Latest news with #Sprake
IOL News
3 days ago
- Business
- IOL News
SA inflation holds at 2. 8% in May, but rise in food prices especially meat
There was a modest rise in food prices according to Stats SA inflation data released this week. Image: Independent Newspapers Archives Annual consumer price inflation in South Africa held steady at 2.8% in May 2025, unchanged from April, according to data released by Statistics South Africa (Stats SA) this week. While overall price pressures remain subdued, the re-emergence of food inflation is raising red flags according to an economist. Stats SA reported that the consumer price index (CPI) increased by 0.2% month-on-month in May. The main contributors to the annual inflation rate were housing and utilities (4.5%), food and non-alcoholic beverages (4.8%), and alcoholic beverages and tobacco (4.3%). Economist Casey Sprake of Anchor Capital said, 'While fuel disinflation continued to exert downward pressure, this was counterbalanced by a modest rise in food prices and a stable core inflation print.' Core inflation, which excludes food and energy, remained unchanged at 3.0% year-on-year, indicating that underlying price dynamics are still relatively contained. 'Durable goods categories, particularly furnishings and household equipment, remain deep in deflation, with price declines persisting for over 17 consecutive months,' said Sprake. Fuel prices continued to offer some relief, with a 1.1% month-on-month drop and a sharp 14.9% year-on-year decline, the largest since October 2024. Petrol is now 15.9% cheaper than a year ago, and diesel prices have dropped by 12.6%. 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 ✕ But food prices surged, especially in the meat category. Stats SA noted that the food and non-alcoholic beverages category was the only major group contributing to the monthly CPI change, increasing by 1.1% month-on-month. Sprake warned, 'This uptick was driven primarily by a sharp increase in meat prices, particularly beef, where inflation rose from 3.0% in April to 4.4% in May.' The rise in food costs is largely attributed to supply-side shocks such as a widespread outbreak of foot-and-mouth disease and high feed costs. Fruit and vegetable prices also saw double-digit increases, intensifying pressure on consumer food baskets. While the inflation print supports the case for the South African Reserve Bank to maintain a steady interest rate, Sprake noted that geopolitical risks and trade uncertainties could complicate the policy path. 'We expect the Monetary Policy Committee to hold rates steady in July,' she said. Stats SA will release the next CPI data on 23 July. THE MERCURY
IOL News
13-06-2025
- Business
- IOL News
Unlocking Africa's investment potential: Why investors overlook the continent
Explore why Africa, a continent rich in resources and potential, is still overlooked by investors, and discover how changing perceptions can unlock new opportunities Image: Ai Africa is losing out as an investment destination because it is misunderstood by financial backers due to outdated perceptions based on antiquated data and broad generalisations that it is a monolith and not a continent of striking contrasts – from tourism opportunities to great mineral wealth in a renewable energy world. Stefano Resi, head of data centre sales for Middle East & Africa at Nokia, points out that the continent is huge, spanning more than 30 million square kilometres, with 1.5 billion people living in 54 countries. Africa can no longer be ignored, said Casey Sprake, economist at Anchor Capital. Its population is set to hit 2.5 billion in 2050, a quarter of humanity, it has mineral wealth with 30% of the world's critical mineral reserves and large swathes of arable land. Africa offers a rare and powerful combination of growth potential, resource depth, youthful human capital, and regional ambition in a world characterised by geopolitical fragmentation, supply chain realignment, and demographic ageing in major economies, said Sprake. 'For forward-looking investors, business leaders, and development partners, the question is no longer whether Africa matters but how best to engage with its evolving, increasingly central role in the global economy,' Sprake said. As long ago as 2010, McKinsey & Company – in its first iteration of its Lions on the Move report - argued that Africa was seeing significant economic growth, increasing urbanisation as well as rapid urbanisation and a growing commercial sector. That report, which advocated investment into the continent, has since been updated three times. Yet, when it comes to looking at Africa as a possible investment destination, Strake pointed out that insufficient and incomplete data hampers investment decisions as they rely on outdated narratives. 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 ✕ Investors, policymakers, business leaders, and scholars 'frequently encounter opaque or incomplete information when evaluating African markets,' said Sprake. 'A large portion of Africa's economy remains informal, meaning that economic activity is often unrecorded or difficult to track using traditional methods,' she said. For example, in 2018, McKinsey & Company could identify only 338 African companies with annual revenues or more than $1 billion, while the estimated number of micro-, small-, and medium-sized enterprises exceeded 80 million, she pointed out. Compounding the issue of trying to collect data are issues such as corruption and wars. In 2021, 18 countries in sub-Saharan Africa were experiencing active armed conflicts, 12 of which involved high-intensity warfare, according to the Stockholm International Peace Research Institute. Despite challenges, Sprake says that Africa's perception can change. 'As Africa becomes more digitally integrated and data infrastructure improves, analysts now have access to more reliable and timely information than ever before. These advancements are critical for shaping informed policy, guiding strategic investments, and correcting outdated narratives about Africa's economic potential,' she said. Resi added that South Africa is a fertile environment for large-scale data centre investment. 'Already, Johannesburg and Cape Town are hosting an expanding constellation of high-capacity facilities,' he said. IOL
Leader Live
08-06-2025
- Business
- Leader Live
Holywell's new Mayor on his plans to support the community
Cllr Matt Sprake was just recently elected Mayor of Holywell. He grew up in Bagillt and attended Holywell High School, before studying at Loughborough University. After living and working in London for ten years, he returned home and settled in Greenfield. Now, he is aiming to make the most of his role as Mayor, helping 'strengthen partnership working across the community' and take on challenges of his own for the benefit of the community too. Cllr Sprake said: "Greenfield is home, and I love living here. We're lucky to have some incredible local assets with huge potential. There's little better after a long day than walking my dog through Greenfield Valley or along the coastal path. Like any resident, I want the best for our community. "It's a real honour to be elected by my fellow councillors. Their trust is humbling, and it's a responsibility I take seriously. But ultimately, the role isn't about me — it's about the office, what it represents, and fundamentally our town. "I know the role of Mayor is largely civic and ceremonial, but a simple aim of any leadership role should be to build on the past, and leave things in a better place than where they found them. I pay tribute to my predecessor, Cllr Linda Corbett, who certainly achieved that, and I hope to do the same. "One of my priorities is to promote and grow our local events. I'd encourage everyone to save the dates, come along, and see what our town has to offer. "I also want to strengthen partnership working across the community. There's a real sense that Holywell and Greenfield are on the brink of something special." He added: "Greenfield Valley has a bold ten-year vision with concept designs now published. The Holywell Placemaking Plan lays out a framework for revitalising our town. "The campaign for a Greenfield Railway Station, which I've worked on for several years and helped to progress, has recently gained fresh support from the Welsh Transport Minister, and the Town Council has also received its Destination Management and Marketing Plan which we can now start to enact. "If we can bring these strands together into a joined-up strategy, we could create real momentum for growth, aspiration, and opportunity. It won't happen overnight, but I hope we can look back and say we helped spark that change." In recent times, anti-social behaviour has been a concern for the residents of Holywell. Persistent issues have been raised via social media, as well aswith the council and North Wales Police. Asked about how he plans to hep tackle this type of crime, the Mayor said: "I met with our local police recently, and at the moment, there are no significant ongoing problems, but things can change quickly as such issues are cyclical. READ MORE He added: "I'm reassured our local police are well placed to respond and de-escalate when necessary. I would encourage residents to report any antisocial behaviour via 101 or the online portal. Of course, in any emergency, always call 999. "I know people sometimes feel that reporting doesn't lead to action. But reports help police build a picture of what's happening. The more intelligence they receive, the better their ability to act effectively. "Recently, we saw a spike in burglaries in Greenfield. In response, I proposed the council support a SmartWater initiative. SmartWater is a forensic liquid that marks valuables and helps police identify stolen items — it carries a 100% conviction rate in contested cases where it's used and therefore a significant deterrent to criminals. "Normally retailing at £60, we're offering kits to Holywell and Greenfield residents for just £10. To apply, contact the Town Clerk at: As well as tackling crime, Cllr Sprake will also be tackling 10K races to help raise money for three local causes via his fundraiser which can be donated to here. Kim Inspire, Age & Dementia Friendly Holywell and Holywell and Greenfield Churches will all benefit from his running. He said: "Every pound raised will go directly to these charities, split equally at the end of my term." Among the big events coming up in Holywell, being promoted by the Mayor, are; Food and Drink Festival (June 21), Party in the Park (July 26) and Pirate Festival (August 16). Follow the Holywell Town Council Facebook page for all the latest updates.
IOL News
13-05-2025
- Business
- IOL News
Dreams of 3% growth and a million jobs unravel as unemployment soars past 32%
South Africa's ambitious goal to grow its economy by 3% this year and create a million jobs faces significant hurdles, as structural economic issues lead to rising unemployment rates South Africa's grand ambitions – through a business and government partnership – to grow the economy 3% this year and, by doing so, create a million jobs is simply not happening as structural economic issues are hindering job creation prospects. In fact, in the first three months of the year, 291,000 people lost their jobs quarter-on-quarter while there was an increase of 237,000 in the number of unemployed people. This has taken the unemployment rate to 32.9%, up from the last four months of 2024 when it was 31.9%. The overall unemployment rate, which includes discouraged job seekers and is a truer measure of the job situation, went from 41.9% to 43.1% over the same quarter-on-quarter analysis, Statistics South Africa said on Tuesday. Dr Elna Moolman, Standard Bank group head of South Africa Macroeconomic Research, said on the back of the data release that 'the quarterly labour force survey reflects a rather bleak picture of employment in South Africa'. Concurring, Anchor Capital economist Casey Sprake said that 'it is clear that South Africa continues to grapple with a relentless rise in unemployment, casting a shadow over the country's recovery efforts'. Frank Blackmore, lead economist at KPMG, added job losses are also a reflection of the cost-of-living pressures as well as the sluggish growth rate of the South African economy. He added that interest rate reductions before year-end could help support economic growth and halt job losses. As an alternative, Blackmore said the country will require attracting greater investment and allowing the private sector economy to create jobs through policy changes that will support the economy's underlying infrastructure. The country's 'unemployment problem is a complex and multifaceted issue that requires sustained and coordinated efforts from all sectors of society to create inclusive and sustainable employment opportunities for all South Africans,' said Sprake. Yet, the current unemployment rate compares well with the record high of 35.3% seen in the fourth quarter of 2021 in the direct aftermath of COVID-19. South Africa saw record low unemployment rate of 21.50 percent in the fourth quarter of 2008, according to Trading Economics data. Sprake said that 'while recent key reform measures point to a more positive trajectory, this progress has not yet trickled down to many South Africans in the form of job opportunities'. Ideally, South Africa should have a gross domestic product growth rate of 3% a year to have what Sprake called 'material job creation'. Last year, the economy grew at 0.6% and Moody's most recent expectation is for it to gain 1.5% this year – a 0.2 percentage point decrease from its previous prediction. 'The economy is simply not growing at an adequate rate to sustainably boost long-term employment prospects for South Africans,' said Sprake. Moolman added that 'we need to grow the economy to justify further employment growth'. Citing issues such as a skills gap, a rigid labour market, and the lingering impact of the COVID-19 pandemic, she said these structural problems have exacerbated unemployment rates, especially among the youth. Statistics South Africa specifically noted that those aged between 15 and 34 years are still the most vulnerable when it comes to the job market, with both work losses and an increase in unemployed youngsters pushing that unemployment rate up to 46.1% from 44.6% quarter-on-quarter. Sprake said, as the economy expands, 'the persistent lack of jobs threatens to widen the inequality gap, undermining social stability and eroding the gains of recent economic advancements'. Many South Africans are simply unable to find jobs, said Sprake, because of a combination of structural deficiencies, such as a lack of skills, limited access to quality education and training, and inadequate job creation. IOL
IOL News
24-04-2025
- Business
- IOL News
VAT reversal: Govt's R75bn hole will affect essential services and developmental objectives
Government will now have to find some other way of plugging a revenue hole of at least R75 billion after bowed to pressure and scrapped an increase in VAT. Government will now have to find some other way of plugging a revenue hole of at least R75 billion after it bowed to pressure and scrapped an increase in Value Added Tax (VAT), which economists said will have adverse effects on essential services such as teaching and nursing. Seemingly overnight, National Treasury reversed course on a proposed 0.5 percentage point increase in VAT, which would have taken the tax to 15.5%. Finance Minister Enoch Godongwana's reversal means that other measures to cushion the poor against the proposed hike will have to be reversed, while 'other expenditure decisions [will need to be] revisited,' the statement said. Old Mutual chief economist, Johann Els, said the fact that VAT would not be increased 'was not necessarily a win because R75 billion needs to be made up in some other way'. This, said Els, could take the form of 'significant cutbacks in spending that was planned, especially in terms of extra nurses and extra teachers, or some of the revenue components that were announced in terms of mitigating the pain of that for taxpayers'. Els said some of the changes could include a petrol levy increase, while there might also be a reversal of additional goods being added to the VAT exempt basket. In the March 12 National Budget – the second tabling of the revenue and expenditure framework after the February one wasn't passed – National Treasury said it would expand the list of VAT zero-rated food items to include more meat and vegetable products. Casey Sprake, economist Anchor Capital, told IOL that scrapping the VAT increase introduced a range of fiscal and economic challenges. While welcome news for consumers, it resulted in a significant deterioration of South Africa's fiscal position, she said. 'Crucially, the social support measures that were designed to mitigate the regressive impact of the VAT hike – particularly for lower-income households – are now redundant and will likely be withdrawn. In their place, the government will need to identify alternative areas for fiscal adjustment, many of which may come at the expense of key developmental priorities,' said Sprake. Sprake added that National Treasury will be compelled to implement expenditure cuts. These are most likely to affect frontline public services and infrastructure investment, which are sectors already under considerable pressure. Els said that the proposed increase wouldn't have been materially negative in terms of consumer spending or inflation, given measures to assist the poor. However, Investec chief economist Annabel Bishop had worked out that a 50bps increase this year as well as one in 2026 would have increased inflation by 0.25 percentage points for each year. Inflation was 2.7% in March, down from 3.2% in February as it continued a declining trajectory. Sprake added that there would be hidden costs for businesses that had begun updating their pricing systems, financial models, and customer communication strategies to accommodate the VAT change. They would now need to 'undertake the same process in reverse,' she said. 'These operational disruptions translate into unnecessary compliance costs, lost productivity, and added complexity for the private sector; costs borne not by the state, but by the broader economy,' said Sprake. The South African Chamber of Commerce and Industry said in a statement that 'we are not yet convinced that enough expert work has been undertaken to investigate and look at expenditure throughout the government service'. Sprake added that 'this episode underscores a recurring concern: the economic cost of policy uncertainty and reactive governance.' National Treasury's backtracking of an increase followed the start of a court case on Tuesday in which both the Democratic Alliance and Economic Freedom Fighters – political polar opposites – took Godongwana as well as the South African Revenue Service to court to get the increase reversed. The parties had argued that the increase would harm the poor. IOL Business
