Economy & Business News - 02 April 2024

02 Apr 2024

ECONOMY & BUSINESS

• The Gas Master Plan has been published amid warnings of a “gas cliff” for industrial consumers in Gauteng and KwaZulu-Natal from mid-2026, at which date Sasol will divert the remaining gas imports from its wells in Mozambique towards its own facilities in Secunda and Sasolburg to help reduce its use of coal and its carbon emissions. (Source)

• Most fuel-efficient hatchbacks across 17 brands in South Africa. With the flat fuel price bringing little relief, BusinessTech looked at some of the most fuel-efficient budget cars you can buy in South Africa right now. (Source)

• Reserve Bank holds rate. The SA Reserve Bank’s monetary policy committee held the repo rate at 8.25%, citing risks to food prices and to the rand exchange rate, as well as continuing high inflation expectations. The bank has signalled that interest rates could stay high for longer, saying headline inflation would come down to its 4.5% target only at the end of 2025, potentially delaying the first interest rate cut even further. (Source)

• The total turnover of quarterly financial statistics (QFS) industries in the 4Q of 2023 was estimated at R3 463 269 million (R3,46 trillion), an increase of 1,8% compared with the third quarter of 2023 (R3 403 292 million or R3,40 trillion). Turnover increased by 3,5% compared with R3 346 188 million in the fourth quarter of 2022. Seven of the eight industries covered by the survey reflected annual increases. The largest percentage increase in turnover was recorded in electricity, gas and water supply (+15,5%), followed by community, social and personal services (excluding government and educational institutions) (+9,7%), manufacturing (+8,8%), mining and quarrying (+7,2%), transport, storage and communication (+5,7%), real estate and other business services (excluding financial intermediation and insurance) (+2,9%) and construction (+0,5%). A decrease was recorded in trade (-2,3%). (Source)

• Formal, non-agricultural employment fell by -194 000 or -1.8% in December 2023 when measured on a quarter-on-quarter basis. Declines were logged in 5 of the 8 industries included in the survey, indicating the fragile state of the economy. However, there were increases in the following industries: trade (56 000 or 2,4%), transport (2 000 or 0,4%) and electricity (1 000 or 1,6%). Compared to December 2022, total employment increased by 98 000 or 0,9% in December 2023.

• Nissan South Africa is aiming to produce two further models at its plant in Rosslyn in Pretoria in addition to its Navara one-ton pickup. Nissan SA MD Maciej Klenkiewicz confirmed that and add that their priority is to bring in a successor to the half-ton pickup. Klenkiewicz stressed that introducing a second model for production at the plant is “not only a possibility, but that is our goal”. (Source)

• China’s LDV launches in the local bakkie, commercial vehicle market. LDV is the latest automotive brand from China to enter South Africa, with the Asian country seemingly intensifying its efforts to become the world’s new automotive powerhouse. LDV forms part of SAIC, which is the vehicle partner to General Motors and Volkswagen in China. It is also the manufacturer of Chinese-specific brand Roewe, as well as the owner of the MG and Maxus badges. SAIC and its various electric vehicle (EV) brands last year cornered more than 13% of the global EV market. This included more than 100 000 vehicle sales in Europe. The company has international production facilities in Thailand, Indonesia, India and Pakistan, with Europe set to follow. The Maxus name may draw recognition on local shores, as its electric delivery vans are supplied to Woolworths through a third party importer. LDV South Africa (SA) the main goal is the sale of affordable internal combustion engine sports-utility vehicles, light commercial vehicles and medium commercial vehicles. (Source / Source)

• The composite leading business cycle indicator decreased by 0.5% in January 2024. Seven of the ten available component time series decreased while the remaining three increased. The largest negative contributors were a deceleration in the six-month smoothed growth rate in job advertisement space and a decrease in the average hours worked per factory worker in the manufacturing sector. The largest positive contributors were an acceleration in the six-month smoothed growth rate of the real M1 money supply and an increase in the number of residential building plans approved. (Source)