According to Prof Raymond Parsons from the North-West University (NWU) Business School, the good news is that GDP growth of 0,4% in the first quarter of 2023, following on the revised -1,1% growth in the fourth quarter of 2022, has enabled the South African economy to avoid a technical recession – in other words, two consecutive quarters of negative growth.

The Monetary Policy Committee (MPC) unanimously decided on 25 May to increase interest rates by a further 50 basis points (bsp), citing risks to the inflation outlook as still being on the upside. The MPC’s major concerns continue to revolve around the possible second-round effects of higher headline inflation and exchange rate risks.

The North-West University (NWU) Business School recently received its accreditation from the Association of African Business Schools (AABS). The NWU Business School was represented at the 2023 AABS Connect Conference, hosted by the Ghana Institute of Management and Public Administration (GIMPA) in Accra, by the senior manager for Accreditation and Quality, Dr Lungile Ntsizwane.

The inaugural meeting of those working in unified communications (integrators of various communication tools and services) and audiovisual disciplines was a resounding success.

More than 60 delegates from 19 universities and various vendors attended this special interest group* meeting on 13 and 14 April at the North-West University (NWU) Business School in Potchefstroom. The meeting presented a valuable opportunity for networking through shared experiences and insights.

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.