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South African consumer confidence dips further in Q1 – survey

The latest consumer confidence index shows that consumers do not expect the country’s economic prospect to improve

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Mamello Matikinca, FNB Chief Economist
Mamello Matikinca Chief Economist at FNB. Photo credit: Freddy Mavunda © Financial Mail

The consumer confidence index in South Africa dipped in the first quarter of 2019. This is according to a survey conducted by the Bureau for Economic Research in partnership with First National Bank, it showed that consumers are neither optimistic nor pessimistic about the outlook for the country.

FNB’s Chief Economist, Mamello Matikinca-Ngwenya added that the index fell by +2 in the first quarter from +7 in the last quarter in 2018. The report further explained that the shock implementation of stage 4 load shedding by Eskom between February and March this year.

Other incidents that impacted negatively on the South African economy and its prospects are the prolonged labour strikes, a fall in the rand against increase in price of fuel and personal income hike that was announced in February contributed to it.

The latest dip in consumer confidence index shows that consumers do not expect the country’s economic prospect to improve over the next 12 Months as they did throughout 2018.

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Zimbabweans lament after price of bread rises by 60% overnight

Bakers said they were forced to hike their prices due to rising production costs

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Zimbabweans lament after price of bread rises by 60% overnight

The price of bread shot up 60 per cent overnight in Zimbabwe, in the latest blow for a population already struggling with spiralling living costs.

Zimbabweans can barely keep pace with the price rises that have rekindled fears of hyperinflation which reached 500 billion per cent a decade ago and forced the country to trash its own currency.

Already, many families live on one meal a day, with the country in the grip of a major downturn that has provoked biting shortages of basics such as fuel and medicine.

Bakers said they were forced to hike their prices due to rising production costs.

Electricity prices have “gone up significantly, the price of fuel has also been going up weekly, the prices of raw materials have also gone up including the cost of importing wheat,” said Dennis Wala, the president of the National Bakers’ Association.

Electricity is only available for around six hours a day, forcing many bakers to use generators to run their ovens.

“The bread manufacturer is at the end of the value chain and we have to factor in all these costs, but we don’t prescribe prices to our members,” Wala told reporters.

The price of a loaf of bread soared to 15 Zimbabwe dollars (around US$1) on Wednesday from nine dollars the previous day, according to a correspondent.

Bread is the second most important staple in the country after a thick cornmeal porridge known in the local Shona language as “sadza”.

After decades of mismanagement under former President Robert Mugabe, Zimbabwe reached absurd levels of hyperinflation in 2008-2009 when the central bank started printing money.

Mugabe’s successor, Emmerson Mnangagwa has failed to stop the latest inflation surge, last week begging for patience to bring the economy back from the “dead”.

But the economy is near breaking point.

Hundreds of thousands of government workers said this week they could no longer afford to report for duty as their wages had been rendered almost worthless.

Last week, the authorities quadrupled the price of electricity — which is already in short supply after a 400 per cent hike in August.

Earlier this month, the price of fuel rose more than 25 per cent, the latest in series of regular increases.

The official inflation rate was 290 per cent last month, but economists estimate it is at least double that figure.

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Nigeria to sign military cooperation deal with Russia

Nigerian President, Muhammadu Buhari is due to meet Putin on the sidelines of a Russia-Africa summit in Sochi

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Nigeria to sign military cooperation deal with Russia

Nigerian President, Muhammadu Buhari hopes to sign a military-technical cooperation deal with Russia at talks with President Vladimir Putin this month that will help it fight Boko Haram militants.

The Nigerian leader is due to meet Putin on the sidelines of a Russia-Africa summit in the Black Sea city of Sochi amid a push by Moscow to expand its influence in Africa.

“We’re sure that with Russian help we’ll manage to crush Boko Haram, given Russia’s experience combating Islamic State in Syria,” Nigerian envoy, Steve Ugbah said in an interview with Russia’s RIA news agency, adding that Nigeria was interested in purchasing Russian helicopters, planes, tanks and other military equipment.

Ugbah says a military-technical cooperation deal between Russia and Nigeria had already been drafted and that it is awaiting finalisation. 

“We hope President Buhari can take the talks to their logical end. The agreement will open new possibilities in such areas as the supply of military equipment and training for specialists,” he adds.

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Nigeria, Cameroon to plan Cocoa price cartel

The plan suggested by Nigeria is part of a trend by cocoa growers in West Africa and Latin America

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Nigeria, Cameroon to plan Cocoa price cartel

Nigeria aims to team up with Cameroon to agree on a premium for its cocoa with buyers, after the world’s top growers, Ivory Coast and Ghana set a price floor for the crop.

The plan suggested by Nigeria, the world’s fourth-largest cocoa producer, is part of a trend which has seen growers in West Africa and Latin America seek to influence prices in the global market.

The move follows Ghana and Ivory Coast’s union in July, which set the price for a ton of cocoa from their countries at $2,600 plus a $400 premium described as “living income differential”.

READ: Cocoa industry stakeholders accept Ghana, Ivory Coast price

Both countries produced 60 per cent of the world’s cocoa in 2018.

Vice President of the World Cocoa Producers Organisation, Sayina Riman says discussions will be held with the private sector and the Nigerian Government before formal talks are held with Cameroon.  

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