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IOL News
2 days ago
- Business
- IOL News
Stella Ndabeni unveils R2. 9 billion budget to empower small businesses
Small Business Development Minister Stella Ndabeni has outlined several financing package schemes to fund Micro, Small, and Medium Enterprises in the 2025/26 financial year Image: Simphiwe Mbokazi / Independent Newspapers Small Business Development Minister Stella Ndabeni on Friday tabled in the National Assembly her department's R2.9 billion budget for the 2025/26 financial year. Speaking during the budget vote debate, Ndabeni said the budget reflected their unwavering commitment to the spirit of the Freedom Charter. 'We are building a more inclusive economy that enables youth, women, and communities in townships and rural areas to participate meaningfully in shaping South Africa's future through Micro, Small, and Medium Enterprise (MSME) development,' she said. Ndabeni also said R2.4 billion of the budget will be transfers and subsidies to the department's entities, while the remaining R468 million was meant for compensation of employees at R265 million, R197 million for goods and services, and R6 million in capital expenditure. 'Of the R2.45 billion for transfers and subsidies, the Small Enterprise Development and Finance Agency (SEDFA) receives R1.908 billion (77.9% of the transfers and subsidies). The department manages the remaining R542.6 million, accounting for 22.1% of the total transfers.' 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 ✕ The minister said the department has allocated just R990m in entrepreneurship finance packages to the Development Fund, which is meant for new entrants and higher risk borrowers, and R330m to the Commercial Fund for the growth-ready MSMEs. 'We will launch a new Youth Entrepreneurship Fund, initially capitalised at R300m. This fund is aimed at harnessing the creativity and innovation of our younger generation to contribute to the country's growth through entrepreneurial ventures,' she said. 'We will launch the new Women Entrepreneurship Fund, also initially capitalised at R300 million, to enable more women to be self-employed as entrepreneurs and small business owners.' Ndabeni added that R979m in credit guarantees will be allocated for small enterprise borrowers. 'These credit guarantees remain an important part of our offerings, leveraging banks and non-bank financial institutions to take on MSME borrowers that are above their ordinary risk tolerance.' On township and rural economy development, Ndabeni said they will build 50 small business hubs for entrepreneurs and MSMEs in each district. 'Aligned to local industrialisation opportunities, these will be spread across the townships and rural areas, and will integrate the financial and non-financial services we offer as a portfolio. 'We will also refurbish small industrial parks in four provinces - North West, Mpumalanga, Eastern Cape and Northern Cape,' she said. Ndabeni also said digital transformation of small businesses will be at the centre, as township and rural enterprises often struggle to get access to reliable and affordable broadband services. 'Through SEDFA and as part of our mandate to finance small businesses, we will support 50 internet service providers across 50 districts to provide the necessary affordable, quality broadband to small enterprises and communities in rural areas. 'This intervention will not only deliver affordable broadband to small enterprises and communities, but will bring ownership of telecommunications infrastructure to people who have never owned such infrastructure before and create jobs for the youth.' The department will also support two cellphone repair centres in 50 districts. 'We have budgeted R958.7 million over the Medium-Term Expenditure Framework (MTEF), and R310.8 million for 2025/26. SEDFA will also contribute R253 million over the MTEF.' According to Ndabeni, a total of R543m has been allocated for the Township and Rural Entrepreneurship Programme to empower local businesses in order to drive economic growth and job creation in historically disadvantaged areas.
IOL News
10-06-2025
- Business
- IOL News
Strong annual performance for Premier Group despite consumer spending pressures
Premier Group, with brands Blue Ribbon, Snowflake, Dove, among others, produced strong results the year ended March 31, 2025 despite consumer spend still being under pressure. Premier Group, a leading consumer packaged goods company with brands Blue Ribbon, Snowflake, Dove, among others, produced strong results the year ended March 31, 2025 despite consumer spend still being under pressure. At a macro level, despite the successful transition to a Government of National Unity and inflation moderating to below the middle of the target range, high interest rates, volatile soft commodity prices and low economic growth continue to besiege the consumer. Despite this, shareholders got a final gross dividend of 271 cents per share up, up 23% from the prior year. The market welcomed the results, with Premier's share on Tuesday afternoon rising 2.95% to R137.39 on the JSE. Revenue increased by 7.0% to R19.9 billion, supported by revenue growth in both the Millbake and the Groceries and International divisions of 5.7% and 13.3%, respectively. Earnings per share increased by 31.0% to 936 cents and headline earnings per share increased by 26.8% to 943 cents, when compared to last year. "Through meticulous margin management and efficiencies, as well as a commitment to producing quality products at the lowest cost, moderate revenue growth has been leveraged into meaningful improvement in operational earnings," it said. Ebitda increased by 14.7% to R2.4 billion. Millbake Ebitda grew by 14.7%, while the Groceries and International Ebitda grew by 9.2%. The Group's Ebitda margin improved by 80 basis points to 11.8% compared to the prior year level of 11.0%. Operating profit increased by 16.9% to R1.9bn. The operating profit margin improved by 80 basis points to 9.6% when compared to last year. Net finance costs decreased by 16.7% to R306 million, the result of debt repayments made on borrowings and the reduction of interest rates post the refinancing of the syndicated debt facilities during the year. Cash generated from operations was in line with the prior year, at R2.4bn, enabled by growth in Ebitda and supported by disciplined working capital management. Looking at various divisions, Premier said the Millbake division achieved a "stellar set of results", displaying resilience despite a challenging economic environment. Revenue increased by 5.7% to R16.4 billion and Ebitda increased by 14.7% to R2.3bn. A good performance was achieved in the Groceries and International division. The division's revenue increased by 13.3% to R3.5bn and Ebitda increased by 9.2% to R233 million. The Home and Personal Care (HPC) category had "a pleasing year". The additional capacity installed in tampon manufacturing and packaging has enabled improved service levels, contributing to volume gains in the local business. The HPC supply chain strategy, focused on becoming the best cost manufacturer to drive market share and brand equity, is gaining traction, Premier said. Meanwhile, Sugar Confectionery's performance experienced some disruptions during the year which impacted service levels. "The new private label contracts and product launches continue to gain momentum and the new liquorice line, commissioned in December 2024, will add exciting new product ranges to the confectionery offering. The first phase of site consolidations has been completed, which is anticipated to enhance efficiencies between the two sugar confectionery sites," it said. Looking ahead, Premier said moderate revenue growth is anticipated for the most part of 2026 driven by substantial declines in maize input prices and subdued global wheat prices. Maize prices are expected to soften by mid-2025, Premier said will enable it to pass through cost savings to burdened consumers. It also warned that local food inflation will be impacted in 2025 by Eskom tariff hikes and failing water infrastructure mitigation. Meanwhile, the two-year capital project to refurbish the Aeroton bakery to the standards of Premier's coastalsites and the mega-bakery in Tshwane is expected to further enhance efficiencies and step change bread quality in the inland region. The Aeroton bakery will replace the capacity of three small-scale, older generation bakeries in the region. Investments in the HPC factory, scheduled for commissioning during the first half of 2026, are expected to further improve efficiencies and economies of scale. BUSINESS REPORT
IOL News
22-05-2025
- Business
- IOL News
Pick n Pay predicts significant recovery in headline loss per share
Pick n Pay Retail giant Pick n Pay reported an improvement in headline losses per share for the 52-week period to end February 2025, but its core store segment was still reporting trading losses.. Image: Supplied. Pick n Pay Stores' share price soared nearly 5% on Tuesday, after it predicted that its headline loss per share (HLPS) would improve by between 55% and 75% for the 52-week trading to February 25, which is indicative of its turnaround strategy starting to take effect. The HLPS for the major grocery store group that struck financial difficulties during the past two years would be between -77.49 cents and -43.05 cents for the period, compared with the HLPS of -172.21 in the same period last year. The share was trading at R27.43 late afternoon Thursday, 4.89% higher than the opening price, but sharply down from R53.85 three years ago, as the share price followed the declining financial performance of the group. Pick n Pay management said in a trading statement that the reduced losses at the HLPS level were due to better trading profit in its Pick n Pay stores, lower second-half interest charges due to the successful implementation of a two-step recapitalisation plan, and trading profit growth in the majority-held subsidiary, Boxer Retail, which listed on the JSE recently. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading There was a substantial reduction in impairments, declining to less than R500 million in the 2025 financial year from R2.4 billion in 2024. 'While the guided result signals a very meaningful 2025 earnings recovery, the group continues to incur a loss within the Pick n Pay segment on a trading profit after lease interest basis, and the group cautions that this is likely to remain the case for some time,' Pick n Pay's management said. The annual results are due to be released on Monday. Visit:
TimesLIVE
21-05-2025
- Business
- TimesLIVE
We need to put our fiscal house in order: D-G Duncan Pieterse
Despite an underperforming economy and having this year's budget challenged twice from within the same cabinet in which he serves, finance minister Enoch Godongwana still has his real GDP growth projection on the upside for the medium-term. In his budget overview, he estimates South Africa's real GDP growth to be 1.4% in 2025, 1.6% in 2026 and 1.8% in 2027. This despite the International Monetary Fund (IMF) recently slashing South Africa's GDP growth outlook to 1%. It must be noted, as Godongwana told parliament in March, that the National Treasury's domestic GDP growth figures have consistently outperformed external estimations . In the foreword to the latest budget overview, Treasury director-general Duncan Pieterse said the budget was being tabled in a difficult international environment, characterised by trade volatility and policy uncertainty. 'As global growth has faltered, South Africa's economic outlook has also weakened, with GDP expected to grow by only 1.4% in 2025. Global risk and economic weakness reinforce the need for us to put our fiscal house in order.' Pieterse said South Africa's fiscal strategy remained on course so the government could 'spend less on debt-service costs and more on critical public services'. The government still planned to stabilise debt in 2025/26 at 77.4% of GDP and Pieterse said signs of progress were already emerging. 'For the first time since the 2000s, government is consistently running a primary surplus, where revenue exceeds non-interest expenditure. In time, this growing surplus will reduce rising debt-service costs. 'These costs will consume 22c of every rand collected in revenue in 2025/26 — money that could be better spent to build fiscal shock absorbers and fund health, education and security. Structural reforms are laying the foundation for future prosperity.' He said transformative changes would make it easier for the state and private sector to invest in the critical infrastructure needed to build the economy and create much-needed jobs. 'Yet success hinges largely on a willingness to act on all roadblocks that stifle investment. This budget projects consolidated spending growth averaging 5.4% annually, from R2.4- trillion in 2024/25 to R2.81-trillion in 2027/28.' The director-general said revisions to the March 2025 budget review projections reduce anticipated revenue and spending, but departments largely retain their baselines and critical service delivery areas are protected. 'Major reforms to state spending and the budget process are also under consideration. Public spending is inefficient. Previous spending reviews have identified tens of billions of rand in potential savings from poorly performing programmes that can be redirected in future budgets.'
IOL News
18-05-2025
- Business
- IOL News
Tshwane's 2025/2026 budget: A risky reliance on property tax revenue
The Freedom Front Plus expressed concerns about City of Tshwane's 2025/2026 budget, citing its dependence on property tax revenue and potential financial risks. Image: Jacques Naude/Independent Newspapers The Freedom Front Plus has warned that the City of Tshwane's fully-funded budget for the 2025/2026 financial year relies heavily on increased property tax revenue, making its funding status more of an assumption than a certainty. Deputy Mayor Eugene Modise last week presented a R54.6 billion budget, comprising a R2.4 billion capital budget and a R52.2 billion operational budget, describing it as pro-poor and focused on service delivery. The multiparty coalition partners in Tshwane, including the ANC, EFF, and ActionSA, praised him for presenting a fully funded budget that had been endorsed by National Treasury. 'This is the first fully funded budget since 2022 and represents a significant milestone in our turnaround strategy for Tshwane. It is a clear indication of our coalition commitment to responsible governance, sound financial management and inclusive service delivery to all communities in the City,' the parties said. FF Plus councillor Peter Meijer criticised the funded budget, saying it is primarily based on increased property tax revenue, which has already drawn criticism from the party. 'At this stage, it can only be considered an assumption since the process surrounding the revision of the valuation roll, which determines the increase in property tax collection, has not yet been finalised,' he said. 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 ✕ Meijer noted that the budget speech's mention of settling Eskom debt has been praised, but argued this is simply compliance with a court order, not an actual achievement. 'If the court order is not complied with, it could plunge Tshwane into a financial crisis,' he said. He also said reducing the debtors' book from nearly R30 billion to R25 billion is being touted as a success, attributed to improved revenue recovery and a recent overdue debt write-off scheme. 'However, since no concrete figures have been provided, the question remains whether collection efforts have been successful in comparison to the debt write-off, and what impact this has on cash flow,' he said. He warned that if creditor obligations are not settled, they could undermine any perceived financial progress and limit Tshwane's ability to allocate resources effectively. "Persistent creditor liabilities can also affect investor confidence, as they signal potential liquidity challenges. Without clear strategies for settling these debts while maintaining financial stability, the risk of cash flow shortages increases—making budget sustainability a pressing concern,' he said. Kholofelo Morodi, Member of the Mayoral Committee for Corporate and Shared Services, welcomed the fully-funded budget, highlighting its commitment to critical infrastructure projects that will improve electricity stability, connectivity, and public safety. Morodi, who is a political head for Region 4, said the investment demonstrates a commitment to providing residents with reliable infrastructure that meets their needs. 'Key initiatives such as the Eldoraigne, Olievenhoutbosch, Noordwes, Claudius, and Cornwall Hill Substations, as well as the Louwlardia supply augmentation, play a crucial role in reinforcing our power network,' she said. She added that installing remote terminal units and fibre will enable real-time monitoring and improve service responsiveness, while high-mast lighting will enhance community safety by illuminating public spaces. The multiparty coalition parties said: 'We particularly commend the decision not to rely on borrowing. The positive revision of the City's credit outlook, and the transparent and consultative process followed in arriving at this credible financial plan.'
