
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1147660186-820x547.jpg" alt="" class="wp-image-419436" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1147660186-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1147660186-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1147660186-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1147660186-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1147660186-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1147660186-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>BRAZIL &#8211; 2019/06/01: In this photo illustration an Organization for Economic Cooperation and Development (OECD) logo is displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



<p><strong>South African reforms must be deepened for the country to maintain the growth momentum created by its recovery from the coronavirus pandemic, the Organisation for Economic Cooperation and Development (OECD) says.</strong></p>



<p>“Without a strong and sustained recovery, South Africa risks losing some of its hard-earned social progress in areas like education, housing, welfare and healthcare,”&nbsp;the OECD’s <strong>Acting Chief Economist Álvaro Pereira&nbsp;</strong>said in a new report. “Strengthening public finances, creating a more growth-friendly tax system and fostering higher productivity through enhanced infrastructure, education and competition and more reliable power supply will be key to get the recovery back on track and ensure higher living standards.”</p>



<p>South Africa’s economy is struggling to fully recover from the impact of government imposed lockdowns during the fight to contain the spread of Covid-19, the global supply chains it disrupted and soaring inflation caused by the Ukraine-Russia war. Most economists see growth under two percent this year, lower than earlier estimates of over three percent after the country benefitted from higher commodity prices.</p>



<p>Through Operation Vulindlela, President Cyril Ramaphosa’s government has sought to accelerate long delayed structural reforms in the power, water, transport and telecommunications industries. The reforms have seen the monopoly of state-owned Eskom in power generation broken and its unbundling, the auctioning of badly needed spectrum and the introduction of private players in the ports sector.</p>



<p>The OECD says a survey it conducted is forecasting gross domestic product expansion of 1.8 percent this year and 1.3 percent next year while inflation is projected to average 6 percent. It says that picture is threatened by continued power shortages and deteriorating infrastructure including roads, railways and telecommunications.</p>



<p>“Improving the effectiveness of public investment, in part through strengthening the selection process for large infrastructure projects, would be a step towards restoring productivity growth,” it said. “Improving skills in line with employer needs will also be key to revive GDP growth.”</p>



<p>It also suggests further tax reforms to fund the budget deficit and investments through the introduction of a wealth tax and other duties and the reduction of allowances and deductions in personal income tax for high earners. The value added tax rate of 15 percent, which it says is relatively low, could also be raised once inflation pressures abate.</p>



<p>The ruling African National Congress has been mulling introducing a wealth tax to fund social support programmes in a country with the world’s most unequal society. That proposal has been heavily criticised by organised business including Business Leadership South Africa, which argues it will lead to capital flight and stunt growth.</p>


In this photo illustration an Organization for Economic

South Africa needs deeper reforms, OECD says

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<p>Destined to be in the hospitality sector but innovative enough to break away from the cookie-cutter franchising model, South African-born restauranteur Natasha Sideris opens up on her passion of starting and growing her chain of operations in the lifestyle-oriented city of Dubai&#8230;.</p>


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<p>Traders at UBA say they expect the Treasury Bills market to witness a quiet trading session as attention shifts to today&#8217;s auction where nearly 300 billion naira is on offer. Chuka Nwachukwu, the Head of Fixed Income Trading at UBA, joins CNBC Africa for a midweek update on activities at the fixed income market&#8230;.</p>


T-Bills mute ahead ₦295.5bn auction


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1240294475-820x547.jpg" alt="" class="wp-image-419403" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1240294475-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1240294475-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1240294475-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1240294475-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1240294475-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/GettyImages-1240294475-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Bottles of cooking oil on display inside a supermarket in Barcelona, Spain, on Wednesday, April 27, 2022. Access to edible oils for making food and biofuels is at risk as war in Ukraine and weather-driven supply woes crimp supplies and trade flows. Photographer: Angel Garcia/Bloomberg via Getty Images</figcaption></figure>



<p>South Africa’s Competition regulator has accused the country’s retailers of overcharging consumers on sunflower oil and bread prices.</p>



<p>“South African consumers may be facing opportunistic price increases of sunflower oil as processor prices have increased by far more than sunflower seed prices this year and, retailers have not passed on wholesale cost reductions for bread in the past resulting in widening retail margins,’’ the Competition Commission said its latest Essential Food Pricing Monitoring report.</p>



<p>The regulator said it was also seeing a widening of farm-to-retail spreads in prices, large price differences between regions for basic fresh produce, growing margins at the processor and retailer level, as well as the general trend of price inflation.</p>



<p>Surging inflation has forced South Africa’s central bank to tighten monetary policy, further slowing an economy struggling with near record unemployment amid power blackouts and a weakening global economy.  The central bank which has already raised interest rates by 150 basis points in its latest cycle, has indicated it may need to tighten policy further to contain rising inflation expectations.</p>



<h3 class="wp-block-heading" id="h-read-more-south-africa-s-consumer-inflation-quickens-to-7-8-y-y-in-july">Read more: <a href="https://www.cnbcafrica.com/2022/south-africas-consumer-inflation-quickens-to-7-8-y-y-in-july/">South Africa’s consumer inflation quickens to 7.8% y/y in July</a></h3>



<p>Statistics South Africa earlier reported consumer inflation accelerated to 7.8 percent in July, versus 7.4 percent in June, fanned by accelerating transport, food and housing prices. Stats SA said the consumer price index jumped by 1.5% month-on-month, only the fourth time it has been this high higher 2008.</p>



<p>“Consumers are feeling the pinch, particularly for non-durable goods – those items bought most frequently, such as food, drink, electricity, fuels, and medicine,’’ the Stats SA noted, adding that inflation for non-durable goods was at 14.4%. “This is much higher than the rates recorded for durable goods.’’</p>



<p>South African unions took to the streets today, protesting against rising food prices and demanding that the government provide a cushion for workers and struggling families. But with Finance Minister Enoch Godongwana fighting to return South Africa’s finances to health, analysts say the government has little room to help.</p>



<p>Godongwana is expected to present to his spending plans in the Medium Term Budget Policy statement in October.</p>



<p>The Commission said it will continue monitoring food prices to ensure any reduction in prices is passed onto consumers. It said it has also started investigations into basic foodstuff value chains to deter what it called “opportunistic behaviour given the levels of concentration in the value chain.&#8221;</p>


Cooking Oil in Spain as Ukraine War Squeezes Global Supplies

South African Retailers Overcharging, Regulator Says

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<p>Sentiments in the Treasury Bills market remained mixed despite the 45-billion-naira OMO maturity in the system. Traders at Access Bank say they expect cautious trading today as investors shift their attention to today&#8217;s T-Bills auction. Uzor Anakebe, an FX Trader at Access Bank, joins CNBC Africa for a mid-week update on market activities&#8230;.</p>


T-Bills mixed despite OMO maturity

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<p>Markets in Rwanda were silent on Monday with the Rwanda Share Index and All Rwanda Share Index remaining unchanged to close at 109.1 and 147.44 points respectively. Siongo Kisoso, Head of Investment Banking at BK Capital spoke to CNBC Africa for more&#8230;.</p>


Rwanda: Markets were quiet on Monday session

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<p>Yellow Card is a cryptocurrency exchange launched in Nigeria in 2018 and since then the company which is both U.S based and Africa-based has spread its footprint in 16 countries in Africa. The company completed a $15-million Series-A funding round in 2021 and CNBC Africa spoke to Munachi Ogueke, Chief Business Officer about their plans for the African market and more&#8230;.</p>


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<p>Traders at Access Bank say they expect the bearish sentiment witnessed in the Treasury Bills market to persist despite the 50-billion-naira OMO auction by the Central Bank of Nigeria. Kinskin Ukeje, an FX dealer at Access Bank, joins CNBC Africa for a weekly wrap of activities in the Nigerian Fixed Income market&#8230;.</p>


Access Bank: Bearish sentiment to persist in T-bills market

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<p>This Focus On special explores how OR Tambo Special Economic Zone should view business practices and how funding, structure and skills development can be used to benefit the organisation’s strategies. CNBC Africa&#8217;s Dewald Rademeyer spoke to Thandiwe Ngqobe, CEO of the Gauteng Industrial Development Zone for more on this&#8230;.</p>


Skills transfer

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<p>Analysts say they expect mixed sentiments with a positive tilt in the Nigerian equities market citing current activities presenting a good entry opportunity for investors. Tijani Oladipupo, the Business Head at Norrenberger Advisory, joins CNBC Africa to gauge sentiments at the equities market&#8230;.</p>


Gauging sentiments in Nigeria’s equities market

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<p>The significant contribution women make to Africa’s economy is well-documented, particularly as it relates to the agricultural sector and informal trade. As one of its general objectives, the AfCFTA commits to “promote and attain sustainable and inclusive socio-economic development, gender equality and structural transformation of the State Parties&quot;&#8230;</p>


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<p>The bond market traded on a quiet note despite Monday&#8217;s auction. However, yields inched up by 15 basis points. Chuka Nwachukwu, Head, Fixed Income Trading at UBA joins CNBC Africa for a midweek update on activities in the Fixed Income market&#8230;.</p>


Bond market mute despite auction


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-820x546.jpg" alt="" class="wp-image-376787" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280-600x400.jpg 600w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/retail-1424043_1280.jpg 1280w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



<p><em>Reflects the impact of interest rates and surging inflation on consumers’ pockets</em></p>



<p>South Africa’s retail sales dropped 2.5% year-on-year in June, lower than market expectations, as power shortages and rising inflation sapped consumer confidence.</p>



<p>Analysts polled by Reuters had forecast a 0.4 percent increase. Statistics South Africa said on a month-on-month basis, sales were down 0.4% while for the three months to the end of June, sales rose 0.5% compared with the same period last year.</p>



<p>South Africa’s economic activity is slowing, weighed down by power cuts and rising interests as the central bank battles the country’s highest inflation in more than 13 years. The figures spell a dismal gross product quarter for the economy after both mining and manufacturing production surprised on the downside.</p>



<p>“We coming off [a] really high inflation (and) this has been partnered with a substantial increase within the prime interest rates,’’Liberty consumer economist Zandile Makhoba told CNBC Africa’s Fifi Peters on Power Lunch.</p>



<p>&#8220;That combination is having a significant impact on household balance sheets and definitely consumers are starting to dial down just in terms of what they are spending on.’’</p>



<p>According to <a href="https://www.statssa.gov.za/?page_id=1856&amp;PPN=P6242.1&amp;SCH=73114">Statistics South Africa</a>, the biggest contributors to the decline were retailers in hardware, paint and glass with a drop of 8.6%.&nbsp; Pharmaceuticals, cosmetics and medical goods retailers saw a 4.3% loss while general dealers recorded a 5.7% dip.</p>



<p>“If we just look at the [consumer price index] CPI inflation numbers for the last month, all essential goods items went up substantially, from food to transportation. These are big line items in the household balance sheets which means there is a lot less to spend on other goods such as clothing and household products,” Makhoba said.</p>



<p>South Africa’s manufacturing output fell 3.5% year on year in June after falling by a revised 1.8% in May. The data showed factory production dropped 1.5% month on month in June. Mining production plunged 8 percent in the same month led by declines in precious metals.</p>


retail-1424043_1280

South African June retail sales fall as inflation bites

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<p>Trading in the Treasury Bills market got some boost after the 100-billion-naira OMO maturities recorded in the system; however, rates remained unchanged. Traders at Access Bank say they expect the market to witness bearish sentiments due to the bond auction debit scheduled for today. Ahmed Agboola, a Fixed Income Trader, joins CNBC Africa for a midweek update on market activities&#8230;.</p>


T-Bills unchanged despite ₦100bn OMO maturities

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<p>About 246 billion naira were allotted in the three Federal Government bonds auctioned by the Debt Management Office. According to the DMO, original coupon rates of 13.5, 12.5 and 13 per cent, will be maintained. Tunde Adama, the Head of Trading at Citibank Nigeria, joins CNBC Africa to discuss this and activities in Nigeria&#8217;s Fixed Income market&#8230;.</p>


DMO auctions ₦225bn bond

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<p>From Firing bullets to flashing cameras! The USP of the African Wildlife experience has transformed from game hunts to conservation-based vacations and Rwanda&#8217;s Akagera National Park promises one of the most intimate wildlife behaviour sightings in Africa. Get up-close and personal with DISCOVER RWANDA&#8217;s &quot;Close encounters with the wild&quot; only on CNBC Africa&#8230;.</p>


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<p>As more half year earnings of listed banks in the Nigerian equities market come in, Joshua Odebisi, a Banking Analyst at Vetiva Capital, joins CNBC Africa to weigh in on investors&#8217; expectations and also discuss expectations ahead of third quarter and full year releases&#8230;.</p>


CNBC Africa

South Africa needs deeper reforms, OECD says

Entrepreneurial Edge: My business is woven in my DNA, says Tashas Founder & CEO Natasha Sideris

T-Bills mute ahead ₦295.5bn auction

South African Retailers Overcharging, Regulator Says

T-Bills mixed despite OMO maturity

Rwanda: Markets were quiet on Monday session

Focus On African Cryptocurrency Market

Access Bank: Bearish sentiment to persist in T-bills market

Skills transfer, funding & enterprise development key to OR Tambo SEZ, says GIDZ CEO Thandiwe Ngqobe

Gauging sentiments in Nigeria’s equities market

Exploring the inherent opportunities that the AfCFTA holds for export, finance & women entrepreneurs

Bond market mute despite auction

South African June retail sales fall as inflation bites

T-Bills unchanged despite ₦100bn OMO maturities

DMO auctions ₦225bn bond

DISCOVER RWANDA’s Close Encounters with the Wild

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CNBC Africa

South Africa needs deeper reforms, OECD says

Entrepreneurial Edge: My business is woven in my DNA, says Tashas Founder & CEO Natasha Sideris

T-Bills mute ahead ₦295.5bn auction

South African Retailers Overcharging, Regulator Says

T-Bills mixed despite OMO maturity

Rwanda: Markets were quiet on Monday session

Focus On African Cryptocurrency Market

Access Bank: Bearish sentiment to persist in T-bills market

Skills transfer, funding & enterprise development key to OR Tambo SEZ, says GIDZ CEO Thandiwe Ngqobe

Gauging sentiments in Nigeria’s equities market

Exploring the inherent opportunities that the AfCFTA holds for export, finance & women entrepreneurs

Bond market mute despite auction

South African June retail sales fall as inflation bites

T-Bills unchanged despite ₦100bn OMO maturities

DMO auctions ₦225bn bond

DISCOVER RWANDA’s Close Encounters with the Wild

How investors position for H1’22 banking earnings

News Tips

Advertise With Us

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