| HEALTHY CHOICES FORCED ON CONSUMERS AS COSTS BITE |
Economic and health trends are reshaping South African consumer habits, nudging healthy living into daily choices, albeit with some kicking and screaming. British American Tobacco is shutting down its Heidelberg plant in Gauteng because of rampant illicit fags flooding the market, estimated at 75% of the market. The closure will cost Treasury around R100 million daily in lost taxes, but also hints at challenges faced by the nicotine industry in the face of slowing sales and demand. (see below)
In a similar vein, drinking habits are shifting on the back of rising health awareness and, wait for it, appetite-suppressing medications like Ozempic, Wegovy, and Mounjaro that are reducing alcohol cravings. Beer volumes are down (but revenue is up) as South Africa’s use of weight-loss drugs is surging. These changes reflect economic and lifestyle pressures linked to overconsumption, obesity, and smoking, and possibly portend more health-conscious decisions in a nation of which 50% of the adult population is either overweight (23%) or obese (27%). Clearly a case of less is better than more. Derek Alberts (editor)
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| LIVELY TURNOUT SETS TONE FOR WOMEN-LED AGENDA |
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A healthy turn-out at the inaugural Coffee Conversations forum set the tone for a lively 2026 programme of meetings this year. Picture by Lethiwe Zondi.
The inaugural 2026 Coffee Conversation forum, presented by Shannon Lawrence and Aneleh de Villiers of Redfern Incorporated Attorneys drew a lively audience, creating a positive and inclusive atmosphere. Attendees at the Pietermaritzburg and Midlands Chamber of Business included women professionals across most sectors who reflected thoughtfully on workplace challenges, legal perspectives, and strategies for fostering inclusivity. Discussions covered real experiences of women at work, rights and responsibilities, leadership pathways, mental health, and employer best practices. The interactive format encouraged open dialogue, Q&A, and shared insights. The event’s energy and engagement bode well for advancing the mainstreaming of women in the workplace agenda. Click here for other networking, forum, and regular events this year. |
| SOCIAL MEDIA BLUNDER BLOOMS INTO VALENTINE’S TRIUMPH |
| A social media advertising blunder can backfire - but also bloom. A Durban florist saw a Valentine’s Day ad misdirect customers to a rival, sparking frustration. Instead of despairing, she shared her story authentically online. The heartfelt response triggered an outpouring of support, orders, and goodwill, proving transparency, community engagement, and authenticity can turn online mistakes into unexpected opportunities for connection and business growth. |
1989: The UDF disowned Winnie Mandela over a series of allegations, including the kidnapping and murder of Stompie Seipei.
Elsewhere, in 2005, the Kyoto Protocol against global warming went into effect.
Flip it: Get out the pan, it’s International Pancake Day. |
TIMING OF 3 RATE CUTS DEPENDS ON RAND, OIL PRICES
Economists broadly expect the South African Reserve Bank to deliver three additional interest rate cuts this year, though they remain divided on the timing. With inflation trending lower and expected to settle near the midpoint of the target range, many analysts believe there is room for further monetary easing. However, uncertainty over global conditions - including US policy shifts and currency volatility - is complicating forecasts.
Some economists argue cuts could begin as early as the next Monetary Policy Committee meeting if inflation remains benign. Others expect the Bank to move more cautiously, possibly spacing reductions over several quarters. Much will depend on the Rand’s stability, oil prices and domestic growth prospects, which remain fragile despite signs of gradual economic improvement.
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... AS DECLINING BOND YIELDS CUT DEBT COSTS
South Africa’s long-term government bond yields have dropped to near decade lows, easing pressure on the fiscus and cutting borrowing costs. The 30-year yield fell to 8.68% from a 12.77% peak in 2023, while the 20-year yield reached 8.5%, its lowest in 10 years. The 10-year hovered near 7.97%. Improved power supply from Eskom, removal from greylisting and a credit upgrade from S&P boosted confidence. The South African Reserve Bank’s push for a 3% inflation target could save nearly R900 billion in debt costs over a decade, supporting fiscal consolidation and potential further rate cuts this year. (SOURCE: BDLive) |
UBER, BOLT DRIVE INTO LEGAL HEADWINDS
Ride-hailing operators Uber and Bolt could face legal challenges in South Africa amid regulatory disputes over operating permits. Industry tensions between e-hailing services and traditional taxi operators have intensified, with questions raised about compliance with transport laws. The uncertainty has sparked concern among drivers and commuters who rely on the platforms for income and affordable transport. Government is under pressure to clarify regulations and fast-track permit approvals to avoid disruption, while balancing competition, safety and fair operating standards across the transport sector. (SOURCE: News24)
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COMPETITION COMMISSION SWOOPS ON SCRAP METAL BUYERS
The Competition Commission has conducted search-and-seizure operations at four Gauteng scrap metal buyers over alleged price fixing. The watchdog suspects Scaw South Africa, Cape Gate, Shaurya Steel and Unica Iron and Steel of coordinating purchase prices for shredded scrap metal. Authorities allege the firms announced similar price adjustments simultaneously. Scrap forms part of a priority industrial input sector, critical to long steel production. The probe follows a complaint lodged three years ago. If found guilty of collusion, the companies face substantial fines. Government has also tightened scrap regulations to curb infrastructure theft costing the economy billions annually. (SOURCE: BDLive)
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DOMESTIC TEXTILE SECTOR UNDONE BY POWER CONSTRAINTS
Soaring electricity tariffs and unreliable supply are eroding the competitiveness of South Africa’s textile and clothing sector, deepening reliance on imports and threatening jobs. A demand mapping study by BMA for the Localisation Support Fund found retailers could source 80 million more garments locally by 2030, worth R7.9 billion and 33 000 jobs. Energy-intensive processes like dyeing remain costly, worsened by load-shedding from Eskom can push overall manufacturing costs 10%–30% higher, particularly in denim, dyeing, and finishing segments. Smaller firms lack capital for solar, leaving structural disadvantages that trade protections alone cannot fix. Imports, largely from China, dominate the R72 billion market. (SOURCE: BDLive)
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SUPREME COURT SMACKS DOWN R300 MILLION RAF APPEAL
The Supreme Court of Appeal has dismissed with costs an attempt by the Road Accident Fund to appeal a ruling compelling it to honour 181 court orders in favour of Sunshine Hospital. Acting Judge Boissie Mbha found no new evidence to justify reconsideration, rejecting claims of irregular relationships and unlawful “combined claims”. All 181 orders remain valid and uncontested. Sunshine, owed about R300 million plus interest, was forced to close after the RAF failed to pay thousands of summonses. The court ruled the RAF’s reliance on investigation reports did not advance its case. (SOURCE: Moneyweb)
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BAT COSTS IN R305 MILLION HIT ON PLANT CLOSURE
British American Tobacco has booked a £14m (about R305m) impairment on its Heidelberg manufacturing plant in Gauteng as it prepares to halt local production by year-end. The group cited the rapid growth of South Africa’s illicit cigarette market, now estimated at 75% of total sales, as making operations unviable. The plant is running at just 35% capacity. BAT said illicit trade is costing the fiscus about R100m a day in lost taxes. The closure shifts the company to an import model and has weighed on its Africa and Asia performance, with volumes in the region falling sharply. (SOURCE: Reuters)
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EMERGING MARKET CURRENCIES OUTPERFORM G-7 PEERS
Emerging-market currencies are showing unusual stability, outperforming G-7 peers for nearly 200 days - the longest streak since 2008. A weaker Dollar, strong commodity prices, and robust capital inflows support EM assets, reinforcing carry-trade strategies. JPMorgan notes this calm attracts ongoing inflows, with EM currencies up 2.8% this year following a 17.5% surge last year. Strong fundamentals, higher growth, and ample FX reserves help contain volatility, while developed-market currencies face turbulence amid fiscal and policy uncertainties in the US and Japan. Investors increasingly seek less volatile alternatives in Asia, including the Yuan, Baht, and Singapore Dollar. (SOURCE: Bloomberg)
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GOLD, SILVER SLIP AS TRADERS EXIT ON PROFITS
Gold slipped below $5 000 an ounce as traders booked profits following mild US inflation data that eased fears of a sharper rate hike. Spot gold fell 1% to $4 991.75, while silver dropped 2.5%. With China’s Lunar New Year limiting liquidity, early-week trading remained quiet. Friday’s US CPI report had boosted bullion above $5 000, reflecting hopes for Federal Reserve rate cuts. Analysts say gold’s long-term drivers remain intact, including geopolitical tensions, Fed policy uncertainty, and shifts from traditional assets. Choppy markets and light profit-taking are consolidating recent gains, though forecasts suggest bullion could resume its upward trend. (SOURCE: Bloomberg)
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Logic will get you from A to B. Imagination will take you everywhere.
Albert Einstein |
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| Dollar | R15.92 | + 0.15% | | Pound | R21.72 | + 0.23% | | Euro | R18.89 | + 0.17% | | Yen | 0.103860 |
| | Yuan | R2.30 | + 0.17% | | Bitcoin | $ 68 391.34
| - 0.64% |
These rates are correct at time of going to press. | | Platinum | $ 2 051.45 | - 0.23% | | Gold | $ 5 015.90
| - 0.51% | | Oil | $ 67.69
| + 0.18% | | All Share | 120 928.14
| + 0.29% | | Repo | 6.75 | | | Prime | 10.25 | |
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