Daily Archives: February 26, 2025

South Africa’s inflation edges up in January

Consumer inflation in South Africa in January 2025 was 3.2%, slightly up from 3% in December 2024, but remains near the bottom of the central bank’s target range.

The January Consumer Price Index (CPI) is the first to incorporate changes to the CPI basket and weights announced last month.

South African Reserve Bank Governor Lesetja Kganyago in a Bloomberg interview this week cautioned that rising tariffs are a risk to the global economy and may disrupt the disinflation process, reversing central banks’ interest rate-cutting cycles.

Speaking to broadcaster Newzroom Afrika after the data release, Kganyago said he expects South African inflation to edge toward the 4.5% midpoint of its target range, where the central bank prefers to anchor expectations.

The CPI for food & non-alcoholic beverages (NAB) increased by 2.3% in the 12 months to January, lower than the 2.5% increase in December 2024.


Inflation slowed for several food categories, including meat, fruits & nuts, sugar, confectionery & desserts, fish & other seafood, and milk, dairy products & eggs.


Higher inflation rates were observed for cereal products, hot beverages, cold beverages, oils & fats, and vegetables.

Meat prices were 0.5% lower in January 2025 compared to January 2024, marking the third consecutive month of deflation for meat.
However, in January, meat prices rose by 0.8% month-on-month, following a 0.5% rise in December.

Cereal product prices increased by 3.8% annually, up from 3.7% in December.
Maize meal prices rose by 4.8% from December to January, leading to an annual increase of 10.1%.
Samp prices saw a 15.4% annual increase.

In contrast, bread prices decreased slightly, with white bread dropping by 0.7% and brown bread by 0.5%. Annual increases for white and brown bread were 1.9% and 1.0%, respectively.

Hot beverage inflation remained high at 13.7% annually in January, slightly up from 13.5% in December. Overall, hot beverage prices rose by 1.0% month-on-month.
Instant coffee and rooibos tea saw month-on-month increases of 1.4%.

The annual inflation rate for instant coffee entered double-digit territory in March 2022, briefly dropping below 10% in August 2023 before peaking at 22.3% in August 2024.
The rate in January was 17.2%, the highest of all food products.

Other notable increases in January included samp, fresh cabbages, dried beans, black tea, whiteners, fizzy drinks, and chocolate.

The fuel index rose for the third consecutive month, increasing by 0.9% in January compared to December.
The annual fuel rate improved to -4.5% from -10.2%.
For example, the price for inland 95-octane petrol was R21.59 in January, up from R21.05 in October 2024.

This contributed to a slight rise in overall transport inflation, which edged higher to -0.2% from -2.0% in December.

Insurance & financial services is a new index in the CPI and increased by 0.9% from December to January.

Winds of change: Standard Bank points to big shift in renewables market

Standard Bank has closed a R4.9 billion deal for the 140MW Ishwati Emoyeni Wind Farm project, located near Murraysburg in the Western Cape.

A first of a kind project has reached financial close and entered construction with Standard Bank as sole mandated lead arranger.

The 140MW Ishwati Wind Farm was led, co-sponsored and developed by Africa Clean Energy Developments (ACED), with the African Infrastructure Investment Managers (AIIM) managed IDEAS Fund and Reatile as shareholders.

The R4.9 billion wind project, was the first sizeable renewable energy project to sign a GPPA (Generator Power Purchase Agreement) with renewable energy aggregator, NOA.

The wind farm will comprise 32 Vestas 4.5MW wind turbines, each standing 120m high, and started construction in September 2024 and will start generating electricity in 2026.

The power generated by the ACED-EIMS-IDEAS-Reatile generation consortium will be sold to NOA under a long-term power purchase agreement, enabling NOA to supply multiple business customers through shorter, more flexible arrangements.

“In the case of Ishwati, wind power generated in the Western Cape, will be wheeled through the Eskom transmission network and then transmitted to end users such as Tronox, MMC, Old Mutual Properties, Netcare and others,” said Karel Cornelissen, CEO of NOA Group.

“NOA is facilitating not wind or solar energy to end users but rather a profile of green electrons achieved by aggregating multiple generators (wind, solar and battery projects) and providing this to multiple end users under more flexible arrangements” said Standard Bank Executive: Project Finance, Energy and Infrastructure Finance Sherrill Byrne.

Standard Bank pointed to a big shift in the market, most notably the change in reform in line with the amendments of the Electricity Regulatory Act. This has provided room for more flexible power generation options through aggregators.

The lender has been mandated for four renewable power aggregators in South Africa. These aggregators source renewable energy from various generation assets, such as wind and solar, and sell it to multiple off-takers.

Additionally, Standard Bank said it aims to achieve net zero carbon emissions from its own operations by 2040 and from its portfolio of financed emissions by 2050, aligned with the Paris Agreement.

South Africa’s largest REIT targets Cape Town’s retail and logistics markets

South Africa’s largest real estate investment trust (REIT) is expanding its portfolio of premier properties in Cape Town, with particular emphasis on the retail and logistics sectors.

It said that its Western Cape portfolio represents 27% of Growthpoint’s South African assets by value and 11% by gross lettable area.

Growthpoint’s portfolio includes office, industrial, retail, healthcare, and student accommodation properties and its well-known mixed-use assets include the V&A Waterfront and the Longkloof precinct in Cape Town.

“Growthpoint’s strategy is centred on enhancing the quality of our portfolio to meet market demands while aligning with our sustainability goals,” said Estienne de Klerk, SA CEO of Growthpoint Properties.

“By investing in innovative developments across all three commercial property sectors, particularly in growth regions like the Western Cape, we are creating spaces that meet client needs and contribute to our long-term vision of carbon neutrality by 2050.”

“Cape Town offers exceptional market fundamentals across office, retail, logistics and industrial sectors, added Wouter de Vos, Growthpoint’s Western Cape regional head.

“Our new developments and the value-adding enhancements to our properties in this region respond to strong demand. These projects show Growthpoint’s commitment to providing quality spaces that enhance client satisfaction.”

Among key property developments that highlight Growthpoint’s approach and exemplify its dedication to innovation, sustainability, and the delivery of high-performing assets tailored to the needs of the Cape Town market, are:

Situated in Cape Town’s vibrant Kloof Street area, and spanning 21,164sqm, theLongkloof precinct multi-use property has become a sought-after address, with major office tenants including Travelstart, Mushroom Media and Workshop17, alongside the 154-room Canopy by Hilton Hotel set to open in late January 2025.

With its location adjacent to a MyCiTi bus stop, a retail hub, and several dining options, Longkloof offers exceptional convenience. Its low vacancy rate, below 2%, reflects its desirability in Cape Town’s thriving real estate market.

Longkloof is also the fifth Cape Town location of WorkAgility, Growthpoint’s agile office concept offering flexible ready-to-occupy offices that can be secured for periods as short as a year.

Growthpoint said its 36 Hans Strijdom has been the home of the South African-born global investment manager Ninety One Limited for over two decades and will remain so following its recommitment to the building and to Cape Town’s CBD with its signing of a new 15-year lease for the entire building.

Located in Cape Town’s bustling Foreshore precinct, 36 Hans Strijdom is undergoing a R365 million green refurbishment that will see it upgraded to a state-of-the-art head office.

This P-grade office building spans 12,800sqm and is expected to achieve a 5-Star Green Star SA certification upon completion.

A notable aspect of the project is the participation in Cape Town’s electricity wheeling pilot project. It is the first building in the CBD to receive clean, green energy wheeled through the city’s grid, underscoring Growthpoint’s commitment to pioneering sustainability initiatives.

Arterial Industrial Estate in Blackheath, Cape Town, is currently expanding to 41,444sqm across two phases comprising 12 A-grade units tailored to meet modern logistics and industrial needs. Phase 1, completed in April 2024, is fully let.

The popular suburb of Table View in Cape Town is now home to a transformed Bayside Mall following the completion of its major R352 million redevelopment.

This 39,122sqm small regional shopping centre, situated at the corner of Blaauwberg and West Coast Roads, features 107 tenants, including major anchors such as Checkers, Shoprite, Dis-Chem and Ster-Kinekor, alongside popular brands like Home Tech and Value Co.

The redevelopment introduced new retail options, a redesigned food court, and optimised layouts to improve accessibility and shopper flow. With an average annual turnover of R657 million and footfalls amounting to 4.6 million visits, the centre is well placed to meet the needs of its shopper market and its retailers.

“By aligning our investments with market needs and demonstrating our focus on sustainability, innovation, and quality, Growthpoint is reinforcing its commitment to long-term investment in Cape Town’s property market,” said De Vos.