Naamsa, the Automotive Business council, says the “slow start” to the year continued in February 2021, with new-vehicle sales falling 13,3 percent year on year to 37,521 units. Passenger car sales were down by 18.1% to 24,270 units down, light commercial vehicle (LCV) sales by 3.2% to 11,246 units down compared to February 2020. Export sales, meanwhile, also recorded a 8% decline in February 2021, with the final figure of 29,582 units.
South Africa’s public sector unions and government are preparing for the next round of wage negotiations. Unions want a general salary rise of consumer price inflation plus 4% for all civil servants, while the government could go for an increase of 1.2% annually in the next three fiscal years (2021/22, 2022/23, 2023/24). The discussion takes place amid a court fight, as unions appealed to the Constitutional court over a Labour Appeals court judgment which ruled that the government had the right not to grant the final increase (2020-2021) of the preceding three year agreement struck in 2018 due to the Covid crisis. Public sector wages represent roughly a third of state spending.
On March 1, following the fall in new Covid-19 cases (fewer than 10,000 new infections in the preceding week), South Africa moved from Alert Level 3 to Level 1. Curfew is now from midnight to 4 am. The wearing of masks in public places is still mandatory. The regulations still state that anyone who is able to work from home must still do so. Cinemas, swimming pools, beaches, parks, gyms, restaurants must close at 23:00. All of the current restrictions on alcohol sales are lifted, but consumption of liquor in public places, except in licensed on-site consumption premises is still forbidden. Travel on passenger ships for international leisure purposes, excluding small crafts, are still not allowed. The 33 land borders that are closed will stay closed, while the twenty open borders will remain open. The number of airports permitted to allow international travel went from five to seven.
Source:
9th March 2021
BY / COFACE GROUP ECONOMIC RESEARCH DEPARTMENT
Seltem Iyigun, Middle East and Turkey Coface Economist
Marcos Carias, Southern Eurozone Coface Economist
Dominique Fructher, Africa Coface Economist