Star 2025-10-28

Consumers are under ‘extreme pressure’ and their situation has worsened, says Summers South Africa’s consumers are under “extreme pressure,” and their situation may even have worsened since the six-month period to August 31, Pick n Pay’s CEO Sean Summers said Monday. The group, which has closed a net 60 supermarkets in South Africa as it moves to regain profitability, yesterday released interim financial results that showed its turnaround gathering momentum, with trading profit up 273.5% to R310 million from R83m. This follows a turnover increase of 4.9%, with like-for-like (LfL) sales up by 4.7%. Summers said in a telephone interview that given the pressure consumers are facing with a lack of disposable income, he was concerned that up to R1 billion a month is being taken offshore through online gambling.…

The rand held relatively steady over the past week, buoyed by South Africa’s long-anticipated removal from the Financial Action Task Force (FATF) greylist — a development widely seen as a vote of confidence in the country’s financial reforms. The local currency traded in a narrow range, hovering around R17.30 to the US dollar, after fluctuating between R17.22 to the US dollar on Monday, R17.46/$1 midweek, and closing at R17.26/$1 on Friday. The movement mirrored broader volatility in the US dollar index, though the FATF announcement helped anchor sentiment in South Africa’s favour. FATF confirmed on Friday that South Africa “will no longer be subject to increased monitoring”, acknowledging that the country had successfully completed its reform commitments within the agreed timeframe. However, the Treasury cautioned that delisting marks “the start…

South Africa’s renewable energy pipeline has surged past grid capacity, with new generation commitments now outpacing the system’s ability to absorb them — underscoring the urgent need for greater investment in battery storage and grid flexibility. According to the 2025 South African Renewable Energy Grid (SAREG) Survey — a collaboration between the South African Photovoltaic Industry Association (SAPVIA), the South African Wind Energy Association (SAWEA), and Eskom National Transmission Company SA (NTCSA) — the country’s contracted renewable energy capacity has risen sharply to 220 030 MWac, up from 133 748 MWac in 2024. The total includes all solar PV, wind, and battery storage facilities, spanning projects that are operational, under development, or at early planning stages. The survey recorded a significant increase in participation, with 673 projects included this year…

Durban’s business sentiment weakened again in the third quarter of 2025, marking the fourth consecutive quarterly decline, according to the latest Durban Business Confidence Index (DBCI) released on Monday. The index, compiled by the University of KwaZulu-Natal’s (UKZN) Macroeconomics Research Unit in collaboration with the Durban Chamber of Commerce and Industry (DCCI) and eThekwini Municipality, fell by 0.53% — from 52.40 points in Q2 to 52.12 points in Q3 2025. Researchers, Professor Harold Ngwala and Dr Ntokozo Nzimande, said the decline reflected a deterioration in sentiment regarding both current and future economic conditions in the city. “The data further indicates that business executives were more pessimistic in the third quarter of 2025 than they were in the same quarter of 2024, with the index dropping by 17.38% on a year-on-year…

After much concerted effort and collaboration, South Africa’s exit from the FATF greylist is a milestone worth celebrating. It represents the tangible results of systemic reform across the financial sector, including regulation and prosecution, demonstrating that decisive action, innovation, and accountability can deliver measurable progress. This achievement is more than a regulatory checkbox; it signals that South Africa is building a stronger, more resilient financial ecosystem, capable of supporting investment, fostering competition, and encouraging fintech innovation. While there is still work to be done to ensure these gains are sustainable, the delisting demonstrates that a coordinated effort and strategic focus can transform compliance challenges into opportunities for growth and global credibility. The next test lies in turning compliance gains into a permanent culture of accountability and resilience. Without the culture…

The announcement last week that South Africa has successfully exited the Financial Action Task Force grey list is cause for genuine celebration. More importantly, it offers critical lessons about what works when we get serious about reform. When grey listing was a serious risk already in 2022, BLSA commissioned research showing the economic impact could range from under 1% of GDP if we reacted fast and credibly, to 3% of GDP if we were slow and unwilling to meet FATF standards. We warned that the reputational damage would be significant, including enhanced due diligence requirements for all transactions between South Africans and the rest of the world, potential loss of foreign banking relationships, and reduced appetite for investment. The good news is that we have managed to keep the impact…