The South African Purchasing Managers Index (PMI) wrapped up the year on a weak note, with private sector firms reporting the first decline in business activity in four months. S&P Global's latest survey reveals that subdued demand led to stagnant sales growth and a slowdown in hiring.

The sector also faced rising inflationary pressures, with increased costs pushing firms to raise their selling prices. As a result, the outlook for 2025 softened, with business confidence retreating from recent multi-year highs.

On the brighter side, however, supply chain pressures appeared to ease, prompting firms to increase their input purchases.

Channel Africa business reporter Innocent Semosa filed this report.

The South African Purchasing Managers Index (PMI) wrapped up the year on a weak note, with private sector firms reporting the first decline in business activity in four months. S&amp;P Global's latest survey reveals that subdued demand led to stagnant sales growth and a slowdown in hiring.
The sector also faced rising inflationary pressures, with increased costs pushing firms to raise their selling prices. As a result, the outlook for 2025 softened, with business confidence retreating from recent multi-year highs.
On the brighter side, however, supply chain pressures appeared to ease, prompting firms to increase their input purchases.
Channel Africa business reporter Innocent Semosa filed this report.

In-depth financial issues, profiling of African businesses doing well internationally, stocks & market updates.

In-depth financial issues, profiling of African businesses doing well internationally, stocks &amp; market updates.

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Africa in Business

S&P Global survey reported a decline in South Africa's factory output in the 4th quarter of 2024 

There is optimism that the current rains could lead to the Southern Africa region having a favourable agricultural season after experiencing drought due to El Niño.  

The International Research Institute for Climate Change and Society at Columbia University has placed the probability of a La Niña occurrence at over 50%.

Such weather events typically bring above-average rainfall across the entire Southern region.

Thami Ngubeni spoke to Thabile Nkunjana, a Senior Economist for Trade Research Unit Markets and Economic Research Division at the National Agricultural Marketing Council.

There is optimism that the current rains could lead to the Southern Africa region having a favourable agricultural season after experiencing drought due to El Ni&ntilde;o. &nbsp;
The International Research Institute for Climate Change and Society at Columbia University has placed the probability of a La Ni&ntilde;a occurrence at over 50%.
Such weather events typically bring above-average rainfall across the entire Southern region.
Thami Ngubeni spoke to Thabile Nkunjana, a Senior Economist for Trade Research Unit Markets and Economic Research Division at the National Agricultural Marketing Council.

Southern Africa region is expected to have a favourable agricultural season as  La Niña occurrence kicks in 

South Africa's government has started a process to review the current legislation that deals with local government.

This comes as many local municipalities fail to deliver on services they are constitutionally required to deliver to citizens because of corruption and mostly because they are broke.

Resolving problems at the municipal level will become more urgent as the country heads to local government elections in 2026.

However, experts say while corruption is no doubt a big issue, the bigger problem is the funding methodology that the national treasury uses to fund municipalities.

Our reporter Dimakatso Leshoro spoke to Gundo Maswime, a lecturer at the University of Cape Town and an expert and researcher in municipal infrastructure.

South Africa's government has started a process to review the current legislation that deals with local government.
This comes as many local municipalities fail to deliver on services they are constitutionally required to deliver to citizens because of corruption and mostly because they are broke.
Resolving problems at the municipal level will become more urgent as the country heads to local government elections in 2026.
However, experts say while corruption is no doubt a big issue, the bigger problem is the funding methodology that the national treasury uses to fund municipalities.
Our reporter Dimakatso Leshoro spoke to Gundo Maswime, a lecturer at the University of Cape Town and an expert and researcher in municipal infrastructure.

South Africa reviews legislation that deals with local government funding 

The UN Food and Agriculture Organization (FAO) reports that its overall Food Price Index averaged 122.0 points in 2024, reflecting a 2.1 per cent decline compared to 2023.

However, food prices showed an upward trend throughout the year, rising from 117.6 points in January to 127.0 in December, an increase of 6.7 per cent over the year.

Key contributors to the rise included meat, dairy, and food oils.

Despite the slight annual dip, FAO emphasizes the ongoing volatility of global food prices.

Economist Patrick Muinde highlights the need for governments and international organizations to implement urgent measures to stabilize food prices and cushion both consumers and farmers against these fluctuations.

The UN Food and Agriculture Organization (FAO) reports that its overall Food Price Index averaged 122.0 points in 2024, reflecting a 2.1 per cent decline compared to 2023.
However, food prices showed an upward trend throughout the year, rising from 117.6 points in January to 127.0 in December, an increase of 6.7 per cent over the year.
Key contributors to the rise included meat, dairy, and food oils.
Despite the slight annual dip, FAO emphasizes the ongoing volatility of global food prices.
Economist Patrick Muinde highlights the need for governments and international organizations to implement urgent measures to stabilize food prices and cushion both consumers and farmers against these fluctuations.

S&P Global survey reported a decline in South Africa's factory output in the 4th quarter of 2024

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