South Africa finance ministry faces competing pressure

2021 ◽  
Keyword(s):  
South Africa ◽  
Commodity Prices ◽  
Basic Income ◽  
Municipal Elections ◽  
Content Type ◽  
High Unemployment ◽  
Deficit Reduction

Significance This occurs in a context of market concerns over the recent exits of five senior National Treasury (finance ministry) officials and serious social and economic challenges manifested in high unemployment, inequality and poverty. Impacts Godongwana will resist efforts to create a basic income grant. Higher commodity prices may increase expected revenues, temporarily allowing both increased spending and deficit reduction. Weak results in the November 1 municipal elections may spur greater pressure for more spending.

Prospects for South Africa to end-2021

2021 ◽  
Keyword(s):  
South Africa ◽  
Commodity Prices ◽  
Content Type ◽  
High Unemployment ◽  
State Enterprises

Subject Prospects for South Africa to end-2021. Significance By mid-2021, President Cyril Ramaphosa had gained the upper hand over factional rivals within the ruling ANC. His government also benefitted from unexpected improvements in economic metrics, largely due to a spike in commodity prices. Nevertheless, key challenges remain unresolved: high unemployment, undperforming state enterprises and a perilous fiscal position.

Commodity prices, the exchange rate and manufacturing in South Africa: what do the data say?

2015 ◽  
Vol 6 (4) ◽  
pp. 356-379 ◽  
Author(s):  
Duncan Hodge
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Money Supply ◽  
Positive Relationship ◽  
Commodity Prices ◽  
Dutch Disease ◽  
Content Type ◽  
Labour Costs ◽  
Unit Labour Costs

Purpose – The purpose of this paper is to investigate the empirical relationships between changes in OECD output, commodity prices, the real exchange rate, real money supply, unit labour costs and manufacturing in South Africa. In particular, to test a version of the Dutch disease argument that increases in the prices of South Africa’s main commodity exports have had a negative effect on domestic manufacturing against the alternative hypothesis that there is a positive relationship between such changes in commodity prices and domestic manufacturing output. Design/methodology/approach – Construction of a model including real manufacturing output in South Africa as the dependent variable and the following independent variables: OECD output, an international real metals price index, a real effective exchange rate index, real M3 money supply and manufacturing unit labour costs. The time series sample data comprise 124 quarterly observations for the period 1980-2010. The model equation was tested and estimated using a Johansen cointegration approach. Findings – The main findings are: OECD output is the single most important determinant of domestic manufacturing output; while the real exchange rate has the predicted negative sign, rising commodity prices are associated with increases rather than decreases in domestic manufacturing and; large increases in unit labour costs since the early 1980s have dragged down manufacturing over the sample period. Originality/value – The finding of a positive relationship between commodity prices and domestic manufacturing means that the Dutch disease argument must be revised when applied to South Africa. While rising commodity prices may lead to a negative exchange rate effect on manufacturing competitiveness, this is more than offset by the positive growth effects associated with upswings in the commodity price cycle.

Cities will be South Africa's key vote battlegrounds

2016 ◽  
Keyword(s):  
South Africa ◽  
Rural Areas ◽  
Economic Activity ◽  
Social Spending ◽  
Constitutional Court ◽  
Court Ruling ◽  
Tax Base ◽  
Electoral Roll ◽  
Municipal Elections ◽  
Content Type

Subject Outlook for municipal elections in South Africa. Significance Municipal elections are due between May 18 and August 16. Last November, a Constitutional Court ruling stated that voters' postal addresses must accompany entries on the electoral roll in order to prevent irregularities. It has already forced several by-elections to be annulled and will likely cause difficulties for the upcoming polls. Impacts Policies pursued by municipalities will prove nationally significant -- since the eight largest account for 59% of total economic activity. If it experiences major losses in cities, the ANC may shore up its base by prioritising social spending in rural areas. Urban voters are more likely than rural ones to be aggrieved by fiscal leakage because they make a larger contribution to the tax base.

Prospects for Africa politics and security to end-2016

2016 ◽  
Keyword(s):  
South Africa ◽  
Conflict Zones ◽  
Municipal Elections ◽  
Content Type ◽  
High Profile

Subject Prospects for Africa politics and security to end-2016. Significance Several high-profile elections are scheduled for the second half of the year, including presidential contests in Ghana, Gabon, Zambia and Gambia, and municipal elections in South Africa. Insecurity will likely worsen in several of the region's high-profile conflict zones (for example, Congo-Kinshasa and Burundi) while old tensions in other jurisdictions (Mozambique) could lead to fresh instability.

Prospects for the Andean region in 2018

2017 ◽  
Keyword(s):  
Growth Rates ◽  
Commodity Prices ◽  
Legislative Elections ◽  
Andean Region ◽  
Municipal Elections ◽  
Content Type ◽  
International Growth

Subject Prospects for the Andean region in 2018. Significance Growth rates across the Andean region (Colombia, Ecuador, Peru and Bolivia) are likely to be subdued in 2018 and recovery will be depend on whether international growth boosts commodity prices. Colombia will hold presidential and legislative elections in March and May, while Peru will hold regional and municipal elections in October.

The Congolese president will face growing pressure

2016 ◽  
Keyword(s):  
South Africa ◽  
Political Instability ◽  
Commodity Prices ◽  
Budget Deficits ◽  
Term Limit ◽  
Content Type ◽  
Investor Confidence ◽  
Mediating Role ◽  
General Elections

Significance President Joseph Kabila is fighting to maintain his office against a challenge from former Katanga province governor Moise Katumbi. The constitutional term limit stipulates that Kabila relinquish office at the end of the year, but the president is using administrative and legal mechanisms to postpone general elections scheduled for November. Impacts Targeted US sanctions and political instability will erode investor confidence. Low commodity prices will add pressure to Kinshasa as budget deficits rise. Donors will consider withholding aid. South Africa could play a mediating role in resolving the crisis. Neighbouring states will sympathise with Kabila given similar attempts to retain office.

Renewables, gas to boost South Africa power outlook

2016 ◽  
Keyword(s):  
South Africa ◽  
Renewable Energy ◽  
Consumer Demand ◽  
Commodity Prices ◽  
Load Shedding ◽  
Power Supplies ◽  
Gdp Growth ◽  
Content Type ◽  
Labour Costs

Significance This is a marked shift from 2015, when regular blackouts or 'load shedding' due to breakdowns and emergency maintenance procedures caused significant disruptions, hurting GDP growth. Eskom generates 95% of South Africa's power. Impacts Improved power supplies will be insufficient to boost GDP growth, which is weighed down by low commodity prices and weak consumer demand. The president's close ties with Russia will fuel suspicion that a secret nuclear deal with Moscow could override a formal tender process. The success of South Africa's renewable energy programme would provide a foundation for the wider region's renewables ambitions. Eskom's preference for procuring coal from black-owned supply firms will reduce competition, potentially increasing costs. Eskom employees' rejection of the utility's 5% wage hike offer portends a higher settlement, resulting in increased labour costs.

Climate change impacts on water resources in a rural community in Limpopo province, South Africa: a community-based adaptation to water insecurity

2020 ◽  
Vol 12 (5) ◽  
pp. 587-598
Author(s):  
Sejabaledi Agnes Rankoana
Keyword(s):  
Climate Change ◽  
South Africa ◽  
Water Resources ◽  
Water Supply ◽  
Rural Community ◽  
Limpopo Province ◽  
Community Based ◽  
Content Type ◽  
Adaptation Practices ◽  
Community Based Adaptation

Purpose The study explored the impacts of climate change on water resources, and the community-based adaptation practices adopted to ensure water security in a rural community in Limpopo Province, South Africa. Design/methodology/approach The study was conducted in Limpopo Province, South Africa. The participatory approach was used to allow community members to share their challenges of water scarcity, and the measures they have developed to cope with inconsistent water supply. Findings The study results show that the community obtains water for household consumption from the reticulation system supplied by Mutale River and the community borehole. These resources are negatively impacted by drought, change in the frequency and distribution of rainfall, and increased temperature patterns. The water levels in the river and borehole have declined, resulting in unsustainable water supply. The community-based adaptation practices facilitated by the water committee include observance of restrictions and regulations on the water resources use. Others involve securing water from neighbouring resources. Originality/value This type of community-based action in response to climate change could be used as part of rural water management strategies under climate change.

scholarly journals Shopping list development and use of advertisements’ pre-store food-buying practices within different socio-economic status areas in South Africa

2017 ◽  
Vol 119 (12) ◽  
pp. 2880-2902
Author(s):  
Rodney Graeme Duffett ◽  
Crystal Foster
Keyword(s):  
South Africa ◽  
South African ◽  
Developing Country ◽  
Economic Status ◽  
Demographic Characteristics ◽  
Low Ses ◽  
Content Type ◽  
Shopping List ◽  
Food Shopping ◽  
Food Buying Practices

Purpose The purpose of this paper is to determine whether there is a difference in the development of shopping lists and use of advertisements as pre-store food-buying practices in terms of planned shopping by South African consumers who dwell in different socio-economic status (SES) areas. The paper also considers the influence of shopper and socio-demographic characteristics on pre-store food-buying practices in a developing country. Design/methodology/approach A self-administered questionnaire was used to survey 1 200 consumers in retail stores in low, middle and high SES areas in South Africa. A generalised linear model was employed for the statistical analysis of pre-store food-buying practices within the SES area groups in a developing country. Findings South African consumers that reside in high SES area displayed the largest of shopping list development, while consumers who dwell in low SES areas showed the highest incidence of advertisement usage. Several shopper and socio-demographic characteristics were also found to have an influence on pre-store food-buying practices in different SES areas in South Africa. Research limitations/implications A qualitative approach would offer a deeper understanding of consumers’ pre-store food shopping predispositions as opposed to the quantitative approach, which was adopted for this study. A longitudinal design would also provide a more extensive representation of pre-store food shopping practices over a longer time frame than cross-sectional research. The survey was conducted on Saturdays, whereas consumers who shop during the week may have different shopping and socio-demographic characteristics. Practical implications Astute food brands, marketers and grocery stores could use the findings of this study to assist with their marketing efforts that they direct at consumers in different SES areas in South Africa and other developing countries. Social implications The findings of this study may assist consumers in developing countries, especially those who reside in low SES areas, with food-buying strategies to reduce food costs, make wiser purchase decisions and reduce shopping. Originality/value No study (to the best of the researchers’ knowledge) has considered shopping list development and use of advertisements’ pre-store food-buying practices in different SES areas in a developing country. Furthermore, there is a dearth of research analysing shopper and socio-demographic characteristics in relation to pre-store food-buying practices among different SES areas in developing and developed countries.

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