DIESEL USERS BRACE FOR AUGUST PAIN ON MIDEAST TENSIONS
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South African motorists face a changing fuel price outlook after escalating conflict in the Middle East sent Brent crude above US$90 a barrel. Earlier projections pointed to a 76 - 86 cents/litre petrol cut and a 20 - cent diesel decrease, but rising oil prices have sharply altered expectations. Current estimates suggest petrol could now fall by only 20 - 50 cents/litre, while diesel may increase by 20 - 60 cents/litre if crude prices remain elevated. Final August fuel price adjustments will depend on month-end oil prices, the Rand and official CEF calculations. (SOURCE: News24)
See below: Middle East conflict sends oil above $91 a barrel |
| NEW GENERATION HILUX STATES CASE FOR DOMESTIC MANUFACTURING |
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The off-line ceremony to celebarte the first 9th generation Toyota Hilux rolling off the assembly line highlighted the role of manufactiring in the South African automotive industry.
Last week’s glittering launch of the ninth-generation Hilux, backed by a R10.4 billion investment at Toyota’s Prospecton plant, was a defining point in the automotive industry. The event reflected the company's long-term confidence in the country and KZN and also shone a light on the phalanx of suppliers who contribute to the local content built into SA-made vehicles.
No wonder then that Toyota head honcho Andrew Kirby took issue with SKD (semi-knock down) assembly that, as the nomenclature suggests, is building cars with fully imported components. Toyota, like other OEMs (original equipment manufacturers) points out that localisation, rather than greater reliance on SKD assembly and full imports, would maximise the economic benefits of investment.
The evidence is clear - of the top 10 brands in 2016, seven were local manufacturers; in 2025, that number dropped to three of the top 10. Much as affordable cars widen consumer access, ultra-cheap imports can undermine South Africa’s automotive manufacturing base. Lower-priced vehicles assembled with minimal local content reduce demand for locally produced components, threatening jobs across the supply chain and discouraging investment in deeper manufacturing, tooling and skills development that sustain the country’s established OEM ecosystem.
These considerations impact directly on Pietermaritzburg’s layered automotive supply chain spanning aluminium and raw material producers, specialist tool-and-die makers, plastics and composites moulders, and precision engineering firms.
See below: Tau wants to restore defence spend, boost manufacturing |
1999: Comrades Marathon top-10 finisher Sergio Motsoeneng admitted to cheating by switching places with his twin brother in a mobile toilet. The deception was exposed when photographs showed their watches on opposite wrists.
Elsewhere, in 1983, the lowest temperature ever recorded on Earth was measured at Vostok Station in Antarctica: −89.2°C.
For dog lovers, it’s World Collie Day.
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UNDER-35 HOME BUYERS SQUEEZED OUT OF MARKET
Young South Africans are battling to enter the property market, with first-time home purchases by people under 35 falling from 108 000 in 2005 to just 45 000 currently, according to the latest Lightstone property report. The steepest decline is among buyers aged 31 to 35, whose purchases have more than halved from 49 000 to 24 200.
The report attributes the trend to worsening affordability, slower wage growth, elevated interest rates and stricter lending criteria. Rising living costs have also made it harder for young households to save for deposits. While younger buyers remain a vital part of the housing market, Lightstone says improving affordability and easier access to finance will be critical to reversing the long-term decline in home ownership. (SOURCE: News24) |
CLAMOUR AGAINST NEW PROCUREMENT RULES MOUNTS
Proposed public procurement regulations could increase compliance costs and create fresh opportunities for corruption despite aiming to strengthen government purchasing, according to the Centre for Development and Enterprise (CDE). Public procurement was worth about R931 billion, or 15% of GDP, in 2022, while government spending is projected to rise from R2.4 trillion in 2025 to R2.8 trillion by 2027. The CDE argues that new prequalification and subcontracting requirements - including mandatory 25% subcontracting on contracts above R100 million - will add complexity, discourage business partnerships and inflate costs. While the regulations improve transparency, critics warn they focus too heavily on bidder eligibility rather than value for money, delivery and corruption prevention. (SOURCE: Moneyweb)
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... AS TRANSNET CEO RAILS AGAINST OVERPRICING AND CORRUPTION
Transnet is tightening procurement controls to eliminate overpricing and corruption, Group CEO Michelle Phillips says. A new market-pricing catalogue automatically blocks purchases above benchmark prices, preventing inflated invoices. Phillips revealed seven companies were blacklisted in the past week and several employees dismissed for collusion, warning more action will follow. Transnet plans to invest R129.1 billion over five years, including R116 billion to maintain infrastructure. The freight operator is 3.16 million tonnes behind its 180-million-tonne annual rail target after moving 167.9 million tonnes in 2025/26. It also spends nearly R5 billion annually protecting rail infrastructure from theft and sabotage. (SOURCE: Engineering News)
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TAU WANTS TO RESTORE DEFENCE SPEND, BOOST MANUFACTURING
Trade, Industry and Competition Minister Parks Tau has called for a "hard reset" to halt the long-term decline of South Africa's defence industry, warning that shrinking procurement and skills losses threaten a strategic national capability. Domestic defence force acquisitions have fallen dramatically from R26.2 billion in 1989/90 to just R850 million in 2017, eroding local manufacturing capacity and specialised expertise. Tau says rebuilding the sector will require stronger government support, increased local procurement and renewed investment in advanced manufacturing and skills development. Industry leaders warn the decline risks weakening exports, innovation and South Africa's broader industrial competitiveness. (SOURCE: BDLive)
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ABOVE-INFLATION BOOZE HIKES TO BOOST ILLEGAL SALES, WARNS SAB
South African Breweries (SAB) has urged government to cap alcohol excise increases at the inflation rate, warning that above-inflation tax hikes will fuel the illicit alcohol market and undermine legitimate producers. The company says the beer industry supports more than 250 000 jobs across its value chain and contributes billions of rand annually in taxes and economic activity. SAB argues that predictable, inflation-linked excise adjustments would encourage investment and provide greater revenue certainty for the fiscus. The warning comes as South Africa's broader illicit economy is estimated at about R85 billion, eroding tax collections, distorting competition and threatening formal-sector employment. (SOURCE: BDLive)
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3.4 MILLION FLYERS MAKE CAPE TOWN-JHB AFRICA'S BUSIEST ROUTE
The air route between Cape Town International and OR Tambo International remained Africa's busiest airport pair in 2025, carrying 3.4 million passengers, according to the International Air Transport Association (IATA). The route outperformed North America's busiest link between New York and Los Angeles (2.2 million) and Europe's top route between Barcelona and Palma de Mallorca (2.1 million), while narrowly trailing Colombia's Bogotá–Medellín connection (3.5 million). Globally, however, Asian routes dominate, led by Jeju–Seoul Gimpo in South Korea with 13.3 million passengers, followed by Sapporo–Tokyo Haneda (9.6 million) and Fukuoka–Tokyo Haneda (9.5 million). (SOURCE: Engineering News)
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R25 BILLION WORLD BANK LOAN TO PLUG INFRASTRUCTURE GAPS
The World Bank has approved a $1.5 billion (about R25 billion) loan to support South Africa's infrastructure reform programme, targeting improvements in energy, transport and water systems. The funding is expected to accelerate structural reforms, attract private investment and stimulate job creation by addressing long-standing infrastructure bottlenecks. Government says the loan will help modernise critical services, improve electricity reliability, strengthen logistics networks and expand water and sanitation infrastructure. The investment forms part of broader efforts to lift economic growth, improve service delivery and enhance South Africa's competitiveness through more efficient and resilient public infrastructure. (SOURCE: BDLive)
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ASIAN TASTE FOR SA MAIZE TO BOOST EXPORTS 50%
South Africa's maize exports are gathering momentum after a record harvest, with 760 015 tonnes shipped since the 2026/27 marketing season began in May. Agbiz chief economist Wandile Sihlobo expects exports to reach three million tonnes this season, up 50% from the previous year. Demand has rebounded from key Asian markets, including Vietnam, South Korea and Japan, after last season's exports were largely confined to neighbouring African countries. The outlook is supported by an expected 17.3-million-tonne maize harvest, well above domestic annual consumption of 12 million tonnes, leaving ample supplies available for export without threatening local food security. (SOURCE: FreightNews)
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MIDDLE EAST CONFLICT SENDS OIL ABOVE $91 A BARREL
Oil prices surged as escalating conflict between the US and Iran heightened fears of supply disruptions through the Strait of Hormuz, a key global energy shipping route. Brent crude jumped as much as 3.8% to above US$91 a barrel, its highest level since mid-June, before trading at US$90.63. WTI crude climbed 2.4% to US$84.51 a barrel. The latest tensions include attacks on commercial vessels and an oil facility in Kuwait, raising concerns over tighter global supplies. Analysts warn further strikes on regional energy infrastructure could push oil prices even higher and add to global inflationary pressures. (SOURCE: Bloomberg)
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US THREATENS CANADA WITH FRESH 50% TARIFFS
The United States has announced plans to impose a 50% tariff on selected Canadian imports, escalating trade tensions between the two neighbours. The proposed duties target products including milk, beer, hockey equipment and plywood, with Washington alleging unfair treatment of US alcohol, automotive and dairy exports. Key Canadian exports such as energy, potash and critical minerals will be exempt, along with goods already covered by separate tariffs on sectors including steel and vehicles. The latest move marks a renewed trade confrontation that could disrupt North American supply chains and increase costs for businesses and consumers on both sides of the border. (SOURCE: Bloomberg)
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The one thing that doesn't abide by majority rule is a person's conscience.
Atticus Finch, To Kill a Mockingbird by Harper Lee |
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