Latest news with #VanZyl
IOL News
2 days ago
- Business
- IOL News
What to expect from the South African Reserve Bank's interest rate decision this week
As the SA Reserve Bank prepares for its interest rate decision on July 31, economists discuss the potential for a rate cut and its implications for consumers facing rising food prices and inflation. Image: IOL / AI The prospects of a rate cut ahead of the SA Reserve Bank's (SARB) Monetary Policy Committee's (MPC) next interest rate decision on July 31, appear positive, but it's not a clear-cut case, economists said on Monday. 'The market currently expects a cut in the key repo rate by 25 basis points — which would be the third reduction this year,' said Thys van Zyl, Chief Executive of Everest Wealth Advisory. 'A lower interest rate would bring welcome relief to consumers.' He warned that while headline inflation remains relatively low, food price inflation is now at its highest level in over a year, which poses risks to interest rate expectations as well as consumer spending. Dr Elna Moolman, Standard Bank's group head of macroeconomic research, also believes the current inflation rate supports the case for an imminent interest rate cut, and although she expected inflation to rise over the coming months, it should remain 'reasonably benign'. However, Van Zyl warned that the central bank may be reluctant to cut rates too aggressively if global food and oil prices continue to trend upwards. 'Earlier this year, it was anticipated that the Reserve Bank could cut interest rates one or two more times in 2025," Van Zyl said. "Following the January and May reductions totalling 50 basis points, it's increasingly likely that we'll see only one more cut this year – and perhaps not before year-end.' Uncertainty surrounding the proposed 30% tariffs on South African exports to the US is another factor weighing on the economy, he added, as these could impact export-driven industries such as manufacturing, mining and agriculture. 'This uncertainty, combined with rising inflation, puts policymakers in a difficult position – trying to support growth while also protecting the rand and price stability.' Consumer Price Inflation (CPI) rose to 3% in June, up from 2.8% in May. This was the first time in three months that inflation returned to within the Reserve Bank's 3% to 6% target range. However, CPI remains well below the 5.2% seen this time last year. Food prices remain higher than expected, particularly red meat, after a bout of the foot-and-mouth disease, yet consumer goods inflation remains subdued. Johann Els, chief economist at Old Mutual, said the weak overall pricing pressure in the economy justifies a further 0.25 percentage point interest rate cut this week. ALSO READ: Understanding the impact of rising inflation on SA's interest rates Potentially lower inflation targets later in the year or in 2026 could also jeopardise the interest rate situation for South Africans going forward. South African Reserve Bank (SARB) governor Lesetja Kganyago has strongly advocated for the country to lower its inflation target from 4.5% to 3%. Experts argue that a lower inflation target would improve price stability, reduce borrowing costs, and enhance investor confidence in the long term. However, many feel it would entail some short-term 'pain' for the sake of long-term gain. Yet tightening monetary policy could be a dangerous move in the current economic climate, warns Frederick Mitchell, chief economist at Aluma Capital. 'Conventional wisdom suggests that raising interest rates can curb inflation, yet in the current environment, where inflation remains subdued but economic growth is threatened, tightening monetary policy may exact an economic toll without addressing the underlying trade issues,' Mitchell said. IOL Business
IOL News
2 days ago
- Business
- IOL News
Will South Africans be blessed with another interest rate cut this week?
Inflation data currently supports an interest rate cut, but it's not a clear cut case. Image: AI The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) is set to make its next interest rate decision on Thursday, July 31, and while the prospects of a rate cut appear positive, it's not a clear cut case according to economists. 'The market currently expects a cut in the key repo rate by 25 basis points - which would be the third reduction this year,' said Thys van Zyl, Chief Executive of Everest Wealth Advisory. 'A lower interest rate would bring welcome relief to consumers.' However he warned that while headline inflation remains relatively low, food price inflation is now at its highest level in more than a year, which poses risks for interest rate expectations as well as consumer spending. Consumer Price Inflation (CPI) rose to 3% in June, up from 2.8% in May. This was the first time in three months that inflation returned to within the Reserve Bank's 3% to 6% target range. However, CPI remains well below the 5.2% seen this time last year. Food prices remain higher than expected, particularly red meat thanks to foot-and-mouth disease, yet consumer goods inflation remains subdued. Johann Els, chief economist at Old Mutual, said the weak overall pricing pressure in the economy justifies a further 0.25 percentage point interest rate cut this week. ALSO READ: Understanding the impact of rising inflation on SA's interest rates Dr Elna Moolman, Standard Bank's group head of macroeconomic research, also believes the current inflation rate supports the case for an imminent interest rate cut, and although she expects inflation to rise over the coming months, it should remain 'reasonably benign'. However, Van Zyl warned that the central bank may be reluctant to cut rates too aggressively if global food and oil prices continue to trend upwards. 'Earlier this year, it was anticipated that the Reserve Bank could cut interest rates one or two more times in 2025. Following the January and May reductions totalling 50 basis points, it's increasingly likely that we'll see only one more cut this year – and perhaps not before year-end,' Van Zyl said. Uncertainty surrounding the proposed 30% tariffs on South African exports to the US is another factor weighing on the economy, he added, as these could impact export-driven industries such as manufacturing, mining and agriculture. 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 ✕ ''This uncertainty, combined with rising inflation, puts policymakers in a difficult position – trying to support growth while also protecting the rand and price stability'. Potentially lower inflation targets later in the year or in 2026 could also jeopardise the interest rate situation for South Africans going forward. South African Reserve Bank (SARB) governor Lesetja Kganyago has strongly advocated for the country to lower its inflation target from 4.5% to 3%. Experts argue that a lower inflation target would improve price stability, reduce borrowing costs and enhance investor confidence in the long term. However, many feel it would entail some short term 'pain' for the sake of long-term gain. Yet tightening monetary policy could be a dangerous move in the current economic climate, warns Frederick Mitchell, chief economist at Aluma Capital. 'Conventional wisdom suggests that raising interest rates can curb inflation, yet in the current environment, where inflation remains subdued but economic growth is threatened, tightening monetary policy may exact an economic toll without addressing the underlying trade issues,' Mitchell explained. IOL Business
The Citizen
16-07-2025
- Business
- The Citizen
Fuel station plan sparks Magoebaskloof safety, eco fears
TZANEEN – A proposed fuel station development along the R71 at the Houtbosdorp turnoff in Magoebaskloof has sparked concern among local residents and environmental groups, who fear it could pose risks to both safety and the environment. Despite these objections, developer Makgoba Asset Management (MAM) says the issues have been thoroughly addressed in the project's Environmental Impact Assessment (EIA), which is currently with the Limpopo Department of Economic Development, Environment and Tourism (Ledet) for consideration. A petition opposing the development has been launched on garnering over 1 500 signatures by Tuesday. It will be submitted to Ledet to support objections to the proposed project. MAM is a joint venture between the Makgoba community and agricultural giant ZZ2, operating under a long-term lease agreement with the Mamphoku Makgoba Community Trust (MMCT). The original plan was to renovate a dilapidated fuel station on the Dieplaagte site, near the Makgoba Afrika avocado project at the bottom of the pass. However, in June last year, ZZ2 director BJ van Zyl told the Herald that Sanral rejected that location due to safety concerns over the access road. 'Given the ongoing need for a fuel station in the area, we negotiated with Sanral for an alternative site,' Van Zyl said. The new location will be leased by MAM from property owner Rudi Viljoen of Warriors Academy. It is said the lease terms still have to be negotiated. Concerns raised by local stakeholders, listed as Interested and Affected Parties (IAPs), were highlighted in a post by the Mountain Environmental Watch Facebook group on July 6. The two main objections are environmental risks and traffic safety. Firstly, residents are worried about the nearby Helpmekaar River wetland and the potential for water pollution, which could impact downstream users and threaten endangered species such as the Cape Parrot, posing a risk to the area's eco-tourism appeal. Secondly, the proposed location sits on a blind rise along a bend in the R71, which is already considered a high-accident zone, especially during misty conditions. The development, which includes a 24-hour filling station, would increase traffic at an already dangerous junction. Some access routes would require vehicles to cross the centre line on this bend, further raising safety concerns, the post on Facebook states. However, MAM's project manager, Martin van Veenen, says these objections have been taken seriously and addressed in the EIA. The site's access road has been redesigned to improve safety, he said, adding that many community members have expressed support for the development, though some hesitate to do so publicly due to fear of backlash. According to Van Veenen, about 60 responses were received following the announcement of the development, with several being supportive. 'Our consultants followed the required process closely, and a detailed explanation of the project was presented to residents at a closed meeting in Haenertsburg three months ago,' he told the Herald. Attempts to contact the creator of the petition, listed as Jeff Jeffries, were unsuccessful. It was revealed that the name is a pseudonym used by a local resident living below the proposed development site, allegedly out of fear of intimidation. The petition, titled 'Protect Magoebaskloof – South Africa's Green Gem Under Threat,' remains active on M A K G O B A R E S P O N D Makgoba spokesperson, Thupane Makgoba, says every effort has been made to ensure the development of the fuel station on the R71 in Magoebaskloof complies with regulations and safeguards the environment. 'We understand the concerns, but we want to assure the public that every step is being taken to address them,' said Makgoba. He explained to the Herald that both Sanral and the Roads Agency Limpopo (Ral) had approved the proposed road safety and access solutions. Additionally, he confirmed that a full Environmental Impact Assessment (EIA) was conducted to ensure the project complies with environmental regulations. Responding to concerns about accidents near the proposed site, Makgoba noted that the area has a long-standing history of road incidents. 'Accidents have always happened there. People avoid using George's Valley Road because it hasn't been repaired. I don't believe the fuel station itself would be the cause of any accidents,' he said. He clarified that their role in the development is limited to licencing. 'We are the license holders, like owners, but we won't be running the business,' he told the Herald. Makgoba emphasised that the project goes beyond building infrastructure; it's about creating opportunities. 'This development will bring jobs and essential services to the people of Magoebaskloof. It's not just a fuel station; it's an investment in a sustainable future for the community. And we're not doing this alone, we're partnering with ZZ2.' He added that the final design of the development will follow eco-conscious principles, including landscaping that blends with the area's natural beauty. Makgoba called for continued dialogue with the community to maintain transparency and ensure concerns are addressed as the project progresses. 'We are committed to doing this right, with the community and for the community,' he concluded. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
08-07-2025
- Business
- IOL News
AfriForum blames Ramaphosa for US tariffs on South African exports
AfriForum CEO Kallie Kriel whose lobby group has put the blame on President Cyril Ramaphosa after US announced 30% tariff on imports from South Africa. Image: Supplied Lobby group AfriForum said President Cyril Ramaphosa and the ANC-led Government of National Unity (GNU) are directly responsible for the 30% tariff that US President Donald Trump announced on imports from South Africa. The organisation maintains that Ramaphosa and his government falsely dismissed US concerns as misinformation instead of acknowledging and actively working to resolve them. According to AfriForum, the country is now reaping the bitter consequences of the government's failure to act. The tariff, which takes effect from August 1, was suspended for 90 days to allow for negotiations. However, AfriForum head of public relations Ernst van Zyl, said Ramaphosa's government 'wasted the 90-day grace period and made no progress in resolving the diplomatic crisis with the Trump administration.' 'The civil rights organisation further maintains that those who helped promote the ANC's false narrative and dismissed the highlighting of critical issues in US and South Africa relations as the spread of 'misinformation' are also complicit in this crisis,' Van Zyl said. On Monday night, IOL News reported that South Africa will face a 30% tariff on all exports to the United States beginning August 1, following a formal letter from Trump to Ramaphosa. The letter, dated July 7 and sent on official White House stationery, accuses South Africa of maintaining long-standing trade barriers and contributing to what Trump described as 'unsustainable trade deficits against the United States.' The blanket tariffs will apply to all South African products entering the US and will be implemented outside of any current trade agreements. The announcement follows a wave of similar tariffs imposed on more than a dozen countries in recent weeks, with South Africa among the hardest hit. Van Zyl said AfriForum has repeatedly offered ways for the government to address the issues at the heart of the crisis. 'Instead of cooperating, the government made unfounded allegations against AfriForum and claimed the organization was guilty of spreading misinformation,' he said. 'A desperate investigation for treason has even been launched against AfriForum - all for the 'crime' of pointing out the real issues.' Van Zyl said that since the beginning of the diplomatic fallout, AfriForum has remained committed to finding solutions, but 'addressing these issues will require humility from the ANC-led government and an immediate end to its current approach of denialism.' 'All is not lost, and AfriForum remains committed to helping find a workable solution and will continue to offer assistance to those willing to put the country's interests above party interests,' he said. Van Zyl said the Trump administration gave South Africa and other countries 90 days to resolve the concerns raised. 'While countries like China, Vietnam and the United Kingdom engaged in talks and secured favorable trade deals, South Africa 'adopted an ostrich approach, simply ignoring the issues in the hope they would resolve themselves,' he said. Van Zyl said ignorance is no excuse. He said the Trump administration recently reiterated its conditions for restoring diplomatic relations with South Africa in a meeting with an Afrikaner delegation at the White House. The conditions include prioritising alleged farm attacks and murders as serious crimes, a clear, unconditional condemnation of the 'Kill the Boer' chant by Economic Freedom Fighters leader Julius Malema, no land expropriation without fair, market-related compensation and exemptions for US institutions from all race-based legislation, including Black Economic Empowerment policies. Van Zyl said the problems were 'not insurmountable' and that the solutions proposed by the Trump administration were 'fair, sensible and easily implementable by any government that does not pursue an extremist ideology.' Meanwhile, Democratic Alliance leader and Minister of Agriculture John Steenhuisen said he is deeply concerned about the economic impact of Trump's tariff decision, which could effectively signal the end of the African Growth and Opportunity Act (AGOA). The AGOA provides South Africa duty-free access to the US for more than 6,000 products, including goods in the automotive, agricultural and textile sectors. 'The Democratic Alliance stands in solidarity with every South African business, entrepreneur, farmer, manufacturer, miner and all others who export goods and produce to the United States, who are confronting this news with worry and uncertainty,' Steenhuisen said. 'South Africa has one of the highest unemployment rates in the world,' he said. 'Thousands of farmers, manufacturers and workers' jobs are now at risk. Billions of rands will be lost in export revenue, making this a crippling blow to the economy.' 'Now, more than ever, the ANC needs to accept the fact that South Africa is in need of urgent reforms that will bring about increased economic growth and cushion the job losses that will no doubt follow yesterday's announcement by the US President,' he said. IOL Politics
IOL News
30-06-2025
- Sport
- IOL News
Rising junior tennis star Jahnie van Zyl keen to apply French lessons to KZN series
Rising junior tennis star Jahnie van Zyl is hoping to serve up a strong performance at the Curro Centre Court Series in Hillcrest, in the Upper Highway area of Durban, building on her recent debut performance at Roland Garros. The three-week series, in partnership with Tennis South Africa (TSA), features the men's and women's ITF Pro Tours. It begins with a W15 and M25 event from Monday, followed by a W35 and M15 competition next week, and ends with a W15 and M15 tournament from July 14 to 20. Players from around the globe will be competing for ATP and WTA ranking points and prize money. Van Zyl reached the quarterfinals of two of the weeks last year at Curro Hillcrest. She feels her recent Parisian sojourn in the qualifiers for the Roland Garros Junior Championships has helped her chances this year. 'It was a really amazing experience. I lost in the last round of qualies against a girl from Brazil. It was a tough match but I still learnt a lot,' the 16-year-old said. 'The first-round win was against the number one Australian girl under 16. It was really good win for me. 'It was a nice experience to see all the top women's players in real life, see how they play. I learnt so much from that trip and I'm really grateful that I got the opportunity to play there. 'After the French Open we went to Germany and played a few tournaments there. I lost in the quarter-finals in one of the tournaments and second round in one of the others. "It was still a good experience. I played against good players from around the world.' Danielle Chapman, who reached the round of 16 last year, at the age of 14, returns to the KwaZulu-Natal leg of the Centre Court Series with more match experience under her belt. Curro Hillcrest matric pupil Grace Koenig will also be in action, alongside Van Zyl's 18-year-old Billie Jean King Cup teammate Donna le Roux, who earned her first professional WTA points at last year's event.
