Franchise
Association of South Africa News
Consumer
Confidence Up In First Quarter of 2005
According
to the First National Bank (FNB) consumer confidence index, compiled
by Univeristy of Stellenbosch-based Bureau of Economic Research
(BER), consumer confidence soars to new heights in the first three
months of this year, beating levels reached during the 1980’s
gold boom. The index shot from +4 in the fourth quarter of 2004
to +19 in the first quarter of 2005. The closest the index got to
was +20 in 2004 when South Africa was chosen as the host for the
2010 Soccer World Cup. This is borne out on the ground where 8 out
of 10 businesses expressed optimism on the country’s future.
With disposable income increasing by an estimated 5,5% in 2004,
up from 4% the year before, the man-on-the-street is reaping the
benefits and showing greater consumer confidence. This was borne
out by other surveys that show that black South Africans are more
optimistic and in many instances better off than in the past 5 years.
The BER consumer confidence index measures consumer expectations
of the country’s economic performance and their overall financial
position over the next year as well as their attitude to purchase
of durable goods. According to FNB’s chief economist Cees Bruggemans,
interest rates are not likely to increase in the foreseeable future
and he believes we haven’t yet seen the peak of this optimistic
upswing.
Seda
Sets Up Advisory and Financial Consultants
Following the
development of the Small Enterprise Development Agency (Seda) late
last year and the amalgamation of Ntsika Enterprise Promotion, Community
Public Private Partnership Programme (CPPP) and Namac in the interest
of efficiency and consolidation, the government agency is looking
to place consultants at their various agency’s outlets to help
small, medium and micro enterprises with financial solutions. Deabecoe
Motlhoioa, a senior Seda executive said the move to get agencies
like Khula Enterprise and the IDC to be represented at Seda outlets
comes as a result of demand from SMME’s for not only advisory
and business support services but also for financial support. As
legislation prevents Seda from granting loans to SMME’s, it
will work closely with development finance intermediaries to offer
a full-on advisory and financial service. Seda’s development
strategy, which is backed by a budget of R120 million, includes
the rebranding of Ntsika, Naman and CPPP offices to Seda as well
as the establishment of more than 50 branches nationwide. Seda’s
role will be one of working towards providing business support services,
encouraging the development of the sector and helping SMME’s
tackle regulatory challenges such as company registration, compliance
and tax requirements.
Research
Shows South African Better Off
In a report released by Unisa’s Bureau of Market Research (BMR),
titled the National Personal Income of South Africans By Population
Group, Income Group, Life Stage and Life Plane, 1960 – 2007
had the following findings:
-
4.1 million out of 11.2 million households (36,6%) lived on an income
of R9 600 a year or less. This decreased to 3.6 million out of 12
million households (30%) last year.
-
Black South Africans are on average better off than six years ago
with black households in the low-middle group increasing from 2.6
million in 1998 to 3.7 million in 2004 and were earning between
R9 601 and R38 400 per year.
-
There was an increase in the number of white households living in
poverty with the number of white households in the lowest income
group increasing by 30% to 182 000 between 1998 and 2004, bringing
the percentage of white households in the lowest income group to
9,8% last year from 9,3% in 2001 and 7.8% in 1998.
-
Black households in the high-middle and high-income groups (income
of more than R153 601 a year) showed rapid growth of 368% to 440
000 in the 6 years to 2004.
-
White households in the same category increased 16% to 642 000.
-
The study shows a gradual increase in the African, Asian and Coloured
share of total personal disposable income, and a fall in the white
share.
-
In 1960, white people accounted for 69,4% of the country’s
total personal disposable income, and black people only 23,2%. In
2000, the “white” share had declined to 47,3% and that
of black people had grown to 43,4%.
-
The BME predicts that the white share would decline to 40,4% by
2007, and that of black people would grow to 46,5 percent.
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