5 things you need to know in SA business today and SA's favourite drinks
1. After his swearing-in on Saturday, one of the first things President Cyril Ramaphosa did was sign the long-delayed carbon tax into law.
Companies are now obliged to pay R120 per tonne of carbon dioxide equivalent. Allowable tax breaks will reduce the effective rate to between R6 and R48 per tonne of CO2, National Treasury said in a statement.
This also means that, from June 5th, you will now have to pay a carbon fuel levy of 9c a litre on petrol and 10c on diesel.The money will flow straight to the government coffers. It won’t be allocated specifically to “green” causes.
Next order of presidential business: picking a cabinet.
2. All eyes will be on the growing number of newly headless local companies who lost their CEOs in a dramatic week. On Friday, Eskom's CEO Phakamani Hadebe resigned due to health concerns.
Also, the drama at Old Mutual over its suspended CEO Peter Moyo is far from over.
"Next up will be a negotiation over a payoff and Moyo’s salary during his suspension period," writes Bloomberg. "To complicate matters, a majority of shareholders voted against Old Mutual’s remuneration report, indicating they disapproved of its executives’ compensation."
3. Late on Friday, S&P Global Ratings announced that it is keeping South Africa's ratings on “junk” - with a stable outlook. The report said that Ramaphosa was expected to focus on reforms to revive the economy.
4. MTN is in trouble in Nigeria, again. Over the weekend, MTN said the Nigerian financial crimes agency is investigating its listing last week, although it “has not been accused of any wrongdoing”.
5. After a traumatic week of shock losses at Sasol, Tiger Brands, Massmart and Netcare, hang tight for more turbulence. This week, Pepkor, Mr Price, Nampak, Famous Brands and Life Healthcare will release their results.
SA's favourite drinks
In celebration of National Wine Day on Saturday, Statistics SA released a report on the nation's favourite drinks. The report showed that beer represents more than a third of household spending on beverages, followed by fizzy drinks and spirit coolers.
Wine takes up 7.2% of total household expenditure on alcoholic and non-alcoholic beverages, according to Stats SA’s inflation basket. Whisky follows wine in fifth place. Red wine - (3.9%) of total household spending - is slightly ahead of white wine (3.2%). The report also shows that wine is the most expensive in the Western Cape.
"The most recent data shows that the average price of a 750 ml bottle of red wine will set you back R88,50 in that province, higher than the national average of R64.38." KwaZulu-Natal is the second most expensive province.
Inflation data show that red and white wine prices have risen over the last 12 months, but not as much as fizzy drinks and rooibos tea.
South Africans are paying, on average, 8.6% more for a bottle of red wine than a year ago. White wine prices have risen by 9.0%.But rooibos drinkers in particular have had a rough time, with prices for the tea jumping by 17,9% in the twelve months to April. "The rooibos industry is currently recovering from a four-year drought that has constrained supply, contributing to the rise in prices," says Statistics SA.
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