| AUTHORITIES ON HIGH ALERT TO CONTAIN XENOPHOBIC OUTBREAKS |
President Cyril Ramaphosa has pledged a crackdown on illegal immigration while urging an end to xenophobia and vigilantism as anti-foreigner protests are spreading across South Africa. Incidents have been reported in Ladysmith and Estcourt and also in Gauteng and the Western Cape. Speaking during the Presidency Budget Vote in Parliament yesterday, Ramaphosa said government would tighten border controls, increase workplace inspections and prosecute employers who hire undocumented migrants. The unrest has seen looting and intimidation of foreign-owned businesses in several areas, raising fears of wider violence. Data from the Human Sciences Research Council shows anti-immigrant sentiment is at its highest level since 2003, with 77% linking migrants to crime. Officials warn tensions could escalate if misinformation and vigilantism are not contained. |
| CITY FRESH PRODUCE PRICES HIGHLIGHT INFLATIONARY PRESSURES |
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Fluctuating food prices are prompting consumers to shop judiciously to make household budgest stretch further. Illustrative image courtesy of AI
Food prices in Pietermaritzburg are suffering the effects of inflation, judging by increases from April to May as measured by the latest Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group.
Out of 44 tracked food items, 25 increased in price while 19 declined, reflecting continued volatility in household food costs rather than a uniform trend. The average household food basket edged up modestly over the period, driven by sharp increases in key fresh produce items. Tomatoes recorded the largest rise (+R15.97), followed by onions (+R8.70), butternut (+R8.33), carrots (+R7.79) and fish (+R5.64). Staple items such as maize meal, white sugar and bread also registered increases.
The steepest relief came from oranges (-R19.78), sugar beans (-R7.33), beef tripe (-R4.66), beef (-R3.89) and full cream milk (-R3.84). Additional declines were seen in rice, potatoes, bananas and apples.
For a detailed analysis of food price movements, see here.
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| KZN BRACES FOR HEAVY RAINFALL IN WAKE OF LEVEL 8 WARNING |
The South African Weather Service has issued a Level 8 severe storm warning for the Eastern and Western Cape as a powerful cold front moves across the country. KZN is expected to experience spillover rainfall and unstable conditions. Forecasters warn of increased cloud cover, scattered showers and possible thunderstorms through the week as moisture from the system spreads eastwards. Residents are urged to monitor weather patterns and rely on credible information sources.
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1492: Martin Behaim presented the world's first globe. The German geographer called his terrestrial globe Erdapfel, or Earth Apple.
Elsewhere, in 1940, the evacuation of Allied forces from Dunkirk ended as German forces captured the beach port.
Get on your bike, on World Bicycle Day.
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FRAGILE BUSINESS CONFIDENCE AT MERCY OF GLOBAL SHOCKS
Business confidence in South Africa fell sharply in the second quarter, with the RMB/BER index dropping eight points to 39, reversing earlier gains and slipping just below its long-term average. The survey, conducted from May 14–25, reflected worsening global conditions driven by Middle East tensions, higher oil prices and a shift in interest-rate expectations from cuts to possible hikes. Broad-based declines were recorded across most sectors, led by new-vehicle dealers, wholesalers, retailers and building contractors, while manufacturing edged slightly higher but remained weak.
Consumer demand and sales softened further, with Gauteng and KwaZulu-Natal seeing notable declines, while the Western Cape improved. Businesses remain cautious rather than pessimistic. Businesses are reassessing investment and spending decisions amid heightened uncertainty, with RMB and BER noting recovery remains intact but fragile, contingent on easing geopolitical tensions, stabilising fuel prices, and sustained domestic reform progress supporting growth and confidence ahead this year in South Africa market. (SOURCE: Engineering News)
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... AS THREE-IN-A-ROW PRIMARY SURPLUS SIGNALS FISCAL STRENGTH
South Africa has recorded a third consecutive primary budget surplus, highlighting improving fiscal discipline and a steady repair of public finances. The country posted a surplus of 1.1% of GDP for the year to March, beating Treasury’s forecast of 0.9%, according to Director-General Duncan Pieterse. Stronger-than-expected revenue and lower spending helped drive the outcome. Government debt is now stabilising and projected to decline over the medium term, reinforcing consolidation efforts. The main budget deficit also narrowed to 4.3% of GDP, strengthening prospects for credit rating upgrades as fiscal anchors and reform momentum continue to support policy credibility and investor confidence. (SOURCE: Bloomberg)
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WATER BILL TIGHTENS STATE CONTROL OVER ALLOCATIONS
South Africa’s proposed 2026 National Water Amendment Bill could dramatically reshape water rights by banning private water trading and expanding government control over water allocation. The legislation would require surrendered water-use entitlements to revert to the state for redistribution, while granting the minister wider powers to reallocate water between sectors and regions. Stricter compliance measures include fines of up to R10 million and possible personal liability for company directors and municipal managers. Agriculture, mining and industry are expected to be most affected, with businesses urged to review licences, assess risks and prepare for a more regulated water environment. (SOURCE: Bizcommunity) |
R10.4 BILLION PET MARKET FORCES RETAILERS TO UP GAME
South Africa’s pet FMCG market has grown to R10.4 billion, expanding 15.8% in 2025 as retailers and brands chase one of the country’s fastest-growing consumer categories. Research shows pets are increasingly viewed as family members, making pet care a protected spending priority despite economic pressure. Supermarkets, specialist pet stores and online platforms are all competing for market share, with digital channels showing particularly strong growth. While consumers remain price-sensitive after years of steep food inflation, demand for treats, supplements and premium products continues to rise, creating lucrative opportunities for retailers able to balance quality, convenience and affordability. (SOURCE: Bizcommunity)
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TELKOM PROFITS SURGE ON DATA DEMAND, MOBILE GROWTH
Telkom reported a strong set of annual results, with headline earnings per share rising 30.1% to 708.5 cents for the year ended March 31. Revenue increased 1.4% to R44.5 billion, supported by robust growth in mobile and fibre services. Mobile data revenue climbed 10.5%, while prepaid service revenue surged 10.3%. EBITDA rose 13.3% to R12.5 billion, lifting margins to 28.1% as cost-saving initiatives gained traction. Reflecting confidence in future cash generation, Telkom raised its dividend payout ratio and declared a final dividend of 270 cents per share, up 65% from the previous year. (SOURCE: Bizcommunity)
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LESOTHO FLOATS AMBITIOUS R5 BILLION SOLAR POWER PLAN
Lesotho is exploring a R5 billion floating solar project on the Katse and Mohale reservoirs that could generate between 50MW and 400MW of electricity. The initiative aims to boost energy security while preserving scarce land for agriculture, tourism and settlement. A feasibility study is under way, with consultants due to submit proposals this month. The project would utilise existing transmission infrastructure linked to the Lesotho Highlands Water Project. With nearly half its electricity currently imported, Lesotho sees renewable energy expansion as key to reducing dependence on neighbours and unlocking new economic opportunities. (SOURCE: GroundUp)
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US THREATENS NEW 25% TARIFF ON BRAZIL
United States is weighing a 25% tariff on imports from Brazil, aimed at pressuring Brasília over alleged trade practices and market access concerns. The proposed measure would add significant cost pressure on Brazilian exporters, particularly in agriculture and manufactured goods sectors. Washington says the move is linked to ongoing disputes over subsidies, tariffs, and regulatory barriers affecting US companies operating in South America. Officials argue the tariff escalation is intended to rebalance trade flows while signaling tougher enforcement of existing agreements. Brazil has not yet formally responded, though diplomats warn of potential retaliation and renewed negotiations ahead in coming days. (SOURCE: Reuters)
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BITCOIN PLUNGES TO 2-MONTH LOW ON DECLINING CRYPTO SENTIMENT
Bitcoin slipped below $70 000 for the first time in nearly two months as geopolitical tensions and institutional selling pressure hit sentiment. The cryptocurrency fell as much as 2.4% to $69 660 in early European trading, its weakest level since April 8. Broader digital assets also declined, with Ether and Solana among losses. Market concern intensified after Strategy disclosed its first Bitcoin sale since 2022, while sustained ETF outflows added pressure. Analysts warn a sustained close below $70 000 could signal deeper structural weakness rather than short-term volatility, as investors reassess risk exposure across crypto markets amid global uncertainty evolving. (SOURCE: Bloomberg)
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The only person who is educated is the one who has learned how to learn and change.
Carl Rogers |
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| Dollar | R16.29
| - 0.40% | | Pound | R21.93
| - 0.43% | | Euro | R18.91
| - 0.23% | | Yen | 0.101981 |
| | Yuan | R2.41 | - 0.30% | | Bitcoin | $ 67 166.85
| - 0.43% |
These rates are correct at time of going to press. | | Platinum | $ 1 923.30
| - 0.55% | | Gold | $ 4 458.46
| - 0.64% | | Oil | $ 97.75
| + 2.78% | | All Share | 113 590.33
| - 0.37% | | Repo | 7.00 | | | Prime | 10.50 | |
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