<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>Economy Data Stories – Statistics South Africa</title> <atom:link href="https://www.statssa.gov.za/?cat=6&feed=rss2" rel="self" type="application/rss+xml" /> <link>https://www.statssa.gov.za</link> <description> Improving Lives Through Data Ecosystems</description> <lastBuildDate>Wed, 29 Jan 2025 06:27:46 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod>hourly</sy:updatePeriod> <sy:updateFrequency>1</sy:updateFrequency> <generator>https://wordpress.org/?v=4.6</generator> <item> <title>South African Households Spend R3 Trillion Annually</title> <link>https://www.statssa.gov.za/?p=17981</link> <comments>https://www.statssa.gov.za/?p=17981#respond</comments> <pubDate>Tue, 28 Jan 2025 08:31:39 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Expenditure and Income]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17981</guid> <description><![CDATA[South African households collectively spent an estimated R3 trillion between November 2022 and November 2023, with the average annual household consumption expenditure amounting to approximately R143 691 during the survey year. These findings are according to the Income & Expenditure Survey (IES) 2022/2023, published by Statistics South Africa (Stats SA). The survey provides valuable insights   <a href="https://www.statssa.gov.za/?p=17981" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>South African households collectively spent an estimated R3 trillion between November 2022 and November 2023, with the average annual household consumption expenditure amounting to approximately R143 691 during the survey year.</p> <p>These findings are according to the <u>Income & Expenditure Survey (IES</u>) 2022/2023, published by Statistics South Africa (Stats SA). The survey provides valuable insights into household spending patterns, highlighting the financial priorities that shape the country’s household economy.</p> <p>South African households allocated the majority of their consumption expenditure to four main areas in 2023: housing and utilities, food and non-alcoholic beverages, transport, and insurance and financial services. These categories accounted for 75,6% of total household spending, meaning that three out of every four rand were directed toward these essentials.</p> <p>While the average annual household consumption expenditure in 2023 was R143 691, the median household consumption expenditure was significantly lower at R82 861. The disparity between the average (mean) and median annual household consumption expenditure in South Africa reflects significant income inequality within the country. A large portion of the population spends well below the national average, pulling the median household consumption expenditure down. The gap between the average and median expenditure is thus a clear indicator of the unequal distribution of resources, with the spending habits of wealthier households skewing the average, while most households operate with much lower expenditure levels.</p> <p>Male-headed households, which contributed just over 60% of total household consumption expenditure, spent an average of R159 315, whereas female-headed households, accounting for slightly less than 40%, spent R123 346 on average.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2025/01/IIS.jpg"><img class="alignnone size-medium wp-image-17982" src="https://www.statssa.gov.za/wp-content/uploads/2025/01/IIS-300x205.jpg" alt="IIS" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2025/01/IIS-300x205.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2025/01/IIS-768x525.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2025/01/IIS-1024x700.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2025/01/IIS-100x68.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2025/01/IIS.jpg 1262w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p><strong>Income and Provincial Spending Trends</strong></p> <p>In 2023, the average household income was reported at R204 359. However, male-headed households earned significantly more, with an average annual household income of R239 590, while female-headed households earned an average of R158 481.</p> <p>Regionally, Gauteng dominated consumption expenditure, contributing 36% of the total household consumption expenditure, followed by the Western Cape at 18,4%. Combined, these two provinces accounted for more than half of all household spending nationwide. While Gauteng’s share was unsurprising due to its population size, Western Cape households emerged as the wealthiest in terms of household consumption expenditure, with an average annual household expenditure of R229 636 and a median consumption expenditure of R128 536. By contrast, Gauteng households spent an average of R170 628 annually, with a median of R96 933.</p> <p> </p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2025/01/iis2.jpg"><img class="alignnone size-medium wp-image-17983" src="https://www.statssa.gov.za/wp-content/uploads/2025/01/iis2-300x205.jpg" alt="iis2" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2025/01/iis2-300x205.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2025/01/iis2-768x524.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2025/01/iis2-1024x699.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2025/01/iis2-100x68.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2025/01/iis2.jpg 1039w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>The Northern Cape recorded the smallest share of total household consumption expenditure at 1,7%, while North West was the poorest province in terms of household spending, with an average annual household consumption expenditure of R98 147 and a median household consumption expenditure of R61 495.</p> <p> </p> <p><strong>Metro Areas and Urban-Rural Divide</strong></p> <p>In metropolitan areas, Cape Town households led with the highest average household consumption expenditure of R248 539 and a median of R140 523. The City of Tshwane followed, with an average of R198 035 and a median of R123 176. Mangaung households reported the lowest average metropolitan household consumption expenditure at R119 245.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2025/01/iis3.png"><img class="alignnone size-medium wp-image-17984" src="https://www.statssa.gov.za/wp-content/uploads/2025/01/iis3-300x205.png" alt="iis3" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2025/01/iis3-300x205.png 300w, https://www.statssa.gov.za/wp-content/uploads/2025/01/iis3-100x68.png 100w, https://www.statssa.gov.za/wp-content/uploads/2025/01/iis3.png 706w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Urban households were responsible for 81,5% of total household consumption expenditure, far exceeding contributions from traditional (15,3%) and farm areas (3,2%). Households in traditional areas recorded the lowest average household consumption expenditure of R84 502, while farm settlement households had the lowest median consumption expenditure at R59 503.</p> <p><strong>Racial Disparities in Household Spending</strong></p> <p>Black African-headed households faced significant financial constraints, with 45,3% in the lowest two expenditure quintiles, spending less than R25 063 annually. Only 13% of black African-headed households were in the highest expenditure quintile. In comparison, 21% of coloured-headed households fell in the upper expenditure quintile, while 34,4% remained below the third expenditure quintile</p> <p>Indian/Asian and white-headed households were predominantly in higher spending brackets. Nearly 77% of Indian/Asian-headed households were in the upper two expenditure quintiles, while 78,1% of white-headed households fell into the top expenditure quintile.</p> <p><strong>Shifts in Household Spending Patterns (2015–2023)</strong></p> <p>Over the last eight years, average household consumption expenditure decreased by 7,2% in real terms. However, black African-headed households bucked the trend, experiencing an 8,8% increase in real household spending. Other population groups – coloured (-0,4%), Indian/Asian (-1,2%), and white-headed households (-20,7%) – saw declines. The decline in household consumption expenditure of white-headed households may be due to under-reporting by sampled households instead of actual changes to household spending patterns.</p> <p>The IES 2022/2023 offers a detailed picture of household spending patterns and economic inequality in South Africa, reflecting the continuing disparities between province, settlement types, and population groups. These insights provide a valuable basis for addressing economic challenges in South Africa.</p> <p>The Income & Expenditure Survey (IES) is a household-based survey that collects data on acquisition, spending, consumption, and income earned by households. The survey aims to provide reliable data on measurement of poverty, inequality, income and expenditure patterns, and will inform the updating of the goods and services basket for the Consumer Price Index (CPI). This report focuses on household consumption expenditure across 13 expenditure divisions and income patterns, with the other objectives to be covered in future publications.</p> <p>For more information, download the IES release, media presentation and Excel files<a href="https://www.statssa.gov.za/?page_id=1854&PPN=P0100&SCH=74215"> <u>here.</u></a></p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17981</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Are South African industries dominated by a few firms?</title> <link>https://www.statssa.gov.za/?p=17947</link> <comments>https://www.statssa.gov.za/?p=17947#respond</comments> <pubDate>Wed, 18 Dec 2024 08:00:56 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Food Security and hunger]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17947</guid> <description><![CDATA[Market share can be dominated by (and concentrated in) a few firms or shared more broadly across the economy. Concentration ratios and data on small, medium and large enterprises provide insight into the structure of our industries. Concentration ratios for selected markets The concentration ratio indicates the degree to which market share is distributed across   <a href="https://www.statssa.gov.za/?p=17947" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Market share can be dominated by (and concentrated in) a few firms or shared more broadly across the economy. Concentration ratios and data on small, medium and large enterprises provide insight into the structure of our industries.</p> <p><strong>Concentration ratios for selected markets</strong></p> <p>The concentration ratio indicates the degree to which market share is distributed across the economy. A few giant firms or enterprises calling all the shots could stifle competition and potentially result in higher prices.</p> <p>Stats SA publishes detailed reports on the composition of 16 industries, covering enterprises registered for value-added tax (VAT). Updated concentration ratios (for the period 2018–2022) are available for 14 of these. These ratios show the value of income that the five largest enterprises contribute to the industry’s total, expressed as a percentage. An industry with a high concentration ratio (i.e. near 100%) is a sign that a few, large enterprises dominate it. A relatively low concentration ratio (i.e. near 0%) indicates a diverse industry, with market share more equally distributed.</p> <p>Of the 14 industries surveyed, ocean fisheries is the most concentrated, with a ratio of 67,0% (Figure 1). In other words, the five largest enterprises accounted for just over two-thirds of total income. Agriculture recorded the lowest ratio at 4,1%, indicating a more equal playing field.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure1.jpg"><img class="alignnone size-medium wp-image-17948" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure1-300x200.jpg" alt="figure1" width="300" height="200" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure1-300x200.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure1-768x512.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure1-1024x683.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure1-100x67.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Two quick notes about the data. First, Figure 1 does not show a complete picture, as updated concentration ratios are not available for mining and electricity, gas & water supply. However, small business data are available for these two industries – but more on that later!</p> <p>Second, the latest data from the structural industry surveys might not cover the same year, hence the variance in reference dates. Due to the size and complexity of these surveys, updates are published every 3 to 5 years in a staggered cycle. This ensures that data are collected at a high level of detail, an advantage that the structural industry data have above most other industry-related surveys.</p> <p><strong>Digging deeper into the data</strong></p> <p>This additional detail allows for more in-depth analysis. Ten of the 14 reports provide concentration ratios at a more granular level, for 94 industrial activities in total. The four reports that are excluded are agriculture, forestry & logging, ocean fisheries and construction. The 94 activities with the highest and lowest concentration ratios are highlighted in Figure 2.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure2.jpg"><img class="alignnone size-medium wp-image-17949" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure2-300x235.jpg" alt="figure2" width="300" height="235" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure2-300x235.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure2-768x602.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure2-1024x803.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure2-100x78.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Several transport & storage industry activities exhibit high ratios, including transport via pipelines, railway transport and cargo handling. Air transport holds the ninth spot in the list, with a ratio of 63,8%.</p> <p>On the other end of the scale, retail sales of fuel in the motor trade industry, medical & dental practices, and restaurants & coffee shops recorded the lowest concentration ratios.</p> <p><strong>Where do small businesses contribute?</strong></p> <p>Another way to gauge dominance in an industry is to explore the distribution of small businesses. Twelve structural industry reports provide data on both income and employment for small, medium and micro enterprises (SMMEs).<sup>1</sup> Small and micro businesses play a vital role in the food & beverages sector, accounting for 59% of total income generated and 60% of the labour force (Figure 3). Small and micro businesses also provide jobs to more than half of those employed in accommodation, motor trade, wholesale trade and construction.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure3.jpg"><img class="alignnone size-medium wp-image-17950" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure3-300x197.jpg" alt="figure3" width="300" height="197" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure3-300x197.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure3-768x505.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure3-1024x673.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure3-100x66.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p><strong>Where have small businesses made inroads?</strong></p> <p>To see how small business influence has shifted over time, we turn to the <em>Annual Financial Statistics (AFS)</em> statistical release that provides a unified time series. Published annually, the AFS covers turnover data by business size for nine industries in the formal business sector.<sup>2</sup></p> <p>According to the data, small businesses generated 21% of turnover in AFS 2023. This is higher than the 16% recorded in AFS 2013 but down from the peak of 24% in AFS 2021 (Figure 4).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure4.jpg"><img class="alignnone size-medium wp-image-17951" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure4-300x197.jpg" alt="figure4" width="300" height="197" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure4-300x197.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure4-768x505.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure4-1024x673.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure4-100x66.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Figure 5 teases out the data for each AFS industry. The share of small business turnover increased across most industries since AFS 2013, except for community & social services, which registered a decline. The construction industry recorded the largest increase, with the share of small business turnover rising by 23 percentage points, from 17% in AFS 2013 to 40% in AFS 2023. Whether this is due to the growing prominence of small businesses or a decline in the influence of larger enterprises (or a combination of both) requires further research.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure5.jpg"><img class="alignnone size-medium wp-image-17952" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure5-300x197.jpg" alt="figure5" width="300" height="197" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/figure5-300x197.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure5-768x505.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure5-1024x673.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/figure5-100x66.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>In contrast to the structural industry reports, data for mining and electricity, gas & water supply are included here. Both industries are dominated by large enterprises. Despite this, Figure 5 shows how smaller businesses have gained some, albeit modest, ground in these two industries.</p> <p>In a nutshell, what do the concentration ratio and small business data tell us? First, mining; electricity, gas & water; ocean fisheries; forestry & fishing; and post & telecommunications are heavily concentrated industries. Second, small and micro businesses play an important role in employment across the formal business sector, most notably in food & beverages, accommodation, motor trade, wholesale trade and construction. Third, small businesses have increased their influence across parts of the formal business sector, although this influence has waned slightly since 2021.</p> <p><strong>Want to find out more?</strong></p> <p>If you’re interested in accessing the data related to concentration ratios, download the following structural industry reports. Most of these provide data on SMMEs:</p> <ol> <li><em>Agricultural survey, 2023</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=P1101&SCH=7379">here</a>).</li> <li><em>Forestry, logging and related services industry, 2020</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=12-00-00&SCH=73250">here</a>).</li> <li><em>Ocean (marine) fisheries and related services industry, 2020</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-13-00-00&SCH=73251">here</a>).</li> <li><em>Manufacturing industry – financial detail, 2021</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-30-02-03&SCH=6692">here</a>).</li> <li><em>Construction industry, 2020</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-50-02-01&SCH=6691">here</a>).</li> <li><em>Wholesale trade industry, 2022</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-61-01-01&SCH=7086">here</a>).</li> <li><em>Motor trade industry, 2022</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-63-01-02&SCH=7084">here</a>).</li> <li><em>Retail trade industry, 2022</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-62-01-02&SCH=7085">here</a>).</li> <li><em>Accommodation industry, 2022</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-64-11-01&SCH=7082">here</a>).</li> <li><em>Food and beverages industry, 2022</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-64-20-01&SCH=7083">here</a>).</li> <li><em>Transport and storage industry, 2019</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-71-02-01&SCH=7370">here</a>).</li> <li><em>Post and telecommunications industry, 2022</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-75-01-01&SCH=7369">here</a>).</li> <li><em>Real estate, activities auxiliary to financial intermediation and business services industry, 2020</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-80-04-02&SCH=7371">here</a>).</li> <li><em>Personal services, 2018</em> (available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=Report-90-01-01&SCH=4710">here</a>).</li> </ol> <p>Small business turnover data from the AFS are available for download <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P0021&SCH=73959">here</a>. The data are available in the <em>Estimates by business size 2022 2023</em> Excel file under ‘Additional downloads’.</p> <p><sup>1 </sup>Please refer to the releases and reports sourced in this article for information on how the size groups (micro, small, medium and large) are classified.</p> <p><sup>2 </sup>The AFS excludes agriculture and hunting; general government and educational institutions; and financial intermediation, pension funding, insurance and business services not elsewhere classified.</p> <p>Similar articles are available on the Stats SA website and can be accessed <a href="https://www.statssa.gov.za/?page_id=624">here</a>.</p> <p>For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz newsletter <a href="https://www.statssa.gov.za/?page_id=6048">here</a>.</p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17947</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Inflation edges higher in November</title> <link>https://www.statssa.gov.za/?p=17928</link> <comments>https://www.statssa.gov.za/?p=17928#respond</comments> <pubDate>Wed, 11 Dec 2024 08:03:14 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17928</guid> <description><![CDATA[Annual consumer inflation was 2,9% in November, slightly up from 2,8% in October. There was no change in the consumer price index (CPI) between October and November. Food inflation is the lowest in 14 years Annual inflation for food & non-alcoholic beverages (NAB) witnessed another sharp decline in November, slowing to 2,3% from 3,6% in   <a href="https://www.statssa.gov.za/?p=17928" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Annual consumer inflation was 2,9% in November, slightly up from 2,8% in October. There was no change in the consumer price index (CPI) between October and November.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEc.jpg"><img class="alignnone size-medium wp-image-17929" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEc-300x202.jpg" alt="cpiDEc" width="300" height="202" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEc-300x202.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEc-768x516.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEc-1024x689.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEc-100x67.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p><strong>Food inflation is the lowest in 14 years</strong></p> <p>Annual inflation for food & non-alcoholic beverages (NAB) witnessed another sharp decline in November, slowing to 2,3% from 3,6% in October. This marks the lowest inflation rate for the category since December 2010, when it stood at 1,6%. Eight of the 11 food & NAB groups registered lower rates, including vegetables; milk, eggs & cheese; hot beverages; bread & cereals; cold beverages; meat; sugar, sweets & desserts; and the miscellaneous category ‘other’ food. Fish inflation was flat, while oils & fats and fruit recorded steeper price increases.</p> <p>The annual rate for bread & cereals moderated further, cooling to its lowest level in almost three years. Important items such as brown bread, white bread, maize meal, cold cereals, pasta and rice recorded lower rates. Inflation quickened for several products, including samp and hot cereals.</p> <p>Annual milk, eggs & cheese inflation declined to its lowest level in almost five-and-a-half years. After burning a hole in households’ food budgets for much of 2024, egg inflation descended into deflationary territory in November, falling to -3,7%. This is down from a high of 39,9% a year ago.</p> <p>The graphs below show food and beverage products that recorded significant price changes in November.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEC2.jpg"><img class="alignnone size-medium wp-image-17930" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEC2-300x161.jpg" alt="cpiDEC2" width="300" height="161" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEC2-300x161.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEC2-768x411.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEC2-1024x548.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpiDEC2-100x54.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p><strong>Other notable price changes</strong></p> <p>Fuel increased by 0,9% month-on-month in November, taking the annual rate to -13,6% from -19,1% in October.</p> <p>The price index for the restaurants & hotels category rose by 5,9% in the 12 months to November, with increases recorded for both restaurants (+5,1%) and hotels (+7,5%). Annual inflation for restaurants & hotels is down from the recent high of 7,5% in June this year.</p> <p><strong>Inflation hits the poor the hardest</strong></p> <p>Stats SA calculates inflation rates for ten expenditure categories, providing insight into the impact of inflation on various socio-economic groups. The poorest households (decile 1) have shouldered the highest inflation rate since January 2022, peaking at 11,3% in April 2023. This declined to 3,8% in November 2024 but remains the highest across all expenditure categories. By contrast, the wealthiest households (decile 10) registered an annual increase of 3,0% in November, slightly above the headline rate.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpide3.jpg"><img class="alignnone size-medium wp-image-17931" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpide3-300x202.jpg" alt="cpide3" width="300" height="202" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpide3-300x202.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpide3-768x516.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpide3-1024x689.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpide3-100x67.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p><strong>Western Cape has the highest inflation rate</strong></p> <p>Stats SA calculates provincial inflation rates as well. In November the provinces with the highest inflation rates were Western Cape (3,4%), Free State (3,2%) and KwaZulu-Natal (3,1%). Inflation in Western Cape remained above the headline rate for the period January to November 2024.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpidec4.jpg"><img class="alignnone size-medium wp-image-17932" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpidec4-300x152.jpg" alt="cpidec4" width="300" height="152" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/cpidec4-300x152.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpidec4-768x390.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpidec4-1024x520.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/cpidec4-100x51.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Limpopo (2,4%) and Mpumalanga (2,5%) recorded the lowest rates in November.</p> <p>For more information, download the November 2024 CPI statistical release and associated Excel files with indices and average prices <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P0141&SCH=73829">here</a>. The archive is available <a href="https://www.statssa.gov.za/?page_id=1866&PPN=P0141&SCH=73825">here</a>.</p> <p>Similar articles are available on the Stats SA website and can be accessed <a href="https://www.statssa.gov.za/?page_id=624">here</a>.</p> <p>For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz newsletter <a href="https://www.statssa.gov.za/?page_id=6048">here</a>.</p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17928</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Economic activity declines in the third quarter</title> <link>https://www.statssa.gov.za/?p=17899</link> <comments>https://www.statssa.gov.za/?p=17899#respond</comments> <pubDate>Tue, 03 Dec 2024 09:33:12 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Energy]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17899</guid> <description><![CDATA[Real South African gross domestic product (GDP) weakened by 0,3% in the third quarter (July–September) of 2024.1 The agriculture industry was the main drag on growth on the production (supply) side of the economy, with transport, trade and government services also contributing to the slowdown. On the expenditure (demand) side, there was a decline in   <a href="https://www.statssa.gov.za/?p=17899" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Real South African gross domestic product (GDP) weakened by 0,3% in the third quarter (July–September) of 2024.<sup>1 </sup>The agriculture industry was the main drag on growth on the production (supply) side of the economy, with transport, trade and government services also contributing to the slowdown. On the expenditure (demand) side, there was a decline in imports, exports and government consumption.</p> <p><strong>Agriculture leaves a dent in GDP growth</strong></p> <p>Agriculture recorded its second consecutive decline, falling by 28,8% in the third quarter. It was the largest negative contributor, pulling GDP growth down by 0,7 of a percentage point (Figure 1).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/fram1.jpg"><img class="alignnone size-medium wp-image-17900" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/fram1-300x225.jpg" alt="fram1" width="300" height="225" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/fram1-300x225.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram1-768x576.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram1-1024x768.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram1-100x75.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram1.jpg 1209w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>The industry experienced a rough quarter. Drought plagued the production of field crops such as maize, soya beans, wheat and sunflower. Adverse weather conditions also hindered the production of subtropical fruits, deciduous fruits and vegetables in parts of the country.</p> <p>Three other industries also performed poorly. Transport, storage & communication was the second largest negative contributor, recording a decline in land transport and transport support services. Disappointing figures from the wholesale trade, motor trade and restaurant, fast-food & catering sectors pushed the trade, catering & accommodation industry lower. The general government was weaker on the back of lower employment numbers in the civil service.</p> <p>Not all was bad news. Finance was the largest positive contributor, pushed higher by banking, insurance, real estate and other business services. The electricity, gas & water supply industry expanded for a second straight quarter, driven higher by a rise in electricity generation and consumption. Stronger manganese and chromium ore production helped boost mining. Iron, steel & machinery production drove much of the upward momentum in manufacturing.</p> <p>Construction’s second straight rise of 1,1% may seem relatively small, but it’s the biggest increase in two years. The positive showing in the third quarter was mainly driven by construction works, with support from activities related to non-residential buildings.</p> <p><strong>Muted trade activity as exports and imports decline</strong></p> <p>On the expenditure (demand) side of the economy, exports decreased by 3,7%, representing the largest decline in three years. The slump was mainly due to weaker trade in pearls, precious & semi-precious stones and precious metals; vehicles & transport equipment (excluding large aircraft); chemical products; base metals & articles of base metals; and machinery and electrical equipment.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/frame2.jpg"><img class="alignnone size-medium wp-image-17901" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/frame2-300x190.jpg" alt="frame2" width="300" height="190" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/frame2-300x190.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/frame2-768x487.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/frame2-1024x650.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/frame2-100x63.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2024/12/frame2.jpg 1259w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Imports were also down (-3,9%), driven lower by decreased trade in vehicles & transport equipment (excluding large aircraft); mineral products; vegetable products; and base metals & articles of base metals.</p> <p><strong>Gambling leaves a mark on household spending</strong></p> <p>Households increased consumption expenditure by 0,5% in the third quarter. Consumers spent more across most product categories, except for transport (Figure 3).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/fram3.jpg"><img class="alignnone size-medium wp-image-17902" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/fram3-300x191.jpg" alt="fram3" width="300" height="191" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/fram3-300x191.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram3-768x488.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram3-1024x650.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram3-100x64.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2024/12/fram3.jpg 1285w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Recreation & culture recorded the highest growth rate (1,2%). Closer exploration of this category shows gambling as a notable contributor to this increase. Gambling has risen sharply in recent years, according to the latest set of statistics from the South African National Gambling Board. Gross gambling revenue totalled R59,3 billion in 2023/24, a 25,7% rise from the year before. This follows an increase of 37,0% in 2022/23.<sup>2</sup></p> <p><strong>The automotive sector takes strain</strong></p> <p>One other key takeaway from the GDP numbers is the current weakness in the automotive sector. On the manufacturing side, the production of transport equipment disappointed in the third quarter. The most recent monthly manufacturing release shows a pullback in the production of motor vehicles over this period.<sup>3</sup> As mentioned above, motor trade sales and household spending on transport are both weaker. Exports and imports of passenger vehicles were also down in the third quarter.</p> <p>For more information, download the latest GDP release, media presentation and Excel files <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P0441&SCH=73779">here.</a></p> <p> </p> <p><sup>1 </sup>The quarter-on-quarter rates are seasonally adjusted and in real (volume) terms (constant 2015 prices).</p> <p><sup>2 </sup>National Gambling Board of South Africa. <em>Annual Report, 2023/24</em>. Figure 4 (download <a href="https://www.ngb.org.za/strategic-intent/annual-reports/">here</a>).</p> <p><sup>3 </sup>Stats SA. Manufacturing: <em>Production and sales, September 2024</em>. Table B (download <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P3041.2">here</a>).</p> <p>Similar articles are available on the Stats SA website and can be accessed <a href="https://www.statssa.gov.za/?page_id=624">here</a>.</p> <p>For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz newsletter <a href="https://www.statssa.gov.za/?page_id=6048">here</a>.</p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17899</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Economic wrap-up for November 2024</title> <link>https://www.statssa.gov.za/?p=17880</link> <comments>https://www.statssa.gov.za/?p=17880#respond</comments> <pubDate>Mon, 02 Dec 2024 08:26:56 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Energy]]></category> <category><![CDATA[Minerals]]></category> <category><![CDATA[Modes of transport to school or work]]></category> <category><![CDATA[Tourism]]></category> <category><![CDATA[Work and labour force]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17880</guid> <description><![CDATA[Stats SA published 22 releases in November, many of which provide a preliminary snapshot of economic performance in the third quarter (July–September). An overview of the quarter A number of sectors witnessed a rise in economic activity in the third quarter of 2024 compared with the second quarter of 2024. Mining, manufacturing, electricity generation, construction   <a href="https://www.statssa.gov.za/?p=17880" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Stats SA published 22 releases in November, many of which provide a preliminary snapshot of economic performance in the third quarter (July–September).</p> <p><strong>An overview of the quarter</strong></p> <p>A number of sectors witnessed a rise in economic activity in the third quarter of 2024 compared with the second quarter of 2024. <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P2041&SCH=73733">Mining</a>, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P3041.2&SCH=73661">manufacturing</a>, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P4141&SCH=73651">electricity generation</a>, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P5041.1&SCH=73741">construction</a> (buildings reported as completed to larger municipalities), <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6242.1&SCH=73734">retail trade</a>, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6410&SCH=73738">tourist accommodation</a>, and <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P7162&SCH=73736">rail transport</a> were stronger (Figure 1).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/12/stats1.jpg"><img class="alignnone size-medium wp-image-17881" src="https://www.statssa.gov.za/wp-content/uploads/2024/12/stats1-300x246.jpg" alt="stats1" width="300" height="246" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/12/stats1-300x246.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/12/stats1-768x630.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/12/stats1-1024x840.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/12/stats1-100x82.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Mining production increased by 1,0%, pushed higher mainly by manganese and chromium ore. Gold and platinum group metals were down in the quarter.</p> <p>Manufacturing output crept marginally higher by 0,2%. Three of the ten manufacturing divisions recorded positive growth rates, with iron, steel and machinery products driving much of the upward momentum. The automotive division, however, was the biggest drag on overall growth, recording a decline in production.</p> <p>On the retail front, sales increased by 0,7%, with general dealers and retailers specialising in textiles and clothing the most significant positive contributors.</p> <p>Sectors that performed poorly in the third quarter include <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6141.2&SCH=73737">wholesale trade</a>; <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6343.2&SCH=73739">motor trade</a>; <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6420&SCH=73740">restaurants, catering & fast-food</a>; and <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P7162&SCH=73736">road transport</a>.</p> <p><strong>Consumer inflation at a four-year low</strong></p> <p><a href="https://www.statssa.gov.za/?p=17847">Consumer inflation</a> continued a downward trend, falling sharply to 2,8% in October from 3,8% in September. This places the headline print at its lowest since June 2020, when the rate was 2,2%. Easing fuel prices continued to supress overall inflation, declining by 5,3% between September and October. Fuel prices have dropped by 19,1% over the last 12 months.</p> <p>After remaining relatively steady for half a year, annual inflation for food and non-alcoholic beverages (NAB) cooled significantly in October. Inflation eased for most food & NAB subcategories, except for sugar, sweets & desserts and cold beverages.</p> <p><a href="https://www.statssa.gov.za/?page_id=1854&PPN=P0142.1&SCH=73826">Inflation at the factory gate</a> also declined in October, entering deflationary territory. The producer price index (PPI) headline rate was -0,7%, down from 1,0% in September. This means that the prices of final manufactured goods were on average cheaper in October 2024 compared with October 2023.</p> <p><strong>What to look forward to in December</strong></p> <p>The quarterly figures in Figure 1 set the stage for the next gross domestic product (GDP) release, which will provide more detail on how the economy performed in the third quarter. Stats SA will publish the GDP figures on 3 December 2024 at 11:30. The release will be published <a href="https://www.statssa.gov.za/?page_id=1866&PPN=P0441&SCH=73778">here</a>.</p> <p>Interested to know more? Keep up to date with our publication schedule <a href="https://www.statssa.gov.za/?page_id=1874">here</a>. For a comprehensive list of products and releases, download our catalogue <a href="https://www.statssa.gov.za/publications/catalogue/Catalogue_of_products_and_publications_Latest.pdf">here</a>. For a regular update of indicators and infographics, visit our <a href="https://www.statssa.gov.za/?page_id=624">data story feed</a> and download the latest edition of the <a href="https://www.statssa.gov.za/?page_id=6048">Stats Biz newsletter</a>.</p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17880</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>How did government spending shift in 2022/23?</title> <link>https://www.statssa.gov.za/?p=17864</link> <comments>https://www.statssa.gov.za/?p=17864#respond</comments> <pubDate>Thu, 28 Nov 2024 09:00:10 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Government finances]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17864</guid> <description><![CDATA[The latest set of consolidated government financial data show a rise in spending between the 2021/22 and 2022/23 fiscal years. Several government functions benefited from the increase, while others recorded declines. The Financial statistics of consolidated general government statistical release provides a complete overview of revenue and spending across all 702 government institutions, including national,   <a href="https://www.statssa.gov.za/?p=17864" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>The latest set of consolidated government financial data show a rise in spending between the 2021/22 and 2022/23 fiscal years. Several government functions benefited from the increase, while others recorded declines.</p> <p>The <em>Financial statistics of consolidated general government</em> statistical release provides a complete overview of revenue and spending across all 702 government institutions, including national, provincial and local government; extra-budgetary accounts & funds; and higher education.</p> <p>The South African government spent R2,3 trillion in 2022/23, a rise of R91 billion from the year before.<sup>1</sup> Figure 1 shows how the money was distributed, providing a bird’s-eye view of government’s spending priorities. The size of each shape in Figure 1 represents the expenditure per function. For example, tertiary education spent R140 billion, or 6,1% of the pie. Spending on secondary education accounted for R100 billion, or 4,4% of the total (click on the image to enlarge).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure1.jpg"><img class="alignnone size-medium wp-image-17865" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure1-267x300.jpg" alt="figure1" width="267" height="300" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure1-267x300.jpg 267w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure1-768x864.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure1-910x1024.jpg 910w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure1-100x113.jpg 100w" sizes="(max-width: 267px) 100vw, 267px" /></a></p> <p><strong>Debt payments continue to eat up more of the budget</strong></p> <p>What is striking is the size of public debt transactions, the biggest slice in the graphic. This represents the amount of money that government spends on servicing its debt, which mainly includes interest payments. Public debt transactions accounted for R308 billion or 13,5% of total expenditure in 2022/23. In other words, for every R100 of government spending, R13,50 was directed towards managing the country’s debt burden.</p> <p>Not only was this the largest line item, but it also recorded the sharpest increase – in rand terms – from the previous year, rising by R40 billion. Its contribution to total expenditure has also trended upwards over time. Public debt transactions accounted for 7,4% of total government spending in 2012/13, rising to 12,2% in 2021/22 and 13,5% in 2022/23 (Figure 2).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure2-2.jpg"><img class="alignnone size-medium wp-image-17866" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure2-2-300x189.jpg" alt="figure2" width="300" height="189" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure2-2-300x189.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure2-2-768x483.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure2-2-1024x644.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure2-2-100x63.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Other functions that registered large increases in 2022/23 compared with 2021/22 include:</p> <ul> <li>Tertiary education (up R13 billion): This was mainly due to increased spending by the National Student Financial Aid Scheme; KwaZulu-Natal and Gauteng provincial governments; and higher education institutions.</li> <li>Road transport (up R12 billion): SANRAL was the largest contributor here, expanding operations and increasing capital transfers to public corporations.</li> <li>Housing (up R9 billion): Increased expenditure was mainly driven by the Water Trading Entity and municipal housing programmes.</li> <li>Rail transport (up R9 billion): This rise was mainly driven by a capital transfer from the Department of Transport to the Passenger Rail Agency of South Africa for the Rolling Stock Fleet Renewal Programme.</li> </ul> <p>The bump in spending on road transport, housing and rail transport provides some positive news on the infrastructure front. This reflects other data that show a consistent rise in public-sector capital expenditure since 2021.<sup>2</sup></p> <p><strong>The lingering shadow of the 2021 riots </strong></p> <p>The second largest item in 2022/23 was legislative services,<sup>3</sup> accounting for R199 billion or 8,7% of total spending. This category covers expenditure related to the administration of parliament, the provincial legislatures and mayoral offices, as well as financial and fiscal affairs.</p> <p>Legislative services witnessed the sharpest decrease between 2021/22 and 2022/23, falling by R27 billion. This was mainly due to the base effect, following an unusually high expenditure spike in 2021/22 for one of the line items in this category. The spike was a large once-off government cash transfer to the South African Special Risk Insurance Association (SASRIA), the public-sector institution responsible for providing insurance cover for riots, strikes and terrorist attacks.</p> <p>In July 2021, civil unrest spread across parts of KwaZulu-Natal and Gauteng, resulting in extensive damage to property and infrastructure. The transfer of R22 billion to SASRIA was a lifeline to help cover the deluge of claims arising from the unrest. SASRIA recently reported that it settled more than 20 000 claims following the riots, totalling R31 billion.<sup>4 </sup>This financial shock was unique to 2021/22, with much of the spending in the legislative services category returning to ‘normal’ in 2022/23, resulting in the decrease.</p> <p>There were other, smaller, underlying factors. For example, financial transfers to the South African Custom Union (SACU) were lower in 2022/23, contributing to the overall pullback in legislative services. SACU financial transfers fluctuate year-to-year according to trade volumes between member countries.<sup>5</sup></p> <p>Other functions that registered large decreases between 2021/22 and 2022/23 include:</p> <ul> <li>Unemployment relief (down R8 billion): The Unemployment Insurance Fund recorded a decline in payments to beneficiaries.</li> <li>Energy (down R8 billion): As in the case of legislative services, the decrease here was largely due to the base effect, reflecting a return to ‘normal’ after a sharp rise in 2021/22 (caused mainly by a cash injection for Eskom).</li> <li>Public health services (down R6 billion): The Department of Health spent less on goods and services, mainly due to a pullback in the procurement of COVID-19 vaccines.</li> </ul> <p>For more information, download the 2022/2023 <em>Financial statistics of consolidated general government </em>statistical release and time series data <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P9119.4&SCH=73868">here.</a></p> <p> </p> <p><sup>1 </sup>When interpreting these figures, note that the data published in the <em>Financial statistics of consolidated general government</em> statistical release (a) are adjusted for the reference period 1 April – 31 March; (b) in order to compare across all levels of government, data are converted from an accrual basis of recording to a cash basis of recording; and (c) transactions are classified according to the 2014 edition of the Government Finance Statistics Manual.</p> <p><sup>2 </sup>Stats SA, <em>Public-sector capex rises for a second straight year</em> (read <a href="https://www.statssa.gov.za/?p=17738">here</a>).</p> <p><sup>3 </sup>The complete name for the category is ‘Executive and legislative organs, financial and fiscal affairs, external affairs’.</p> <p><sup>4 </sup>SASRIA, <em>Integrated Report, 2024</em>. Pages 4 and 8 (download <a href="https://sasria.co.za/about-us/financials/">here</a>).</p> <p><sup>5 </sup>For more information on the SACU, see Stats SA, <em>A 110-year-old trade venture</em> (read <a href="https://www.statssa.gov.za/?p=13385">here</a>).</p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17864</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>A decade of progress in service delivery in South Africa</title> <link>https://www.statssa.gov.za/?p=17836</link> <comments>https://www.statssa.gov.za/?p=17836#respond</comments> <pubDate>Tue, 19 Nov 2024 10:21:47 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Expenditure and Income]]></category> <category><![CDATA[Food Security and hunger]]></category> <category><![CDATA[Government finances]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17836</guid> <description><![CDATA[Between 2011 and 2022, access to essential services has improved, with Census data revealing that access to clean water has increased from 85,1% to 88,5%, and improved sanitation from 68,9% to 80,7% — underscoring a decade of progress in service delivery. According to the report The State of Basic Service Delivery in South Africa: Analysis   <a href="https://www.statssa.gov.za/?p=17836" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Between 2011 and 2022, access to essential services has improved, with Census data revealing that access to clean water has increased from 85,1% to 88,5%, and improved sanitation from 68,9% to 80,7% — underscoring a decade of progress in service delivery.</p> <p>According to the report <em><u>The State of Basic Service Delivery in South Africa: Analysis of the Census 2022 Data</u></em> released by Statistics South Africa, weekly refuse removal increased by five percentage points to 67,1% by 2022, while access to electricity rose by 9,6 percentage points to 94,3%.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil1.jpg"><img class="alignnone size-medium wp-image-17837" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil1-300x205.jpg" alt="fazil1" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil1-300x205.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil1-768x524.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil1-1024x699.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil1-100x68.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil1.jpg 1378w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Service delivery refers to the provision of essential public services such as clean water, waste management, health care, education, and infrastructure development. Adequate access to safe water and sanitation is essential for life, well-being, and human dignity—key pillars of a higher quality of life. Providing these services is among the most effective strategies for reducing poverty and inequality.</p> <p>As the driving force behind basic service delivery, local government is responsible for supplying essential services and promoting development by channelling economic resources to improve the lives of all citizens. While local municipalities often deliver these services directly, they also partner with community organisations or private entities through contracts or privatisation.</p> <p>However, despite the improved progress in providing basic services over recent decades, access still varies widely within and between municipalities. This is due to differences in population size, level of economic development, and specific infrastructure needs. To measure this, the Infrastructure Quality Index (IQI) was created to assess the level of services and infrastructure across various regions. It uses a scale from 0 to 5, where 0 means no services are available and 5 means full services are provided.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil2.jpg"><img class="alignnone size-medium wp-image-17838" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil2-300x205.jpg" alt="fazil2" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil2-300x205.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil2-768x524.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil2-1024x699.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil2-100x68.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil2.jpg 1378w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>The Infrastructure Quality Index shows that household access to all basic services improved between 2011 and 2022, with an overall increase in the index. The biggest improvement was in electricity access, which rose by 0,39 points to reach 4,78, followed by sanitation, which increased by 0,33 points to 4,48. The composite (combined) index for all services increased from 4,08 to 4,37 during this period. IQI scores increased in all municipal sub-categories, though rural (B4) municipalities still lag in all service areas.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil3.jpg"><img class="alignnone size-medium wp-image-17839" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil3-300x205.jpg" alt="fazil3" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil3-300x205.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil3-768x524.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil3-1024x699.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil3-100x68.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil3.jpg 1378w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>An analysis of the Composite Infrastructure Quality Index scores, which combines individual scores for four basic services, reveals that all municipalities have progressed from minimal to at least basic service levels in all municipal sub-categories. While rural (B4) municipalities still have lower index scores, they saw the most significant improvements between 2011 and 2022.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil4.png"><img class="alignnone size-medium wp-image-17840" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil4-300x205.png" alt="fazil4" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil4-300x205.png 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil4-768x525.png 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil4-100x68.png 100w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil4.png 940w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>While service delivery improvements were observed throughout the country, the most significant gains were concentrated in the predominantly rural municipalities along the Eastern Seaboard in the Eastern Cape and KwaZulu-Natal. These improvements were primarily driven by substantial increases in household access to electricity in the rural (B4) municipalities.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil5.jpg"><img class="alignnone size-medium wp-image-17841" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil5-300x205.jpg" alt="fazil5" width="300" height="205" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil5-300x205.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil5-768x524.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil5-1024x699.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil5-100x68.jpg 100w, https://www.statssa.gov.za/wp-content/uploads/2024/11/fazil5.jpg 1378w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>“The State of Basic Service Delivery in South Africa: An Analysis of Census 2022 Data” aims to examine and compare the provision of basic services—such as housing, water, sanitation, electricity, and solid waste—across provinces and local municipalities from 2011 to 2022. An Infrastructure Quality Index (IQI) is created based on access to these essential services to assess the availability of engineering infrastructure in different geographic regions and facilitate comparisons between 2011 and 2022.</p> <p>While governments and institutions strive to meet their constituents’ needs, the challenges in maintaining effective service delivery remain complex.</p> <p>For more information, download the full report <a href="https://www.statssa.gov.za/?page_id=1854&PPN=Report-03-01-83&SCH=73966"><u>here.</u></a></p> <p> </p> <p><u> </u></p> <p> </p> <p> </p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17836</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Economic wrap-up for October 2024</title> <link>https://www.statssa.gov.za/?p=17805</link> <comments>https://www.statssa.gov.za/?p=17805#respond</comments> <pubDate>Fri, 08 Nov 2024 09:05:20 +0000</pubDate> <dc:creator><![CDATA[Carol Lhoza]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Industry]]></category> <category><![CDATA[Inflation]]></category> <category><![CDATA[Minerals]]></category> <category><![CDATA[Work and labour force]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17805</guid> <description><![CDATA[Stats SA published 23 statistical releases in October, many of which provide fresh data on the state of the economy. The latest monthly indicators Nationally, mining activity increased by a marginal 0,3% year-on-year in August. Manganese ore, platinum group metals and chromium ore were the largest drivers of growth. Nickel and copper also recorded a   <a href="https://www.statssa.gov.za/?p=17805" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Stats SA published 23 statistical releases in October, many of which provide fresh data on the state of the economy.</p> <p><strong>The latest monthly indicators</strong></p> <p>Nationally, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P2041&SCH=73648">mining activity</a> increased by a marginal 0,3% year-on-year in August. Manganese ore, platinum group metals and chromium ore were the largest drivers of growth. Nickel and copper also recorded a good month.</p> <p><a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6242.1&SCH=73669">Retail trade</a> was also positive, rising by 3,2% year-on-year. Six of the seven retail groups registered robust results, with general dealers driving much of the upward momentum.</p> <p>On the downside, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P3041.2&SCH=73649">manufacturing</a> was weaker by 1,2%, with five of the ten manufacturing divisions recording a decline in activity. The automotive and iron, steel & machinery divisions were the largest drags on overall growth.</p> <p>Other sectors that recorded weaker year-on-year results in August include <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6141.2&SCH=73727">wholesale trade</a>, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P6343.2&SCH=73729">motor trade</a>, <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P7162&SCH=73726">freight (both rail and road)</a> and <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P7162&SCH=73726">road passenger transport</a> (Figure 1).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/Pic0811N.jpg"><img class="alignnone size-medium wp-image-17806" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/Pic0811N-300x246.jpg" alt="Pic0811N" width="300" height="246" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/Pic0811N-300x246.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/Pic0811N-768x630.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/Pic0811N-1024x840.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/Pic0811N-100x82.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p><strong>Consumer inflation records a fourth consecutive decline</strong></p> <p><a href="https://www.statssa.gov.za/?p=17719">Annual consumer inflation</a> cooled further in September to 3,8%, the lowest rate since March 2021 (3,2%). Transport entered deflationary territory, mainly dragged lower by softer fuel prices.</p> <p>Annual food & non-alcoholic beverages inflation was more stubborn, unchanged from August. Vegetables, fruit, cold beverages and fish recorded higher inflation rates in September, while lower annual rates were recorded for hot beverages; meat; bread & cereals; sugar, sweets & desserts; and oils & fats.</p> <p><strong>Public-sector infrastructure spending up for a second straight year</strong></p> <p>Stats SA also publishes data on capital expenditure from South Africa’s 749 public-sector institutions, which includes public corporations; national, provincial and local government; extra-budgetary accounts and funds; and higher education institutions. The latest data from 2023 shows public-sector capital spending <a href="https://www.statssa.gov.za/?p=17738">rising for a second consecutive year</a> to R233 billion, driven mainly by public corporations. Eskom was the largest spender, accounting for R39 billion (or 17% of the total).</p> <p>Despite the two-year upswing, public-sector capital expenditure remains below the 2016 peak of R283 billion.</p> <p><strong>What to look forward to in November</strong></p> <p>The next round of <a href="https://www.statssa.gov.za/?page_id=1866&PPN=P0211&SCH=73893">employment and unemployment figures</a>, covering the third quarter of the year, are due for release on 12 November. <a href="https://www.statssa.gov.za/?page_id=1866&PPN=P0021&SCH=73529">Annual financial statistics</a> for the private sector and <a href="https://www.statssa.gov.za/?page_id=1866&PPN=P9119.4&SCH=73523">consolidated financial statistics for general government</a> will be published on 28 November.</p> <p>Interested to know more? Keep up to date with our publication schedule <a href="https://www.statssa.gov.za/?page_id=1874">here</a>. For a comprehensive list of products and releases, download our catalogue <a href="https://www.statssa.gov.za/publications/catalogue/Catalogue_of_products_and_publications_Latest.pdf">here</a>. For a regular update of indicators and infographics, visit our <a href="https://www.statssa.gov.za/?page_id=624">data story feed</a> and download the latest edition of the <a href="https://www.statssa.gov.za/?page_id=6048">Stats Biz newsletter</a>.</p> <p> </p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17805</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Public-sector capex rises for a second straight year</title> <link>https://www.statssa.gov.za/?p=17738</link> <comments>https://www.statssa.gov.za/?p=17738#respond</comments> <pubDate>Mon, 04 Nov 2024 13:35:59 +0000</pubDate> <dc:creator><![CDATA[Thobani Zulu]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Social welfare]]></category> <category><![CDATA[Water]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17738</guid> <description><![CDATA[Infrastructure investment has a long-term impact on the economy, supporting travel, communication, logistics and service provision. The South African public-sector recorded a second consecutive year of capital expenditure growth, boosted mainly by increased spending by public corporations. Capital expenditure includes money that is spent on machinery, construction, equipment, buildings, land and other fixed assets. In   <a href="https://www.statssa.gov.za/?p=17738" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Infrastructure investment has a long-term impact on the economy, supporting travel, communication, logistics and service provision. The South African public-sector recorded a second consecutive year of capital expenditure growth, boosted mainly by increased spending by public corporations.</p> <p>Capital expenditure includes money that is spent on machinery, construction, equipment, buildings, land and other fixed assets. In 2023, South Africa’s 749 public-sector institutions injected R233 billion of capital spending into the economy. This is 10,9% more than the R210 billion recorded in 2022 and represents the second successive increase following a five-year slump (Figure 1).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/capx1.jpg"><img class="alignnone size-medium wp-image-17739" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/capx1-300x172.jpg" alt="capx1" width="300" height="172" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/capx1-300x172.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capx1-768x440.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capx1-1024x586.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capx1-100x57.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>The post-lockdown spending boom contributed to the rise. Many public-sector institutions experienced backlogs in capital spending during the pandemic. As lockdown conditions eased, institutions accelerated efforts to fulfil their infrastructural commitments.</p> <p>However, despite the two-year boost, capital expenditure remains below the 2016 peak of R283 billion.</p> <p><strong>A closer look at the largest contributors</strong></p> <p>Public corporations were the biggest capital spenders in 2023, followed by local government, provincial government, extra-budgetary accounts and funds (EBAs), national government and higher education institutions. The charts below show trends for each of these groups, sourced from Stats SA’s recent <em>Capital expenditure by the public sector</em> statistical report.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/capx2-1.jpg"><img class="alignnone size-medium wp-image-17780" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/capx2-1-300x172.jpg" alt="capx2" width="300" height="172" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/capx2-1-300x172.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capx2-1-768x440.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capx2-1-1024x586.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capx2-1-100x57.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Public Corporations committed R87 billion to capital expenditure in 2023 (Figure 2). This accounted for 38% of total public-sector expenditure that year.</p> <p>Eskom was the biggest player (R39 billion), with the power utility focussing on the construction of high-voltage transmission lines. The Passenger Rail Agency of South Africa spent R16 billion, mainly on the renewal of rolling stock and the modernisation of its depots. Transnet was the third largest contributor (R15 billion) in this group, followed by Telkom (R6 billion), Rand Water (R2 billion) and uMngeni-uThukela Water (R2 billion).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/capex3.jpg"><img class="alignnone size-medium wp-image-17741" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/capex3-300x172.jpg" alt="capex3" width="300" height="172" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/capex3-300x172.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capex3-768x440.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capex3-1024x586.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capex3-100x57.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>South Africa’s 257 municipalities incurred R62 billion (26% of total public-sector capital expenditure) in 2023 (Figure 3). City of Cape Town accounted for R7 billion, mainly on water and sewerage infrastructure networks. Other large municipalities were also notable contributors, including City of Johannesburg, eThekwini, Ekurhuleni, City of Tshwane, Nelson Mandela Bay and Buffalo City.</p> <p>In contrast to other institution types, municipalities recorded a decline between 2021 and 2022.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/captex4.jpg"><img class="alignnone size-medium wp-image-17787" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/captex4-300x172.jpg" alt="captex4" width="300" height="172" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/captex4-300x172.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/captex4-768x440.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/captex4-1024x586.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/captex4-100x57.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Provincial government departments accounted for R35 billion, or 15% of the total (Figure 4). The Western Cape Department of Transport and Public Works spent R3 billion, mainly on the rehabilitation of roads. The KwaZulu-Natal Department of Transport contributed R3 billion, followed by the KwaZulu-Natal Department of Education (R2 billion) and the Gauteng Department of Health (R2 billion).</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure5.jpg"><img class="alignnone size-medium wp-image-17757" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure5-300x172.jpg" alt="figure5" width="300" height="172" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure5-300x172.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure5-768x440.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure5-1024x586.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure5-100x57.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>South Africa’s 258 EBAs are public institutions that provide services to the public on behalf of government. Examples include the National Research Foundation, the Unemployment Insurance Fund and the South African Social Security Agency. After declining to a low of R15 billion in 2021, EBA capital expenditure increased to R22 billion in 2023, accounting for 10% of overall public-sector capital expenditure (Figure 5).</p> <p>The South African National Roads Agency recorded R9 billion, mainly on the development and maintenance of roads in North West, Northern Cape and Eastern Cape. Other EBA heavyweights include the Water Trading Entity (R4 billion) and the Property Management Trading Entity (R2 billion). The South African Revenue Service spent R790 million, focussing on computer equipment, leasehold improvements and water vehicles.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/capex6_-1.jpg"><img class="alignnone size-medium wp-image-17750" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/capex6_-1-300x172.jpg" alt="capex6_" width="300" height="172" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/capex6_-1-300x172.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capex6_-1-768x439.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capex6_-1-1024x586.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/capex6_-1-100x57.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>National government departments recorded R17 billion (or 7% of the total) in 2023 (Figure 6). The South African Police Service was the biggest spender (R3 billion), focussing mainly on the construction of police stations. Other notable contributors in 2023 included the Department of Water and Sanitation (R3 billion) and the Department of Defence (R2 billion). The Department of Basic Education (R2 billion) focussed much of its attention on the construction of 27 new schools through the Accelerated School Infrastructure Delivery Initiative.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure7-1.jpg"><img class="alignnone size-medium wp-image-17788" src="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure7-1-300x172.jpg" alt="figure7" width="300" height="172" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/11/figure7-1-300x172.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure7-1-768x440.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure7-1-1024x586.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/11/figure7-1-100x57.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Capital expenditure for higher education institutions reached an all-time high of R9,5 billion in 2023 (Figure 7), representing 4% of total public-sector capital expenditure that year. Stellenbosch University accounted for R870 million, mainly on the construction of a 400-bed residence. The University of Mpumalanga incurred capital expenditure of R723 million, focussing on developing the west and south campuses of the university.</p> <p>In summary, South African public-sector expenditure expanded for a second consecutive year in 2023. Public institutions, municipalities and provincial government were the biggest spenders.</p> <p>Government’s Economic Reconstruction and Recovery Plan, which was announced in October 2020, links infrastructure investment and related institutional reforms to support higher economic growth. Increased and effective infrastructure spending is a key element of this plan.<sup>1</sup> Government commitment, together with the prospect of an improved economic environment, might bode well for the future of public-sector capital expenditure.</p> <p>For more information, download the 2023 <em>Capital expenditure by the public sector</em> statistical release and Excel unit data <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P9101&SCH=73863">here</a>.</p> <p> </p> <p><sup>1 </sup>National Treasury, 2023. <em>Budget Review. Annexure D: Public-sector infrastructure and Public-Private Partnerships update</em> (download <a href="https://www.treasury.gov.za/documents/National%20Budget/2024/review/Annexure%20D.pdf">here</a>).</p> <p>Similar articles are available on the Stats SA website and can be accessed <a href="https://www.statssa.gov.za/?page_id=624">here</a>.</p> <p>For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz newsletter <a href="https://www.statssa.gov.za/?page_id=6048">here</a>.</p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17738</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Sequencing the DNA of provincial economies</title> <link>https://www.statssa.gov.za/?p=17731</link> <comments>https://www.statssa.gov.za/?p=17731#respond</comments> <pubDate>Wed, 30 Oct 2024 11:31:02 +0000</pubDate> <dc:creator><![CDATA[Carol Lhoza]]></dc:creator> <category><![CDATA[Economic growth]]></category> <category><![CDATA[Economy Data Stories]]></category> <category><![CDATA[Press Statements]]></category> <category><![CDATA[Work and labour force]]></category> <guid isPermaLink="false">https://www.statssa.gov.za/?p=17731</guid> <description><![CDATA[Each province has its own unique economic profile. The latest set of regional gross domestic product (GDP) figures paint a picture of what drives economic activity in each province. The data also shows what each province brings to the economic table of the country. Which industries drive your provincial economy? Gauteng is the nation’s economic   <a href="https://www.statssa.gov.za/?p=17731" class="btn btn-mini btn-info pull-right" style="margin:10px 30px;">read more »</a><div class="clear"></div>]]></description> <content:encoded><![CDATA[<p>Each province has its own unique economic profile. The latest set of regional gross domestic product (GDP) figures paint a picture of what drives economic activity in each province. The data also shows what each province brings to the economic table of the country.</p> <p><strong>Which industries drive your provincial economy?</strong></p> <p>Gauteng is the nation’s economic powerhouse. In 2023, finance, real estate & business services was the largest industry in that province, accounting for 27% of provincial GDP (Figure 1). Manufacturing was the second largest industry in Gauteng, contributing 16%.</p> <p>Cape and Mpumalanga. Together, these three provinces account for almost 60% of national agricultural activity.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/10/fugure.jpg"><img class="alignnone size-medium wp-image-17733" src="https://www.statssa.gov.za/wp-content/uploads/2024/10/fugure-300x235.jpg" alt="fugure" width="300" height="235" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/10/fugure-300x235.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/10/fugure-768x603.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/10/fugure-1024x804.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/10/fugure-100x78.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>Finance, real estate & business services was the biggest driver of economic activity in Western Cape and Free State. Mining was the largest industry in Mpumalanga, North West and Northern Cape, and the second largest in Limpopo. Personal services – which includes health and education – took the lead in KwaZulu-Natal, Limpopo and Eastern Cape.</p> <p><strong>Where are industries concentrated?</strong></p> <p>Industrial activity is clustered in various parts of the country. A neat way to highlight how industries are distributed across South Africa is with the use of cartograms<sup>1</sup> (Figure 2). National agricultural production, for example, is concentrated in KwaZulu-Natal, Western Cape and Mpumalanga. Together, these three provinces account for almost 60% of national agricultural activity.</p> <p><a href="https://www.statssa.gov.za/wp-content/uploads/2024/10/figur2.jpg"><img class="alignnone size-medium wp-image-17734" src="https://www.statssa.gov.za/wp-content/uploads/2024/10/figur2-300x199.jpg" alt="figur2" width="300" height="199" srcset="https://www.statssa.gov.za/wp-content/uploads/2024/10/figur2-300x199.jpg 300w, https://www.statssa.gov.za/wp-content/uploads/2024/10/figur2-768x508.jpg 768w, https://www.statssa.gov.za/wp-content/uploads/2024/10/figur2-1024x678.jpg 1024w, https://www.statssa.gov.za/wp-content/uploads/2024/10/figur2-100x66.jpg 100w" sizes="(max-width: 300px) 100vw, 300px" /></a></p> <p>The country depends heavily on North West, Limpopo and Mpumalanga for the bulk of its mining wealth, and we can thank Gauteng, KwaZulu-Natal and Western Cape for 75% of overall manufacturing output.</p> <p>Employment data closely mirror these figures, according to Stats SA’s structural industry reports for mining<sup>2</sup> and manufacturing.<sup>3</sup> Almost two-thirds of mining jobs are in North West, Limpopo and Mpumalanga. Eight in ten South African manufacturing workers are employed in Gauteng, KwaZulu-Natal and Western Cape.</p> <p>Figure 2 also highlights the dominance of Gauteng. This province is the largest driver of economic activity for eight of the ten industries, most notably finance, real estate & business services; manufacturing; and government services.</p> <p>For more information, download the 2023 provincial GDP statistical release and data <a href="https://www.statssa.gov.za/?page_id=1854&PPN=P0441.2&SCH=73960">here</a>.</p> <p> </p> <p><sup>1 </sup>The cartograms in Figure 2 were created using the site <a href="https://go-cart.io/">https://go-cart.io/</a>. For more information, see Gastner MT, Seguy V, More P. Fast flow-based algorithm for creating density-equalizing map projections. <em>Proc Natl Acad Sci USA</em> 115(10):E2156–E2164 (2018) (available <a href="https://www.pnas.org/doi/10.1073/pnas.1712674115">here</a>).</p> <p><sup>2 </sup>Stats SA, <em>Mining industry, Report No.: 20-01-02 (2022)</em>. Table D (download <a href="https://www.statssa.gov.za/?page_id=1854&PPN=Report-20-01-02&SCH=73928">here</a>).</p> <p><sup>3 </sup>Stats SA, <em>Manufacturing industry: Financial, Report No.: 30-02-03 (2021)</em>. Table G (download <a href="https://www.statssa.gov.za/?page_id=1854&PPN=Report-30-02-03&SCH=73617">here</a>).</p> <p>Similar articles are available on the Stats SA website and can be accessed <a href="https://www.statssa.gov.za/?page_id=624">here</a>.</p> <p>For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz newsletter <a href="https://www.statssa.gov.za/?page_id=6048">here</a>.</p> <p> </p> <p> </p> <p> </p> <p> </p> ]]></content:encoded> <wfw:commentRss>https://www.statssa.gov.za/?feed=rss2&p=17731</wfw:commentRss> <slash:comments>0</slash:comments> </item> </channel> </rss>