Posts in Category: Politics

THE SECOND VIRTUAL AVON JUSTINE ITHEMBA WALKATHON A ROARING SUCCESS

 

 Johannesburg, South Africa – The 16th edition of the Avon Justine iThemba Walkathon was a resounding success after attracting thousands of participants from across the country and new partners that pledged their allegiance to its noble cause of raising awareness about breast cancer.
 
The 2021 edition of Avon Justine iThemba Walkathon was hosted virtually for the second year in  a row on Sunday, 03 October, in adherence to COVID-19 health and safety protocols. Though the world’s biggest breast cancer walkathon was decentralised and gave participants the opportunity to walk in the safety of their neighbourhoods, the epicentre of the race was in Phalaborwa in Limpopo, where mining company Palabora Mining Company (PMC) supported the event and funded a gala dinner. 
 
The hosting of the event outside of Johannesburg is historic as it marks a break from the event’s traditional hosting venue. This year, Avon Justine iThemba Walkathon also received a much-needed official endorsement and support from the National Department of Health.
 
“We are pleased with the support that that the public, our partners and the private sector are showing for the Avon Justine iThemba Walkathon. It is because of this ongoing support that the event is growing from strength to strength. We wish to appeal to other potential partners to join forces with us to ramp up support to millions of women and their loved ones who are infected and affected by breast cancer, which is the most common strain of cancer affecting women.
 
The support we continue to receive strengthens our resolve to step up the fight against breast cancer by supporting ongoing initiatives to raise awareness and drive education about this silent and deadly pandemic,” says Mafahle Mareletse, Managing Director of Avon Justine Turkey, Middle East & Africa.
 
Once again the iThemba Walkathon attracted an A-list of media personalities and celebrities who registered and pledged support to the fight against breast cancer. These included actors Kay Sibiya and Mbali Maphumulo, Lilian Dube (iThemba Ambassador), comedian Nina Hastie, Mrs Universe South Africa Melody Zondo, media personalities Carissa Cupido and Abigail Visagie to mention a few. 
 
The proceeds generated from the hosting the event, will be donated to non-governmental organisations (NGOs) that work with breast cancer survivors, namely the Cancer Association of South Africa (CANSA), Wings of Hope, Journeysys and Look Good… Feel Better (LGFB).
 
Since its inception, the Avon Justine iThemba Walkathon has donated over R24.5 million to its NGO partners to help them fund their community outreach programmes and breast cancer awareness initiatives.

Fuel and Energy Crisis Looms

Wednesday 6th October 2021: Since 2011, the cost of petrol has increased by +- 85% and diesel by +-69%. In Rand terms, this means an average 50 litre petrol tank now costs R916.50 to fill versus R495.95 10 years ago. So while consumers are paying marginally less for petrol at the pumps this month (95 decreases by 1 cent/ litre and 95 by 4 cents) – versus Diesel 0,05% and 0,005% which have both risen by a noteworthy 22,8 cents and paraffin by 32 cents/litre – on average, they are paying a lot more for petrol than they used to. This as annual salary increases remain at 6,8%. What’s more, prices for all forms of fuel are likely to continue to climb as the cost of a barrel of Brent Crude rises, with economists expect it to reach the $100 mark before the year is out. This means it is likely to be an expensive festive season for most. So says Neil Roets, CEO of Debt Rescue. 

“As we enter the last quarter of 2021, consumers will be looking ahead towards their holidays but they will be in for some steep price increases across the board as the fuel price keeps climbing, pushing inflation up alongside it. We must also factor in the likelihood that Treasury will raise interest rates to keep inflation in check which will add an additional financial burden to consumers who have experienced another year of financial hardship thanks to the continued challenges brought on by Covid-19,” says Roets. 

Consumers will also have to contend with a looming energy crisis which is impacting the world over. Notwithstanding the rising cost of Brent Crude, gas and coal prices are escalating too, which will push the price of power over the line. This follows the sharp increases in the price of electricity earlier on this year which consumers have had to contend with, following Eskom raising its cost of power to municipalities by 17,8%.  

“Internationally energy prices are going up quite steeply at the moment, the oil price is currently over $80 and some analysts are predicting that the oil price will reach $100 soon, but gas and coal prices are also through the roof, electricity prices are going up internationally and all energy prices are going up quite steeply. There are a number of reasons for that. One has to do with the world economy suddenly opening up after the lockdown, and another is the green economy, which favours gas over coal. This is causing a disruption in supply and demand – especially from Russia – and pushing prices up accordingly,” explains economist Dawie Roodt. 

For consumers, increases in these both fuel and energy will be a double-whammy disaster as goods and service providers will either need to absorb the knock-ons or pass them on to consumers. Food in particular will be hit hard as it contends with the increased cost of transport as well as the energy needed for manufacturing. 

“After 18 months of COVID, many consumers have had their financial standings compromised. This is against the backdrop of rising living costs. As the holiday seasons approaches, many will have to forgo vacations and cut down on festivities this year if they are to cope with a new year of school needs such as uniforms, books and school fees. Unfortunately, for vast numbers of South Africans, it is going to get worse before it gets better,” says Roets. 

Roets urges consumer to stick to their budgets, while also factoring in increases in the cost of food, transport, electricity and possibly interest rates and be prepared. “Should they find themselves in financial difficulty and battle to make repayments to their creditors, it may be wise to seek counsel in the shape of debt review. But for now we advise consumers to batten down the hatches and get ready for sharp cost increases across the board,” concludes Roets.

Unemployment continues to rise, dumping households into debt

29 September 2021, Johannesburg, South Africa – The news that jobs in the formal non-agricultural sector decreased by 86 000 in the second quarter of 2021 is yet another blow to punch-drunk South Africans. The latest Quarterly Employment Statistics from Statistics South Africa (Stats SA) points towards the continued impact of Covid-19 on South Africa’s stagnant economy.

Total employment decreased from 9 652 000 in March 2021 to 9 566 000 in June 2021, with the community services industry (-65 000 or -2,3%) and manufacturing (-15 000 or -1,4%) the main sectors taking a knock.

While formal sector jobs increased by 60 000 compared to the same period last year, it must be noted that April through to June 2020 saw the largest job losses in recent years, with President Cyril Ramaphosa starting the lockdown on 26 March 2020. Unfortunately, full-time employment decreased by 27 000 or (-0,3%) quarter-on-quarter, with a decline of 17 000 (-0,2%) year-on-year between June 2020 and June 2021.

Chief Economist of the Efficient Group, Dawie Roodt believes the job losses do not come as much of a surprise. “Although the economy is growing quite fast, there are many technical reasons for this. One is that 2020 was such a horrible year, and the other being that we’re seeing a huge growth in primarily the mining sector. But the rest of the economy is pretty much in the doldrums and will remain like that for some time,” Roodt notes.  

Households struggling to cope

According to Neil Roets, CEO of Debt Rescue, the 86 000 quarterly job losses could have devastating consequences for many households. “Very few households in South Africa have the savings to tap into to deal with unemployment, often borrowing money simply to survive. As can be expected, families will cut back on expenses, foregoing life or car insurance, or cancelling retirement annuities to cover the basics. Vehicle loan repayments also suffer as the focus quickly narrows down to avoid defaulting on a home loan, or to simply have the money to pay for rent,” states Roets.

The job losses also have broader implications for the economy. For the government this could mean a fall in tax revenue as unemployment increases, while decreased household spending also means less VAT. An increase in consumers borrowing money can be expected, but Roodt believes going forward financial institutions will be more reserved when lending money to consumers.

This, however, will not stop many consumers succumbing to increased debt. “Many households find themselves in a debt spiral, as they max out credit cards or stretch store credit to the limit. They borrow money from banks through personal loans, and when this avenue is not available less scrupulous sources such as mashonisa loans with particularly high interest rates are tried. The compounding financial and mental implications of household debt are simply too much to deal with for some, notes Roets.

Future insights

Roodt is concerned about future economic growth. “South Africa’s economy might be growing this year, but I believe we will see economic growth well below 2% from next year onwards. This simply means that unemployment levels will remain elevated until we change a number of macroeconomic policies,” Roodt concludes.

The economic forecasts are not looking good and South Africans will be required to pull the belt even tighter. “The next quarterly result from Stats SA will reflect the devastating impact of the July riots on the broader employment rate. With many businesses destroyed or looted, increased job losses will be inevitable as companies had to be closed and employees let go. This will see even more consumers succumbing to debt,” Roets notes.

Luckily South Africa makes provision for debt counselling, offering a way out for those who are over indebted. “By talking to a debt counsellor, consumers can see if they qualify for debt counselling. This allows for the negotiation with creditors to allow for an extension of the repayment period alongside smaller payments, providing a much-needed relief from the debt spiral,” Roets concludes. 

Queens Death Shocks Zulu Nation

IFP president Velenkosini Hlabisa said on Friday the party was grieving with the Zulu nation after the tragic and unexpected loss of the regent, Queen Shiyiwe Mantfombi Dlamini Zulu.

“This comes as a terrible blow so soon after the passing of his majesty King Goodwill Zwelithini kaBhekuzulu. We are devastated by this second painful loss.”

He also offered “condolences and profound gratitude” to the traditional prime minister to the Zulu monarch and nation, Mangosuthu Buthelezi, “for carrying the heavy burden of informing the nation and supporting the royal family”.

“We recognise that this is his loss as well, not only as family, but as someone who provided assistance to her majesty the regent in a very difficult time.

“We are grateful for his assurances that there will be no leadership vacuum in the Zulu nation. While our hearts are broken, we are without fear for the future. We pray for the Zulu nation, believing God’s will remains unassailable.”