Latest news with #SimphiweMbokazi
IOL News
3 days ago
- Business
- IOL News
SA urged to lift ban on Brazilian deboned meat imports amid food security concerns
A call has been made by Merlog Foods for the Department of Agriculture to allow imports of Mechanically Deboned Meat (MDM) from areas in Brazil that are not affected by avian influenza or bird flu outbreak. Image: Simphiwe Mbokazi / Independent Newspapers Merlog Foods has called on the Department of Agriculture to allow the importation of Mechanically Deboned Meat (MDM) from regions in Brazil unaffected by the recent avian influenza outbreak. This request comes on the heels of the department signing an import agreement with the United States, a move hailed by many industry stakeholders as a crucial step towards enhancing food security in the country. MDM is widely used in lower-cost protein products required by millions of South Africans for food security such as Vienna sausages and polony, and Brazil is South Africa's primary source of MDM. Georg Southey, manager of Merlog Foods, recently expressed his appreciation for the Department's year-long arrangement with the US that facilitates a responsive trade mechanism in the wake of bird flu outbreaks. 'This agreement, which was publicised in a letter released this week by the Department of Agriculture, empowers the US to manage its own internal chicken trade restrictions by State, depending on the presence or absence of bird flu outbreaks," he said. 'The agreement allows local importers of essential affordable protein needed by millions of South Africans to access safe chicken with ease and removes onerous paperwork and delays. 'This sensible approach that the Department of Agriculture has followed with the US should be replicated with all trusted global trading partners. This is especially the case with Brazil, the largest supplier of MDM to South Africa.' Video Player is loading. 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Next Stay Close ✕ The call for the expedited importation of Brazilian MDM comes amid concerns raised by agricultural experts regarding the current ban on chicken imports from Brazil, despite the bird flu outbreak being confined to a single State. Wandile Sihlobo, chief economist for the Agricultural Business Chamber of South Africa, echoed these sentiments, remarking that South Africa was heavily reliant on poultry imports. 'This conversation arises on the back of the temporary restrictions on imports of poultry products from Brazil. This ban comes on the back of an outbreak of avian influenza in Brazil,' he said. 'A typical approach when such outbreaks occur is to restrict imports until there is comfort that the risk can be contained. China and the EU are among the countries that restricted poultry products from Brazil before South Africa took action.' Sihlobo added that in recognition of Brazil's significant influence on our poultry supply, some food processors have understandably raised concerns about potential supply chain disruptions. 'The intention, I believe, is to urge the South African regulators to soften the restrictions and not apply a broad approach to Brazil. After all, the country is mainly in the state of Rio Grande do Sul. Therefore, it makes sense to call for a regionalised ban and still allow trade to continue.' Arnold Prinsloo, Eskort CEO, noted that while the agreement with the US was a positive development, it did not cover MDM products. Prinsloo highlighted that MDM from the US tended to be significantly 30-40% more expensive than that from Brazil. 'Should the SA government decide to allow MDM, through regionalisation in Brazil, to be imported, the first MDM containers will only arrive in SA in six weeks with another week for veterinary clearance, before factories could start producing polony, Vienna and Russians,' Prinsloo said. 'Currently, some producers have already run out of MDM stock due to the government dragging its feet on a decision to allow regionalisation in Brazil.' Francois Rossouw, the CEO of Southern African Agri Initiative, said that they welcome the Department of Agriculture's pragmatic agreement with the US to allow continued imports of poultry from regions unaffected by avian flu. Rossouw said that a blanket ban on all imports from Brazil, despite the outbreak being limited to one region, placed enormous pressure on the value chain and risks compounding food insecurity. 'We urge the department to apply the same science-based principles and urgency in their engagements with Brazil, so that imports from safe regions can resume without unnecessary delay,' Rossouw said. 'Our focus must remain on protecting public health while ensuring that working-class families continue to have access to the protein they need.' BUSINESS REPORT
IOL News
7 days ago
- Business
- IOL News
Municipal debt, corruption could plunge South Africa into darkness
Eskom's woes are 'ghost tokens' in the pre-paid electricity sector, which have led to significant revenue losses, and internal sabotage by employees. Image: Simphiwe Mbokazi AS Eskom's debt spirals and municipalities flounder in financial disarray, the Standing Committee on Appropriations this week issued a stark warning: without urgent intervention, South Africa's service delivery and energy stability face collapse. This week, Eskom briefed the committee on the Eskom Debt Relief Bill, however, MPs remained deeply concerned that the state-owned power utility's financial trajectory remains unsustainable. Chairperson Mmusi Maimane minced no words: 'When we examine the various pieces of legislation under consideration by this committee, it is undeniable that Eskom remains a pivotal component. The state of Eskom's liquidity, along with serious concerns raised by municipalities around debt servicing, are critical factors, especially in light of the appropriations made to Eskom.' Maimane fears that even with the Debt Relief Bill, Eskom will remain heavily indebted, largely due to municipal arrears. Many municipalities are unable or unwilling to pay their Eskom bills, yet the committee noted a lack of urgency in addressing these failing municipalities. Adding to Eskom's woes are 'ghost tokens' in the pre-paid electricity sector, which have led to significant revenue losses, and internal sabotage by employees. The committee demanded decisive action on these fronts, while also urging Eskom to reduce reliance on independent power producers, warning that political interference could undermine energy security. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'Eskom cannot afford more delays. The time for bold action is now — before the lights go out for good,' the committee declared. The crisis extends beyond Eskom. The committee also grilled the Mangaung Metropolitan Municipality over its financial mismanagement, overspending by 10-12% on employee costs and outsourced services. MPs lambasted the outsourcing of core municipal functions, which erodes institutional capacity and invites corruption. 'What should cost one rand ends up costing three, four, or even five rand due to corrupt practices,' Maimane said. Mangaung's three consecutive years of qualified audits — marked by weak internal controls and governance failures — further highlight systemic dysfunction. The committee demanded clarity on the metro's Eskom debt, questioning whether any progress had been made in repayment. Meanwhile, the City of Johannesburg provoked frustration by submitting documents just 30 minutes before its meeting, leaving MPs no time to review them. The committee postponed discussions, but the delay underscored a broader pattern of municipal incompetence. As metros drown in debt, ordinary South Africans suffer from crumbling infrastructure. Maimane lamented the deterioration of inner cities, where economic opportunities vanish alongside failing infrastructure. 'The collapse of inner cities results in the loss of housing opportunities and economic infrastructure,' he warned. The committee issued a blunt directive to officials: Prioritise the basics. 'Fix potholes, install traffic lights, ensure water access, and maintain toilets in informal settlements. Endless delays and 'in-process' excuses are not helping citizens.' With Eskom's survival and municipal stability hanging in the balance, the committee's message is clear: corruption, inefficiency, and lack of accountability must end. Eskom must tighten revenue collection, curb sabotage, and reduce political dependency. Municipalities must slash wasteful expenditure, recover debts, and deliver services. Failure is not an option, because for millions of South Africans, the lights are already flickering.
IOL News
13-06-2025
- Business
- IOL News
Understanding the 5. 2 percent rise in South Africa's residential property price inflation for January 2025
Stats SA reports a modest increase in residential property price inflation across Mzansi. Image: Simphiwe Mbokazi The annual national residential property price inflation was 5.2% in January 2025, an increase from a revised 5.1% in December 2024. This is according to the Residential Property Price Index January 2025, released by Statistics South Africa (StatsSA) on Thursday. The data showed that the residential property price index (RPPI) increased by 0.4% month-on-month in January 2025. 'The main contributors to the 5.2% annual national inflation rate were Western Cape (8.7% and contributing 3.3 percentage points) and Gauteng (2.3% and contributing 0.9 of a percentage point). The RPPI for all metropolitan areas increased by 5.0% between January last year and January this year. The main contributors to the 5.0% annual inflation rate for metropolitan areas were City of Cape Town (8.5% and contributing 3.1 percentage points) and City of Johannesburg (2.3% and contributing 0.5 of a percentage point). The annual national residential property price inflation is generally a positive indicator for the local property market, says Dr Farai Nyika, an academic at the Management College of Southern Africa(MANCOSA). He said both property developers and existing homeowners depend on, and benefit from, sustained price inflation to realise returns on their long-term investments. However, he said that one significant consequence of rising property values is that municipalities periodically revalue properties, which often results in higher property rates for owners. 'For prospective property investors, it is important to note that real returns are only achieved when property price inflation exceeds the annual consumer inflation rate, inclusive of all associated costs (such as rates, taxes, maintenance, and transaction fees). Rising property prices also stimulate demand in related industries, including hardware suppliers, cement producers, and manufacturers of construction materials. This, in turn, supports job retention and the creation of new employment opportunities, which is particularly important in the context of South Africa's challenging economic climate,' Nyika said. The academic said that conversely, Cape Town is increasingly becoming unaffordable for many first-time buyers, placing them at risk of becoming perpetual renters. He said as people tend to 'vote with their feet', the city - despite being an attractive and desirable destination - continues to reinforce generational divisions along the lines of income and property affordability. The RPPI for properties sold for the first time increased by 6.0% between January 2024 and January 2025. The index increased by 0.3% month-on-month in January 2025. The RPPI for resold properties increased by 5.9% between January 2024 and January 2025. The index increased by 0.4% month-on-month in January 2025. The RPPI for sectional title properties increased by 3.1% between January 2024 and January 2025. The index increased by 0.4% month-on-month in January 2025. The RPPI for freehold properties increased by 7.1% between January 2024 and January 2025. The index increased by 0.5% month-on-month in January 2025. In a property note released this week, FNB said that looking ahead, the recent series of interest rate cuts is expected to mildly strengthen market conditions in 2025 compared to 2024. However, the bank said that a strong and sustained recovery will depend on achieving significantly improved economic growth. FNB added that it forecasts modest improvement, with growth rising from 0.5% in 2024 to 1.1% in 2025, and reaching 1.9% by 2027. It said it also anticipates that interest rates will likely move sideways for a protracted period following one more expected 25-basis-point cuts in the second half of 2025. While this expected mild improvement in the economic and interest rate environment is welcome, FNB said it may not be sufficient to support sustained real (inflation-adjusted) growth in property income and capital values through the forecast period to 2027. Independent Media Property
IOL News
06-06-2025
- Health
- IOL News
Government orders first-ever mass vaccination of poultry in SA, as cattle rollout continues
Astral Foods posted a sharp financial turnaround in the year to September 30, 2024 after loadshedding and avian flu caused big losses in the 2023 financial year. Picture: Simphiwe Mbokazi / Independent Newspapers A mass vaccination of poultry is set to take place in South Africa amid the avian flu outbreak. Image: Simphiwe Mbokazi / Independent Newspapers The South African Department of Agriculture has announced the country's first ever mass vaccination of poultry. This comes amid a severe outbreak of the highly pathogenic avian influenza (HPAI) in Brazil, which led to South Africa suspending its poultry imports from the South American country. Earlier this year the South African Poultry Association (SAPA) warned that the country could face catastrophic consequences without vaccination against the highly pathogenic bird flu. South Africa's Minister of Agriculture, John Steenhuisen, said the Department's vaccination team, together with the Agricultural Research Council, would be working through a list of farms received by the poultry industry and would be prioritising high-risk areas. 'We have secured vaccine supply, ensured cold chain capacity, and are building in traceability and reporting mechanisms as part of a wider preparedness strategy,' Steenhuisen said. The government's vaccination team, which consists of poultry specialist vets from the University of Pretoria, would be further assisted by 50 animal health technicians on short term contracts. Combating foot-and-mouth disease The Department of Agriculture also provided an update on its progress in tackling the severe foot-and-mouth disease (FMD) outbreak in the country. It said vaccines to cover the KwaZulu-Natal area had now been ordered. More than 900,000 doses have been ordered, with the first batch expected to arrive next week. The Department said there were still signs of active virus circulation in the province, within the Disease Management Area, but some outbreaks have been detected outside of this zone. However, a system has been put in place to assess the level of biosecurity on individual farms. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Regarding the Gauteng outbreak, the Department said it was currently assessing the situation, including forward and backward tracing. Karan Beef is currently working with State Veterinary Services on a containment plan, following an outbreak at its Heidelberg facility this week. 'These plans are not only about responding to outbreaks, but also about building permanent infrastructure to manage future risks," Steenhuisen said. 'More broadly, we are establishing a Biosecurity Council that will bring together the South African Police Service (SAPS), veterinarians, scientists, the Border Management Authority, and industry. We are rolling out a farm to fork national traceability system for livestock,' the Minister added. IOL
IOL News
28-05-2025
- Business
- IOL News
Property group urges SARB to cut interest rates for economic growth and job creation
Lower interest rates will reduce the cost of financing homes, thus enabling a higher affordability at a given monthly financing payment. Image: Simphiwe Mbokazi / Independent Newspapers. A South African property group has reiterated its call for the South African Reserve Bank (SARB) to step in with an interest rate cut as a vital stimulus for economic growth and job creation. National year-on-year house price inflation has maintained a modest pace of 2.8%, according to the latest figures from Lightstone's Property Index. This steady, albeit sluggish, trend is echoed in the RE/MAX National Housing Report for the first quarter of this year, which reveals a 2.1% increase in average house prices compared to the same period in 2024. With Consumer Price Inflation (CPI) sitting close by at 2.7% as of March, these figures paint a nuanced picture of South Africa's residential property landscape. As the economy stands at a pivotal juncture, a robust cut of at least 25 to 50 basis points is not just desirable but a critical imperative, according to Samuel Seeff, chairman of the Seeff Property Group. He said the country simply can no longer bear keeping the interest rate so high for so long. As it is, he said the overly cautious approach by the bank has missed at least two opportunities to provide relief to consumers and the economy. 'The pressing challenge of unemployment simply can no longer wait. A decisive move by the SARB now would signal a commitment to revitalising economic activity. It would also provide much-needed support to businesses and consumers, and facilitate an environment conducive to investment and job creation,' Seeff said. The property group said the case for such monetary easing is strongly supported by the current inflation landscape. It said despite the recent benign increase in inflation to 2.8%, it remains comfortably below the Reserve Bank's 3-6% target range. Despite headwinds out of Washington, it said the rand has also strengthened to below R18 to the US dollar. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading At the time of the open yesterday, the USDZAR traded at R17.88, according to Reezwana Sumad, research analyst at Nedbank CIB. 'The USDZAR traded steadily weaker over the course of the session to close the session at R17.92. Since the close last night, it has traded incrementally weaker, and the USDZAR is trading at R17.98 currently this morning. "The major currency pairs have also lost ground to the USD, with the EURUSD trading at 1,1305 this morning and the GBPUSD at 1,3470. Possible trading range for the USDZAR today(Wednesday) is R17,80 to R18.15,' Sumad said. She added that the local markets have traded cautiously over the week thus far and are likely to remain so ahead of the SARB's MPC. On the international front, she said headlines from the US continue to provide the catalyst for market activity. Seeff said the prevailing remarkably low inflation level indicated that demand-side pressures are relatively subdued and the risks of igniting an inflationary spiral through a rate cut are minimal at this stage. He said the stability of the currency provides further mitigation, thus providing a valuable window for the SARB to implement a more accommodative monetary policy stance that directly benefits the domestic economy. According to data analysed by Lightstone, which evaluated property bought by a natural person and where the transaction was for a single property, young homeowners are entering the market later than they did in the past, and are opting for bonded, secure living. In 2024, people aged between 20-35 (youth) accounted for 30% of residential property purchases, down from 36% in 2019 and 41% in 2014, with tough economic conditions and changing lifestyles cited as the likely reasons behind the shift. While youth accounted for 30% (52 500) of residential property transactions in 2024, it was the second largest group behind the Settled category (36-50) at 43% (76 000). The Mature category (51-64) (38 000) accounted for 21%, while the Pension category (65 and older) accounted for 6% (10 000). While the recent rate cuts have provided some relief, Seeff said the benefits have now been eroded by keeping the interest rate at least 100 basis points above the pre-Covid rate. He said time is ticking and the country simply can no longer wait. Seeff said there is now a golden opportunity for the bank to act boldly within the available monetary policy space to address the urgent needs of economic recovery and expansion without jeopardising its price stability mandate. A rate cut would inject much-needed momentum into the economy by lowering borrowing costs for businesses and stimulating investment while adding more money into the pockets of consumers to spend in the economy, he said. The property group said while a 25bps cut would be most welcome, they urged the Bank to provide a more robust cut of at least 50bps as an immediate injection of economic confidence to kickstart the economy. 'Naturally, the property market, which currently lags the pre-Covid volumes, will also benefit from a more pronounced rate cut. Aside from enabling more first-time property buyers to get into the market, it is an important economic contributor with a significant economic multiplier benefit,' Seeff said. Independent Media Property
