Latest news with #WandileSihlobo
The South African
15-07-2025
- Business
- The South African
South Africa can sip more Brazilian coffee, says expert
Agricultural economist Wandile Sihlobo believes that the rising global coffee prices, driven by poor weather in Vietnam and Brazil and new US tariffs on Brazilian coffee, are reshaping trade dynamics. While American consumers brace for costlier brews, South Africa, which imports nearly 24 000 tonnes of coffee annually (mostly from Brazil and Vietnam), may stand to benefit, according to Sihlobo. Brazil, already the world's top coffee producer, could increase exports to South Africa if it offers better quality and prices. 'I know our domestic tea and coffee producers won't like me saying this,' says Sihlobo. 'But hey, we have a decent demand for coffee (just like we do with other ' substantive beverages ' like whiskies, where we spend over US$300 million on imports annually).' In light of this, The South African website compared coffee prices across 10 of South Africa's most popular coffee chains. The comparison highlights just how much consumers are paying for their caffeine fix. For the comparison, we looked at the price of a 'tall' Americano, Caffe Latte and Cappuccino. Listed in alphabetical company order Company Americano Caffe Latte Cappuccino Bean Tree Cafe R55.50 R49.50 R45 Bootlegger R37 R42 R43 McCafé R27.50 R33.60 R32.30 Mugg & Bean R39 R45 R40 Seattle Coffee Company R30 R33.50 R33.50 Starbucks R38 R45 R45 Vida e Caffè R39 R46 R43 W Cafe R34 R41 R41 Wild Bean Cafe R29.88 R47.88 R45.88 Wimpy R36.90 R44.90 R42.90 NOTE: The prices above were taken from the individual coffee shop and cafe's website or online research and were accurate at the time of publishing. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
15-07-2025
- Business
- IOL News
Limited progress in South Africa's release of government-owned land: what it means for development
A file picture showing a KwaZulu-Natal North Coast sugarcane farm. Beneficiaries of a settled land claim for prime land in KwaDukuza were yet to benefit from the property due to disputes. Image: Karen Sandison/ Independent Newspapers While the release of the government-owned land remains ever more important in South Africa's development, the country has seen very little progress in that regard. Disappointingly, the Department of Land Reform and Rural Development has made limited progress on this matter despite this being one of the central aspects of the agricultural sector's inclusive growth agenda, says Wandile Sihlobo, the chief economist at the Agricultural Business Chamber of South Africa(Agbiz). 'In essence, while we confront many present-day challenges, these long-term reforms of the AAMP and land release must continue for the sector to achieve its inclusive growth aspirations,' Sihlobo said. Delivering the Department of Land Reform and Rural Development Budget Vote Speech last week, Minister Mzwanele Nyhontsho said the overall budget of the Department for the 2025 financial year is R9 820 billion. He said relative to the total allocation, Land and Tenure Reform and Restitution have received the largest share, amounting to R6 168 billion or 63 per cent of the total allocation. 'This demonstrates that our budget is grounded on our core mandate. "The Land Redistribution and Tenure Reform branch has been allocated a total budget of R1 073 billion. Within this budget, a total allocation of R559 million has been set aside to acquire and allocate 44 000 hectares of land,' Nyhontsho said. He added that the department continues to process applications for awards of land to labour tenants, which were lodged not later than 31 March 2001. He said it should be acknowledged, though, that the area of tenure security for labour tenants, including the continuing spate of illegal evictions, remains an unacceptable situation. 'The Department is implementing a comprehensive plan to address historical inefficiencies relating to the management of state land. This includes calling for accountability from some recalcitrant officials and ensuring consequence management. "Our Department is also addressing the challenges related to Communal Property Associations (CPAs), particularly their dysfunctionality. To address this challenge, the Department is implementing measures that include the establishment of an independent CPA office, which is currently headed by an Acting Registrar. "Furthermore, a continuous process of training the executives of these structures on governance, financial management, land management, and related skills and capabilities is currently underway. A series of roadshows that will culminate with a CPA Indaba has also been planned.' The Minister said the Commission on Restitution of Land Rights has been allocated a budget of R3.7 billion for the current financial year. He said the speed with which the claims are settled is heavily reliant on the allocated budget year on year. 'To address the challenge of expediting the pace of settling of the old order land claims, i.e. those lodged before the original cut-off date of 31 December 1998, the Commission is streamlining processes, underwritten by new policies and standard operating procedures (SOPs), as part of an acceleration strategy. "That said, however, additional financial and human resources will still be required, and in general terms, we have to focus on enhancing the efficiency of the offices of the Land Claims Commission in the whole country.' Speaking at the NARYSEC YOUTH pass-out event last month, Stanley Mathabatha, the Deputy Minister in the Department of Land Reform and Rural Development, said they were well aware of the challenges facing rural communities. He said these challenges include high levels of poverty and unemployment. 'One of the most pressing issues is the legacy of colonial and apartheid uneven development between, on the one hand, developed metropolitan regions and, on the other hand, underdeveloped rural areas. "The development challenge is evident in the limited access rural communities have to economic infrastructure, economic investment, economic resources and economic opportunities that you find in developed metropolitan regions,' Mathabatha said. The deputy minister said that as a result, they continue to see growing migration patterns from rural areas to developed metropolitan regions, as people search for economic opportunities and resources. 'Some refer to this process simply as urbanisation. However, we understand that successful rural development, grounded in equitable investment and distribution of resources, and in continuously improved integrated strategic planning, can change this pattern. "By making rural areas more attractive and economically viable, we can begin to redress the uneven development imbalance and create a more inclusive, balanced national development path.' The Department of Land Reform and Rural Development said it knew the strength, resilience and untapped potential in the rural space. 'We are investing in skills, from agriculture to engineering, technology and rural industrialisation, from new venture creation to economic and social infrastructure development, to name but a few, so that youth become the drivers of rural transformation.' Independent Media Property
IOL News
04-07-2025
- Business
- IOL News
Fears of 30% tariffs loom as US-South Africa trade negotiations remain unresolved
Economists and other experts say that there is some concern following the expiry of US President Donald Trump's 90-day pause on tariff hikes on South Africa and other countries announced on Liberation Day in April. South Africa faces up to 30% tariffs if implemented. As July 9 approaches, economists and industry experts have expressed serious concern about the potential consequences of the expiry of US President Donald Trump's 90-day pause on tariff increases affecting South Africa and other countries. Following the promise of a 10% universal tariff, there is a looming threat of substantial tariffs rising to an alarming 30% if a deal is not reached by the impending deadline. This situation sends ripples of uncertainty among South African exporters who rely heavily on the US market for their products. Wandile Sihlobo, chief economist at Agricultural Business Chamber of South Africa, on Thursday highlighted the ongoing negotiations between South African businesses and US authorities but noted the prevailing ambiguity regarding future trade terms. 'South African businesses and the government have engaged, and continue to interact with US authorities regarding the path forward. However, the path forward remains unclear at this moment, although we would all like to see the continuation of the 10% tariffs rather than the 31% tariffs South Africa faced,' he said. 'The export diversification part is, of course, sound advice. However, we cannot completely abandon the US market; it is vital to South Africa and crucial to us in the agricultural sector. The export diversification comments typically point to China, suggesting that we should focus more on that area. Indeed, regular readers of this letter will be aware that China has been a primary focus for some time.' Professor Raymond Parsons, an economist from North West University, said that this was another period of heightened uncertainty for key SA exporters to the US. 'Unless a US-SA deal is struck by then, or the deadline is extended, the immediate economic worry is about the impending rise in reciprocal tariffs. About 80% of all products exported to the US by SA will get the full impact of the 30% reciprocal tariff increase,' he said. 'We must therefore not underestimate how crucial the current dialogue between the US and SA is for future trade and investment relations. This also needs to cover the future of Agoa. SA needs to buy time to stabilise and consolidate its US-SA economic relations.' Annabel Bishop, chief economist at Investec, however suggested that there might be extensions on negotiations for various US trade partners that could mitigate imminent tariff hikes. 'Substantial progress made in negotiations with most of the US's major trade partners has reduced global economic growth concerns, with time expected to be extended past next week for those still 'negotiating in good faith'. A number of key US trade partners have not had smooth sailing with their negotiations, with the biggest, the EU trade bloc, set to face tariffs up to 50% if it does not come up with a deal the Trump administration finds suitable,' Bishop said. 'However, should the period not be extended for negotiations for key trade partners, this would have a negative impact on the growth outlook.' University of KwaZulu-Natal academic and political analyst Siyabonga Ntombela, encouraged a focus on bolstering the South African economy itself, suggesting that any negative impacts from tariff hikes would also have repercussions for US companies operating in the country. 'The government should focus on growing the South African economy and not worry too much about US-imposed tariff hikes. Remember, there are more than 600 US companies in SA that stand to benefit from a healthy and functioning economy, so anything that will cripple the South African economy will have a direct and adverse impact on these companies too,' Ntombela said. Professor Bonke Dumisa, an independent economic analyst, said that the pause announced by Trump initially worked positively. 'However, it is now a well-accepted fact that Trump's tariff wars have failed; many countries are no longer scared of them. Hence, I do not think any additional days or weeks will make a positive impact. It is precisely for this reason that the USA did not publicly disclose the contents of their international agreement with China,' Dumisa said. BUSINESS REPORT
IOL News
04-07-2025
- Business
- IOL News
Fears of 30% tariffs loom as US-South Africa trade negotiations remain unresolved
Economists and other experts say that there is some concern following the expiry of US President Donald Trump's 90-day pause on tariff hikes on South Africa and other countries announced on Liberation Day in April. South Africa faces up to 30% tariffs if implemented. As July 9 approaches, economists and industry experts have expressed serious concern about the potential consequences of the expiry of US President Donald Trump's 90-day pause on tariff increases affecting South Africa and other countries. Following the promise of a 10% universal tariff, there is a looming threat of substantial tariffs rising to an alarming 30% if a deal is not reached by the impending deadline. This situation sends ripples of uncertainty among South African exporters who rely heavily on the US market for their products. Wandile Sihlobo, chief economist at Agricultural Business Chamber of South Africa, on Thursday highlighted the ongoing negotiations between South African businesses and US authorities but noted the prevailing ambiguity regarding future trade terms. 'South African businesses and the government have engaged, and continue to interact with US authorities regarding the path forward. However, the path forward remains unclear at this moment, although we would all like to see the continuation of the 10% tariffs rather than the 31% tariffs South Africa faced,' he said. 'The export diversification part is, of course, sound advice. However, we cannot completely abandon the US market; it is vital to South Africa and crucial to us in the agricultural sector. The export diversification comments typically point to China, suggesting that we should focus more on that area. Indeed, regular readers of this letter will be aware that China has been a primary focus for some time.' Professor Raymond Parsons, an economist from North West University, said that this was another period of heightened uncertainty for key SA exporters to the US. 'Unless a US-SA deal is struck by then, or the deadline is extended, the immediate economic worry is about the impending rise in reciprocal tariffs. About 80% of all products exported to the US by SA will get the full impact of the 30% reciprocal tariff increase,' he said. 'We must therefore not underestimate how crucial the current dialogue between the US and SA is for future trade and investment relations. This also needs to cover the future of Agoa. SA needs to buy time to stabilise and consolidate its US-SA economic relations.' Annabel Bishop, chief economist at Investec, however suggested that there might be extensions on negotiations for various US trade partners that could mitigate imminent tariff hikes. 'Substantial progress made in negotiations with most of the US's major trade partners has reduced global economic growth concerns, with time expected to be extended past next week for those still 'negotiating in good faith'. A number of key US trade partners have not had smooth sailing with their negotiations, with the biggest, the EU trade bloc, set to face tariffs up to 50% if it does not come up with a deal the Trump administration finds suitable,' Bishop said. 'However, should the period not be extended for negotiations for key trade partners, this would have a negative impact on the growth outlook.' University of KwaZulu-Natal academic and political analyst Siyabonga Ntombela, encouraged a focus on bolstering the South African economy itself, suggesting that any negative impacts from tariff hikes would also have repercussions for US companies operating in the country. 'The government should focus on growing the South African economy and not worry too much about US-imposed tariff hikes. Remember, there are more than 600 US companies in SA that stand to benefit from a healthy and functioning economy, so anything that will cripple the South African economy will have a direct and adverse impact on these companies too,' Ntombela said. Professor Bonke Dumisa, an independent economic analyst, said that the pause announced by Trump initially worked positively. 'However, it is now a well-accepted fact that Trump's tariff wars have failed; many countries are no longer scared of them. Hence, I do not think any additional days or weeks will make a positive impact. It is precisely for this reason that the USA did not publicly disclose the contents of their international agreement with China,' Dumisa said. BUSINESS REPORT
IOL News
26-06-2025
- Business
- IOL News
Impact of foot-and-mouth disease on meat prices creates concern among consumers
A customer browses the meat and poultry section. Food prices in South Africa rose to 4.4% in April from 3.3% in March, largely driven by meat, specifically beef, due to the outbreak of foot-and-mouth disease. Image: Bloomberg The Agricultural Business Chamber (Agbiz) and civil society groups have raised concern about rising prices of food in South Africa, largely driven by meat, specifically beef, due to the outbreak of foot-and-mouth disease. Data from Statistics South Africa (Stats SA) last week showed that food inflation increased to 4.4% in May from 3.3% in April, despite the headline consumer inflation remaining unchanged at 2.8%. Wandile Sihlobo, chief economist of Agbiz, acknowledged the acceleration of food price inflation but offered a note of cautious optimism. Sihlobo also noted that other products remained roughly unchanged while others experienced slowing price inflation. 'Regarding meat, the key issues that have dominated the headlines are the outbreak of avian influenza in Brazil and its potential impact on domestic poultry supplies and prices. The second concern relates to beef supplies following the outbreak of foot-and-mouth disease,' he said. 'The price increases we observe are essentially a continuation of the past few months, mainly due to base effects, the rising domestic demand, and the suppliers' window to pass on some costs they have experienced stemming from higher feed prices over the past couple of months before the recent cooling of maize and soybean prices.' 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 Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) conducts a monthly assessment on 44 basic food items as part of the Household Affordability Index. Mervyn Abrahams, director of the PMBEJD, said they noted that 33 out of the 44 items recorded an increase, with onions up by an alarming 23% when compared to the April index. 'Aside from onions, we also noted that items like potatoes, spinach, butternut, and margarine also recorded increases, which is equally worrying as these are products used on a regular basis in households across the countrym' he said. Abrahams these were difficult times where most people and families were struggling to make ends meet in what was an illustration of high living costs, meaning that access to food was becoming more difficult on a regular basis. 'Middle-income earners, as well as those in the low-income category, constitute a major portion of the country's population, and when studies and reports indicate that they are battling to make ends meet, that provides a worrying state of affairs in the country.' Evashnee Naidu, regional manager for Black Sash in KwaZulu-Natal, noted with concern the upward tick in food price inflation. Naidu said despite the annual increase in social grants, this continued to be eroded due to food price inflation. 'Those who are on social grants or on lower income thresholds severely bear the brunt of the ongoing increase in food prices. Food insecurity continues to plague South Africa, with seemingly no resolution in sight,' Naidu said. 'Government has to do more to curb ever-increasing food price inflation, and one of the measures could be making the Social Relief of Distress (SRD) grant a permanent form of Basic Income Support to those aged 18-59 years to ensure that individuals and households have some kind of safety net to cushion the blows of increasing prices in South Africa and ensuring that people have some kind of food security.' Aliya Chikte, project manager at the Alternative Information and Development Centre (AIDC), said more than half the population lives in poverty, leaving the majority without daily access to nutritious food. 'While this has been a persistent issue, the rising cost of healthy protein sources is particularly alarming, especially amid the growing prevalence of non-communicable diseases in the country,' she said. Chikte also said the continued exclusions from the SRD grant, along with anticipated increases in false exclusions of other social grants, was compounding the crisis and will deepen hunger. 'We are particularly concerned about the planned stringent criteria being applied to the Child Support Grant.' BUSINESS REPORT
