Tag: cost of living

Modern Monetary Theory (MMT) is an economic framework that proposes that countries that control their own currency can issue new currency to meet the needs deemed necessary by the government. Theorists argue that governments should issue currency to create jobs for the unemployed, to narrow the gap in wealth inequality.

The National Minimum Wage (NMW) in South Africa has risen to R28.79 per hour, effective 1 March 2025. This 4.38% increase from the previous rate of R27.58 reflects the government’s commitment to improving workers' livelihoods. However, it also poses significant challenges for businesses, especially Small and Medium Enterprises (SMEs), which are already grappling with a rising cost of living alongside a sluggish economy.

The South African government has concluded its 2025 budget deliberations. It announced a Value Added Tax (VAT) increase of 0.5% from May 2025. It also announced a possible further 0.5% hike by April 2026. These increases are part of measures to address the growing budget deficit.

We note the tabling of the delayed 2025 National Budget. As with previous budgets, the steps announced by Finance Minister Enoch Godongwana highlighted the need for higher growth rates in the domestic mining sector and the broader economy.

Choosing to relocate to a new property or premises is an exciting opportunity. This often involves fresh experiences and exposure to new markets. It also allows you to embrace positive change.

South Africa’s automotive sector has seen a steady downshift in sales with a year-on-year decline for the fourth consecutive year due to inflation, high levels of debt, a rising cost of living and unpredictable fuel hikes forcing consumers to tighten their purse strings.

E-commerce, e-tail or online shopping – whatever you call it, its adoption among South Africans has almost reached ubiquity, sitting steady at 6% of the total retail pie (on and offline purchasing), with 86% of online consumers (49% of which have a household income of less than R10,000.00 per month) reporting that they have purchased online. This is according to the sixth annual South African Customer Experience Report.

Despite higher inflation, interest rates and cost of living, the South African insurances market experienced a revival during the last two years, with the gross written premium across the local insurances market expected to show an annual growth rate of 5.14% from 2024 to 2028 (CAGR 2024-2028), achieving a market volume of US$100.30 billion by 2028.

South African banks have weathered rough seas during the past year, with many of their customers coming under severe pressure from a stagnant economy, rising cost of living and high interest rates. Despite these storms, the financial services industry is still delivering good profits and growth, but there is constant pressure to maintain these results amid the adverse market trends and pressures that are currently shaping the landscape.

Climate change-induced extreme weather events have remained elevated across the globe in the last decade, proving disruptive to both economic and social activities. According to the global reinsurance broker, Aon, the 2023 economic losses due to natural catastrophes was 22% above the 21% century average – raising questions about the long-term affordability and sustainability of cover for vulnerable communities.