Tag: economic growth
Tax systems in Africa must be revamped to boost economic growth
A new study found that tax administration in many African countries is inefficient, hindering revenue collection. This points to potential gaps that could be addressed through institutional reforms. Widespread inefficiencies in tax systems in Africa undermine the mobilisation of government resources, limiting their capacity to deliver public services and make essential investments.
Trade tariffs – does the geopolitical turmoil signal China’s return?
The current pace and flux of geopolitics continue to disrupt markets, keeping investors worldwide on tenterhooks. The US/China relationship, in particular, is the most consequential bilateral relationship in the world. In a way, it is the axis around which other global events are turning.
The Uncomfortable Truth About South Africa’s Agriculture
The agricultural sector now enjoys universal recognition. Its status as a growth propeller is embraced in ways that transcend sectoral interests. Specifically, the country’s political leadership deeply appreciates agriculture’s importance in driving the rural economy. They also recognise its role in addressing poverty and creating job opportunities.
2025 GNU budget – prioritising growth in uncertain times
After the false start of 19 February, Finance Minister Enoch Godongwana tabled the 2025 Budget on 12 March. The main tax policy proposals include raising the Value Added Tax (VAT) rate by 0.5% in each of the next two years. This will bring VAT to 16% in 2026/2027. It will be accompanied by no inflationary adjustments to personal income tax brackets, rebates, or medical tax credits.
Post-matric opportunities – the youth struggle
What are the actual job prospects for young South Africans once they have matriculated? To what extent are recent matriculants finding jobs or transitioning into post-school education and training (PSET) opportunities? These are the critical questions explored in a new report titled “School completion, the matric and post-school transitions in South Africa”.
Budget Speech 2025 – cuts, compromises and curveballs
The shocks, surprises and shortfalls in the initial budget on 19 February 2025 made way for a reworked National Budget. This new budget is marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first budget attempt was unexpectedly stopped three weeks ago, a higher VAT rate is still on the table.
2025 Budget Speech highlights – VAT hikes and spending priorities
The updated South African National Budget for 2025, tabled on 12 March, tries to balance the need to address the country's fiscal challenges. At the same time, it aims to stimulate economic growth and improve public services. Over and above these priorities, it also balances political pressure from the Government of National Unity (GNU).
The ‘business confidence’ effect
Business confidence in its most basic form is the optimism or pessimism of business in future economic conditions. This in most instances drives their willingness to invest, hire people and expand operations. According to a report by United Nations Trade and Development (UNCTAD), several factors beyond economic determinants are increasingly shaping investment decisions.
Sin tax on gambling won’t work
We cannot tax our society into behaving better. No matter how much we would like to believe otherwise, it remains ineffective. Behaviour-adjusting taxes, like sin taxes on alcohol and cigarettes, have failed to curb excessive smoking or drinking. The sugar tax has placed a heavier financial burden on the working class. However, it has not achieved its intended behavioural change.
JSE market growth – shaping SA’s future economy
Recent progress at the Johannesburg Stock Exchange (JSE) has signalled renewed confidence in South Africa’s capital markets. We believe the JSE plays a critical role in growing the economy. While market conditions have presented challenges, we remain optimistic about the future. We have seen how the JSE has shown resilience through accessible listings.
