South Africa’s power crisis, exacerbated by frequent power cuts, came under the spotlight as the North-West University’s (NWU’s) Business School invited experts to mark the new electricity minister’s 100 days in office.

President Cyril Ramaphosa appointed Kgosientsho “Sputla” Ramokgopa to the new post to focus on loadshedding. The president also declared a state of disaster to deal decisively with the electricity crisis; a decision he would later reverse in the face of legal challenges from various quarters.

The rise in the annual consumer price inflation from 7,0% to 7,1% in March was contrary to market expectations, which had been that the consumer price index (CPI) might by now have shown a modest decline to about 6,7%.

According to Prof Raymond Parsons, economist from the North-West University (NWU) Business School, food prices are the main culprit. “The rate of inflation at 7,1% therefore remains well above the target range of 3% to 6% of the South African Reserve Bank (SARB).”

A recent study conducted by a PhD graduate and staff member of the North-West University (NWU) Business School, Dr Lungile Ntsizwane, looked at integrating administrative systems and processes in mergers within South African higher education institutions.

She says higher education institutions go through a complex change management process when merging.

Contrary to the consensus view expressed by many economists that the repo rate would be raised by only 25 basis points (bsp) on 30 March, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) decided by a 3:2 vote to raise interest rates again by 50 bsp.

In commenting on the decision to increase the repo rate, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the MPC majority view sees the risks to inflation on the upside – shaped by both domestic and global factors.

“The long-awaited decision by President Cyril Ramaphosa to reconstitute his Cabinet and also fill existing key ministerial vacancies will be judged by the outcomes achieved in the period ahead.”

In commenting on the Cabinet reshuffle that was announced on 6 March, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the selection of ministers is inevitably the outcome of a delicate navigation of political forces and interests in deciding on the Cabinet’s ultimate, yet enlarged, composition.

If the elevated fiscal risks outlined in the Budget speech on 22 February 2023 were to materialise, the South African economy could well drift into a recession later this year, said a panel of experts in discussing the Budget in an NWU Business School Pitso today. Questions put to the panel were whether the 2023 Budget responded adequately to a highly unfavourable global and domestic economic environment, whether the Budget strategy could generate a fiscal offset to current economic challenges, and what fiscal risks still faced the economy and the country’s public finances.

South Africa’s heightened global risk status due to greylisting unfortunately dents an investment profile already grappling with factors such as the negative impact of aggressive load-shedding, lack of energy security, ongoing junk status and other uncertainties.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, in commenting on the decision by the Financial Action Task Force (FATF) to greylist South Africa, says although it has been widely expected for some months, it is bad news that South Africa’s present vulnerable economy can do without.

The 2023 Budget speech was a surprise-free, pragmatic and credible response to a challenging set of global and domestic economic circumstances.

Prof Raymond Parsons, an economist from the North-West University (NWU) Business School, commented on the 2023 Budget introduced to parliament by the Minister of Finance, Enoch Godongwana.

“Although having received some windfall tax-revenue gains, Finance Minister Enoch Godongwana still had a difficult balancing act given the political and economic constraints within which he had to shape fiscal policy.”

The North-West University (NWU) Business School hosted its third PITSO discussion for 2023 during which experts deliberated on the President’s State of the Nation Address on 9 February 2023. With 184 attendees, topics discussed included the current energy question, issues pertaining to the current energy crisis, economic growth and the reality of crime, corruption and renewal.

The 2023 State of the Nation Address (SONA) delivered by President Cyril Ramaphosa to Parliament on 9 February gave a wide-ranging, candid and realistic appraisal of South Africa’s present tough and challenging economic landscape.