Latest news with #R154
Daily Maverick
5 days ago
- Business
- Daily Maverick
Choc to the system — sweet treats under siege as cocoa prices soar globally
Climate shocks, crop disease and a global supply shortage are resulting in South Africans paying up to 40% more for their favourite chocolate bars and slabs. World Chocolate Day was celebrated annually in the first week of July, but this year there wasn't much to be merry about. In May, global cocoa prices hit R197,500 per tonne. From R154,000 in July 2024, it has been a relentless upwards march and it's hitting South Africans' wallets. And, if that Aero or Bar One feels lighter lately, it's because the world has entered an unprecedented era of chocflation. Ghana and Ivory Coast together produce the lion's share of the world's cocoa. Extreme weather and crop diseases have hit these producing regions exceptionally hard over the past five years. 'The increased variability of seasonal rainfall in the producing areas of the world due to climate change has threatened the viability of cocoa production,' says FNB senior agricultural economist Paul Makube. Cocoa trees need temperatures of between 20℃ and 30℃ and just the right amount of rainfall to grow, Makube explains, but droughts are becoming more frequent and farmers are being forced to adapt or abandon their crops. In addition to climate extremes, crop diseases are decimating harvests. Makube says the cocoa swollen shoot virus has been causing disease that has cut about 17% of Ghana's annual cocoa output over the past few years. Other disease threats that have adversely affected production include witches' broom, frost pod rot and black pod rot, says Thabile Nkunjana, senior economist at the National Agricultural Marketing Council. 'The production, yields and quality of cocoa have all been significantly impacted by these factors and consequently prices have risen sharply in recent years,' Nkunjana says. The numbers are eye-watering. As of June, cocoa hit R215/kg – the highest since the World Bank began tracking prices in 1960, Nkunjana says. In 2023 it was just R66/kg. The International Cocoa Organisation now predicts a global supply shortfall of nearly 500,000 metric tonnes for the 2023/24 season. Nevertheless, the global production outlook remains optimistic, Makube says, although demand prospects are worsening because of 'the uncertainty regarding potential inflationary pressures emanating from the US tariff onslaught'. Global squeeze, local crunch The shock is rippling across the globe and down to the local supermarket. In 2016, a chocolate slab in South Africa would have cost an average of R13.27, according to Statistics South Africa. Today, the price of a Dairy Milk slab ranges from R20 to R50, depending on where one shops. Data from consultancy group Eighty20 shows double-digit inflation on chocolate prices almost every year since 2020, far outpacing the overall consumer inflation rate. Since December 2021, the price of chocolate bars has shot up 40%. Spar is 'closely monitoring the global cocoa supply challenges and the resulting price increases in chocolate products', says Gerhard Ackermann, national merchandise executive at the Spar Group. The retailer is trying to cushion the blow with value promotions and proactive stock management. Pick n Pay says it 'always works to deliver the most affordable prices' while ensuring shelves stay stocked. South African chocolatiers are also recalibrating to weather the cocoa price storm. For Beyers Chocolates, a family-owned company that has been making chocolates since 1987, the steep rise has posed many challenges, says its marketing lead, Susan Krause. The company has responded with 'long-term supplier partnerships, smarter procurement planning and operational efficiencies across the value chain', Krause says. By keeping production local, it has been able to soften some of the cost hikes. At luxury craft chocolate maker Afrikoa, which sources its beans from farmers in Tanzania, the sustained increase in prices has heavily influenced cost, even though direct trade has helped the company to absorb 'some volatility', according to head chocolatier Kyle Hickman. Afrikoa has had to become 'more agile in production planning, prioritising efficiency and minimising waste', Hickman says. But he notes a silver lining in that 'informed consumers increasingly value the kind of responsible production that Afrikoa represents', which strengthens the company's brand story despite price sensitivity. Honest Chocolate cofounder Anthony Gird says the rise in cocoa prices, especially over the past two years, has led the company to 'do a price increase just to keep up' earlier this year. He is hoping it won't have to happen again soon, as the cocoa price hasn't risen significantly since Honest Chocolate's last bean consignment purchase. The company's clientele, Gird says, are understanding. 'People who buy our chocolate understand the value in the quality and ethics of the product.' Even global brands like Nestlé are trying to manage the chocflation. The company's 'Africa for Africa' model is focused on local sourcing and production and is tightening operations to manage costs, says Conny Sethaelo, communications director at Nestlé's east and southern Africa region (ESAR). 'This helps us maintain relevance and trust, even in challenging economic conditions,' she says. Laboratory-crafted luxury While traditional cocoa producers and users fight high prices, some scientists are bypassing the pod entirely. Using plant cell cultures in vats of sugary water, researchers are growing cocoa in labs. But not everyone is excited by the science. 'We respect the innovation behind lab-grown alternatives, but our brand is firmly rooted in celebrating the authenticity of African-grown cocoa,' Hickman says. Gird echoes this sentiment and says Honest Chocolate won't be considering lab-grown cocoa in the near future. 'If cocoa supplies dry up to the extent that it becomes needed, then we would be open to giving it a try.' Krause says Beyers Chocolates is 'keeping an eye on global innovations in the category' and is open to sustainable practices that fit its values. Nestlé, on the other hand, is more focused on soil. 'Nestlé ESAR is investing in regenerative agriculture, traceable technologies and community-based farming models,' Sethaelo says. Climate change is hitting cocoa farming hard and Nkunjana notes that Africa is especially vulnerable. 'Policies that lower the danger of climate change and protect farmers from losses should be given regional priority,' he says. These policies will encourage farmers to grow their cocoa production and improve production as a result. Makube sees a way through: a mix of infrastructure upgrades, financial access for farmers, sustainable agroforestry and public-private partnerships. 'The world needs to think about close substitutes for food or food commodities in general in light of the difficulties cocoa is facing,' Nkunjana warns. 'This will ensure that there is a steady supply of food and protect consumers from price shocks.' Despite the crunch, the nation's sweet tooth is undeterred. More than half of adult South Africans have eaten some form of chocolate in the past month, Eighty20's data shows. Bar One, Lunch Bar, Aero, Black Cat and KitKat remain at the top of the sugar-fuelled food chain. Even the viral Dubai chocolate phenomenon, which debuted at an astronomical price point of R1,000 last year, has found a niche, with R400 versions now for sale at Dis-Chem.
IOL News
01-07-2025
- Business
- IOL News
Minister Groenewald wants Correctional Services back in state security structures
Correctional Services Minister Pieter Groenewald says his department is doing its level best to explore alternative revenue streams to not to be solely reliant on the fiscus while they face real and pressing financial and operational constraints. Image: Armand Hough / Independent Newspapers Correctional Services Minister Pieter Gronewald has formally requested President Cyril Ramaphosa to give consideration to restoring his department in the state security governance structures. Groenewald said should his request be granted, this would yield more appropriate budget alignment with the department's core security and enhanced access to critical intelligence and security technologies, among other things. 'We currently face numerous regulatory obstacles, which result in the department not being able to utilise signal jammers or intercept communication. If we succeed with being restored to a state security structure, it will greatly assist in the fight against organised criminal activities which are taking place in our correctional facilities,' he said. He made the statement when he tabled the department's R29 billion budget in the National Assembly. Groenewald also said his department was doing its level best to explore alternative revenue streams to not to be solely reliant on the fiscus while they face real and pressing financial and operational constraints. 'The capital budget shortfall of R222 million undermines our ability to conduct infrastructure upgrades and critical maintenance. The escalating cost of food, fueled by inflation and the growing number of inmates, including a sharp increase in foreign nationals, adds another layer of financial strain,' he said. 'We are also hamstrung by above-Consumer Price Index increases in municipal tariffs, particularly for electricity, water, and sanitation. Fixed costs linked to our Public-Private Partnership (PPP) correctional facilities leave no room for reprioritisation, and the devolution of maintenance responsibilities from the Department of Public Works and Infrastructure, without corresponding budget support, has created a funding gap of R154 million.' Groenewald added that their digital transformation agenda was also under threat as infrastructure modernisation was both urgent and underfunded. 'The planned recruitment of over 9,000 security officials, which would significantly improve safety and supervision in our centres, also remains underfunded. However, we continue to engage with National Treasury and remain steadfast in our pursuit of sustainable solutions.' The minister urged departments to consider fulfilling their furniture and related supply needs through the Department of Correctional Services. 'This request is both legally supported and aligned with the broader goals of government cost-efficiency, skills development, and rehabilitation." Groenewald told the MPs that the department was actively working on reviewing the parole system. 'It is a moral imperative that this administration finalises the review in the interest of all. We still see too many headlines and reports concerning parolees causing harm to our communities. An excessive number of medium to high-risk offenders are being recommended for parole. Once again, we must not allow the citizens of South Africa to bear the burden of this risk.' He lamented the problem of more than 60,000 remand detainees in prisons, which pushed the number of beds needed to 166,000. 'Currently, we have sufficient bed space for all sentenced offenders. With 107,067 bed spaces, the 104,550 sentenced inmates are accommodated.' He said the remand detainees were a significant contributor to the prisons' overcrowding. 'At present, 2,530 remand detainees remain in custody simply because they cannot afford bail set at R1,000 or less, despite having been granted bail by our courts.' He welcomed the pilot launch of an independent Bail Fund, an initiative that will advance bail only for those who have already been deemed eligible by the courts. Groenewald noted with concern the cost-drivers that were linked to foreign national offenders. 'The South African taxpayer foots the bill for just over 24,000 foreign nationals. Calculated at R463 per day, this results in an expense of R11,112 000 per day. We are currently exploring various solutions, including diplomatic approaches.'
IOL News
26-06-2025
- Health
- IOL News
KwaZulu-Natal to launch its first dedicated XDR-TB facility to combat drug-resistant tuberculosis
KwaZulu-Natal Public Works and Infrastructure MEC Martin Meyer, with brown pants in the centre, during the oversight visit to inspect the progress at the XDR-TB facility under construction inside the King Dinuzulu Hospital in Durban on Thursday. Image: Willem Phungula KwaZulu-Natal will have its first dedicated extensively drug-resistant tuberculosis facility (XDR-TB). This was revealed by Public Works and Infrastructure MEC Martin Meyer during his inspection of the construction site of the facility inside King Dinuzulu Hospital on Thursday morning. The MEC said the R154 million facility will be the first one dedicated to the disease, which is among the top killer diseases in the country. Meyer said the construction of the facility will free up a lot of space in the hospital, which it had to use to accommodate TB patients since it did not have a dedicated facility for them. 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 ✕ 'I am happy that the province will have a dedicated XDR-TB facility, which will cater to more patients from all over. This is a fulfillment of my responsibility as the Public Works MEC to ensure that the public gets quality health care in our province by providing necessary facilities in our hospitals,' said the MEC. The facility is a referral for all hospitals in the province, and once completed, it will have all the necessary equipment to ensure quality treatment for TB patients. The hospital's Acting CEO, Tumelo Mabesa, said there was a great demand for the facility since the hospital is the only one in the province that can treat XDR-TB. He said that because of the growing number of XDR patients, he was forced to use the pharmacy space and other facilities to treat these patients.
The Citizen
26-05-2025
- Business
- The Citizen
Here's how much the Sassa CEO earns
Unlike private sector executives, the Sassa CEO has not received any performance bonuses during the 2023–24 or 2024–25 financial years. The Minister of Social Development, Nokuzola Tolashe, has revealed detailed information about the remuneration package of the Chief Executive Officer of the South African Social Security Agency (Sassa), which operates under her department. The Sassa CEO earns an annual package of R2.65 million, exceeding the prescribed salary band for director-general-level positions by over R100,000. Tolashe recently revealed the compensation details in response to a parliamentary question from DA MP Thamsanqa Bhekokwakhe Mabhena, who requested information about executive remuneration across entities reporting to her department. Social development executive compensation structure The Sassa CEO, appointed in 2019, earns a monthly basic salary of R154,583.33. Tolashe explained that the executive receives 'additional compensation payable to heads of department, which is 10% non-pensionable allowance in line with Clause 9.1 of Chapter One(1) of the SMS Handbook (amended in April 2003).' The package significantly surpasses the standard salary band of R2,259,984 to R2,545,854 applicable to salary level sixteen positions at the director-general level. Tolashe noted that 'the salary package offered by the Department of Social Development (DSD) to the CEO which she accepted in 2019; was compared and matched with the salary package she (the CEO) stated; she was receiving from her previous employer; this being in line with Regulation 44 (3) (d) of the Public Service Regulations,2016; as amended.' ALSO READ: Here's what some of South Africa's SOE bosses earn Sassa CEO hot seat Busisiwe Mamela joined Sassa from Postbank as CEO in 2019. She was suspended last year, reportedly on full pay, amid an investigation into her appointment. According to Tolashe, Memela's precautionary suspension was due to issues raised by the Public Protector. ALSO READ: 'Myriad of serious issues' – Why Sassa CEO Memela-Khambula has been suspended Themba Matlou was later appointed as the acting CEO. A job listing for the position of CEO was advertised this year, with suspicion that Memela may have been dismissed. Speaking to The Citizen, the department said the position was advertised in preparation for the end of Memela's term. The department also refused to comment on the outcome of the investigation. Performance bonuses discontinued Unlike private-sector executives, the Sassa CEO did not receive performance bonuses during the 2023-24 or 2024-25 financial years. Tolashe confirmed that 'no performance bonus (once-off) was paid to the CEO because the payment of performance bonus to public servants was discontinued in 2021/22 FY, per DPSA circular number 01 of 2019, which circular is applicable to Sassa.' However, the CEO does receive an annual service bonus equivalent to a thirteenth cheque worth R154,583.33, paid each November. This benefit applies universally across the public service as 'a transversal service benefit applicable to all employees in the organisation, and the public service.' ALSO READ: Social development didn't fill all its vacancies — Here's why Regulatory framework The minister emphasised that executive remuneration at Sassa operates under specific legislative requirements. 'Section 7(2) (b) of the Sassa Act (Act No. 9 of 2004) states that 'The Minister for the Public Service & Administration (DPSA) in consultation with the Minister of Social Development and the Minister of Finance; must determine the remuneration and conditions of service of the Chief Executive Officer and the other members of the staff of the Agency',' Tolashe stated. Comparative compensation The National Development Agency (NDA), another entity under the department's oversight, pays its acting CEO R2,646,522.52 annually through a total cost-to-company package. This structure allows employees to customise their benefits allocation based on individual needs. Like Sassa, the NDA has not paid performance bonuses since the 2019 DPSA circular, which discontinued such payments across the public service. Sassa social grant increases for 2025 Child support grants will increase from R530 to R560, and grant-in-aid will receive an identical increase. Beyond executive compensation, the department oversees significant social spending through various grant programs. National Treasury's 2025 Budget Overview confirmed increases across multiple social grants, though the Social Relief of Distress grant remains unchanged. The old age grant will increase from R2,185 to R2,315, while the war veterans grant will increase from R2,205 to R2,335. Disability grants will climb from R2,185 to R2,315, and foster care grants will increase from R1,180 to R1,250. The care dependency grant matches the disability grant increase, moving from R2,185 to R2,315. ALSO READ: Sassa grant increases and SRD extension in 'Budget 3.0': What you need to know SRD grant extension Finance Minister Enoch Godongwana announced during his Budget Speech that 'the temporary Covid-19 SRD grant will be extended until 31 March 2026, with R35.2 billion allocated to maintain the current R370 per month per beneficiary, including administration costs.' Godongwana indicated government is 'actively exploring various options to better integrate' the SRD grant with employment opportunities. 'This includes considering a job-seeker allowance and other measures, as part of the review of Active Labour Market Programmes. 'Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,' he said. ALSO READ: Sassa offices 'reach capacity for the day'? We have no policy to turn people away, says agency Sassa beneficiary statistics Sassa manages grants for approximately 19.2 million beneficiaries, distributed across various programs. This amount is distributed among the beneficiaries as follows: The child support grant serves the largest population with 13.1 million recipients, Followed by 4.1 million old age grant beneficiaries and 1.05 million disability grant recipients. Smaller programs include: 515,553 grant-in-aid recipients, 213,425 foster care beneficiaries, 172,459 care dependency beneficiaries, and seven war veterans receiving grants. Meanwhile, the SRD grant, operating in its fifth cycle since the Covid-19 lockdown in 2020, currently assists approximately 9.2 million. The number includes all eligible South Africans, refugees, and asylum seekers. Treasury projects that social grant beneficiaries, excluding SRD recipients, will reach 19.3 million people by March 2028, with the grants budget increasing by R1.6 billion in the 2025-26 financial year. NOW READ: Early pay in May: Good news for Sassa SRD grant beneficiaries
