October 2020

15 October 2020 – Trade activity has improved in South Africa, with the seasonally adjusted Trade Activity Index (TAI) having measured 50 index points in September, implying that half of the respondents experienced better conditions than in August. Trade activity previously improved to 37 index points in July, and then to 41 index points in […]

14 October 2020 – South Africa is far from realising the full potential of the African Growth and Opportunity Act (Agoa) with the majority of exports to the United States not taking advantage of the benefits of the programme. The Act, which has for the past decade largely shaped the US-Africa trade-policy framework, provides eligible

13 October 2020 – The recovery in manufacturing production slowed in August, with factory output falling by 10.8% year-on-year from a revised 10.2% (previously -10.6%) contraction in July. This is worse than Nedbank Group Economic Unit’s forecast of an 8.7% decline. While all industries having recorded declines, the biggest drag came from the heaviest weighted

12 October 2020 – Never has there been a better time for exporters to target the North American market. This is according to Francois Fouche, director of Growth Diagnostics (at the North-West University Business School), who says the ongoing US/China trade war, the weak rand, and the African Growth and Opportunity Act (Agoa) all help

9 October 2020 – Agriculture is an integral part of African economies, but it is faced with many challenges and requires greater investment to further the continent’s growth. This was indicated by speakers at the Africa Brand Day Summit on October 7. Grobank’s Bennie Van Rooy said Africa had never been able to ensure that its food exports

8 October 2020 – The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) dipped marginally to 85.7 index points in September, after having improved to 85.8 index points in August. After declining by 12.1 index points in April and a further 7.7 in May, the BCI had recovered by about 15.7

7 October 2020 – Covid-19 has taken its toll on wine exports to the US – a market that was already showing signs of fatigue. According to Maryna Calow, communications manager for Wines of South Africa, pre-Covid South African wines to North America had plateaued, although awareness of the product was growing. “The saturated market,

6 October 2020 – Conditions in the private sector improved in September to the best levels in almost a year, as lockdown restrictions eased. The latest IHS Markit SA purchasing managers’ index (PMI), an economy wide gauge of business conditions, reached 49.4 index points, its highest level since October 2019. The PMI — an indicator of

5 October 2020 – The rising grain prices, which over the weekend I highlighted their impact on the livestock sector, present upside risks also to South Africa’s food price inflation. This is a case although the pass-through of the recent price increases remains fairly muted, with “bread and cereals” category of the food price inflation basket rising

2 October 2020 – South Africa’s 2020/21 summer grain and oilseeds planting season should begin in areas with favourable weather and sufficient soil moisture soon. This will be the start of an optimal planting window in the eastern regions of the country. For the central and western regions of South Africa, the optimal planting window