, motorists could be stuck in gridlock, relying on pointsmen instead of functioning systems to reach their destinations,' he said. The DA has linked the budget collapse to Gauteng Premier Panyaza Lesufi's decision to commit provincial funds to paying off e-toll debt, an obligation the province was never legally bound to. Lesufi said on March 18 that the Gauteng government will absorb the e-toll debt and will continue to service it. He also confirmed that the provincial government has gone to the Development Bank of Southern Africa for a loan to be able to service the shortfall on e-tolls. The total e-toll debt that the provincial government has to pay back is more than R20-billion. This includes R12.9-billion for the historical debt, R4-billion for interest, and R4-billion for maintenance. The government has agreed to repay this debt in five equal annual instalments, with the first payment of R3.8-billion being made on September 30, 2024. 'This is another example of service delivery money being squashed by an irrational political commitment,' said Du Plessis. The party has called on Gauteng MEC for Roads, Transport and Logistics, Kedibone Diale-Thabela, and the head of the department, Thulani Mdadane, to urgently redirect funding and prevent a province-wide gridlock. 'New technology and the assistance of law enforcement would also go a long way to address this ever-escalating problem,' he added. The DA pledged to continue pressing the issue in the GPL, demanding answers and accountability from the ANC-led provincial government. 'A DA-led Gauteng government would not allow residents to be placed in such dangerous or frustrating situations,' he said. 'We will prioritise funding for traffic lights as a matter of extreme urgency to ensure the safety and well-being of all road users in Gauteng.' Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here
Daily Maverick
10-06-2025
- Business
- Daily Maverick
How Sarb and SA's banks are wiring the country's green finance grid
How do you price the risk of a dying planet? The South African Reserve Bank and the country's financial institutions are mapping out a new financial grid for an economy hit by climate extremes. At what point does climate risk become financial risk? And how does a central bank protect the economy when the shocks are fiscal as well as physical? During a recent talk at Stellenbosch University, South African Reserve Bank (Sarb) deputy governor Fundi Tshazibana clarified the central bank's role. 'We are not the drivers of climate policy in the country, we are not the drivers of environmental policy in the country,' she said. 'Where we are focused as central banks is to say there are risks that are associated with climate change, there are risks that are related to extreme weather events, there are risks related to deterioration in nature.' Sarb doesn't set carbon targets, but it does police the intersections between financial stability and ecological collapse. The mercury is rising. South Africa's inflation could spike by 15 percentage points if climate shocks continue, said Tshazibana. Droughts are intensifying and floods are more frequent. In 2022, Sanlam estimated its risk exposure to the floods in KwaZulu-Natal at around R4-billion. And that was just one insurer. The KZN government estimated economic losses in the province amounting, overall, to about R17-billion. Tshazibana noted that when the Sarb asked banks how much of their credit risk exposure lay with companies vulnerable to climate-related events, the answers ranged from 30% to 60%. Inside Sarb's climate risk arsenal In response to the financial risks climate change poses, Sarb has beefed up its toolkit: Bi-monthly inflation reviews now take climate shocks, such as food price spikes due to droughts, into account. Advanced modelling using dynamic and general equilibrium frameworks with granular data, aims to capture the multidimensional impact of climate change. Climate stress-testing: Banks completed Sarb's first round of scenario tests in 2024, and insurers are next. Guidance to financial institutions: Tshazibana urged financial institutions to 'go talk to your clients and start collecting that information so that you yourself can understand the risk exposure'. Greening Sarb's operations: Sarb has developed a strategy to reduce its carbon footprint by 30% by 2026 and reach net zero by 2035. Treasury's call to mobilise sustainable capital Deputy Minister of Finance, David Masondo, told the SA Financial Competitiveness Lekgotla that economic growth stagnated at around 0.6% in 2024, with infrastructure limiting transformation. Masondo affirmed the department's commitment to 'mobilise capital for investment and enhance the competitiveness of South Africa's financial markets'. The Treasury is working with global financial networks and development institutions to mobilise blended finance for adaptation, ensuring capital flows into climate-resilient infrastructure, Masondo said. How does this affect you? Food prices could increase. Climate shocks like floods and droughts disrupt farming, which means your grocery bill could spike. Jobs are on the line. As banks adjust their lending strategies to favour low-carbon sectors, carbon-heavy industries may miss out on financing. Your bank is watching your carbon footprint. Financial institutions are beginning to factor climate risk into loan and credit decisions. Pensions and savings are exposed. If insurers buckle or banks miscalculate the risks of the effects of climate change, your savings could be expected to carry the cost. Banks get down to green business Banks such as Standard Bank are on the frontlines of implementing green financing strategies – trying to turn sustainability into a return on investment. The bank recently launched a Sustainable Finance Product Framework, mapping out how green, social, and transition-labelled debt instruments will be structured and tracked. 'Green categories like climate adaptation or resilience funding or funding for nature-based projects may require greater use of innovative blended finance structures… regulatory incentives that enable green funding are required,' said Boitumelo Sethlatswe, Standard Bank's head of sustainability. Sethlatswe said that South African banks were investing in analytical tools and building internal models using client and open-source data to assess climate risks, but noted that inconsistent data and long-term modelling were a problem for Africa. The system is catching up While Sarb stress-tests the system, Absa says the entire financial sector is making strides. 'South Africa's financial institutions, including Absa, are taking significant steps to improve the way we identify, assess and manage climate-related financial risks,' a spokesperson said. Absa points to growing alignment with global frameworks such as the Task Force on Climate-Related Financial Disclosures (TCFD) and said that internal risk governance was catching up. But in a country with sky-high unemployment rates, the climate conversation should take social realities into consideration. 'The South African Reserve Bank and other monetary authorities play a critical role in facilitating a just transition,' Absa said. 'In a high-unemployment country, it is essential to strike a balance between climate goals and inclusive growth. Absa believes that regulators are increasingly asking the right questions. 'The supervisory focus on climate exposure and transition risk is helping to elevate climate risk management within financial institutions,' the bank said. Nedbank prepares for more demanding disclosures Nedbank, which published its first TCFD report in 2021, says the sector is already preparing for more stringent mandatory disclosures. 'We submitted stress tests last year to the Sarb in line with the rest of the banking sector,' said Priya Naidoo, Nedbank's executive for strategy. 'We maintain a focus on ensuring that we are ready for the enhanced disclosures.' The bank has also introduced a Climate Risk Materiality Framework, aligning its lending decisions with guidance from Sarb, the Basel Committee, and international bodies such as the Intergovernmental Panel on Climate Change and the Network for Greening the Financial System. A strong focus for Nedbank is on integrating climate risks into all major risk types, including credit, market, operational, and funding risk. 'Credit risk management is in place to incorporate and monitor progress toward the bank's strategic climate-related objectives of reducing exposure to all fossil fuels by 2045,' said Naidoo. This includes tracking exposure across sectors and implementing transition 'glidepaths' to gradually reduce carbon-intensive assets, she said. Nedbank also flags that the success of climate-aligned finance depends on cross-functional collaboration across business, finance, risk and sustainability teams. Climate resilience is now a core strategic pillar as consumer and investor expectations evolve. DM
Daily Maverick
04-06-2025
- Business
- Daily Maverick
Mixed news at the pump: fuel levy rises while prices drop
The Western Cape High Court has dismissed the EFF's urgent bid to block a controversial fuel levy hike—just as fuel prices dip. From midnight, levies rise by 16c (petrol) and 15c (diesel), despite constitutional questions. It's a pump paradox: taxpayers pay more, but pump prices briefly fall. In a ruling handed down yesterday, Judge Nathan Erasmus found that the EFF's application lacked urgency and did not meet the legal threshold for interim relief. The court did not engage with the broader constitutional challenge itself, which the EFF had previously framed in its initial filing as a possible Part B of its legal strategy. A tax fight rooted in Budget 3.0 The levy increase was announced in Finance Minister Enoch Godongwana's revised Budget 3.0, tabled in May following the political fallout and eventual withdrawal of VAT hikes in earlier budget versions. Treasury estimates the fuel levy will raise about R4-billion in the 2025/26 fiscal year. The EFF has argued that the use of Section 48(1) of the Customs and Excise Act to implement the fuel levy increase amounts to an unconstitutional bypassing of Parliament. Section 77 of the Constitution requires that all new taxes be passed via a money Bill through the National Assembly. Arguments on constitutional compliance Representing the EFF, Advocate Mfesane Ka-Siboto told the court: 'The fact that this has happened before does not make it lawful. Past practice is not a substitute for constitutional compliance.' He described the move as a case of 'taxation without representation.' The Treasury, represented by Advocate Kameel Premhid, countered that Section 48(1) had long been used lawfully to adjust fuel levy schedules. He argued the measure was an administrative amendment within an existing framework, not the introduction of a new tax requiring legislative approval. What this means for you For consumers, the fuel levy increase translates into higher petrol and diesel prices at the pump, effective immediately. This could lead to broader knock-on effects on transport costs, food prices and inflation, particularly for lower-income households who spend a greater share of their income on fuel-linked expenses. Treasury maintains the hike is necessary to address fiscal gaps left by the abandoned VAT proposal. The fuel levy increase will be offset by a decrease in fuel prices – which also kicks in on Wednesday, 4 June. The Department of Minerals and Petroleum Resources (DMPR) announced the following price decreases yesterday: Petrol 93 (ULP & LRP): ⬇️5cents/litre. Petrol 95 (ULP & LRP): ⬇️5 cents/litre. Diesel (0.05% sulphur): ⬇️ 36.9 cents/litre. Diesel (0.005% sulphur): ⬇️36.9 cents/litre. Commenting on the changes, the DMPR noted that over the last month, there has been a decrease in the average Brent Crude oil price from US$66.40 to US$63.95, largely on the back of continued global trade uncertainty, Parliament distances itself from the damage Parliament, which was cited in the court papers, but not the target of any relief, issued a brief statement after the judgment: 'Although cited in the application, no relief was sought against Parliament. Parliament's position throughout the proceedings was to abide by the outcome of the court process. Accordingly, Parliament will comply with the court's ruling.' Oversight loophole or legal mechanism? In its legal representations, Treasury has argued that Section 48(6) of the Act ensures Parliamentary oversight by requiring the amended tariff to be tabled after the fact. The EFF, however, contends this form of post-implementation tabling falls short of the constitutional threshold for public finance legislation. EFF's Part B remains unclear In a short statement on X after the ruling, the EFF said: 'We are committed to fighting the fuel levy increase in court and in Parliament.' However, the party did not explicitly confirm that it would pursue the Part B constitutional review. Whether the EFF returns to court or not, the broader legal and political debate over fiscal authority, oversight and the democratic control of taxation is likely to persist. DM
eNCA
15-05-2025
- Business
- eNCA
No threat of City Power debt cutoffs by Eskom
JOHANNESBURG - City Power has moved to remove confusion about the threat of cut-offs by Eskom over the municipal entity's more than R4-billion debt to the national supplier. Some reports had suggested this may be the route Eskom will take as the government entities dispute the amounts owed to each other. But the Johannesburg metro's electricity provider says mediation by the Electricity Minister is helping resolve the impasse. "There is no issue between City Power and Eskom, we are working together," said City Power spokesperson Isaac Mangena.
