Outsourcing now so big even the Indians do it

INDIA has been winning much of the world’s call centre and business process outsourcing contracts for the past few years, much to the chagrin of SA’s emerging call centre industry.But India’s success is beginning to backfire as its skills base is becoming strained and its standards are falling. So much so that Indian companies tired of getting bad treatment locally are now having their own call centre operations handled offshore, says research house Gartner. More…

Jump in credit growth makes rate hike certain

GROWTH in demand for credit by the private sector quickened to 24,92% year-on-year last month, data showed today, hardening the case for another interest rate increase next month.The Reserve Bank said credit demand growth was a touch faster than May’s 24,84% increase, while during the same period, the broadly defined M3 measure of money supply grew by 23,35% compared to 22,67% the previous month. More…

Credit growth boosts Standard Bank

Standard Bank’s interim earnings a share probably rose by between 20 percent and 30 percent, Africa’s largest lender said on Friday, as faster economic growth in South Africa boosted demand for credit.

No reasons were given for the gain, but UBS banking analyst Stephan Potgieter said Standard Bank “has the dominant corporate banking franchise in South Africa and provides significant gearing to the emergence of a strong corporate banking cycle”. He said the bank. also had “by far the most momentum in retail banking”.

Economic growth at almost 5 percent is spurring companies to borrow more to expand to meet demand from a broadening black middle class. As South Africa’s biggest provider of credit cards, Standard Bank also benefits from strong consumer confidence. More…

Higher charges lift Mr Price sales 28%

Mr Price Group’s first-quarter sales climbed 28 percent after it increased prices, the clothing and linens retailer said yesterday.

Revenue from clothing stores surged 31 percent in the three months to June, while sales from its homeware unit gained 22 percent, the company said.

Prices rose 7.3 percent on average for clothing and 11 percent for homeware. More…

Food prices put pressure on rates

By Evan Pickworth

Johannesburg – Food price inflation is likely to remain above the South African Reserve Bank’s inflation target band of 3-6 percent until at least the end of 2008, pressuring local interest rates and consumers’ budgets, Johann Els, senior economist at Old Mutual Investment Group SA, said on Monday.

Els said he expected overall CPIX to return within the bank’s target band this year, but high food prices and continued high oil prices would ensure that consumer price inflation would remain mostly in the upper half of the band through 2009. More…

Insolvencies likely to follow rate rises

By Ethel Hazelhurst

Johannesburg – A sustained rise of 100 basis points in the prime overdraft rate is likely lead to a 10.5 percent increase in the number of insolvencies within 11 quarters, according to Johan van den Heever, the head of the Reserve Bank’s research department.

His calculation appears in a report on household debt, interest rates and insolvencies, published More…

Consumer spending slows down

Economics Editor
RETAIL sales are likely to have picked up in SA during May, but not enough to scupper evidence of a consumer spending slowdown which may help persuade the Reserve Bank to keep interest rates steady.

The figures due on Wednesday are the only significant economic data which domestic markets will have to chew on this week, More…

Brace yourselves for another hike

By Evan Pickworth

Johannesburg – The introduction of stricter lending laws in June should help reduce demand for consumer credit but will not likely prevent the South African Reserve Bank from raising rates by 50 basis points after its monetary policy meeting in mid-August, Moody’s Economy.com said on Friday. More…

Probe planned for consumer credit insurance

Cape Town – The Life Offices’ Association is launching an urgent enquiry into whether some companies have been contravening consumer credit insurance practices, the association announced on Thursday.

In a press statement the LOA said that they noted with concern media reports last weekend that some consumer credit insurance member companies were allegedly breaking remuneration and commission regulations set out in the Long-term Insurance Act. More…

Standard Bank on top of the pile again

Johannesburg – Standard Bank has been chosen as the Best Bank in South Africa for the second consecutive year in the Euromoney Awards for Excellence.

The bank was also awarded Best Project Finance House in Africa and Best Debt House in Africa awards. More…