Indholdsfortegnelse for 2025-03-13 i Mercury

VAT will be raised by 0.5% this year and by 0.5% the year thereafter, but a range of measures have been proposed by the government to alleviate the impact of these increases on lower-income households. The National Treasury had earlier this year proposed a 2% increase from the current 15% VAT rate, but the proposal was shot down by the political parties in the Government of National Unity due to the potentially severe impact on lower-income groups. Consequently, the February Budget was postponed until Wednesday so that other ways could be found to increase government revenues. In addition, the government has decided not to adjust the personal income tax brackets and rebates for inflation in 2025/26, which will see employees paying more tax. Finance Minister Enoch Godongwana said in a…

There were angels lurking in the detail of South Africa’s delayed March 2025 Budget. While most attention focused on the scrapping of the 2 percentage point rise in the VAT rate proposed in February 2025 - replaced by a phased increase of half a percentage point this coming fiscal year and another half in the following year - some gems were hiding in the 273-page Budget Review. In my opinion, the standout revelation was the notable decline in irregular expenditure at the provincial level, dropping from R55 billion in 2022/23 to R20.7bn in 2023/24. Unauthorised expenditure also fell, from R3.1bn in 2022/23 to R2.2bn in 2023/24, while fruitless and wasteful expenditure decreased sharply from R626.6 million in 2022/23 to R193.1m million in 2023/24. Another major highlight is that the…

Economists saw the step-up 0.5 percentage point VAT increase over the next two financial terms as not only messy, but an indication of government running out of headroom for revenue generation. The increase, a compromise on an outright 2% VAT increase proposed in the deferred budget from last month, is proposed by Finance Minister Enoch Godongwana to raise R28 billion in 2025/6. It included a VAT increase of 0.5% from May 1, 2025, with a further 0.5% increase from April 1, 2026. South Africa is not out of line with the global average VAT rate. Johann Els, the chief economist at Old Mutual Group, said, "Regarding VAT, the initial proposal of a 2% VAT rate increase has now been revised down to 1%, spread over two years - 0.5% from…

The private commercial property sector has agreed that the government could achieve savings through better management of its property portfolio, calling for an urgent audit to curb unwarranted and wasteful expenditure. This follows remarks by Parliament’s Portfolio Committee chairperson, Songezo Zibi, who said on Monday during a pre-budget economic cluster media briefing that the government was paying over the odds in rental costs. Zibi highlighted that departments in the government’s social cluster account for more than 50% of leased space, with these leases typically involving larger offices - exceeding 2000m² - primarily in central business districts (CBDs) and main centres, at an average rental rate of R126/m². Leases for departments in the Economic and Governance Clusters, meanwhile, range between 1 500m² and 1600m² at an average of R120/m². Just over…

The government’s tax revenue collection fell only R16.7 billion short of expectations from last year’s Budget forecast due in part to lower diesel import VAT receipts as load shedding subsided, and R1.85 trillion of tax revenue is expected to be realised. Although corporate tax receipts benefited from better-than-expected profitability, slower import growth led to underperformance in import VAT collections. Fuel levy receipts contracted amid falling demand and large diesel refund payments. Import VAT collections fell by more than 20 percent between 2022/23 and 2023/24 as nominal imports slowed sharply. While this has since moderated, tax receipts contracted by 1 per cent in the first 11 months of 2024/25 compared with the same period in the previous year. Volumes of domestic and imported diesel contracted as load-shedding subsided. Significant diesel refund…

If you’ve recently joined a gym and are stepping into group fitness classes for the first time, you might not be aware of some unwritten rules that help keep things running smoothly. Group fitness instructor and TikToker Bransen Gates’ post on fitness etiquette has hit a nerve with gym goers, with more than 1 000 comments from followers. “We need to talk about etiquette in group fitness classes, kids, because... it is not there anymore,” he said in a video. Lateness and phone use during class are among his biggest gripes, but judging by the comment section, he’s not alone. Others chimed in with their own frustrations – like excessive body spray, people stepping on mats with bare feet, and folks rummaging through cubbies for ages after class. Some even…

THE police in KwaZulu-Natal has outlined critical shortages of resources it faces, including a lack of training facilities for police officers to practice their shooting. During a recent meeting with the business community, police officials expressed their need for key resources. The meeting aimed to discuss opportunities available for businesses through the SAPS procurement system, as well as the pressing needs that the police are currently facing. The shooting range is one of many key needs that the SAPS must rely on service providers for. A senior police officer, Major General Siyanda Ngcobo, who led the discussions, detailed the shortages affecting the SAPS. “We do not have a shooting range where we can practice. We are the police, yet we have to rely on private facilities. “We do not have…

Skabenga, the beloved feline who found a comfy home at Durban’s Oyster Box, has died. He was 19. “It is with heavy hearts that we share the passing of our beloved Skabenga, who peacefully crossed the rainbow bridge last night (Tuesday),” said hotel manager, Ashwin Jose. He said that for more years than anyone can remember, Skabenga ruled The Oyster Box. The tabby cat wandered on to the property as a stray. He was fed titbits by diners and treated like a king by the staff. He knew “every nook and cranny” of the hotel. “It seems ironic that a cat whose name means ‘hooligan or vagabond’ when translated from isiZulu, was actually VIP guest numero uno… he was a legend in his own right. “Every famous guest that has…

Brad Binder will look to repeat his heriocs at the Argentina MotoGP this weekend, like he did in the 2023 sprint race, after sweeping through the field that year to claim an unlikely victory. He will not, however, want a repeat of the main race when he finished a lowly 17th. The 29-year-old finished P8 in the opening race of the year in Thailand last week, as he still finds himself adjusting to his new package. Two seasons ago, during the Saturday sprint at Termas de Rio Hondo in Argentina, the Red Bull KTM rider started the race in 15th, but ended up piping Marco Bezzecchi by 0.072s to claim victory, and one record of the highlights of the year. Franco Morbidelli of Yamaha took the early lead by about…

Infrastructure investment received R46.7 billion in additional government funding in Wednesday’s Budget, which will form part of R1.03 trillion planned to be spent over three years. This investment aims to speed up economic growth, financial inclusion, and infrastructure development. Finance Minister Enoch Godongwana said R402bn will be spent on transport and logistics, R219.2bn on energy infrastructure, and R156.3bn for water and sanitation. In transport, the SA National Roads Agency will spend R100bn to keep the roads in good condition. Big infrastructure spending plans have been a feature of the government’s Budget in recent years, but delivery has fallen far short of the plans. This has severely reduced activity levels for the engineering and construction sectors, contributing to the steady degradation and backlogs in infrastructure. According to the Budget Review, between…

Finance Minister Enoch Godongwana has announced that the National Treasury will embark on a significant overhaul of the nation’s budget process. This initiative aims to reassess the foundational assumptions that guide budget allocations, with the goal of optimising public expenditure and ensuring it aligns more closely with the current needs of the country. The announcement comes amid concerning projections regarding the country’s financial health, with gross government debt expected to reach R5.69 trillion - approximately 76.1% of the gross domestic product (GDP) - this year. The debt levels are anticipated to stabilise at 76.2% of GDP by the fiscal year 2025/26. In tandem, debt-service costs are projected to surge from R389.6 billion in 2024/25 to R478.6bn by 2027/28, comprising roughly 21.7% of revenue in 2024/25. Godongwana said the proposed budgetary…

Metair Investments, a South African automotive components and energy storage group, saw its shares rocket 15.86% to R5.99 on the JSE by 10.35am on Tuesday, after it unveiled a long-awaited capital restructuring plan. The stock has fallen by a whopping 45.28% in the year to date. The announcement, ahead of a March 31 deadline flagged last year, offers a lifeline to the debt-laden firm, with the market’s exuberance signaling confidence in the firm's strategy to deleverage its balance sheet amid a challenging automotive landscape. The restructuring, greenlit by Metair’s board and lenders on March 10, pivots the group’s net debt of around R5.5 billion into a more manageable structure. Although Metair reported in the six-month period ended June 30, 2024, that its net debt was R5.5bn, this was reduced by…

An Africa Expert Panel, chaired by former Finance Minister Trevor Manuel, has been established by South Africa's Presidency of the G20 from the beginning of December in an effort to raise initiatives to tackle the unprecedented debt crisis among many African countries. South Africa assumed the G20 Presidency from December 2024 until the end of November 2025. The G20 comprises 19 of the world's most systemically important countries and includes the African Union and European Union. The Presidency means that the G20 meetings, such as the G20 Finance Minister and Reserve Bank Governor meetings held in Cape Town last month, are being held on African soil for the first time and provide an opportunity for South Africa to focus the G20 on issues pertinent to Africa. The government said Wednesday…

South Africa’s Finance Minister, Enoch Godongwana, garnered the attention of the property sector as he delivered his 2025 National Budget Speech on Wednesday. His announcement of planned government spending on infrastructure drew praise from industry leaders who see a direct correlation between infrastructural improvements and economic growth. Dr Andrew Golding, the CEO of the Pam Golding Property group, said, “It was positive to note that the critical need for infrastructural improvements has been highlighted in the National Budget, as investment in sound infrastructure with a focus on energy, clean water supply and effective sanitation, well-maintained roads and other transport facilities, as well as affordable and effective broadband connectivity, promotes economic growth, and fosters employment opportunities.” “It also ultimately attracts new businesses and both residential and commercial property development and helps…

The South African government’s 2025/26 Budget, unveiled by Finance Minister Enoch Godongwana yesterday, faces an uncertain future with the DA announcing its intention to withhold support due to the proposed 0.5% increase in Value Added Tax (VAT). The DA is the second-largest party in the Government of National Unity (GNU) and the situation could spell trouble for the government’s budgetary plans which relies heavily on coalition co-operation. Tabling the 2025/26 Budget in Parliament, Finance Minister Enoch Godongwana said there were persistent spending pressures in health, education, transport and security. “The government proposes to increase the VAT rate by half a percent point in 2025/26, and by another half a percent point the following year. This will bring the VAT rate to 16% in 2026/27,” Godongwana said. But DA leader John…

President Cyril Ramaphosa has provided a sobering update regarding the situation of South African troops stationed in the eastern Democratic Republic of Congo (DRC). Ramaphosa said the cessation of hostilities was holding due to the various summits and meetings by chiefs of defence, ministers and heads of states. Fourteen SANDF soldiers were killed in the region after clashes with Rwandan-backed M23 rebels. “There will be a meeting of the SADC (Southern African Development Community) followed by East Africa Community and SADC and we are hoping for a permanent cessation of hostilities,” he said. Ramaphosa was responding to questions in the National Assembly this week on the status of the process of the unconditional ceasefire and cessation of hostilities in the DRC. He said meetings were under way and further engagements…

THE major upgrade and maintenance work that is being carried out at the Kings Park swimming complex in Durban has been welcomed by Swimming South Africa which said the facility played an important role in the sport. Mafata Modutoane, spokesperson for Swimming South Africa (SSA), was commenting after the eThekwini Municipality’s revealed that the facility was undergoing a R42 million upgrade. The municipality said the upgrade aims to ensure it remains a world-class swimming destination. The complex has a 50-metre indoor pool and a 25-metre, 6.5-metre-deep outdoor diving pool. It is the only swimming facility in South Africa with International Swimming Federation (Fina) accreditation, allowing it to host international water sports competitions. The rehabilitation efforts focus on repairing infrastructure damaged by strong winds last year. Key improvements include the installation…

Rassie Erasmus says he is encouraged by the positive dynamics between the younger and older players at the alignment camp that ended in Cape Town on Wednesday because the player load will be shared by all during the 15-match season. The Springbok coach added that his plan to use the skillset of all the coaches and management team members to contribute to a well-oiled machine, is already bearing fruit. The invited players assembled in Cape Town on Monday night and participated in two days of gym and boardroom sessions, which followed on a productive coaches’ workshop last weekend. “The purpose of the alignment camps are to get everyone on the same page about what the year looks like, to set our goals, and delve into what we are expecting from…

Paris St Germain boss Luis Enrique said both his team and Liverpool deserved a place in the Uefa Champions League quarter-finals after a thrilling, nail-biting battle in the competition's last 16. The Spaniard beamed with pride as his squad rallied from a goal down after last week's first leg to defeat English Premier League leaders Liverpool 4-1 in a penalty shootout at Anfield on Tuesday. "Both teams deserved to go to the next phase. They played better than us here, but I think my team, at Anfield, in a special stadium, showed great personality and character," he said. "We tried to play our best, but it was difficult because they are so intense. Even in the penalty shootout, they showed great character. I think it clearly shows the kind of…

Jose Riveiro was honest personified after Orlando Pirates’ draw with Stellenbosch in the Betway Premiership at Athlone Stadium on Wednesday night. Riveiro initially conceded in the post-match presser that they didn’t make enough strides in their title aspirations as they dropped two vital points. And he was right. Pirates visited Stellies to a stalemate which saw them remain second on the log with 40 points, 18 adrift of log leaders Mamelodi Sundowns. Pirates could trim that gap to just six points if they win all their four games in hand which happened due to various postponements. But with the rescheduling of those matches yet to be confirmed, Pirates must do their bit in ensuring undowns drop points going into the last games of the season. The Sea Robbers can cut…

GDP growth has averaged less than 2%, far below the level required to meet our expanding list of needs Finance Minister Enoch Godongwana delivered a pivotal Budget Speech aimed at steering South Africa towards economic recovery and inclusive growth amidst fiscal deterioration and rising debt levels. With the country grappling with stagnated economic growth and pressing social needs, Godongwana’s address presented a mixed bag of fiscal discipline, significant infrastructure investment, and unpopular revenue-enhancing measures. Godongwana said the reality of a mere 0.6% gross domestic product (GDP) growth in 2024 and the expectation of a 1.8% growth over the medium-term stressed an urgent need for structural reforms and macroeconomic stability. “A bigger, faster growing economy, and the larger fiscal resources that comes with it, would give us more fiscal room to…

South Africa’s 2025 Budget Review revealed a mild near-term fiscal slippage, with a weakening in the government’s debt-to-GDP projections and fiscal deficits, before reverting to previous forecasts of fiscal consolidation. Gross government debt is consequently now projected to stabilise at 76.2% of gross domestic product (GDP) in 2025/26, up slightly from the earlier estimate of a peak at 75.5% in the same year, as outlined in last year’s Medium-Term Budget Policy Statement (MTBPS). The rand showed little reaction, hovering around R18.40 against the dollar following the Budget announcement. The budget deficit for 2025/26 is now estimated at -4.6% of GDP, widening from the prior forecast of -4.3%, though it is expected to narrow to -3.5% by 2027/28. VAT has risen by 0.5%, with no adjustment for fiscal drag. The National…

Growthpoint Properties, South Africa’s largest listed real estate investment trust (REIT), reported a better-than- expected 3.9% rise in distributable income per share (DIPS) to 74 cents for the six months to December, buoyed by robust rental growth and falling vacancies in its logistics and industrial portfolio. The interim dividend climbed 3.7% to 61 cents per share, reflecting a 6.2% jump in South African net property income to R2.9 billion. The standout performer was the V&A Waterfront, a flagship Cape Town asset co-owned with the Government Employees Pension Fund, where net property income surged 16.6% on a like-for-like basis. “V&A delivered a 16.6% like-for-like increase in net property income, due to increased tourism and the positive impact this had on retail, hotels and attractions,” the company said. In line with the…

Finance Minister Enoch Godongwana took centre stage on Wednesday, tabling the 2025 Budget before the National Assembly with a clear message: South Africa’s state-owned enterprises are getting a lifeline, but not a free ride. Godongwana spotlighted logistics parastatal Transnet as a key focus of new public-private partnership (PPP) regulations set to kick in on June 1, 2025. These rules, finalised after much anticipation, aim to slash red tape, boost capacity for managing PPPs, and lay down clearer guidelines for unsolicited bids while tightening fiscal risk oversight. Godongwana said the regulations will allow national departments to set up sector-specific PPP units, driving private sector participation (PSP) to shore up the balance sheets of struggling state firms. Transnet and the Department of Transport are already eyeing market engagement on PSP projects, targeting…

The National Treasury has set aside R11 billion to pay for early retirement of at least 30 000 government employees over the next two fiscal years in a bid to manage the public sector wage bill. The early retirement incentive was first announced in the 2024 Medium-Term Budget Policy Statement (MTBPS) as a measure to reduce compensation costs while rejuvenating the public service. Finance Minister Enoch Godongwana told Parliament on Wednesday that the government was reactivating early retirement of public sector employees without penalties to help manage wage costs. Godongwana said the plan was to manage headcounts by incentivising employees over 55 years-old to retire and moderate compensation spending as new recruits join the public service at entry-level salary grades. He said the early retirement initiative was thus allocated R4.4bn…

President Cyril Ramaphosa has finally shed light on the delayed envoy to the United States, revealing that the US’s “transactional” approach has necessitated careful preparation and strategic engagement. Ramaphosa made these remarks while answering questions in the National Assembly at Parliament in Cape Town on Tuesday. The diplomatic plight was sparked by US President Donald Trump, who has cut all aid to the country, allegedly because of South Africa’s stance on land reform and its case against Israel at the International Court of Justice (ICJ). Ramaphosa explained that the US’s shift towards a more transactional approach to international relations has required SA to adapt its diplomatic strategy. The DA recently sent a delegation, represented by the party’s spokesperson in international relations and cooperation, Emma Powell, and Andrew Whitfield, Deputy Minister…

AmaZulu always faced an uphill task against Mamelodi Sundowns, and their failure to be clinical in execution only made things worse, squandering a chance to make inroads into the Top 3. Second-half goals from Peter Shalulile and Arthur Sales handed Sundowns a 2-0 win over Usuthu, with the KwaZulu-Natal outfit suffering their first loss in four matches and missing out on a chance to move into third, as Stellenbosch played out a 0-0 draw with Orlando Pirates. Nevertheless, fourth place remains a strong possibility for Arthur Zwane and his charges despite their disappointing loss to the Brazilians. The need to shake off this defeat will be crucial as they next welcome TS Galaxy to King Zwelithini Stadium on Friday (7.30pm kick-off). With the Rockets having claimed all three points in…

Lewis Hamilton will look to lay down an immediate marker against world champion Max Verstappen when the Briton makes his highly anticipated Ferrari debut at the season-opening Australian Grand Prix this week. The former Mercedes ace is bidding for a record eighth world title — and his first since 2020 — after being outshone by the Dutchman and his dominant Red Bull team in recent years. A bombshell move to Ferrari after a glorious 12-year spell at Mercedes has rejuvenated the 40-year-old, who is eager to apply the lessons learned from 162 laps of testing in Bahrain last month to race conditions. "I'm so excited to get to the first race in Melbourne. I can't wait to go racing with them," Hamilton said of Ferrari. "The passion here is like…

LOCAL is lekker, it is often said. A phrase that probably every adult South African has used at some point. The problem though is that at times this phrase is detrimental as we also tend to use it to support our decisions to “keep things local” even when it would do us a world of good to look externally. To cut to the chase - that is one of the problems facing South African football at the moment; domestic clubs are keeping it too local when it comes to the appointment of coaches especially in the Premiership. Yes indeed times are tough out there for anyone, especially not a journalist like myself who is living with endless job threats from AI and social media tools, to advocate for local teams…