Quick Explainer: The New Inflation Target
Minister of Finance Enoch Godongwana has announced a new inflation target of 3% a year. What does this mean and why does it matter?
Interest Rates
Ten Takeaways From Today’s Budget Speech
Finance Minister Enoch Godongwana says he’s optimistic about the future
Bold Steps Taken With Medium-Term Budget Policy Statement Are Encouraging
The Medium-Term Budget Policy Statement (MTBPS) by Minister of Finance Enoch Godongwana has met several key expectations, despite difficult and constrained circumstances. One of the most significant developments is the inflation target being adjusted and lowered to 3% — the first change in 25 years. This revised inflation target supports lower interest rates, which will […]
The post Bold steps taken with Medium-Term Budget Policy Statement are encouraging appeared first on Freedom Front Plus.
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Quick Explainer: Government Debt and Why It Matters
Finance Minister Enoch Godongwana says South Africa is spending 22c of every rand raised in taxes to pay interest on government debt. Archive photo: Ashraf Hendricks Minister of Finance Enoch Godongwana reminded everyone during his budget speech in March: South Africa is spending more than 22c of every rand raised in taxes just to pay …
Durban Judge Gags Journalist Over ARTsolar Article
Reporter prevented from exposing claims that a solar panel company misled a client
Quick Explainer: Interest Rates and How They Affect You
The Reserve Bank has dropped the repo rate to 7.5%. Consequently the prime lending rate has dropped to 11%. On Thursday the Monetary Policy Committee (MPC) of the Reserve Bank announced that the key interest rate it sets, the repo rate, would drop from 7.75% to 7.5%. What does this mean and why does it …
SARB reduces repo rate by 25 basis points
SARB reduces repo rate by 25 basis points
The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points, with effect from 31 January 2025.
“Four members preferred this action, while two supported an unchanged stance. The committee ultimately agreed that it was possible to reduce the degree of policy restrictiveness, making the stance somewhat more neutral. However, all members were concerned about the uncertain global outlook,” SARB Governor Lesetja Kganyago said on Thursday.
Delivering the first Monetary Policy Committee statement for 2025, he said consumer prices and headline inflation averaged 4.4% last year, near the middle of the target range.
“Inflation slowed to 3% in December, having started the year above 5%. This was mainly due to favourable goods-price developments, including food inflation reaching 15-year lows, as well as lower fuel costs.
“Because of these transitory factors, inflation is likely to remain in the bottom half of our target range through the first half of this year. But headline inflation should revert to around 4.5% thereafter, aided by core inflation which remains at or below the midpoint over the forecast horizon,” the Governor said.
According to the most recent survey, inflation expectations have also now largely aligned with the midpoint objective.
“The risks to the inflation outlook are assessed to the upside. In the near term, inflation appears well contained. However, the medium-term outlook is more uncertain than usual, with material risks from the external environment. Domestic factors such as administered prices are also problematic,” Kganyago said.
He said the forecast sees rates drifting slightly lower over the next few years, stabilising near 7.25%.
“But this rate path from the Quarterly Projection Model remains a broad policy guide. The MPC would like to emphasise that its decisions will be made on a meeting-by-meeting basis, with no forward guidance and no pre-commitment to any specific rate path.
“Such decisions will continue to be outlook dependent, responsive to data developments, and sensitive to the balance of risks to the forecast. Given the challenging global environment, the MPC spent some time during this meeting reviewing a trade war scenario,” the Governor said.
This featured a universal increase of 10 percentage points in US tariffs, with retaliatory measures by other countries.
“The scenario showed higher inflation and interest rates globally, as well as greater risk aversion in financial markets. In response, our model projected the rand depreciating to nearly R21 to the dollar, with domestic inflation reaching 5% and the policy rate half a percentage point higher, at its peak, relative to the baseline forecasts.
“We also looked at a scenario of accelerated structural reforms, domestically. This showed growth picking up gradually, getting to 3% in 2027. Importantly, this scenario also showed lower inflation and lower interest rates in South Africa, demonstrating how structural reforms can reduce the country risk premium and create more monetary policy space,” he said.
Considering the difficulties of the external environment, the Governor said it remains crucial to sustain domestic reform momentum while protecting macroeconomic stability.
“The MPC’s main contribution is to deliver low and stable inflation, with well-anchored inflation expectations. The committee remains vigilant, and ready to recalibrate policy as needed.
“Additional measures that would improve economic conditions include reaching a prudent public debt level, further repairing and strengthening network industries, lowering administered price inflation, and keeping real wage growth in line with productivity gains,” he said. - SAnews.gov.za
nosihle
Thu, 01/30/2025 - 15:34
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Financially “stretched” consumers cautioned against using unregistered credit providers
Financially "stretched" consumers cautioned against using unregistered credit providers
With the start of the year being financially demanding, the Gauteng Department of Economic Development has encouraged consumers, who will be borrowing money from credit providers, to be wise and ensure that credit providers do not violate their rights.
This as some consumers could be facing financial challenges to the extent that they might need to apply for credit to meet their financial obligations such as school fees, school uniforms, transport and rent, among others.
Consumers have been cautioned against using unregistered credit providers such as ‘Abomashonisa’ that overcharge interest, and take consumers’ identity documents and their Social African Security Agency (SASSA) cards to enforce payment.
“This is unfair business practice. Sometimes, when consumers’ credit applications decline, consumers resort to borrowing from Abomashonisa. However, this does not help the consumer because of the exorbitant interest rates that are charged by these unregistered credit providers.
“If your application is declined by all registered credit providers, it means that you have a bigger financial problem than you realise. Rather seek assistance by negotiating for lower instalments with your current credit providers, paying off and closing some accounts than accessing more credit through unregistered credit providers,” Gauteng Department of Economic Development Director for Education, Awareness and Stakeholder Relations Milly Viljoen said.
According to the Consumer Protection Act (CPA), consumers have a right to receive information in plain and understandable language.
“Consumers should read and understand the terms and conditions, and further ask questions if they seek clarity. This will allow them to understand Credit Life Insurance, which can be a lifesaver when they are unable to repay the debt due to loss of income, unemployment, disability, etc,” Viljoen said.
Consumers are urged to consider the following tips:
- Borrow only when it is necessary. Avoid using credit for consumables such as groceries.
- Verify the authenticity of credit providers, even the ones that are advertising on social media, by contacting the National Credit Regulator first before applying for credit. Unregistered credit providers will make you more financially constrained by overcharging interest.
- Understand the additional cost that comes with credit. The cost of credit includes interest rates, once-off initiation fees, monthly service fees, credit life insurance, etc. Consumers should read and understand the pre-agreement statement and quotation which will include all the costs involved.
- Do not sign immediately when applying for credit. The pre-agreement or quotation has five (5) days cooling period. Sign ONLY when you understand the terms and conditions.
- Do not sign a blank credit agreement/document. Read, understand, and ask relevant questions if you seek clarity. Sign ONLY when satisfied with the terms and conditions.
- Check your credit report often- You are entitled to a free credit report once a year. You have the right to dispute any information that is wrongfully written on your credit profile.
- Do not agree to pay an ‘upfront fee’ when applying for credit. Fake credit providers may force you to pay a fee before granting you credit.
The Gauteng Office of Consumer Affairs works with different stakeholders in consumer protection to ensure that consumer rights are protected.
Thus, consumers should contact the National Credit Regulator on 0860 627 627 or e-mail complaints@ncr.org.za to report unregistered credit providers or any credit provider that violates their consumer rights in the credit industry. - SAnews.gov.za
nosihle
Fri, 01/24/2025 - 09:57
158 views
Quick Explainer: Inflation and How It Affects You
The inflation rate measures the rise in the price of a basket of goods. Stats SA announced on Wednesday that the inflation rate over the year to December 2024 was 3%, up from 2.9% for the year to November 2024. What does this mean and why does it matter? What is inflation? The standard measure …
President Ramaphosa calls on financial institutions to make money available for businesses
President Ramaphosa calls on financial institutions to make money available for businesses
President Cyril Ramaphosa has used his address at the Presidential Micro, Small and Medium Enterprises and Cooperatives Awards to call on banks to make money available for businesses.
Speaking at the awards held at the Gallagher Convention Centre in Gauteng on Friday, the President emphasised that with interest rates declining, this is an opportune time to make funding more accessible to drive economic growth.
“As interest rates are coming down and are bound to come down even further, this is the time to make finance available within obviously the various consideration that you have to take into account.
“This is the time to make finance available and pump energy and life into our economy because when small and medium enterprises are given enabling energy by our financial institutions... they will be able to run businesses to be creative, to create jobs and our economy can grow.
“I call on the banks and financial institutes to make money available so that our businesses can grow,” the President said.
Hosted by the Department of Small Business Development, the Presidential Micro, Small and Medium Enterprises (MSMEs) and Cooperatives Awards are aimed at highlighting and rewarding the achievements of South Africa’s top-performing MSMEs, cooperatives, and ecosystem enablers who drive growth and transformation across the nation.
The ceremony honoured businesses that embody innovation, commitment to local development and entrepreneurial spirit.
The President also took a moment to address the recent spate of foodborne illnesses that have been linked to spaza shops and informal traders in townships. He said this has thrown into sharp focus the issues of regulation, health and safety.
At the same time, he said the issue has highlighted the critical role small businesses play in communities, providing much-needed services and supporting local economies.
“That is why it is so important to bring small businesses into the mainstream of the economy, and that we provide the necessary support for them to do this.
“International experience shows that MSMEs are drivers of sustainable growth. Countries with more MSMEs tend to have lower levels of inequality. Entrepreneurs are the drivers of innovation,” he said.
However, the President acknowledged that rates of entrepreneurship in South Africa are low by continental standards.
He told entrepreneurs and delegates at the awards that it is essential that they encourage entrepreneurship.
“It is vital that we enable the emergence and growth of MSMEs and cooperatives. We must focus on targeted interventions to address financial exclusion and onerous regulatory requirements.
“We must provide access to funding, capacity building and other support. The success of the finalists here this evening shows that with the right support, small businesses can succeed, expand and be sustainable,” the President said.
The President said that the Government of National unity has made inclusive growth and job creation its apex priority, and supporting small enterprises is an integral part of these efforts.
President Ramaphosa said the National Planning Commission estimates that the country needs 5.8 million MSMEs to meet job creation targets.
The President said that this means there is a need to double the number of MSMEs in the country.
“We are encouraged by the efforts underway to capacitate the sector. One of these is the merging of SEFA [Small Enterprise Finance Agency], SEDA [Small Enterprise Development Agency] and the Cooperatives Bank Development Agency into the newly-formed Small Enterprise Development Finance Agency.
“Of the R730 million disbursed by the new agency to date, R101 million has gone to township enterprises and R261 million to rural enterprises,” he said.
The Small Enterprise Development Finance Agency has also provided non-financial business support to more than 15 000 township and rural enterprises.
The President said that legislation is in the pipeline to streamline business licensing.
An e-registration system that integrates the work of the South African Revenue Service and the Companies and Intellectual Property Commission (CIPC) is under development.
“If we are to fully unlock entrepreneurial potential, there must be a razor-sharp focus on start-up growth, especially in the burgeoning tech sector. We must ensure that we are not left behind in the global transition to knowledge and innovation-based economies.
“As part of this, we must scale up the adoption of advances like mobile payments and digitised record-keeping by small businesses,” he said.
President Ramaphosa said he was encouraged by the work of the Department of Small Business Development and the Department of Science and Innovation around a national start-up policy.
Among other things, this policy will deal with issues such as intellectual property registration and foreign exchange controls.
“Even as this is all work in progress, we recognise the urgency with which we must scale up support for small businesses in South Africa. They are the driving force of our economy.
“The finalists and recipients of this year’s awards are a shining example of what can be achieved. Allow me to congratulate all the winners and runners-up. You have done well. You are a fine example to other South Africans who want to follow their entrepreneurial dreams,” the President said.
The President also took a moment to thank the organisers of the awards, the generous sponsors and the millions of entrepreneurs who make the country work and the economy grow.
“These are the micro, small and medium enterprises and cooperatives that create livelihoods and jobs. They provide communities with vital services. They create value that goes far beyond turnover or profit.
“They contribute in a million different ways to building a more equal, more prosperous and more productive society. These awards are a celebration of all the entrepreneurs in a country. It is a token of our gratitude and admiration,” the President said. – SAnews.gov.za
DikelediM
Fri, 11/22/2024 - 23:01
56 views
SARB announces repo rate cut
SARB announces repo rate cut
The South African Reserve Bank’s Monetary Policy Committee (MPC) has - in a unanimous decision - decided to cut the repo rate by 25 basis points, bringing it down from 8% to 7.75% with effect from Friday.
This is the second consecutive repo rate cut announced by Reserve Bank Governor Lesetja Kganyago following a meeting of the bank’s MPC.
“The committee agreed that reducing the level of policy restrictiveness is still consistent with achieving the inflation target,” Kganyago said.
He warned, however, that the risk outlook “requires a cautious approach”.
“Global interest rates could well shift higher again and the recent Rand depreciation demonstrates how rapidly changes in the global environment can affect South Africa.
“The forecast sees rates easing further in future, stabilising a bit above 7%. But this rate path from the Quarterly Projection Model remains a broad policy guide. The MPC would like to emphasise that its decisions will be made on a meeting-by-meeting basis, with no forward guidance and no pre-commitment to any specific rate path.
“Such decisions will continue to be outlook dependent, responsive to data developments, and sensitive to the balance of risks to the forecast,” he said.
Kganyago’s announcement comes on the heels of an announcement by Statistics South Africa that inflation had dipped to 2.8% - its lowest since June 2020.
This is also below the SARB’s inflation target range of between 3 – 6%.
In this regard, Kganyago said the SARB has assessed risks to inflation outlook as “balanced”.
“[We] anticipate inflation expectations will moderate further. These expectations have been quite backward-looking, with higher past inflation projected well into the future. Survey expectations remain above our midpoint objective.
“We expect that our policy stance, and the experience of lower inflation, will anchor expectations more firmly at lower levels.
“In the near term, inflation appears well contained. However, the medium-term outlook is highly uncertain, with material upside risks. These include higher prices for food, electricity and water, as well as insurance premiums and wage settlements,” Kganyago said. – SAnews.gov.za
NeoB
Thu, 11/21/2024 - 15:26
73 views
Once-Abandoned Vleifontein Library Nearing Completion at Last
Construction on the R16-million facility began in September 2022
Upstream Players Highlight Innovative Financing Critical Mineral Projects at CMA
Players within Africa's energy transition sector highlighted innovative financing mechanisms which can help drive the industry maximize value addition and beneficiation to local economies during the Leaders Forum at Critical Minerals Africa Summit on Thursday.
Marie-Chantal Kaninda, President, Glencore DRC announced that the firm contributed approximately $1 billion in revenue for the Democratic Republic of Congo (DRC) through royalty taxes in 2023.
She said the firm invested in processing facilities at two of its operational mines in the DRC (https://apo-opa.co/3AvKgjI) to enhance value addition of copper and cobalt resources.
“We export hydroxide cobalt, which is an intermediary product, and produce copper cathodes ready for cable manufacturing,” Kaninda explained, adding that 95% of Glencore's workforce in the DRC is sourced locally, with many employees holding senior positions.
Speaking on the challenges facing Africa's mineral value addition efforts, Carlos Lopes, Professor at the Nelson Mandela School of Public Governance, University of Cape Town, noted that a lack of adequate funding is a primary barrier.
Despite Africa's GDP having doubled since 2000, he said, the continent is still perceived as a high-risk market by some investors. Lopes called for innovative local financial solutions to meet capital needs for value-addition projects.
“Africa pays the world's highest interest rates, yet our potential is undervalued. We must be strategic in policy-making to fully capitalize on our resources,” he stated, emphasizing the drawbacks of exporting raw minerals for overseas processing.
Mfikeyi Makayi, CEO of KoBold Metals, underscored the role of innovation in reducing the high costs associated with critical mineral exploration and value addition. She highlighted the company's AI-enabled exploration efforts backed by Silicon Valley investment, stating, “With 60 projects across 40 countries, including flagship initiatives in Zambia and new ventures in Namibia and Botswana, we're focused on leveraging digital mining solutions to drive industrialization across the continent.”
Makayi added that the data generated through digital mining is vital for attracting investment and creating a more competitive and inclusive sector.
Sietse van de Woude, Senior Executive of Modernization and Safety at the Minerals Council South Africa, discussed the Mandela Mining Precinct initiative, a public-private partnership designed to fund and support mining sector innovation.
“Innovation is essential for critical minerals mining,” van de Woude said, adding that the initiative offers a platform for industry stakeholders to share best practices and collaborate on advancing operational efficiency and safety.
Distributed by APO Group on behalf of Energy Capital & Power.
Treasury optimistic about economic outlook
Treasury optimistic about economic outlook
National Treasury expects improved growth prospects for the South African economy, despite slowing projected growth of some 1.1% in 2024 – down from the projected 1.3% earlier this year.
Real Gross Domestic Product (GDP) growth is projected to improve at some 1.1% in 2024, up from the 0.7% in 2023.
In its Medium-Term Budget Policy Statement (MTBPS), National Treasury said economic growth was being “weighed down by stop-start economic growth and stubborn inflation in the first half of the year”.
“The economy has since strengthened in response to the suspension of power cuts since March 2024, improved confidence following the formation of the Government of National Unity in June, better than expected inflation outcomes in recent months and reduced borrowing costs. All these factors are expected to continue supporting the economy over the period ahead.
“The pace of [GDP] growth is still being limited by persistent – though gradually easing – constraints, particularly in logistics infrastructure. Faster growth depends largely on maintaining macroeconomic stability, the continued implementation of structural economic reforms, improving State capabilities and supporting higher infrastructure investment,” the MTBPS stated.
Treasury explained that although risks persist, global risks are “weighted to the downside, while risks to the domestic outlook appear more balanced compared with the 2024 Budget Review assessment”.
“Global growth may weaken due to financial market volatility, tightening conditions for developing economies, slower disinflation from rising commodity prices and a prolonged contraction in China’s property sector. On the domestic front, food prices are vulnerable to weather-related shocks and logistical challenges.
“Positive domestic risks include the possibility of a quicker pace of disinflation and interest rate reductions than assumed in the baseline forecast, which would boost demand. Stable electricity supply and faster progress on reforms could boost business and consumer confidence,” Treasury said.
The department warned, however, that fiscal risks “remain significant though somewhat more balanced than a year ago” and that the materialisation of these risks could be a threat to “fiscal projections, with negative consequences for investment and economic growth”.
“Despite the downward revision to growth for the current year, there is cautious optimism for the medium-term outlook as the early benefits of reform implementation continue to materialise.
“The stabilisation of electricity supply has improved the overall investment climate. This positive momentum will be sustained by a new phase of Operation Vulindlela, which aims to accelerate structural reforms implementation.
“To support these efforts, it will be essential to maintain clear and stable macroeconomic policies while strengthening state capability and supporting investment in growth-enhancing public infrastructure,” the MTBPS stated.
Global outlook
On the international front, global growth is projected to slow marginally from 3.3% in 2023 to 3.2% in 2024 and 2025.
“Slowing inflation has opened the way for major central banks to ease monetary policy. Lower interest rates and strong investment in technology, particularly in emerging Asia, are expected to support growth,” Treasury said.
The department added that overall risks to growth are “to the downside”.
“Fiscal policy has begun to contract in some countries, in part to manage the rapid increase in sovereign debt levels since the COVID-19 pandemic, and some countries are in debt distress.
“Persistent geopolitical tensions continue to flare, with potentially far-reaching effects on global trade, and the threat of escalating conflict in the Middle East remains a concern. The years-long downturn in China’s property sector, notwithstanding new stimulus support, could continue to weaken Chinese growth,” the MTBPS stated.
Economic growth in advanced economies is forecast to reach some 1.8% in the same period with growth in emerging and developing economies – including South Africa’s BRICS partners – projected at 4.2%.
In Sub-Saharan Africa, this is projected at 3.6% in 2024 and 4.2% in 2025.
“Global equity prices have risen as inflation decelerates, accompanied by interest rate cuts that are expected to continue into 2025. Further declines in bond yields are consequently anticipated, creating a favourable environment for emerging market assets.
“Declining production and shipping of commodities, particularly oil, has dampened the outlook for some emerging and developing economies, including in Sub-Saharan Africa. Oil prices are anticipated to fall slightly in 2024, given weak global demand, despite production cuts agreed by major producers.
“Global food prices are also projected to fall, supported by record-high grain production, reducing inflationary pressures,” the MTBPS explained. – SAnews.gov.za
Matona
Thu, 10/31/2024 - 05:44
2 views
Unions Take to the Streets to Demand Decent Work
Hundreds of workers march in Cape Town, Joburg and Durban
How Philanthropy Can Heal South Africa’s Deep Wounds
As the world observes International Day of Charity on 5 September, Dr Armand Bam, Head of Social Impact at Stellenbosch Business School, urges South Africans to confront the pressing realities of giving in a nation scarred by its past. He challenges the public and private sectors to view philanthropy not as mere charity, but as …
Seize the moment: Opportunities in Gauteng’s Residential Property Market
Gauteng’s property market presents a mix of opportunities with varying trends across its regions. Despite modest inflation figures, the demand for property remains strong, especially among first-time buyers and those seeking investment opportunities. Lara-Rachel Spronk, Franchise Sales Manager at Just Property Head Office, looks at the current market and the opportunities available. Overall, Gauteng’s annual …
From Sustainability to Personalisation – Mid-year Retail Trends 2024
Reaching any midpoint, whether it's to catch one's breath on a ultra-marathon to gear up for the next stretch, or a project team reflecting on their progress and making necessary modifications – it's all about positioning for success. So too a mid-year retail check-in offers valuable insights into some of the latest developments shaping how retailers connect with consumers and drive innovation in the second half of this year.
Overview | Global & Local
The rise and rise of ecommerce, the integration of online and offline, platforming sustainability, contactless and convenient quick and easy payment options, price-sensitive pricing strategies and building customer loyalty – dominated the past six months.
So too, and no surprises here, but the broader classification of the consumer is changing yet again. If 2023 was the year of the resilient consumer, it seems that 2024 is seeing the year of the empowered consumer. Mastercard Data & Services [May 2024] reported that despite rising interest rates, inflation and the threat of a recession, consumers still confidently spent in 2023. This year however, consumers are carefully prioritising resources – with many people worldwide now looking for more deals and discounts to carefully balance their household budgets. Technology is also playing a bigger role in bringing innovation and efficiency to retailers and consumers, reflecting a more concerted shift towards a customer-centric and digitally driven retail landscape.
“Don't blink was my pennies worth at our trends check in November 2023,” said Mike Smollan, Chief Growth Officer, Smollan. “We've seen the rapid changes this year, from powerful tactical retail that has global brands amping up the flavour and integration experience for consumers. To local shifts in South Africa for example, with 61% of Gen Zs finding their feet and telling us via a recent Trade Intelligence report, that social media influencers are their best source of information when it comes to shopping. It's about meeting consumers wherever, whenever, and however they prefer to shop, and being cognisant of and embracing the shift to empowered consumerism.”
Global retail examples always provide a relevant yardstick to illustrate these shifting dynamics on a larger scale. Take Walmart for example who despite relatively little store growth, has maintained its number one ranking with a robust online marketplace and a range of new financial resources for shoppers. Costco expanded its warehouse format this year to a range of countries while Ikea is reinventing, by opening smaller-format stores around the world.
So too, the ecommerce world continues to baffle the brain – with relative newbie Temu topping US$5 billion in sales in 2023, just one year after they launched. With Statista reporting that their app has been downloaded over 52 million times as of May this year.
A wild ride and evolving storyline as we watch the disruption of this sector.
Closer to home, Shoprite South Africa (SA) have adapted in 2024 to serve customers who want more promotions, combo deals and collective buying. They also noted that their customers are switching to private labels. Furthermore, they have expanded their premium stores and on-demand delivery services, as well as venturing into mobile services and financial offerings. On the ecommerce front Tech Safari, reporting on Amazon's entry into SA in May this year, have suggested a possible pricing war benefitting consumers with faster deliveries, more products and better support. This space in the spotlight from now until year end and beyond, with competition on the up as Takealot, in response to Amazon's entry, launched a free delivery service with a monthly subscription.
At A Glance | Four Trends
Accelerated ways to enable retailers to anticipate, experiment, adapt and satisfy consumers, even before they are aware of them, will be the golden thread. With Forbes identifying four evolving trends for the second half of the year:
Sustainability
Customers want organisations to step up and show proof of their eco stance however they have “green fatigue” and are quickly on the scent of businesses that are simply ‘greenwashing'.
AI
This is constantly evolving and retailers need to use AI to improve efficiencies and processes, and balance this with a human touch.
Personalised Communication
Consumers want messages tailored to them and their purchasing behaviour and not to be bombarded with general marketing messages. Shifting tactics from purely transactional to empathetic.
Social Commerce
CRM Essentials showed that 37% of consumers trust influencers more than brands. This year social commerce and creator economies present a perfect symbiotic relationship as brands are now more focused on telling stories on social platforms that conclude with a commerce moment.
Distributed by APO Group on behalf of Smollan.
Nedbank commits to helping SA youth go from short-term savings to long-term investment success
Youth Month in South Africa is a time to recognise the immense value and importance of the country’s young people in shaping its future. As we celebrate the youth’s potential and aspirations, it is crucial to recommit to supporting them in achieving their dreams and goals. Savings and investments are key ways for our country’s …
Loan defaults down for young South Africans, but access still a hurdle – Experian Report
As South Africa commemorates Youth Day, the spotlight falls on the financial health of young consumers and their ability to leverage credit as a tool for empowerment. Experian’s Consumer Default Index (CDIx) for Q1 2024 reveals a complex picture for young South Africans, highlighting the need for both increased access to responsible credit and enhanced …
Civil Society Organizations Launch “Principles for a Fair JETP” Framework Ahead of the Group of Seven (G7) Leaders Summit
On Monday, 10 June, a coalition of Civil Society Organizations (CSOs) from South Africa, Indonesia, Vietnam, and Senegal presented the “Principles for a Fair Just Energy Transition Partnership (JETP)” (https://apo-opa.co/45iTydE) during a virtual press conference launch ahead of the G7 Summit proceedings starting on June 13th. These guiding principles for global just transitions highlight the integral need for accountability, transparency, equity, and other principles in climate finance towards addressing the urgent climate crisis, from the perspective of the Global South communities and civil society in line to receive JETP finance.
The JETP deals announced in South Africa, Indonesia, Vietnam, and Senegal underscore the necessity for finance in combating the climate crisis. As discussions around COP29 in November begin to take shape, robust commitments to principled climate finance are deemed essential for the world's climate response. Despite finally meeting the USD$100 billion annual goal, developed countries are seemingly in favour of placing higher interest rates and restrictive conditions on their investments.This course of climate finance may ultimately hinder effective climate action in developing nations and increase their debt burden. Civil society voices urge G7 leaders and developed nations, as major polluters, to commit to creating a sustainable energy future through just climate finance deals.
Collectively developed by 350Africa.org, 350.org Indonesia, Trend Asia, Nu Climate Movement, Enviro Vito, Good Governance Africa, Lumière Synergie Développement (LSD) and Action Solidaire International (ASI), through sharing knowledge and experiences, these Global JETP Principles (https://apo-opa.co/45iTydE) call for climate justice and affirm the aspirations of CSOs in recipient countries for enduring climate solutions. They aim to serve as an advocacy and capacity-building tool, bringing together civil society and grassroots communities to advocate for fair and ambitious climate finance that is responsive to the realities of developing countries.
JETPs recognize the need for resources to transform energy systems and support developing countries. Expensive access to finance traps these nations in debt, limiting climate investments and necessitating a reevaluation of climate finance delivery. Collaboration among CSOs in the global south is vital to challenge the top-down approach. Principles developed by recipient countries, facilitated by civil society, are essential for accountability and asserting local aspirations in the energy transition.
Alia Kajee, Public Finance Campaigner at 350.org “Finance is not neutral; it can support transformative aspirations or perpetuate injustices under the guise of environmental progress. The current international financial system reveals significant power imbalances between developed and developing nations, which must be addressed to achieve just, people-centered climate action”.
Ndeye Fatou Sy, Program Manager at Lumière Synergie Développement (LSD) "Finance ministers must prioritize funding mechanisms aligned with justice objectives to avoid undue strain on national economies, while ensuring greater transparency and accountability within JETPs. These partnerships, guided by principles ensuring efficacy and impact, are critical for driving effective climate action."
Andreas Sieber, Associate Director of Policy and Campaigns at 350.org "A principled approach to finance is vital for navigating the global climate finance landscape, ensuring equitable and effective solutions. Initiatives like JETP highlight the need for just transitions, but aligning them with national climate finance direction and unlocking public finance, particularly in the Global South, is crucial. It is crucial that G7 member states demonstrate willingness to deliver finance at COP29."
Maureen Harris, Senior Advisor at International Rivers and coordinator of the Vietnam Climate Defenders Coalition
"In Vietnam, the government has committed to a just energy transition and signed up for a JETP, while at the same time imprisoning the country's leading climate defenders. Targeted attacks on climate leaders and environmental organizations severely limit genuine opportunities for consultation with civil society, which are essential to any just transition. To meet the urgency of the climate crisis, energy transition financing must center principles of transparency, participation and accountability, towards truly just and sustainable solutions.”
Liangyi Chang, Asia Managing Director at 350.org “In the scorching grip of the 2024 climate heat wave, Asia bears witness to the harsh reality of climate change. As temperatures soar and ecosystems strain, the urgency of transitioning to renewable energy becomes ever more apparent. Every climate leader from civil society shall be part of the Just Energy Transition Partnership from all governments, only together we can make it possible and to solve the climate disruption."
Distributed by APO Group on behalf of 350.org.
Notes for Editors:
For more information about the JETP work, please visit the webpage (https://apo-opa.co/45iTydE). The Global Principles and panelists information are also available here (https://apo-opa.co/3x0CRat).
For interviews and additional information contact:
350Africa.org
Anna Amar
Email: anna.amar@350.org
Navigating Economic Challenges with Precision: Insights from Cloud Accounting Expert Damian Baker
In light of the ongoing economic challenges faced by South African consumers, including the cost of living crisis, persistent inflation, and high interest rates, Damian Baker, Head of Cloud Accounting at financial consultancy firm Outsourced CFO, shares vital strategies for navigating these turbulent times. With the South African Reserve Bank maintaining a cautious stance on …