The money minute with Zinathi Gquma: the risk that el Nino presents for small businesses
We might be complaining about the heat, but there's a much bigger problem brewing beyond the uncomfortable temperatures. El Niño could have a knock-on effect on food production, pushing up the cost of ingredients and supplies that businesses rely on every day.
And while bigger businesses might have the financial muscle to absorb some of those increases, smaller businesses don't necessarily have that luxury. Think of your neighbourhood restaurant, bakery or food vendor having to pay more for the very ingredients they need to keep trading.
But it's not all doom and gloom. South Africa is coming off a particularly strong agricultural season, thanks to La Niña's favourable rainfall. That means we currently have enough food in storage, with a surplus available for export.
The bigger concern could be what happens in 2027, depending on how El Niño develops. Farmers are already showing signs of caution, with some reportedly delaying fertiliser purchases until they have a better idea of what the season holds.
So, while there might not be an immediate reason to panic, small businesses need to keep a close eye on the weather because what happens in the fields could e
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