Medical aid premiums are taking an increasingly large bite out of household budgets. For many people, the annual increase has become something they dread rather than simply accept as another cost of living.

The problem is that healthcare costs are not going away. Nor is the need for adequate medical cover. But with premiums continuing to put pressure on household finances, people are increasingly having to ask themselves whether they can afford to maintain their existing medical aid and gap cover.

Some are looking at cheaper options. Others are considering reducing their cover or dropping certain benefits altogether.

But how do you review your medical aid and gap cover without leaving yourself exposed when you need medical treatment?

It is not simply a matter of comparing premiums and choosing the cheapest option. Every medical scheme has different benefits, restrictions, networks and conditions. Moving to a cheaper plan can mean giving up benefits that you might only discover you need when faced with a medical emergency.

When should you review your cover?

The annual review period towards the end of the year is a good time to examine your medical aid and gap cover arrangements.

Medical schemes announce their premium increases and changes to benefits for the coming year, giving members an opportunity to assess whether their existing arrangements still make financial sense.

Don’t wait until the last minute. Give yourself enough time to examine the alternatives, ask questions and understand what you might be giving up before making a decision.

Start with what you actually use

A sensible review begins with looking at your healthcare expenses over the past 12 months.

Examine your claims history. How often have you visited a GP? Have you needed specialist consultations? What have you spent on chronic medication? Have there been hospital admissions or other significant medical expenses?

This information can help you understand which benefits matter most to you.

It is easy to pay for a comprehensive package without knowing exactly which benefits you use. Equally, it is easy to underestimate the importance of certain benefits simply because you haven’t needed them recently.

Your medical aid should reflect your actual circumstances, but it should also provide reasonable protection against unexpected medical expenses.

Examine the changes to your existing plan

Before looking elsewhere, find out exactly what your current medical scheme is changing.

There are several things worth examining:

• How much will your monthly premium increase?

• Are your day-to-day benefits changing?

• What happens to your medical savings allocation?

• Are there changes to hospital networks?

• Are your preferred doctors and specialists still accessible under your plan?

• Have co-payments, exclusions or other restrictions changed?

Don’t assume that because you are staying with the same medical scheme, you will receive exactly the same benefits next year.

Read the new benefit guide carefully. If something is unclear, ask your broker or medical scheme to explain it.

Consider your changing healthcare needs

Your medical requirements can change considerably over time.

You may have acquired a chronic condition, started taking regular medication or found yourself needing more frequent consultations with specialists.

Family circumstances also change. You may have added dependants or have children who are no longer financially dependent on you.

The plan that made sense several years ago might no longer be appropriate.

This is particularly important for people approaching or already in retirement. When income becomes more constrained, medical aid premiums can become one of the largest items in the monthly budget.

Reducing the premium might seem attractive, but the consequences need to be carefully considered.

Review medical aid and gap cover together

This is one of the most important parts of the exercise.

Medical aid and gap cover perform different functions, but they should be considered together when reviewing your healthcare protection.

Medical aid provides the underlying cover, subject to the benefits, rules and conditions of your chosen plan. Gap cover is designed to assist with certain qualifying shortfalls between what medical schemes pay and what healthcare professionals charge.

If you change your medical aid plan, you should examine whether your existing gap cover remains appropriate.

A cheaper medical aid option might have different co-payments, limits and restrictions. You need to understand how these interact with the benefits provided by your gap cover.

Equally, moving to a more comprehensive medical aid plan does not necessarily mean that you should automatically retain exactly the same gap cover arrangements.

Examine what each policy actually covers and where the benefits overlap.

Remember that gap cover is not a substitute for medical aid. It cannot simply be relied upon to pay for treatments or services excluded by your medical scheme.

When comparing medical aid and gap cover options, the monthly premium is obviously important. But it is only one part of the equation.

A cheaper plan may look attractive until you examine the limitations.

Consider the following:

• Hospital cover: What level of hospital treatment is covered, and under what conditions?

• Hospital networks: Are you restricted to particular hospitals or healthcare providers?

• Co-payments: What additional amounts might you have to pay for certain procedures?

• Specialist fees: How are specialists’ charges covered?

• Chronic medication: What conditions and medications are covered?

• Gap cover limits: What are the maximum amounts payable, and are there restrictions on particular claims?

• Waiting periods: Are there waiting periods or exclusions that could affect your ability to claim?

Ask for the relevant policy documents rather than relying on a sales presentation or a comparison table.

The downscaling dilemma

For many households, the uncomfortable reality is that existing medical aid arrangements are becoming increasingly difficult to afford.

Moving to a cheaper plan may be necessary, but it should not be an impulsive decision.

The temptation is to look at the monthly saving and regard it as money back in your pocket. But what happens when you need an operation, specialist treatment or hospital admission?

You could find yourself facing additional expenses that wipe out much of the saving you made on premiums.

The objective should be to find the most affordable combination of medical aid and gap cover that still provides an acceptable level of protection.

That requires looking beyond the headline premium and examining the details of the benefits and limitations.

Get independent advice

Medical aid and gap cover products can be complicated. Comparing one scheme against another is not always straightforward, particularly when the benefits and exclusions differ.

An independent broker can help you examine the alternatives, explain the differences and identify potential gaps in your cover.

Ask questions. Get comparisons in writing. Make sure you understand what you are gaining and what you are losing before signing up for a different arrangement.

Ultimately, the decision comes down to balancing affordability against the financial risks of inadequate medical cover.

Medical aid should not be something you simply renew every year without examining the cost and benefits.

With healthcare expenses putting increasing pressure on household budgets, an annual review has become an important part of managing personal finances.

The challenge is to reduce unnecessary costs without sacrificing protection that could prove invaluable when you need it most.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

As a former Randburg resident of more than 40 years, I was interested to read an article in the Randburg Sun about residents of Strydom Park obtaining permission to fence off a previously pristine greenbelt because of the growing influx of vagrants.

Johannesburg City Parks and Zoo has granted the Strydom Park Ratepayers Association permission to fence the greenbelt along the Fabriek Street side.

I know the problem well. Where I previously lived, alongside the Braamfontein Spruit, vagrants increasingly occupied sections of the surrounding greenbelts. Makeshift shelters appeared, fires were lit, washing was hung from Eskom power line towers, and rubbish accumulated. Drug and alcohol abuse, noise and antisocial behaviour became part of the problem. What were once attractive green spaces became unpleasant and sometimes unsafe places to visit.

Nobody seems to have a definitive explanation for the influx. Economic circumstances may be a factor, as may the availability of relatively undisturbed spaces in suburban areas. Whatever the reasons, the consequences for residents are becoming increasingly difficult to ignore.

Anyone familiar with the False Bay coastline, from Muizenberg through Kalk Bay and Fish Hoek to Simon’s Town, will know that vagrancy and pollution are hardly unfamiliar problems.

Take Kalk Bay. Walk along the coastline, on the seaside of the railway line, and you will find people living there permanently in makeshift shelters, often surrounded by rubbish. Drug and alcohol abuse, theft and other antisocial behaviour are also part of the broader problem.

The situation is compounded by litter thrown by passers-by and motorists. The PRASA railway reserve is another dumping ground, with little evidence of regular cleaning or maintenance.

Now imagine extending this environment along another stretch of coastline.There is a proposal to extend the coastal walkway from St James towards Clovelly. On the face of it, a coastal walkway sounds fine. Who wouldn’t enjoy walking along this beautiful stretch of coastline?

But what are the likely consequences? What happens to the natural environment, the existing community and the character of Clovelly? What about vagrancy, drug and alcohol abuse, littering, illegal dumping and crime?

The Muizenberg to St James coastal route, often called the Muizenberg Catwalk, was once a beautiful place to walk and enjoy the coastline. Today, it has acquired a rather different reputation. There are persistent reports of muggings, robberies and cellphone thefts. The advice from locals is generally to walk in groups, avoid quieter periods and be particularly careful about carrying valuables.

I once ventured along this route at around dusk. I encountered some criminal-looking scum and got out of there fast and haven’t been back. If you want to walk there, choose your time carefully and go with other people.

Then there is the Fish Hoek Catwalk (Jager’s Walk), which used to be another tranquil and attractive coastal route. It, too, has become notorious for opportunistic crime. There have been numerous reports of muggings, cellphone snatching and thefts. Much of this activity goes unreported, but local residents know the risks. Drug-related activity and antisocial behaviour add to the concerns. Walking alone is dangerous.

Who will maintain the walkway? Who will deal with littering, illegal dumping and makeshift settlements? Who will address drug and alcohol abuse, antisocial behaviour and crime? Who will provide security? Who will protect the natural environment?

We should be protecting our natural coastline, not creating another potential haven for vagrancy, drug abuse, pollution and criminal activity.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

For many South Africans, medical aid and medical insurance have become the single biggest expense in their monthly household budgets. Bigger than rates and taxes. Far bigger than electricity. More than petrol, and often considerably more than all their other insurance premiums combined.

The costs have simply grown out of all proportion.

And then, just to rub salt into the wound, you see the fat-cat CEOs of some of these medical companies earning R20 million or more a year, bragging on social media and in business publications about how well their companies are performing. One wonders whether they have any idea what their customers are going through. It’s enough to make you sick. Although, given what medical treatment costs these days, perhaps that’s not a good idea.

There are reasons why medical costs have climbed so dramatically in South Africa. One of the biggest is the deterioration of the public healthcare system over the past 30 years. Public hospitals have deteriorated, some facilities have closed, and the infrastructure investment needed to keep pace with a growing population has simply not happened on anything like the scale required.

The consequences are felt by everyone, not just those who depend on public hospitals.

When the public healthcare system struggles to cope, more people who can afford it turn to private healthcare. The demand for private hospital beds, specialists, doctors and other medical services increases. And so do the costs. Those costs are ultimately passed on to medical aid members and insurance policyholders.

But spare a thought for those who cannot afford medical aid at all.

Visit a public hospital and you will quickly understand the problem. The queues are enormous, the facilities are overcrowded and the pressure on medical staff is immense.

Imagine being an 80-year-old woman who has broken her arm and having to sit for hours waiting to be seen. Or a child who has broken an ankle playing football on the beach. Or someone who has suffered a stroke and needs urgent attention.

There are reports of people waiting five or six hours, sometimes longer, before receiving attention. In an overstretched emergency department, patients may be triaged according to how seriously ill they appear to be. If your vital signs are stable, you may find yourself waiting while more critical cases are dealt with.

But imagine the anxiety of sitting there, not knowing when somebody will attend to you.

That is the reality facing many South Africans who have no alternative.

And it raises another question. What happens to those of us who are still managing to pay medical aid premiums today but are increasingly wondering how much longer we can afford to do so?

Take what you are paying now and project those increases over the next five, ten, fifteen or twenty years. The figures are frightening. What will medical aid cost by then? Will you still be able to afford it? And if you can’t, what exactly are your options?

There is a rather grim irony here. You might spend your working life paying medical aid contributions, only to reach retirement age when you need healthcare most and discover that the premiums have become unaffordable.

You might not even be around to worry about the problem twenty years from now. Not because you have lived a particularly long and happy life, but because you couldn’t afford the healthcare needed to keep you going.

The government has been talking about National Health Insurance for years. But there is very little public confidence that it will solve the problem. Many South Africans simply don’t trust the government to manage such an enormous undertaking. They fear that what is presented as a solution to the country’s healthcare crisis could become another enormous bureaucratic structure, with political appointments, questionable procurement and opportunities for well-connected individuals to enrich themselves.

There are also those who argue that our public hospitals could function perfectly well if only more money were allocated to them. Perhaps. But throwing more money at a system where accountability is weak, procurement is questionable and funds don’t always reach the facilities that need them is hardly a solution.

The question is not simply how much money we spend on healthcare. It is how much of that money actually reaches the people who need it.

So what are South Africans doing?

Essentially, there are three groups.

First, there are those who can afford pretty much anything. They have the money to pay for comprehensive medical aid, private specialists and whatever treatment they need. For them, the escalating cost of healthcare is an inconvenience rather than a financial crisis.

Then there is a growing group of people trying to find a compromise. They are looking at hybrid arrangements, using private medical cover to protect themselves against major and expensive medical events such as cancer, heart attacks, strokes and other serious illnesses, while relying on public healthcare facilities for more routine treatment.

Some are also looking at entry-level hospital plans, rather than comprehensive medical aid, to protect themselves against the potentially devastating cost of private hospitalisation.

Finally, there are millions of South Africans who have no choice. They rely entirely on the public healthcare system, whether they like it or not.

For households under financial pressure, a more practical approach may be to use public clinics and affordable nurse-led healthcare facilities for routine medical needs, while retaining some form of hospital cover if the budget allows.

It isn’t an ideal solution. Far from it. And anyone considering this route needs to understand exactly what their policy covers, particularly when it comes to chronic conditions, specialist treatment, emergencies and serious illnesses. A hospital plan is not necessarily a substitute for comprehensive medical aid, and medical insurance policies can have very different exclusions and limitations.

But the reality is that people are having to make these choices because they simply cannot afford to keep paying ever-increasing premiums.

We have reached a point where staying healthy is becoming a luxury.

This is a damning indictment of the state of healthcare in South Africa.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

South Africa is increasingly becoming a side-hustle country. Now, that’s a broad statement, but research and anecdotal evidence show that more and more people are looking for ways to earn extra income.

There is a whole gamut of reasons why people are taking on side hustles.

You get the low-income earners who have to do it to pay for basic essentials such as food and rent. Then you get middle-income earners who are feeling the pinch from rising expenses, from medical aid to electricity bills and fuel. They, too, are looking for extra income.

Even in this category, there are people who are no longer finding jobs as easily as they used to. Some will probably never work in formal employment again because of their age, and have turned to freelancing.

Then there are those in the upper-income brackets whose side hustles involve using their assets, such as houses, to generate money.

Take art tuition. There are so many artists, from Randburg to Bergvliet, Melrose Ridge and Fish Hoek, and probably Durban too, who are teaching art. Many of their students hope eventually to sell their work. The result is a flood of art teachers and a flood of artwork. It isn’t easy, because only the top artists are really making substantial money. They get the big commissions and sometimes the overseas assignments to provide artwork for boutique hotels and guest accommodation.

Some jobs pay so poorly that when people lose them, they are only too happy to leave behind the drudgery of formal employment, including the cost of petrol and using their own vehicles for work. They have decided to go freelance instead.

Others who may have inherited property are coining it by making every available space in their homes generate income while they look for other opportunities.

What used to be informal arrangements, such as looking after someone’s home while they are away, have become professional services. Some people now look after several properties, including homes owned by wealthy overseas buyers who have entered the coastal property market and spend only six months of the year in South Africa.

Here are some of the ways people are generating additional income for themselves and their families.

Food and beverage businesses

Food is one of the more accessible side hustles because it can be started from home with relatively little capital.

People are selling cooked meals, baked goods, vetkoek and amagwinya, kota, chips, chicken, snacks, atchar, chilli sauces and homemade preserves. Others make lunch boxes, platters and meals for parties, funerals and business meetings.

Sales are often made through WhatsApp, neighbourhood groups, schools, offices, churches and local markets. It can be a useful source of daily income, although the costs of ingredients, electricity, packaging and delivery have to be taken into account.

Buying and reselling goods

Clothing, shoes, cosmetics, jewellery, household goods, phone accessories and second-hand products are all being sold by people looking to make extra money.

Some buy stock in bulk, while others take orders first to avoid being left with unsold goods. WhatsApp groups, Facebook Marketplace, Instagram and local markets provide convenient ways to reach customers.

The challenge is competition, particularly when customers can buy the same products elsewhere, often at lower prices.

Freelancing and professional services

People who have spent years in formal employment are increasingly selling their skills directly to clients.

Writing, editing, bookkeeping, graphic design, photography, marketing, web design, administration and research are among the services on offer.

For older workers who struggle to find permanent employment, freelancing provides an opportunity to use their experience. Others have discovered that working independently can be more rewarding than holding down a poorly paid job once transport and other employment-related costs are deducted.

The downside is the uncertainty of finding regular clients and maintaining a steady income.

Transport and delivery services

E-hailing and delivery services have created opportunities for people with vehicles.

Driving for Uber and Bolt, delivering food and parcels, and providing courier services for small businesses are all ways of earning additional income.

The flexibility is attractive, particularly for people who want to work evenings or weekends. But petrol, maintenance, insurance, tyres and vehicle depreciation can eat into earnings.

Teaching and tutoring

People are earning money by teaching school subjects, languages, music, computer skills, sport, crafts and art.

Art tuition is particularly visible in many communities. Artists teach beginners and more experienced students, some of whom hope to turn their newfound skills into a source of income.

But there is considerable competition. While some artists make good money from commissions, exhibitions and work for hotels and guest accommodation, many others find that teaching is a more dependable source of income than selling their own artwork.

Beauty and personal services

Hairdressing, braiding, barbering, manicures, make-up, massage and clothing alterations are popular ways of earning money.

Many start by offering services to friends, family and neighbours before building a regular clientele. Weddings, matric dances and other events also provide opportunities for make-up artists and hairdressers.

These businesses often grow through personal recommendations rather than expensive advertising.

Property and accommodation

Property owners are finding ways to generate income from spare rooms, garages, outbuildings and other unused spaces.

Some rent rooms to students and workers, while others offer short-term accommodation to holidaymakers.

There is also a growing demand for people to manage homes belonging to overseas owners who spend only part of the year in South Africa. Cleaning, maintenance, security checks and preparing properties for guests have become income-generating services in their own right.

For some, looking after several properties has become a full-time occupation.

Home and property maintenance

Cleaning, gardening, painting, pool maintenance, handyman services and general household repairs provide work for people with practical skills.

Busy households and owners who live elsewhere need reliable people to keep their properties in good condition. Those who establish a reputation for turning up on time and doing a good job can build a steady business through referrals.

Social media and content creation

Social media has opened up another avenue for earning money. People are creating videos, promoting products, managing business accounts, producing photographs and offering marketing services.

Some build audiences around subjects such as food, fashion, beauty, travel and fitness. Others help small businesses maintain their social media presence.

It is a competitive market, however, and having thousands of followers does not necessarily translate into an income.

Selling creative work and crafts

Paintings, photographs, jewellery, ceramics, clothing, furniture and handmade goods are being sold through markets, exhibitions and social media.

Some artists and craftspeople work on commission, producing pieces for private homes, restaurants, offices and hotels. Others supplement their sales by offering workshops, tuition and demonstrations.

For many, this remains an additional source of income rather than a full-time business.

Repairs and practical skills

Plumbing, electrical work, carpentry, tiling, appliance repairs, phone repairs and vehicle maintenance are among the services people offer to supplement their incomes.

There is always demand for competent tradespeople, particularly those who are reliable and charge reasonable rates. A good reputation can be worth more than an expensive advertising campaign.

Some start with small jobs for neighbours and gradually build a business through recommendations.

A changing way of earning a living

Side hustles are no longer confined to people trying to make a little extra pocket money. For some, they are a necessity. For others, they offer a way out of poorly paid employment, an opportunity to use professional skills or a means of making better use of assets they already own.

Some will remain small supplementary businesses. Others will grow into substantial enterprises.

Whatever the motivation, one thing is becoming increasingly clear: more South Africans are looking beyond their monthly salary to find ways of making a living.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

I came across a couple of questions that might be used as a follow-up in a coaching session, and one or two of them struck me as particularly relevant to everyday life.

The first one was: What are you putting off or avoiding?

That’s a big one, and it doesn’t just apply to individuals. It applies to businesses as well. There are big decisions to be made in business, somebody has to make them, and there’s always a deadline to a decision.

One of the big decisions many people avoid is recognising that they are trapped in jobs and that the end is near. But they deny reality, thinking that things can carry on as they were. The inevitable will arrive, however, and then decisions need to be made.

The point is that you can procrastinate as much as you want, but eventually chance will catch up with you and you’ll have to make a decision.

This all sounds rather negative, but negativity is what we have to deal with every day of our lives. Not only in our own lives, but as we step out of the door and go to work or go shopping, we encounter negativity. Things go wrong.

I think this question of what you are avoiding or procrastinating over is very important because there are things we can do in business and in our personal lives that will propel us forward.

Take, for example, the knowledge we have accumulated through helping customers or clients. If we could extract everything we know about how we help them and package that knowledge in the form of marketing content, an e-book, a presentation or an article, it could help us grow our business.

Of course, we don’t want to give away our core business activity knowledge for free. That would be insane. You’ve got to hold back on what you might call the noble parts, the parts that actually help you help others in your own professional way.

Now, on the other side, there’s another question that I found useful: What are you excited about?

This is a fantastic question. If you answer it with the things you love doing, then it propels you forward. It gives you energy.

The things that give you energy motivate you, and they also give off energy to others. That’s why, whatever situation you are in, whether it’s motivating a sports team or a sales team, your energy and the thing you’re excited about will ultimately help decide whether you succeed or not.

So you really don’t have to go to some expensive consultant or coach to find out what questions to ask yourself.

I mean, these are two important questions. There are others, but these are the two main ones: the things that are stopping you and the things that are starting you.

These are crucial.

And the answers shouldn’t really be things that you spend hours writing down and analysing. Yes, if you want to write them down in a journal or explore what you’re really excited about, you can do that. Just don’t overanalyse or overthink the issue. Jot something down quickly.

You also need to understand that we should be doing this every day. It’s not something you do only when you have a coaching session once a year, once a month or once a week. This is stuff you have to, or need to, look at every day.

I recently prepared a list of four items, and one item on that list took me over four weeks to decide on, do all the research and gather the information.

And boy, was I happy yesterday when I finally completed that task!

That task was extremely beneficial for me. The thing I had been procrastinating over has now propelled me forward, and it’s quite exciting to think about the results that decision might bring.

You’ll be excited too when you learn to unlock the things that are keeping you back and propel yourself forward with things that will benefit you.

Further reading: I came across the original coaching questions in this article, which is worth a look:

A Coaching Agenda That Really Works: 6 Essential Questions to Ask Every Client, Every Time

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

Can a manufacturing plant really shut down because of a 2-cent part?

In American terms, we’re talking about a two-cent part. In South Africa, that would be about 33 cents.

Now, a few weeks ago, I came across an interesting article in Industry Week with the headline: “The Two-Cent Part That Shut Down a Factory for a Month.”

It was written by Michael Podgortsev, a director of data and AI strategy and former CTO.

I’ve included a link to the original article at the bottom of this post.

And yes, it is possible to have a manufacturing plant shut down for an extended period because of a part costing next to nothing.

The argument Podgortsev makes is an interesting one. Predictive maintenance systems are designed to identify potential failures before they happen. But there is a problem. These systems tend to concentrate on components that wear out regularly, because those are the parts engineers expect to fail.

The trouble is that a factory can be brought to its knees by a component that rarely fails and is therefore not monitored.

A two-cent bolt, for example.

The point is that the cost of a component has very little to do with the cost of a breakdown. The bolt may cost next to nothing, but if its failure brings a production line to a standstill, the consequences can be enormous.

A factory can lose weeks of production because of something nobody thought was worth monitoring.

And that’s the problem with predictive maintenance. It may be very good at predicting the failures it has been designed to detect, but what about the ones nobody thought about?

Why I’m interested in predictive maintenance

You might be wondering why I’m taking an interest in this.

Well, I began writing about industrial automation for a large European automation manufacturer way back in 1996.

I spent many years with that company, writing about its products and systems, the automation of factories and the arrival of new predictive-maintenance technologies. That continued for about 25 years.

So you can understand why I still take an interest in what is happening in industrial automation. I came across the Industry Week article and found it fascinating.

It also reminded me of how much the technology has advanced over the years.

Industrial automation has become an enormous industry, with a large number of players in the United States and here in South Africa. And now artificial intelligence is being incorporated into predictive-maintenance systems to help manufacturers identify potential problems before they bring production to a halt.

There is a lot of technology involved, from sensors and monitoring equipment to software, data analytics and AI.

But the underlying objective is quite simple.

Keep the factory running.

The players in the market

There are numerous companies in the United States developing and supplying industrial automation and predictive-maintenance technology.

Some specialise in machine-health monitoring and AI-driven predictive maintenance. Others are the large automation and industrial software companies that incorporate these technologies into their broader systems.

Among the American players are companies such as Tractian, Augury, MultiSensor AI, GE Vernova, IBM, Emerson, Rockwell Automation and Honeywell.

Then there are companies such as C3 AI and SymphonyAI Industrial, which develop AI-based systems for industrial applications.

And this is not just an American story.

The major European automation companies, including ABB and Siemens, have been developing predictive-maintenance systems for years. They are also active in the American market and have a substantial presence in South Africa.

Here, the market includes local specialists as well as the South African operations of the international automation companies.

Companies such as GrowthTech Development House, Probe Integrated Mining Technologies, 4Sight Operational Technologies and Boazmatics are involved in various aspects of industrial technology, AI, monitoring and predictive maintenance.

There are also companies such as Process Automation, which works with Razor Labs’ DataMind AI predictive-maintenance platform in the African market.

And then, of course, there are ABB, Siemens, Schneider Electric and Rockwell Automation, all of which have a presence in South Africa and offer automation and predictive-maintenance solutions.

This is a substantial industry, and there is plenty of technology available to manufacturers looking to reduce downtime and improve the reliability of their operations.

The problem with downtime

Downtime is something any factory manager and company director fears.

Imagine having a manufacturing plant shut down for a month.

The loss of revenue could be substantial. There are production schedules to meet, customers waiting for deliveries and employees who still have to be paid.

And depending on the industry, the consequences can extend well beyond the factory itself.

This is why manufacturers have invested so heavily in automation, monitoring and predictive maintenance.

The idea is to identify problems before they become serious enough to stop production.

AI is now helping to improve these systems by analysing data from machinery, identifying unusual patterns and warning operators of potential failures.

But the two-cent part raises an important question.

What happens when the system doesn’t identify the problem?

Incidentally, the Cape Town Manufacturing Summit 2026 is taking place at the Cape Town International Convention Centre on 11 November.

It’s a one-day event covering a range of manufacturing topics, including automation, digital transformation, sustainability and skills development. There will also be an exhibition of machinery and industrial technologies.

I mention it because automation is very much part of the manufacturing industry’s ongoing development, and it ties in with the subject of this article.

And what about the two-cent part?

So will it be a two-cent part that brings a factory to a standstill?

In South Africa, we’re talking about approximately 33 cents.

Predictive maintenance can be an enormous help to manufacturers. But no matter how sophisticated the system, there are always going to be gaps.

There are technological and automation elements involved in controlling and monitoring machinery, but the problem is that no system can necessarily anticipate every possible failure.

And that is where the risk assessment comes in.

Manufacturers need to consider not only the components that are expected to fail regularly, but also those rare failures that could have serious consequences.

Because the cost of the part may be negligible.

The cost of shutting down the factory is another matter altogether.

Further reading

The Two-Cent Part That Shut Down a Factory for a Month — Michael Podgortsev, Industry Week.

https://www.industryweek.com/operations/maintenance/article/55407010/the-two-cent-part-that-shut-down-a-factory-for-a-month

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

For me, the big event at the beginning of November was yesterday 1 November 2026 when Kimi Antonelli won the 2026 Formula One World Championship.

I’ve supported him since I first saw him drive out onto the track last year. And I was absolutely ecstatic. As he passed the chequered flag, I had a lump in my throat. He couldn’t even talk on his radio. He was bawling and crying, completely overcome with emotion.

Just think about it. He’s the youngest driver in the history of Formula One to become world champion, and he’s done it in his second year. He had a bit of racing last year, but this was really his first full season.

Now there’s an iconic photograph of him together with Max Verstappen and Lewis Hamilton, both former world champions. Kimi loves the photograph so much that he wants to have it enlarged and put up in his home.

It just goes to show how important young people are to any sport. It’s wonderful to see them rising up and taking over from those who have held the reins for years.

There are young people doing exceptionally well in all sorts of fields, and it’s great to see.

Congratulations, congratulations, congratulations to Kimi!

Sunday wasn’t his greatest race. He said he was cautious, but towards the end he overtook Charles Leclerc when he got his mojo back. Let’s hope he gets it back now for the remaining races. He’s won the world championship. He can race like he wants from now on.

November is here, and with it comes Black Friday, an American thing that has become big business in South Africa. In fact, some retailers have gone the whole hog and are running Black November specials.

For businesses, there are only two months left in the year to bring in as much revenue and profit as they can. For some, this is going to be a fantastic time, particularly the retailers, with people spending money on Christmas and the festive season.

Of course, not everybody benefits. Industrial businesses and construction companies will be winding down in December, as they normally do. But they are used to this, and their business tends to even out over the year.

The Cape and coastal areas will also be gearing up for holidaymakers. It’s quite interesting to see how one restaurant group has been gobbling up some of the decent restaurants around the Cape Peninsula, while opening new ones of its own. Some of these restaurants have been around for years. One doesn’t know how much money this group is making, because it’s privately owned, but it certainly seems to have spotted an opportunity. I’ve looked at its websites, and there’s a stack of restaurants. There must be money in this business.

All eyes will be on the election this week, taking place on Wednesday, 4 November.

Already there have been delays with special voting, and warnings about ballots having to be stamped at the back. There are people worried about whether the election will be fair.

November will certainly be a reckoning for political parties. But we’ll have to wait until later in the week, or possibly longer, to see the results.

Company news

A few company announcements and AGMs this week:

Bytes Technology Group, Equites Property Fund, PSG Konsult, Telemaster Holdings and Vunani all have dividend-related dates on Monday, 2 November.

AGMs for Motus Holdings, Bowler Metcalf, Putprop, Truworths International, York Timber Holdings, DRDGOLD and Shoprite Holdings.

Worth keeping an eye on.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

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By Our Foreign Correspondent

We all know Hello Kitty. She is the beloved face of cuddly toys, pens, pencils, suitcases, and kids’ backpacks. But this week, the world’s most famous feline traded her cute accessories for a spy trench coat, landing her squarely in a diplomatic catfight between Japan and China—two massive countries with notoriously delicate relations.

The Controversy
The plot twist no one saw coming started with Sanrio’s collaboration with VIVANT, a Japanese spy drama. To promote the show, Sanrio sold merchandise featuring Hello Kitty and friends dressed as spies. The problem? The drama featured a fictional Chinese intelligence agency torturing Japanese operatives. Chinese state media and online users quickly accused the programme of anti-China messaging and echoing historical atrocities.

Sanrio’s Chinese subsidiary rushed to issue a grovelling apology, scrapped the entire collaboration, and promised to strengthen its review of future partnerships. The company said the show contained material inconsistent with Sanrio’s “corporate philosophy.” Effectively, cute, commercially safe Hello Kitty was benched to save the brand’s skin.

The Financial Reality
But before you shed a tear for the bow-wearing icon, take a look at the balance sheet. Sanrio is doing spectacularly well. For the financial year ending March 2026, net sales skyrocketed 33.9 per cent to ¥194.1 billion (approx. R36.6 billion), while operating profit jumped an eye-watering 50.3 per cent to ¥77.9 billion (approx. R14.7 billion).

Interestingly, Hello Kitty isn’t even Sanrio’s biggest earner anymore. In the 2026 character rankings, she slipped to a humiliating fifth place, brutally beaten by Pompompurin, Cinnamoroll, Pochacco, and Kuromi. Her share of merchandise profit has shrunk from 60.6 per cent to 37.3 per cent over the past decade.

Yet, this isn’t a feline decline; it’s a strategic masterstroke. Sanrio has successfully diversified its portfolio, ensuring they don’t rely on just one cat.

While Kitty might be taking a backseat to a golden retriever and a penguin in Japan, her global appeal remains ironclad. Her target market now spans from kids to nostalgic millennials and Gen Z fashionistas (the average US fan is a 27-year-old woman). So, while she might be temporarily cancelled in Beijing, Hello Kitty will undoubtedly bounce back. After all, no amount of geopolitical drama can truly keep a good cat down.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

It’s been a difficult month. October has brought its own health challenges, and the weather has been miserable. The winter weather persisted right through to the end of the month. It’s only in the last couple of days that things have finally warmed up.

As we’ve said before, winter seems to be taking longer to leave us, while the summer periods are getting shorter.

Today, the last day of October, we’ve seen a huge interest in Halloween. It’s quite interesting that South Africans have adopted Halloween with such enthusiasm. Some might say it’s American imperialism, but then it’s South Africa’s own fault. Through movies, the media and social media, Halloween has taken on a new life in this country.

Interestingly, Halloween goes back some 2,000 years to the Celtic pagans of Ireland and Scotland, who celebrated a similar event to ward off scary things, ghosts and spirits, and to herald the beginning of winter.

It’s certainly been a big boost for business. Everything from green grocers growing special Halloween pumpkins to masks, costumes, events and all sorts of other things.

So it’s here to stay. Nothing much you can do about it.

As long as the kids find it interesting and exciting, have a lot of fun and aren’t too scared by it all. But knowing kids, not much scares them.

Scary things happening in South Africa

Talking about scary things happening in South Africa, you’ve only got to look at the local elections.

You see the ruling party not putting up candidates on their posters, or some posters having tiny little pictures of the people they’re putting forward, while their party initials are displayed prominently.

It’s a three-letter acronym, and they’re putting that up big.

But the scariest thing of all is the voters.

The voters who voted for this party, which has destroyed the country over thirty years. Well, virtually destroyed it. It certainly destroyed big city municipalities like Johannesburg, has affected municipalities like Durban, and when it was governing Cape Town, oh my goodness, you should have seen how rapidly things declined here.

But that was some time back.

However, let’s get back to those voters.

The scariest thing of all is that those same voters will vote again for that party.

Or, and there are many of them, they will not vote for the party but will not vote for anybody else either, in some sort of protest against the party.

Anyway, as we say, it’s scary.

The subscription economy

More scary things happen in South Africa, but one of them is how many companies try to get you onto a subscription basis.

I mean, if you buy a cell phone, they all want you to buy it on a monthly basis so that they can coin it from you for the next three years.

Plus, it will cost three times as much as just buying it outright.

But you have to look around carefully for a cash buy on a cell phone, because there aren’t that many. They all want money, and that’s the same for everybody.

The insurance companies, the banks, the entertainment services, the medical insurance companies.

They all want their cut from your income or your salary every single month.

It’s becoming increasingly difficult to escape the monthly subscription. Everybody wants a piece of you, and they want it on a regular basis.

Let’s hope November is less scary

Let’s certainly hope that November won’t be as scary a month as October.

But change happens quickly. Chance and opportunity occur all the time because we live in a dynamic world.

And by the end of next week, everybody will probably know the results of these local elections. It’s anybody’s guess just how scary the results could be.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.

I was up in Johannesburg earlier this year, and last December, reading The Citizen and going around the city. What struck me was not just how bad things looked, but whether it would even be possible to rebuild Johannesburg as a city. It seems to me there isn’t the will, and there aren’t the qualified people anymore, to do it. The money required to rescue it is on such a gigantic scale that it seems impossible to do.

That is not being negative. It is being realistic.

Johannesburg was a mining town that grew and grew until it became the major city in the country. Countless investments were poured into it—millions upon millions—because everybody wanted to be there, especially in the centre. The CBD at one stage was amazing. My recollection of the city in the 1980s was that it was very well run by a top mayor. In those days you had your town clerk, also a top person, and then your various departments and engineers to run the city. They were not perfect. But everything was in place. And there was not a ruling political party agenda to steal money.

Now, after years of the ruling party stealing money from Johannesburg and destroying it, one begins to wonder: could Johannesburg really be saved? Where are those competent people—including a mayor—to run the city? Where is that competent town clerk? Where are all the qualified engineering people to build and supervise the infrastructure of the city?

The figures confirm what anybody who drives around Johannesburg already knows. The city’s overall infrastructure backlog is estimated at more than R220 billion. The water network alone has a renewal backlog of R26.6 billion to R32 billion; at current spending rates, replacing the city’s ageing pipes would take nearly 200 years. The electricity backlog is R44 billion, and between July and December 2025 the city recorded 54,132 power outages. Johannesburg is losing 44.7% of its water through leaks, theft and damaged infrastructure, and electricity losses have climbed to 27.1%. Financially, the city owes creditors R25.2 billion while holding only R3.9 billion in cash.

This is not a maintenance problem. It is the physical result of a system that stopped being maintained decades ago.

The Centre for Development and Enterprise calls it a “destructive feedback loop”: poor governance destroys the finances, which halts maintenance, which pushes skilled people and businesses out, which further erodes the tax base and leaves even fewer resources to fix the city. Between April 2025 and June 2026, Johannesburg lost 90,000 jobs, while Cape Town gained 57,000. Capital expenditure has collapsed to 6% of the city’s budget, and maintenance spending stands at just 0.5% of asset value—roughly one-eighteenth of the metro average.

But the deeper problem is the political system designed break the city. Since 2016, Johannesburg has had nine mayors and eight coalition administrations, and no mayor has completed a full five-year term. Each new coalition brings its own priorities, its own loyalists and its own appetite for the city’s procurement budget. Political allegiance has frequently taken precedence over whether appointees have the skills for the job. That is the mechanism behind the “fronts” put up to steal money from the city. It is called cadre deployment, and it is deeply entrenched in the city’s entities and administration.

The competence deficit is measurable. None of the board members of Johannesburg Water are professionally qualified engineers, even as that utility faces a R26.6 billion renewal backlog. At least seven of the city’s 24 most senior management positions are held by acting appointees, and the city’s own reports point to persistent vacancies among engineers, finance professionals, project managers and supply-chain experts. There is a documented exodus of engineers and technicians from the broader system, with losses of up to 30% in some technical areas. People remember the town clerk and the city engineer as central, respected figures. Today the technical core of the city has been hollowed out, and the people who remain are often acting in posts they were never properly appointed to fill.

Business has said very little, and business’s input into Johannesburg is very little too. They have watched it decline, too scared to say anything because of the ruling party—because they’ll lose contracts, or just be scandalised by the ruling party even if they’re not doing business with them. Business for South Africa has now assembled over 750 subject-matter experts and pledged over R350 million in support, and more than 160 CEOs have signed a pledge to get personally involved. But Martin Kingston of B4SA admits the intervention is “11th-hour stuff” and that the existing multiplicity of initiatives is “not having the impact that is required.” Business has explicitly ruled out engaging in politics. That is precisely the scared posture of business: a sector that knows the city is failing, that has expertise to offer, but that has been unwilling to confront the political networks that make reform impossible.

So what would it take to rebuild Johannesburg—if it could be done at all?

First, a stable and honest political leadership, and a break from the coalition chaos. The CDE is blunt: Johannesburg can recover only if elections produce stable, honest political leadership. Without a minimum level of political stability, no amount of money or expertise will stick.

Second, institutional reform that gives technical units real autonomy. The city’s administration only exists in name; too much power lies with the council, and the city manager has no inherent authority to hire staff or make operational decisions. The utilities—City Power, Johannesburg Water, Pikitup—must be given real operational autonomy and shielded from patronage.

Third, massive, sustained capital investment—and the capacity to spend it. The city currently lacks the project-management and engineering capacity to deploy money effectively. That means rebuilding in-house engineering competence and large-scale technical training, including youth brigades of qualified and apprentice plumbers to repair leaks, and artisan teams to fix potholes and streetlights.

Fourth, a coalition of outside capacity: private sector, universities and civil society. Not as a substitute for a functioning state, but as a scaffold around a state that is finally willing to be rebuilt.

Fifth, confronting the criminal and patronage networks that benefit from the status quo and will resist reform. Revenue collected for utilities often fails to reach maintenance. Non-revenue water losses exceed 40%. Any serious rebuild must include enforcement against these networks, not just new infrastructure spending.

There are pockets of Johannesburg that still remain. The western CBD, once considered “written off,” is quietly becoming an “Education Town,” with philanthropists donating buildings for tech campuses and thousands of students returning to restored historic office blocks. These are exceptions that prove the rule. They show what competence can do in a small space. They do not show that the centre can be rebuilt.

The beginning of the end was decades ago, when the ruling party failed to rule the city but put up fronts to steal money from it. Johannesburg has plunged into chaos. You will get people who say you can’t be negative about Johannesburg. But there is a thing as being realistic.

Could Johannesburg really be saved? Not in its current political form. The physical rebuild is daunting, but the deeper obstacle is the absence of a political settlement that would allow competent people to run the city without being undermined or replaced. Until that political economy is broken—not just voted out, but structurally dismantled—the will and the people I remember will not return to run the city. It is going to be an interesting city to watch. But it cannot yet be saved. Time has run out. Five years is too short a mandate to fix the city.

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Editorial Disclosure & Disclaimer

Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We publish financial, environmental and corporate commentary for digital platforms, media outlets and organisations. Nothing published here constitutes investment, legal or financial advice. All opinions are editorial commentary on matters of public and economic interest.