Following the upswing in fuel prices which reached a recording high during July 2022, the Department of Minerals and Energy announced that domestic fuel prices will be slashed by up to R2 per litre effective from 7 September 2022. Both grades of petrol will decrease by R2.04 cents per litre while diesel (0.05% sulphur) will decrease by 56 cents. Again, the continued moderation in the average international Brent crude oil price which fell sharply by 10.5% month-on-month (m/m) in August to US$94 per barrel was the main catalyst in the recent contraction in domestic fuel prices. The strengthening of the rand was a cherry on top as it added to the reduction in the price level of imported crude. However, the recent announcement by OPEC and its allies to lower production by 100,000 barrels per day from October 2022 muddied the crude price outlook and thus a potential upside risk. Hopefully this will be offset by the potential supply boost from Iran, if its nuclear deal with the US comes to fruition, together with the global recessionary conditions that slow economic activity. For the agriculture sector, this is obviously good news especially that this comes at the onset of the new summer crop season with planting in the eastern areas just a few weeks ahead. A reduction at the pump provides relief for producers who must navigate the high input cost environment with fertilizer and feed costs for livestock remaining elevated relative to last year. The cost of planting for summer crops, the harvesting of winter crops, and the daily distribution of fresh produce and meat to markets will be significantly reduced. Further positive news for the sector is that although still elevated relatively to 2021, most international fertilizer prices have also eased from the recent highs with the di-ammonium phosphate (DAP) and Urea prices falling by 4.4% and 1.4% respectively m/m to US$320/ ton and US$704/ ton. Higher fuel prices have been one of the catalysts for the spike in domestic consumer price inflation outcomes which prompted the SARB to embark on an aggressive interest rate tightening cycle. This raised the debt serving cost for farmers and thus a potential to constrain production expansion. It is expected that the receding fuel costs will help ease inflationary pressures and subsequently a pause in interest rate hikes in the medium term. Our consumer price inflation and interest rate expectations are for a peak late this year at near 8% and 10.25% (prime) respectively.
September 2022
Reports of large fuel price decreases are a welcome breath of good news, says The Road Freight Association
Data indicates estimated decreases in the fuel price in the coming week as follows: R2.35 per litre for ULP95, R2.18 per litre of ULP93, 77c for 50ppm and 87c for 500ppm. Illuminating paraffin is set to drop by an estimated 87 cents per litre. The Road Freight Association notes that any decrease in the cost of fuel – in particular larger decreases – will have a tremendous positive effect on transport costs and supply chains. Whilst the price of fuel has dropped, the effects into the logistics chain should be felt in the coming quarter and will certainly make life slightly easier for consumers towards the end of the year. With fuel prices dropping, there should also be a boost for the local tourism industry to boot. South Africans will now pay less for fuel than they did in June 2022. This will go a long way to placing downward pressure on inflation as well as the cost of logistics within South Africa, which is one of the key drivers of the items measured in the “inflation basket”. It must be remembered that fuel price fluctuations are driven by the cost of oil (fuel) on the international market and the Rand/Dollar exchange rate. Concerns remain around the effect global instability has on these two factors and the long-term effect high fuel prices will have on the South African economy. There would, obviously, be a greater positive/downward) effect on freight logistics if the price of diesel was to drop as dramatically as petrol has, as the majority of road freight logistics is done with diesel vehicles. The Association calls on the government to speed up programmes to make South Africa less reliant on fuel imports, by improving or expanding SASOL and similar manufacturing processes, as well as ramping up the introduction of suitable and sustainable Electric Vehicle programmes.
Unlocking eight Bonus Points on the B-BBEE scorecard
8 Points Various priority elements of Broad-Based Black Economic Empowerment (B-BBEE) offer bonus points. When viewed in isolation, one or two extra points may not add up to much, but when they are applied strategically, they can improve B-BBEE certification by up to two levels. Sean Sharp, Executive Head of Sales at EduPower Skills Academy says that when companies are B-BBEE compliant, up to eight bonus points can be accessed relatively easily. “Many of the levels are only separated by five points so the eight bonus points available under Skills Development and Enterprise and Supplier Development (ESD) can make a massive difference,” Sean explains. “With a few changes to your existing B-BBEE strategy, you can significantly improve your company’s score and your overall B-BBEE level …
Gartner names BrandMail #1 global email signature solution
BrandQuantum has today announced that technology research and consulting company, Gartner has rated BrandMail the number one email signature solution globally. The rating is based on comparison reviews across the Gartner Digital Markets which comprises the three leading B2B software search websites — Capterra, GetApp and Software Advice. These reports are independent assessments based on user ratings and reviews. Across all three websites, BrandMail came out tops for its Customer Support and Value for Money. The email branding solution, which is available for Outlook, Google and O365, also ranked highly for its functionality and ease of use. According to Paula Sartini, founder and CEO at BrandQuantum, “We are delighted to receive this accolated from Gartner. At BrandQuantum we develop easy-to-use software solutions in conjunction with our customers to ensure that our software helps them to overcome business challenges and helps them to meet their brand consistency needs.” BrandMail is an email signature management software solution that delivers tamperproof email signatures that are centrally managed to deliver brand consistency in every email interaction. “We would not have been able to develop the software solutions we do without our customer input and recommendations,” adds Sartini. “At the same time, without our customer’s support, BrandMail would not be recognised as a leading email signature solution. It is this support that reminds us that our brand consistency software solutions remove the pain associated with driving brand consistency across organisations and helps our customers to deliver consistently branded emails that result in consistent customer experiences every time.”
How digital access is transforming financial inclusion in Africa
In the convenience economy, digital payment solutions are central to businesses providing a service that is quick and seamless. In Africa, digital technologies are not …