Tag: cost

100k people petition DStv to cut prices

By Lungelo Matangira for EWN

Over 100 000 people have signed an online petition calling for pay-TV provider DStv to cut its prices for South Africa, as it does for other African countries, especially during the coronavirus pandemic.

The petition, launched by Sifiso Gwala a week ago, had 109 016 signatures by midday on Wednesday afternoon.

“DStv drops prices for the rest of Africa except South Africa and now this. We’re being taken for granted here #DstvMustFall,” Gwala said in the petition.

In 2019, DStv cut prices in a number of African countries such as Kenya and Nigeria. This, however, has never happened in South Africa.

Now, amid job losses, salary cuts and struggling businesses during the lockdown, South Africans want the same to happen for local subscribers.

“Prices are too high, can’t afford it” and “we must choose the channels we want”, said some supporters.

DStv is yet to respond to the petition.

Loadshedding cost SA R59bn in 2019

New data released by the Council for Scientific and Industrial Research (CSIR) has indicated that South Africa suffered a 2019 loss of between R59bn and R118bn due to loadshedding.

According to the CSIR, the 530 hours of unplanned power cuts during the year occurred at a higher intensity than previous years, including an unprecedented move to Stage 6 loadshedding in December. More energy – approximately 1 352 Gigawatt hours (GWh) – was shed during 2019 than previous years.

The percentage of time that Eskom’s power plants were able to produce electricity was at just 67%.

“Historical fleet EAF decline seems irreversible,” stated the presentation’s authors.

Loadshedding is expected to continue for two to three years, depending on key decisions and actions by government.

The CSIR presentation set out various scenarios for South Africa to ensure the supply of power in the current decade. A key response to start to close the “energy supply gap” is to let businesses, private citizens, mins and farms produce their own electricity.

The cost of the NHI

The much-maligned National Health Insurance (NHI) bill has been tabled for Parliament’s consideration. Plans to prevent its rollout are already well underway, as medical professionals and opposition political parties vehemently oppose the proposals.

NHI in brief

  • Opponents believe that NHI would essentially be another state-owned entity – potentially failing, like Eskom, Denel and SAA
  • The taxpayer will fund the NHI
  • General tax revenue will include transferring funds from provincial health budgets to the NHI Fund
  • Taxpayers’ medical scheme fees tax credit will be reallocated to the NHI Fund
  • A payroll tax (employer and employee) will be implemented
  • A surcharge on personal income tax will be implemented
  • The bill obscures what the NHI rollout would cost, but three figures include R165 billion, R259 billion and R450 billion
  • There are roughly 21 million taxpayers in South Africa
  • Only 30% of them – about 7.6 million people – are actually registered to pay tax or sit above the annual income threshold
  • Taxpayers would pay between R7 857 and R21 428 per person for NHI
  • If everyone in South Africa had to contribute, they would pay between R2 807 and R7 656 per person

Discovery HQ costs R23m a month

According to a report by Netwerk24, Discovery is paying approximately R280-million a year – or R23-million a month – to rent its new offices in Sandton.

By 2022, Discovery anticipates paying R400-million a year, and R600-million in 2028. After 15 years the building will not be transferred to Discovery, and a new rental agreement has to be drawn up. Growthpoint is the majority shareholder in the building.

Business Insider reports that Discovery has entered into a 15-year rental contract with property group Growthpoint, which developed 1 Discovery Place for more than R3-billion. The building has a roof-top running track and a gymnasium that can accommodate up to 3 000 members.

This comes after Discovery clients were hit with a weighted 9.2% increase across medical plans for 2019. In addition, Discovery Vitality plans were increased by between 8.4% and 12.5%.

According to Business Tech, Discovery has 2.8-million beneficiaries, and with an open medical scheme market share of approximately 56%.

Image credit: Discovery

What it costs to send a WhatsApp message in SA

By Jamie McKane for MyBroadband

WhatsApp has become the most popular messaging app for smartphones in South Africa, thanks to its cheap messaging costs compared to standard SMS rates offered by mobile operators.

The app offers South Africans a way to call, text, and share media with each other at rates far lower than anything offered by mobile networks, even when using a mobile data bundle.

Our previous tests have shown that using WhatsApp to call over a mobile data connection is far cheaper than making a cellular call to another user.

However, other forms of communication offered by the app use different amounts of mobile data.

We therefore tested how much data was used by different types of WhatsApp messaging and calling options.

Data usage
The WhatsApp data usage was measured using WhatsApp’s built-in network usage tools, which provide a refined data usage measurement for smaller options such as text messages.

Data on video and voice calling over WhatsApp was sourced from MyBroadband’s previous tests.

We used two Android smartphones for this test, sending one message at a time between the devices and monitoring the data usage reflected within the application.

The data usage for text messages, standard-resolution photos, one-minute voice calls, 30-second voice notes, 10-second videos, and one-minute voice calls was collected and compared to provide an overview of the data usage requirements for WhatsApp on a modern smartphone.

From the data we collected, it is apparent that certain functions such as voice notes and standard text messages use very little data and can be quite optimal for communicating over mobile data.

To determine how much each message would cost, we compared the amount of data used for each message type with the price of a 1GB data bundle on each mobile network in South Africa.

Standard 1GB mobile data bundle pricing was used to provide parity with Rain, which charges a flat R50-per-GB rate on its data-only network.

We used these prices to calculate a price-per-MB, which was then used to calculate how much each WhatsApp message type would cost on the mobile networks.

The results are posted below:

By Kaunda Selisho for The Citizen 

The nation will have to pull those belts a whole lot tighter with a projected increase of about R1.14 a litre of petrol.

There seems to be no end in sight for South Africa’s perpetual rise in fuel prices as the Central Energy Fund (CEF) has predicted yet another increase for the month of October.

The CEF report, released earlier this week, attributes the projected increase to a weaker rand and a higher international oil price.

The most recent hike was capped at 5c after government intervention but was dubbed a “once off” to provide citizens a short reprieve after sustained increases over five months in the lead-up to September.

According to the CEF’s calculations, early indicators estimate that the fuel price could rise by R1.14 a litre in October.

Fin24 calculated that the inland price of 95 octane petrol would rise to a possible record high of above R17 a litre, thus affecting food prices and transport costs.

Do female consumers pay ‘pink tax’?

Source: Supermarket & Retailer

Women pay more for cosmetics and clothing than men, says Use Your Voice (UYV), a non-profit organisation that distributes sanitary pads across South Africa.

In a Facebook post, since shared more than 6 600 times, UYV compared the prices of daily-use items such as razors, day cream and clothes to show how much more women pay for each item.

It is estimated that women pay as much as 13% more for personal care products.

“If you do feel the need to comment that this is fake, and that you do not agree, we highly recommend that you do the research yourself,” the organisation said about the price comparison.

Business Insider South Africa found differences in prices for similar products aimed at men and women:

  • Women are expected to pay R25 more for similar razor blades
  • Women pay R20 for the same t-shirt, on promotion
  • Similar vitamins by the same label costs R16 more for women
  • Women’s deodorant costs R2 more than for men at two different stores
  • The same brand of spray deodorant costs R10 more

Across our sample of products, women were expected to pay 18% more for what appears to be the same products for men.

Tiger Brands has asked consumers to remove any Enterprise ready-to-eat meat products from their fridges and place it in a plastic bag – away from other foods.

The reputational damage suffered by Tiger Brands following the outbreak of listeriosis that has claimed 180 lives in South Africa since last year is likely to hurt the diversified food giant’s balance sheet over the short to medium term only, analysts said yesterday.

Ron Kiplin, a portfolio manager at Cratos Wealth, said yesterday it would take Tiger Brands some time to turn operations around after Health Minister Aaron Motsoaledi identified its Enterprise Foods factory in Polokwane as the source of the food-borne disease.

“They (Tiger Brands) appear not to have had the right controls in place, and it is an indictment on operational management,” he said, adding that operational management at the factory had to be held accountable, although the buck stopped with top management.

“They need to hold a proper inquiry to be able to tell their customers they have the right controls in place, otherwise the reputational damage will continue for longer,” he said.

Kiplin said the company’s processed foods division was likely to take a knock, but it would not have a major impact on group profits, because Tiger Brands was highly diversified.

Recovery

Chris Moerdyk, a corporate marketing analyst, said although the immediate damage to the brand was enormous, it was likely that it would recover.

Moerdyk said wealthy people would start moving away from processed meats.

“The bulk of their market is people in the lower economic group,” Moerdyk said. “This group of people buy processed meat because it is cheaper. Polony is almost a staple food for many poor South Africans. They do not have alternatives.”

He said the damage to the brand would be limited to the medium term.

“Not long ago, Ford Kuga cars burnt and killed people. Ford is now back to sales of before that period. People thought that the Ford Kuga would not sell again, but people continue to buy the cars,” said Moerdyk.

Tiger Brands recalled its processed food products and halted production at its factories in Polokwane and Germiston after the report by Motsoaledi.

The move prompted Mozambique, Zambia, Malawi and Botswana to ban cold meat imports from South Africa.

Bomikazi Molapo, a spokesperson for the Department of Agriculture, Forestry and Fisheries (Daff), said the department would not be involved in the disposal of the processed meat products.

“The recall was instituted by the National Consumer Commission, and the suspension by the Department of Health. Therefore, the Daff will not be involved in the disposal of the products,” said Molapo.

By Dineo Faku for IOL

China is likely to see price rises for paper products this year on a shortage of raw materials and imported waste paper, according to Hong Kong-listed Nine Dragons, one of Asia’s largest packaging and paper producers.

Cheung Yan, the company’s chairwoman and one of China’s richest women, said at a press conference in Hong Kong on Tuesday that the company was likely to raise product prices in 2018, pressured by increased costs in raw materials, whose supply has been hit by Beijing’s tighter controls on imported waste paper, an important source for manufacturing paper products.

“The government’s tightened control on imported recovered paper has resulted in significant volatility in both imported and domestic recovered paper prices,” said Guangdong-based Nine Dragons in an interim results filing to the Hong Kong stock exchange.

In the six months ended December 31, the company saw its net profit more than doubled to 4.33 billion yuan (US$690 million), up from the previous 1.91 billion yuan.
Separately, Vinda International Holdings, China’s third-largest tissue manufacturer, said last month that it had raised tissue product prices by 4 to 5 per cent since last October in response to rising pulp prices.
China’s tissue giant Vinda expects further industry consolidation as Beijing tightens environmental controls
US pulp prices have risen more than 35 per cent in the past year, contributing to the hike in toilet-paper costs among other factors, according to Bloomberg.

The toilet paper price hike has sparked panic buying in Taiwan over the weekend after suppliers told local supermarkets they would raise prices by 10 to 30 per cent from next month.
Raw materials accounted for around 48 per cent of the costs for toilet paper products, and almost all of the pulp was imported from abroad, said Taiwan’s Ministry of Economic Affairs.

Vinda has operations in Taiwan, but it is not immediately known the level of price increase they will put in place for their products on the island.

Source: BusinessLive

Counting the cost of corruption

Corruption costs the SA gross domestic product (GDP) at least R27 billion annually as well as the loss of 76 000 jobs that would otherwise have been created, according to Minister of Economic Development Ebrahim Patel.

This is according to a recent exercise by his department to quantify the cost of corruption in the public sector, based on just a 10% increase in price in infrastructure projects as a result of corruption.

Collusion increases the costs of doing business, stunts the dynamism and competitiveness that is needed and has a negative impact on growth and jobs, Patel said at the Competition Law, Economics and Policy Conference at the Gordon Institute of Business Science.

The culture of “rampant acquisition” is spreading so widely that the professional standards of integrity which are a hallmark of functioning institutions are under enormous pressure. There are some troubling matters to address in looking at corruption and the collusion therewith by professional firms, from auditors to lawyers and others.”

A World Bank study on competition in SA noted, for instance, that in the case of four cartels in maize, wheat, poultry and pharmaceuticals – products which make up 15.6% of the consumption basket of the poorest 10% – conservative estimates indicate that around 200 000 people stood to be lifted above the poverty line by tackling cartel overcharges.

“There are things we can do, practical things, while the wider battle to ensure integrity in the public and private sectors is pursued,” said Patel.

The construction industry, through the seven largest companies, for example, has embarked on a major transformation programme, with three prominent companies selling a large block of their shares to black South Africans. In all, the deal will place construction turnover of “billions of rand” in the hands of black South Africans over the next seven years.

Competition policy is going through something of a golden age, with enormous public interest in the work of the competition authorities and widespread public debate on what is done and what should be done.

Public interest

“The past seven years have seen a focus by government on the public interest consequences of mergers and acquisitions, specifically on employment, small business development, ownership by black South Africans and local industrial capability,” said Patel.

“This is not surprising in a society with so many people who are unemployed, where poverty levels are deep, many citizens feel excluded from the economy and wider inequalities threaten the social stability of our still-young democracy. This is a fertile field for demagogues who offer simplistic solutions to the many who are desperate.”

He pointed out that some commentators, lawyers and economists – while acknowledging the extent of the problems of joblessness – have asked whether it is the proper remit of competition policy to deal directly with unemployment and with the strong focus on public interest issues.

“Two decades ago, economic goals in many countries were framed in the language only of rates of economic growth, with the widespread presumption that growth always, often automatically, results in wider benefits for society,” said Patel.

“Today we live in a wiser world where there is compelling evidence that strong growth has in many cases gone with deepening inequalities and social exclusion, for example of young people. Today there is a broad consensus on the need for inclusive growth.”

There is also a growing constituency of policy-makers across the world who see value in well thought-out and transparent public interest conditions being attached to mergers and acquisitions to bring out the inclusivity of the growth.

“In 1994, at the start of the democratic era, the new incoming government identified high levels of economic concentration as a critical challenge. Today, some 23 years later, the public discussion has returned to this issue,” said Patel.

Manufacturing

In research currently being done on concentration ratios in the manufacturing sector, preliminary results suggest that the top five firms in the sector as a whole accounted for 13.7% of total manufacturing sales in 2011. By 2014 this had risen to 16.2%.

In a three-year period, the data seem to show a growth of 2.5 percentage points in market share – or based on estimated rand value, it may be equivalent to as much as R54bn of additional sales that, had market share ratios remained the same, would have gone to smaller firms.

“Some of this may be due to efficiency gains or other reasons that could be enhancing overall welfare. But clearly, if increased concentration has the effect of displacing smaller companies, issues of social equity loom large. These levels of concentration may be economically unjustified and, if so, should be addressed,” he emphasised.

Racially skewed

In addition, many parts of the economy are still faced with stubbornly racially-skewed ownership profiles, according to Patel.

“The exclusion of most historically disadvantaged South Africans from the ability and opportunity to own productive assets must be remedied to unlock the competitive and development benefits of full participation by all in the economy,” he said.

“The effect of these two structural features of these markets is to stunt economic growth, prevent entry of new players, reduce consumer choice, limit the levels of innovation and dynamism in the economy and feed a growing resentment among black South Africans of the failure to realise the promises made by the Competition Act and the vision of the constitution.”

Source: Business Tech

  • 1
  • 2

Follow us on social media: 

               

View our magazine archives: 

                       


My Office News Ⓒ 2017 - Designed by A Collective


SUBSCRIBE TO OUR NEWSLETTER
Top