| SIFTING FACT FROM FICTION IN BITTER-SWEET SUGAR DEBATE |
Finance Minister Enoch Godongwana sidestepped calls to scrap or increase the Health Promotion Levy (HPL) in Wednesday’s MTBPS, leaving the sugar industry to face the challenges all businesses do - competition and diversification. In KZN, the stakes are high - sugar supports around 1 million livelihoods and sustains rural communities and businesses across transport, engineering, agriculture and logistics.
An August increase in the Dollar-based reference price (DBRP) for imported sugar - a tariff measure to help protect local producers when international sugar prices fall below the reference benchmark - will help shore up the domestic industry.
The HPL, introduced in 2018, is an entirely different matter. The HPL charges 2.1c for every gram of sugar exceeding 4g per 100ml in qualifying beverages. A 330ml can of Coke containing about 35g of sugar attracts about 46c in levy: the first 13.2g is below the threshold, leaving 21.8g liable to the charge. That is about 3.8% of the R12 retail price that in 2024/25 netted SARS R2.4 billion.
Whether the HPL is reducing demand for sugary drinks is debatable, but its impact, real or perceived, is conflated with job-loss warnings by the sugar industry. The levy may hint at processed sugar’s questionable nutritional profile and indirectly throw shade at the industry, but it’s not a direct tax on sugar products.
Besides, there's no evidence that the levy contributed to employment losses and these claims must be verified to distinguish these from impact of imports, production costs and other market pressures. A happy weekend to all. Derek Alberts (editor)
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| TOP STUDENTS URGED TO LEAD FROM THE FRONT |
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The Golden Key International Society chairs at the four Emeris campuses in KZN (ltr) Kira Zai Doolab (1st year BComm, Vega), Hope Nyambeni (3rd year, BComm, Pietermaritzburg), Sonali Padayachee (4th year, BLaw, Westville) and Nikisha Maharaj (4th year, BLaw Durban North).
High-achieving students from the four Emeris campuses in KZN are being encouraged to turn academic success into leadership, career opportunities and professional connections at a recent Golden Key International Honour Society networking event. The gathering, at the Westville campus, brought together students from Emeris Pietermaritzburg, Westville and Durban North, and Vega School at Emeris uMhlanga. Themed Decode Your Success Style, the event used interactive activities and discussions to explore leadership, career readiness and community impact.
Golden Key, the world’s largest collegiate honour society, operates at more than 400 universities worldwide. Membership is by invitation to top-performing students. Hope Nyambeni, Pietermaritzburg chapter chair, said leadership meant serving with purpose, building character and creating opportunities for future members.
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| CHILDREN'S HOME TOASTS 140-YEAR MILESTONE WITH FESTIVITIES |
PCH was established in 1886 by Miss Mary Cook, who initiated the first Children’s Home to be registered in Pietermaritzburg and in KwaZulu-Natal. It was the 3rd oldest facility for children in South Africa. The previous names of Mary Cooke and Hilltops Children’s Home, and Mildred Ward was amalgamated to form Pietermaritzburg Children’s Home in 1991.
This year PCH celebrates its 140th Anniversary with an East meets West Anniversary Dance to be held on Saturday, 31 October at the PAFTA Hall from 6 pm featuring PA1Productions, Raphael Ebenezer and Lyle D. Their annual Golf Day is set for Saturday 28th November 2026, at Maritzburg Golf Club. Booking of holes, gifts, sponsorships and players are most welcome. For Dance tickets or the Golf Day, contact Mrs Fiona Balgobind 084 4444 503/033 3874004 or director@pch.org.za
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| UKZN WEBINAR TO EXPLORE LOCAL ECONOMIC RESILIENCE |
UKZN's Business Rescue Unit is hosting a webinar on strengthening local government and economic development ahead of next month's local government elections. Under the theme From Service Delivery to Economic Resilience, panellists Professor Isaac Khambule of the University of Johannesburg and business rescue practitioner Phahlani Mkhombo will discuss accountability, investment and economic participation. Join the Microsoft Teams discussion on Monday, 26 October, from 5.45-7.30 pm. Register here.
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1958: The apartheid government established the Department for Coloured Affairs.
Elsewhere, in 1942, the Second Battle of El Alamein started. Victory on November 4 turned the tide against the Axis forces. More than 730 South African soldiers died.
It’s International Day of Sign Languages today. |
PAYDAY BLUES TAKING TOLL ON HOUSEHOLDS' MENTAL HEALTH
Financial pressure has become South Africa’s leading mental health risk, as rising living costs, electricity tariffs and debt leave households battling what experts call “bills burnout”. Payday offers many workers only brief relief, with debit orders rapidly draining income. Families spend much of the month calculating how to cover essentials, intensifying household conflict, straining relationships and disrupting children’s schooling. The pressure also affects workplace productivity and cuts across generations. Despite temporary fuel levy relief announced in the medium-term budget, households remain exposed to accumulated cost increases and debt repayments. Experts warn that sustained financial anxiety is more than a budgeting problem: it can undermine wellbeing, family stability and economic participation as South Africans struggle to make their incomes last until month-end. (SOURCE: BDLive)
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R8.59 EARLY RETIREMENT PLAN TO CLEAR WAY FOR YOUNGER STAFF
National Treasury has allocated R8.59 billion to fund early retirement and voluntary exits for public servants, aiming to cut the wage bill and create room for younger recruits. Phase one saw 8 245 employees leave, receiving R3.87 billion in state-funded benefits. A further 19 347 applications have been processed, with projected net savings of R4.4 billion annually by 2028/29. Treasury says this could fund about 7 101 additional posts, particularly in frontline services. Unions warn that losing experienced teachers, nurses and administrators without adequate replacements could worsen staff shortages, increase workloads and undermine service delivery. The public-sector wage agreement expires in 2027/28. (SOURCE: Moneyweb)
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TREASURY ALLOCATES R20 BILLION TO INFRASTRUCTURE PROJECTS
National Treasury will allocate R20 billion from a projected R70.8 billion revenue overrun over two years to support its Budget Facility for Infrastructure (BFI) pipeline. Director-general Duncan Pieterse said the allocation balances infrastructure investment with a R10 billion contingency reserve as government meets its fiscal targets. Finance Minister Enoch Godongwana said approved BFI support exceeds R100-billion, while infrastructure bonds have raised more than R14-billion since December 2025. Seventeen projects entered the pipeline in the first two submission rounds of 2026/27, with two approved for funding, including Gautrain expansion and a Northern Cape bulk water project. (SOURCE: Engineering News)
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IT'S BACK TO THE DRAWING BOARD AFTER CRYPTO BACKLASH
National Treasury and the South African Reserve Bank are redrafting proposed cross-border crypto regulations after receiving thousands of public comments. Finance Minister Enoch Godongwana announced in the medium-term budget that authorities would shift from rigid pre-approvals to a risk-based approach focused on legitimate transactions and tax compliance. Revised rules are expected to align more closely with Financial Stability Board recommendations than existing exchange-control frameworks. The rethink follows rapid market growth: more than six million South Africans held crypto assets, while assets under custody at major local platforms exceeded R25 billion by late 2025. Authorities plan further industry consultations before publishing a second draft. (SOURCE: BDLive)
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SARS MAKES INROADS TO CLEAR 1 000-CASE BACKLOG
The South African Revenue Service has referred more than 100 cases involving people named in commissions of inquiry, including the Madlanga Commission, to the National Prosecuting Authority this year. Commissioner Johnstone Makhubu estimates the NPA may have a backlog of about 1 000 tax-related cases. Sars plans to tender by year-end for technology to track excise-taxed products, including cigarettes, alcohol and pharmaceuticals, amid potentially massive revenue losses from illicit trade. It is also auditing 19 of 31 licensed tobacco manufacturers. Makhubu said artificial intelligence had helped prevent incorrect VAT refunds worth R61 billion. (SOURCE” Moneyweb)
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REGULATORS STRUGGLE TO CONTAIN ILLEGAL WEIGHT-LOSS DRUGS
South African regulators are struggling to curb the illegal sale of copycat weight-loss injections and unapproved experimental drugs amid outdated pharmacy-compounding rules. Some pharmacies are allegedly mass-producing semaglutide-based products without manufacturing licences, while retatrutide, which has not been approved anywhere globally, is openly marketed. In June, the Gauteng High Court ordered Tshwane-based compounding pharmacy iDexis to stop producing medicines containing semaglutide. However, clearer, stricter rules governing compounded medicines are not expected until February or March 2027, leaving enforcement gaps. The trade raises concerns about product quality, contamination and patient safety as illegal sellers exploit regulatory delays. (SOURCE: News24)
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... AS CIPLA WINS COURT FIGHT OVER R15.5 BILLION HIV TENDER
The Pretoria High Court has overturned two awards in South Africa’s R15.5 billion antiretroviral tender, ordering the Department of Health to redo the allocation within 120 days. The ruling followed challenges by Cipla Medpro Manufacturing and Hetero Drugs South Africa over irregularities involving one-month and three-month HIV treatment packs. The judge found that bidders Innovata Pharmaceuticals and Viatris Healthcare had invalid factory licences when bids closed. He also ordered an investigation into possible collusion involving Innovata and Barrs Pharmaceuticals. Existing suppliers must continue deliveries to prevent shortages while the department revises the awards. (SOURCE: GroundUp)
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CLICKS SALES TOP R50 BILLION AS GROWTH FALTERS
Clicks Group turnover rose 5.4% to exceed R50 billion in the year to August 2026, but comparable-store sales grew just 0.3% after inflation. Net profit increased 2.6% to R3.33 billion, while its trading margin improved to 11%. The retailer is relying on promotions and its 13.1 million-member ClubCard programme, which generated 84.2% of sales. Clicks opened 41 stores and 60 pharmacies, lifting pharmacy market share to 24.7%. It declared a final dividend of 667c per share, up 2.9%. (SOURCE: SENS)
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EU KEEN TO TAP BATTERY, ELECTRIFICATION MINERALS
The European Union sees South Africa as a strategic partner in securing critical minerals for batteries and electrification while reducing dependence on China, says new EU ambassador Kristian Schmidt. He sees opportunities to expand local mineral processing through technology transfer and investment, building on the EU’s nearly €12 billion (about R222 billion) Global Gateway package announced in 2025. Cooperation could also extend to sustainable aviation and cleaner marine fuels. EU-South Africa goods trade reached €46 billion in 2025, while European investment stock stood at €40.4 billion in 2024. Schmidt says the relationship offers mutual benefits, respects South Africa’s non-alignment and should extend beyond traditional donor-recipient ties. (SOURCE: Engineering News)
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GERMAN LEADER URGES TRUMP TO RELENT ON SA INVITE
German Chancellor Friedrich Merz has urged US President Donald Trump to invite South Africa to December’s G20 summit in Miami, arguing that Africa belongs at the table. Merz noted that both South Africa and the African Union are G20 members. Trump has excluded South Africa, citing allegations of genocide against white people that President Cyril Ramaphosa’s office has rejected as misinformation. The decision has raised diplomatic tensions, particularly as Trump has invited Russian President Vladimir Putin. South Africa’s absence would mark a break with its participation in the global forum of major economies. (SOURCE: Bloomberg)
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FRENCH BOND RUCKUS SPARKS EUROZONE DEBT RISKS
Franklin Templeton has warned that France’s bond-market turmoil could trigger a eurozone debt crisis worse than the turmoil that began in Greece nearly two decades ago. Sonal Desai, the investment manager’s global fixed-income chief, said France’s economic size and debt burden make a bailout far more difficult. The premium on French 10-year bonds over German debt exceeded 1.5 percentage points for the first time since January 2012. France has about €3.6 trillion (about R55.5 trillion) in debt. Stronger banks and European Central Bank safeguards offer some protection, but significant market volatility remains a risk. (SOURCE: Bloomberg)
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META FACES RECORD R413 BILLION CONSUMER DATA PENALTY
Meta Platforms has been ordered to pay New Mexico $25 billion (about R413 billion) after a jury found it violated consumer protection laws 43 million times through statements about user privacy, data handling and content moderation. The case centred on the Cambridge Analytica scandal, in which Facebook user data was used to target voters ahead of the 2016 US election. Judge Francis Mathew reduced the potential $219 billion penalty to $25 billion. Meta’s chief legal officer said the company was confident it would win on appeal. The penalty accrues 15% annual interest. (SOURCE: Bloomberg)
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It’s not that I’m so smart, it’s just that I stay with problems longer.
Albert Einstein |
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| Dollar | R16.50
| - 0.08% | | Pound | R22.10
| - 0.21% | | Euro | R18.50
| - 0.10% | | Yen | 0.105357 |
| | Yuan | R2.47
| - 0.14% | | Bitcoin | $ 81 675.40 | + 0.38% |
These rates are correct at time of going to press. | | Platinum | $ 1 578.83 | + 0.55% | | Gold | $ 4 027.91
| + 0.08% | | Oil | $ 114.04
| + 2.01% | | All Share | 108 525.22
| - 1.03% | | Repo | 7.25 | | | Prime | 10.75 | |
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