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Market View

This Weeks Overview

National Headlines:

• Motorists are set to benefit from significant fuel price reductions, with prices expected to drop by more than R1 per litre.

• A dehorning program in KwaZulu-Natal's Hluhluwe-iMfolozi Park has led to an 80% reduction in rhino poaching.

• Stellenbosch University decides to close and revamp its controversial Wilgenhof men's residence after an investigation into its secretive practices.

• Gauteng faces Level 1 water restrictions as Rand Water battles high demand and unpaid debts from municipalities.

• Checkers and OK Foods recall hummus nationwide due to microbial contamination found in three batches.

Business World:

• South Africa’s Reserve Bank cuts interest rates by 25 basis points, offering some relief amid economic challenges.

• Discovery Health will raise medical aid premiums by up to 10.9% in 2025, exceeding the Council for Medical Schemes' recommended increase.

• Ocean Basket and Babel Restaurant face legal action for violating minimum wage laws and mistreating employees, leading to a joint raid and significant fines.

• Pravin Gordhan, a key figure in the fight against state capture and a former finance minister, has died at 75 after a battle with cancer.

Interesting Internationally:

• A rare weather shift has turned parts of the Sahara green, raising concerns about the impact of climate change.

• Tupperware Brands files for Chapter 11 bankruptcy as sales shrink and the company seeks to reinvent itself in a tech-driven marketplace.

National Stories:

Fuel Prices Plunge:

Drivers can rejoice as fuel prices are poised for a major cut. Diesel is on track to decrease by R1.10 per litre, with petrol also set to drop significantly—around R1.18 for ULP93 and R1.26 for ULP95. These reductions, driven by falling international oil prices and a stronger rand, promise to bring petrol costs back to April 2022 levels. The Automobile Association (AA) highlights that while this drop is a relief, it doesn’t fully offset other economic pressures like high interest rates and rising food costs. The final adjustments will be confirmed by the Department of Mineral Resources and Energy, but the outlook remains optimistic.

Dehorning Success:

Hluhluwe-iMfolozi Park in KwaZulu-Natal is celebrating a remarkable 80% drop in rhino poaching, thanks to a strategic dehorning initiative. Implemented in April, the program has significantly curbed poaching by removing rhino horns, a primary target for illegal hunters. This measure has not only spared the lives of approximately 120 rhinos but also led to the rescue of eight orphaned calves now cared for at the Zululand Rhino Orphanage. Enhanced security measures, including aerial surveillance, smart fences, and tracking pods, have further bolstered protection efforts. The park, crucial for rhino conservation, continues to monitor and refine its strategies to combat poaching and preserve its vital wildlife.

Wilgenhof Residence Shuts Doors

Stellenbosch University (SU) has decided to close Wilgenhof, its oldest men's residence, following a controversial investigative report. The council's move comes after the discovery of secretive rooms tied to the residence’s disciplinary committee, sparking concerns about racist undertones and outdated practices. Wilgenhof, long criticized for being a symbol of SU's troubled past, will be revamped and reopened in 2026 as a "reimagined" male residence.

While the Wilgenhof Alumni Association disputes the investigation's findings, SU's leadership sees this closure as necessary for aligning with updated norms for student housing. The decision aims to preserve the positive aspects of Wilgenhof while breaking ties with its problematic history.

Gauteng’s Water Woes

Rand Water has imposed Level 1 water restrictions across all municipalities in Gauteng due to soaring demand and mounting financial pressures. Residents face limitations like reduced garden watering hours, car-washing restrictions, and shortened bath times. The water utility is grappling with increasing consumption, compounded by illegal connections and over R5 billion in unpaid municipal bills. The restrictions aim to prevent a potential water crisis as Gauteng's population grows, stressing the need for better water management and conservation measures. Failure to comply could leave taps running dry by March 2025.

Hummus Recall

In a precautionary move, Shoprite-owned Checkers and select OK Foods outlets are recalling 300g and 125g tubs of their in-house Deli hummus. The recall affects varieties including Classic, Reduced Fat, Zataar, Red Pepper, and Caramelised Onion hummus, with sell-by dates from September 10 to October 8, 2024. Routine testing uncovered microbial contamination in three batches, prompting a halt in production at the supplier's facility. Customers are urged to return the affected products for a full refund, with no proof of purchase required. Shoprite has apologized for any inconvenience and is collaborating with food safety experts and the National Consumer Commission to address the issue.

Business World

A 25 Basis Point Break

In a move many anticipated, the South African Reserve Bank (SARB) trimmed interest rates by 25 basis points, nudging the repo rate down to 8%, with a prime rate of 11.5%. This follows inflation cooling to just below SARB’s 4.5% target, helped by lower fuel costs and a strong rand. The cut could save homeowners around R350 per month on a R2 million bond.

While this signals relief for consumers, SARB Governor Lesetja Kganyago warns uncertainty still lingers, citing factors like electricity and wage hikes. Growth expectations for 2024 were bumped slightly, and another rate cut may be on the horizon come November. For now, the economic weather seems to be easing.

Discovery Health hurting pockets

Discovery Health is set to boost its medical aid premiums by a steep 7.4% to 10.9% starting January 2025. This move, aimed at aligning with anticipated medical inflation, comes despite the Council for Medical Schemes' (CMS) recommendation to cap increases at 4.4% to ease financial pressure on members. With healthcare costs on the rise and an ageing membership driving up expenses, Discovery's hikes will vary by plan, with a weighted average increase of 9.3%. In response, Discovery is introducing the "Active Smart" plan for young professionals and a new Personal Health Fund, promising up to R10,000 in additional benefits.

Restaurant Raid: Tips Turned Toxic

In a high-stakes crackdown, authorities hit up Ocean Basket and Babel Restaurant in Pretoria, arresting three individuals amid allegations of severe wage violations. A viral video from a disgruntled former Babel employee revealed shocking labor abuses, prompting a joint raid by the Home Affairs and Labour Departments. Ocean Basket’s waitstaff were found to be paid solely through tips, falling short of the R813,969 owed. Babel fared worse, with underpayments amounting to R567,531 and a blatant disregard for rest period laws. Meanwhile, Babel’s owner faces charges for employing unauthorized immigrants. The situation underscores a broader issue of exploitation in South Africa’s restaurant sector.

Legacy of Integrity:

Pravin Gordhan, a towering figure in South Africa’s political and financial landscape, has passed away at 75 after a battle with cancer. Gordhan, the first commissioner of the South African Revenue Service (SARS) and a two-time finance minister, was a staunch opponent of state capture during Jacob Zuma’s presidency. His tenure saw him defending National Treasury against rampant corruption and leading efforts to reform troubled state-owned enterprises. Despite facing intense criticism and numerous challenges, Gordhan's legacy includes his pivotal role in transforming SARS into a global leader in tax administration. His death marks the end of a significant era in South African politics, remembered for his unwavering commitment to integrity and justice.

Interesting Internationally

The grass is greener on the other side

In a plot twist straight out of a sci-fi movie, parts of the Sahara Desert are blooming with vegetation, visible from space. A surge in rainfall—up to six times the norm—has greened the desert's southern fringes, hitting areas like Niger, Chad, and Sudan. But don’t get too excited; this is less about a new oasis and more about a climate crisis in action. The shift is partly due to an unusual northward movement of storm systems, fueled by the transition from El Niño to La Niña and a warming world. While the greenery is striking, it comes at a cost: deadly floods have wreaked havoc across several African nations, displacing millions.

Tupper-where’d the money go?

Tupperware, the iconic kitchenware brand that’s been organizing leftovers for decades, has filed for Chapter 11 bankruptcy. The company's sales have been sliding, and in 2023, it warned investors that the financial outlook was bleak. CEO Laurie Ann Goldman pointed to a tough macroeconomic environment as a major factor, saying the company had no choice but to explore "strategic options."

Now, Tupperware is looking for a buyer to save the business while trying to revamp into a more tech-forward, digital-first brand. For now, it’s business as usual—employees and suppliers are being paid, and customers can still get their hands on those signature airtight containers.

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