Electricity: a vital resource for municipalities
Municipalities generate most of their revenue from electricity sales. Those involved in providing services buy electricity from producers (such as Eskom) and then resell the power to households, businesses and other institutions. The resulting surplus from this trade is a vital source of income. Electricity’s contribution to revenue Municipalities spent R50,2 billion on electricity purchases in read more »
MEDIA RELEASE: Census 2022 Population Count Results 10 October 2023
Background Census 2022 was the fourth census after the advent of democracy, with the other three being conducted in 1996, 2001 and 2011. This was the first-ever digital census in South Africa. Census information was collected via a digital questionnaire, using three modes of collection: Computer-assisted Personal Interview (CAPI), where fieldworkers visited households and conducted read more »
Economic wrap-up for September 2023
Stats SA published a variety of reports, statistical releases and discussion documents in September. Here is a rundown of key economic indicators. GDP: SA invests in machinery & equipment and households cut back on spending In September, Stats SA released both national and provincial gross domestic product (GDP) figures. On the national front, GDP recorded read more »
Recent shifts in company income tax
Although the mining industry strengthened company tax collections after the COVID-19 pandemic, its momentum has recently waned. The importance of CIT Company income tax (CIT) was the third largest source of government tax revenue in 2021/22, according to the South African Revenue Service (SARS).1 Personal income tax was the largest contributor (35,5%), followed by value-added read more »
Consumer inflation edges higher in August
After four consecutive months of decline, annual consumer inflation pushed up in August, rising to 4,8% from 4,7% in July. Inflation for food & non-alcoholic beverages (NAB) continued to cool, taking some of the heat off the headline rate. This was not enough, however, to counteract a rise in fuel prices and increases in municipal read more »
SA economy expands in Q2: 2023
South African real gross domestic product (GDP) expanded by 0,6% in the second quarter (April–June) of 2023.1 This follows a 0,4% rise in the first quarter. Overview Six industries on the supply side of the economy grew in the second quarter, with manufacturing and finance driving much of the upward momentum. On the demand side, read more »
Consumer inflation lowest in two years
Annual consumer inflation slumped to 4,7% in July from 5,4% in June. This is the lowest reading since July 2021, when the rate was 4,6%. Consumer prices increased on average by 0,9% between June 2023 and July 2023. This is up from the monthly rise of 0,2% recorded in both May and June. Transport taps the brakes on read more »
Falling inside the norm: Municipal remuneration and contractor spending
A wide range of indicators inform municipal financial health. In 2014, National Treasury published a uniform set of financial norms and ratios for local government.1 Stats SA recently published data that can be used to inform these norms. In the examples below, we explore how municipalities fare in terms of remuneration and contracted services. Paying read more »
Economic wrap-up for June 2023
Stats SA published 26 statistical releases in June, shedding light on the current state of the economy. SA narrowly averts recession The month began with the release of the latest gross domestic product (GDP) figures. After faltering in the fourth quarter of 2022, the South African economy expanded by 0,4% in the first quarter of read more »
Inflation slows to 13-month low
Headline consumer inflation cooled for a second consecutive month in May to 6,3% from 6,8% in April. May’s reading is the lowest since April 2022 when the rate was 5,9%. The month-on-month change in the consumer price index (CPI) was 0,2% in May. The annual rate for food and non-alcoholic beverages (NAB) was 11,8%, lower than read more »