Author: Chesney

We’ve grown accustomed to the idea that coffee comes from beans, whether brewing at home or grabbing a cup at the local coffee shop. But with the rising cost of coffee and the environmental toll of traditional coffee production—where vast tracts of land are dedicated to coffee cultivation and emissions soar from global shipping—it’s time to think differently. I was intrigued to discover there’s now a way to enjoy coffee without beans (see link to article below).

This innovative “beanless coffee” is made from a blend of surprising ingredients, including date seeds, sunflower seed extract, millet, and even pea protein. It starts with waste date seeds, which are granulated and infused with a special mix of other natural ingredients. After roasting, this blend develops the familiar flavors and aromas of coffee. For the caffeine kick, some versions source caffeine from green tea decaffeination, while others use synthetic caffeine.

What’s particularly exciting about beanless coffee is the way it addresses both the environmental and economic challenges posed by traditional coffee farming. Coffee crops require vast amounts of water and land, often leading to deforestation and other ecological impacts. By using waste materials like date seeds, beanless coffee helps to minimize food waste while also reducing the reliance on resource-intensive crops. Shipping coffee beans from farms to markets all over the world has a massive carbon footprint, one that could be dramatically cut by localizing production through beanless alternatives.

Beyond the environmental benefits, beanless coffee could also offer a more stable supply chain. With climate change affecting traditional coffee-growing regions, the future of coffee production is uncertain. Rising temperatures and unpredictable weather patterns have already led to reduced yields and higher prices. Beanless coffee, made from widely available and resilient ingredients, could be a solution to fluctuating supplies and help ensure that your morning cup remains affordable.

Of course, the big question is: does it taste like real coffee? According to early adopters, the flavor profiles are remarkably similar. The roasting process and infusion of ingredients like guava and lemon contribute to a rich, aromatic brew that mimics the complexity of traditional coffee. And while nothing can truly replace the original for die-hard coffee enthusiasts, the growing market for beanless alternatives suggests that many are open to experimenting with this sustainable option.

As coffee prices continue to rise and environmental concerns grow, beanless coffee could offer a sustainable alternative without compromising the rich flavors we love. Whether you’re an eco-conscious consumer or simply curious about the future of coffee, this new innovation could change how we think about our daily brew.

https://www.bbc.com/news/articles/c4gv0rvx0dvo

South African malls, once dominated by local giants like Woolworths, Mr Price, Edgars, and Fochini, are experiencing a quiet revolution. Alongside these familiar names, Chinese clothing retailers are establishing a firm foothold, offering a dazzling array of styles at affordable prices. Whether it’s a shop in a high-end mall or an online marketplace, these Chinese brands—both in physical stores and through e-commerce platforms like Shein and Temu—are reshaping the local clothing landscape.

Step into one of these Chinese stores, and the contrast is stark. The sheer variety of styles, colors, and cutting-edge fashion trends makes many local brands look conservative by comparison. The local stores simply can’t match the pace or breadth of what’s coming out of China, and the gap is widening. South African consumers, particularly those with an eye for trends and bargains, are flocking to these Chinese retailers.

E-commerce Meets the Mall

While Shein and Temu dominate online, their physical counterparts in shopping centers are no less formidable. These stores provide instant access to the same variety and affordability that make the online platforms so popular. Whether in a market shopping center or a prime retail location, Chinese retailers are creating a tangible presence that complements their digital dominance. Combined, they offer the South African shopper an irresistible combination of style, price, and accessibility.

Since Temu’s launch in early 2024, local retailers have reported up to a 30% drop in sales, and Shein’s market share in online women’s clothing continues to climb. But this isn’t just an online phenomenon; it’s happening in the malls, too. Walk through any major shopping center, and you’ll see these Chinese retail outlets thriving while their local competitors scramble to adapt.

Fashion, Price, and the Import Advantage

What makes these Chinese brands so competitive? It’s a combination of staying ahead of global fashion trends and a pricing strategy that local retailers can’t match. South African clothing stores are weighed down by higher tariffs and VAT on bulk imports, while Chinese platforms and retailers benefit from favorable import rules. The de minimis rule allows for lower tariffs on small parcels, giving online platforms like Shein and Temu a substantial advantage. Meanwhile, local retailers are left to face 45% tariffs on bulk imports, further pushing up their prices.

A Shift in Consumer Preferences

This shift is not merely about price. Consumers are looking for fresh, vibrant, and trendy fashion—something many feel they are not getting from local stores. Chinese retailers, with their global outlook, are serving up fast fashion that appeals to younger, trend-conscious consumers. Many South Africans, especially women, find the styles from local brands outdated compared to the dynamic offerings from Chinese stores, both online and in the mall.

The challenge for local retailers is how to keep pace. With Chinese brands dominating both the physical and digital space, South African retailers are being outmaneuvered on multiple fronts.

The Future of South African Retail

The arrival of Chinese retailers, both online and in malls, is more than just competition—it signals a structural shift in the market. Local retailers may push for reforms to level the playing field, particularly around import duties, but the core challenge is one of agility. Without the ability to adapt to rapidly changing trends, offer competitive pricing, and meet consumer demand online and in stores, many of South Africa’s long-standing brands could fade into irrelevance.

To survive, South African retailers will need to focus on premium offerings, improve supply chain efficiencies, and embrace online shopping more fully. The days of relying on loyal local consumers are over. As Chinese retailers continue to expand, the question remains whether South Africa’s retail giants can evolve quickly enough to withstand this retail revolution.

The Aquila Column

Most investors and borrowers know about the impact of interest rate cuts. For investors, particularly those on fixed incomes, an interest rate cut means lower returns. Meanwhile, for those taking on debt—whether through bond financing, vehicle purchases, or higher purchase agreements—the cost of borrowing will decrease. However, less is understood about how an interest rate cut affects everyday investors’ portfolios, particularly through government bonds.

With the South African Reserve Bank (SARB) poised to cut interest rates by 25 basis points to 8.00% on September 18, 2024, investors are already speculating about the broader market impact, particularly on government bonds. Bonds, as we know, are debt instruments issued by the government to finance public spending, and they come with fixed interest payments known as coupons. The relationship between interest rates and bond yields is well-established, and a lower interest rate will likely ripple through the bond market in complex ways.

The Basics: What Are South African Government Bonds?

South African government bonds are interest-bearing financial instruments issued by the state, with a commitment to pay periodic interest and return the principal at maturity. Investors can access a variety of bonds, including short-, medium-, and long-term bonds, such as the R186 (10-year), R2030 (11-year), and R2040 (20-year) bonds. These bonds are critical components of many local and international portfolios.

In local bond funds, government bonds often make up 50–60% of the portfolio, as they are seen as relatively safe, though not without risk. In global funds, exposure to South African bonds tends to be much lower, around 5–10%, primarily due to currency and economic concerns.

Interest Rate Cuts and Their Immediate Impact on Yields

If SARB lowers the repo rate to 8.00%, the immediate expectation is a decline in bond yields. Yields move inversely to prices; when interest rates fall, the price of existing bonds rises as their fixed coupon payments become more attractive relative to new bonds issued at the lower rate. In essence, investors are willing to pay a premium for existing bonds with higher returns.

The yield on government bonds, especially those with longer maturities, such as the R186 or R2030, is likely to decline. Lower yields mean lower returns for investors entering the market, although those holding bonds will benefit from the price appreciation.

Investment Sentiment: Shifting Preferences

Lower interest rates tend to buoy investor sentiment towards riskier assets, such as equities and corporate bonds. In this environment, South African government bonds might see an influx of local demand, as investors look for higher returns than they can achieve in the now lower-rate environment of bank savings or other low-risk instruments.

However, there is a caveat. The rate cut signals a dovish monetary stance, which could indicate future economic uncertainty. This may keep a portion of cautious investors tethered to the relative security of bonds, especially if inflation remains under control.

Foreign Investors: A Currency Conundrum

The reaction from foreign investors is more nuanced. Typically, a rate cut can weaken the local currency, as lower interest rates reduce the appeal of holding assets denominated in that currency. The South African rand could see some downward pressure, making government bonds less attractive to foreign investors who could face reduced returns when converted back to their home currency.

That said, foreign investment in bonds has often been driven by yield differentials. Even with a rate cut, South African bonds may still offer higher yields than bonds from developed markets, where rates have been at historically low levels.

A Delicate Balance Ahead

Overall, a SARB rate cut is expected to create a supportive environment for government bond prices in the short term. However, as yields fall, so too does the income potential for new investors. Additionally, foreign investors will weigh the impact of a weaker rand against the still relatively attractive yields.

The bond market will likely remain a key focus as investors assess whether this rate cut is a one-off or the beginning of a more accommodative policy cycle. Should further rate cuts follow, yields could compress even more, reducing the attractiveness of South African government bonds.

Ultimately, investors in South African bonds must stay nimble, ready to respond to a shifting landscape where local monetary policy and global capital flows collide.

OPINION AQUILA COLUMN

Some people argue that the official inflation rate in South Africa is far too low. They believe that when you look at a basic household budget, which includes rental, rates and taxes, electricity, water, grocery items, fuel costs, clothing, and other similar monthly expenses, the inflation rate is far higher.

What is the reality? Is the South African inflation rate so broad that it can be 6% or thereabouts? Does it include so many things that the weighting for everyday living gets lost in the quantum of everything else?

It’s also argued that the inflation rate is deliberately reported low for wage negotiations ,iInternational markets and foreign capital flows. This seems a bit of a far stretch.

So what are the fundamentals that determine the inflation rate in South Africa? It is undoubtedly an important political figure because it indicates how well the economy is performing in the country. It also is impacted by government services such as electricity and the fuel price, to name only two.

Economists and similar experts ? would argue that the inflation rate in South Africa is calculated using a basket of goods that reflects average household spending, adjusted periodically. Key drivers include fuel costs, food prices, and administered prices like electricity tariffs. These factors are market-driven, not politically controlled.

While some may feel inflation is underreported, the figure represents a national average, not individual experiences. Stats SA, an independent body, compiles the data using internationally recognized methods. External audits, including by the IMF and World Bank, confirm its accuracy, with no signs of manipulation.

In short, it appears that ?South Africa’s inflation is shaped by economic realities rather than political interference. But the impact of inflation of course is experienced at an individual level? where erosion of spending power is most felt .?

The Aquila Column

South Africa’s oldest manufacturers have shown remarkable resilience, persevering through ups and downs for more than 100 years or more.

They have stood the test of time by producing basic, indispensable products. From wine to industrial goods, these companies have thrived because their products tap into universal needs.

Consider Groot Constantia and Klein Constantia, producing wine since 1685. The mining sector has powered the nation’s economy for over a century.

What they all share is a focus on the essentials. But they also adapt to new challenges and changing times.

Some of South Africa’s oldest manufacturers, whose histories span over a century, are examples of this resilience:

Mossop Leather, established in 1846, has been producing high-quality leather goods for generations. Bakers Biscuits, since 1851, offers a product that brings comfort and nostalgia to many South Africans. Mrs Balls Chutney, founded in 1852, is a South African culinary institution.

These homegrown manufacturers have been joined by international subsidiaries:

Ford Motor Company, with its local assembly operations dating back to 1923, has been a key player in the country’s automotive industry. Siemens (1903) has contributed to South Africa’s energy, healthcare, and infrastructure sectors. Sulzer (1923) has supported various industries with its engineering in pumps and compressors.

What has kept these manufacturers going is their ability to meet needs that never go out of style. Basic products—whether wine, food, or industrial goods—remain essential. Adaptability has been key.

As we look forward, will these century-old manufacturers continue to thrive? If their histories are any guide, these businesses will likely find new ways to evolve.

South Africa’s oldest manufacturers are more than survivors—they are pioneers of resilience. Their deep roots in producing fundamental goods, combined with embracing change have ensured their place in the market.

The Aquila Column

In South Africa, as in the rest of the world, the decline in paid TV viewership is an issue that traditional broadcasters cannot ignore. The rise of internet streaming platforms is not merely a trend but a major shift in how people consume visual content. It’s driven largely by younger generations who are less inclined to sit through pre-set schedules and instead opt for the flexibility of streaming services like Netflix, Amazon Prime, and Disney+. But this isn’t just a local issue—it’s a global transformation that’s disrupting how traditional broadcasters operate.

Paid TV’s Struggle to Keep Viewers Engaged

Paid TV once dominated the entertainment landscape. In South Africa, services like DStv were household staples, with extensive packages covering everything from sports to news, documentaries to reality shows. But in recent years, these offerings have started to feel limited, especially compared to the vast content libraries and flexibility offered by streaming platforms.

The main issue with paid TV is its rigid structure. Viewers can’t easily tailor their experience. Streaming platforms allow people to pick exactly what they want, whether that’s a series of cooking shows, a full afternoon of science documentaries, or a quick dip into reality TV. Younger audiences in particular, with their multitasking lifestyles and a penchant for instant gratification, are gravitating to platforms that offer convenience, flexibility, and personalized recommendations.

The Global Picture: Adapting to the Streaming Era

In America and Europe, the response to the streaming trend has been a combination of adaptation and reinvention. Traditional broadcasters like Comcast, Sky, and even legacy channels like HBO have pivoted, offering their own streaming platforms (Peacock, Sky Go, HBO Max, respectively) to stay relevant. These companies have realized that while cable subscriptions are dwindling, there is potential in leveraging their massive content libraries for streaming services.

Moreover, some broadcasters have turned to partnerships with tech companies. For example, in the U.S., many paid TV companies are bundling streaming services into their packages, offering subscriptions to platforms like Hulu or Netflix along with their own channels. This hybrid approach is helping them retain some portion of their user base while tapping into the popularity of streaming.

Finding New Revenue Streams

While viewership for paid TV has declined, broadcasters are not solely relying on subscriptions to generate revenue. One major trend is the shift toward advertising in a more targeted, data-driven way. Advertisers are increasingly interested in the detailed metrics that come from streaming services. Broadcasters are using their own online platforms to capture these metrics and sell highly targeted ads that cater to niche audiences—often more valuable than traditional TV advertising slots.

Another avenue has been the diversification of content offerings. For instance, paid TV broadcasters in South Africa are experimenting with more flexible packages, catering to specific interests like sports or family entertainment. They are offering limited-time deals to entice viewers and keep them engaged.

In Europe, broadcasters are focusing on exclusivity in sports, securing deals for live events that streaming services can’t yet replicate. This strategy ensures that even as some viewers shift to on-demand streaming, those who crave live sports action remain loyal to paid TV services. In South Africa, DStv has similarly clung to its exclusive rights to major sporting events like rugby, soccer, and cricket, which remain the backbone of its premium packages.

Is There a Future for Paid TV?

The question remains: can paid TV broadcasters survive in the long term? The decline in overall viewership may continue, but these companies are diversifying. Sports remain a key draw, but even this sector could eventually face disruption as streaming platforms muscle in on live broadcasts.

Paid TV has also leaned heavily into local content, an advantage that international streaming services may struggle to match. In South Africa, for example, shows that reflect the nation’s unique culture and languages have kept some viewers tied to local broadcasters.

Ultimately, paid TV may not regain its former dominance, but it could find its place in a more fragmented media landscape, serving niche markets and leveraging its content for streaming. The younger generation may be the streaming generation, but there are still millions of viewers who prefer the familiar structure of paid TV.

As broadcasters around the world continue to adapt, we’ll likely see more collaboration between traditional and digital platforms, along with a steady rise in hybrid models. The key for paid TV will be flexibility—moving from a one-size-fits-all approach to a more dynamic, viewer-centric model. Whether this will be enough to secure their future remains an open question.

In the current economic climate, clients of top consulting firms are pulling the brakes on their spending. Even the most trusted advisory names, long seen as immune to cyclical downturns, are feeling the pinch. The reason is twofold: cost pressures and a shift in corporate priorities.

First, cost-cutting is back on the agenda. In the face of tighter margins and lower growth expectations, CFOs are reassessing every line of expenditure, and high-priced consulting retainers are no exception. In the past, many firms justified these fees with the promise of transformative outcomes. But today, companies are asking if they need transformation—or just preservation. When faced with tough choices, executives are opting for in-house expertise over external consultants.

Secondly, there’s a growing discomfort with the returns on consulting projects. In boom times, consulting firms could sell the promise of growth strategies, new technologies, and data-driven insights. Now, clients are questioning the value of these solutions. As companies struggle to maintain stability, the buzzwords and future-proofing strategies feel less relevant. Clients are demanding proof of tangible returns on consulting engagements, and many are finding the cost-benefit analysis falling short.

In this environment, the shift away from high-end consulting services reflects broader corporate retrenchment and pragmatism. The coming quarters will test the resilience of these firms, which must now justify their fees more clearly than ever before.

chesney.bradshaw@outlook.com

A car cuts in front of you. Another one doesn’t stop at a red light and speeds through the crossing. Someone pushes ahead of you at the supermarket checkout. Someone doesn’t greet you. A person is surly, uncommunicative, and rude. This is how it often goes.

So, what makes a difference in dealing with people? How can things run more smoothly in your day?

Understanding, kindness, good manners, and etiquette are key to diffusing tense situations. Someone recently told me a story about a tenant who was giving him a hard time. After taking a moment to reflect, he decided to approach the situation more gently. The result? The tenant’s attitude shifted, and the tension vanished almost overnight.

Manners, courtesy, and etiquette are crucial in our daily interactions—or confrontations—with life.

Some people seem to glide through life, effortlessly smoothing their way through any situation. Often, you’ll find that these individuals are well-versed in manners and courtesy. Perhaps it’s their upbringing, or maybe they’ve learned the hard way. We all have lapses—one day, you might calmly let someone cut in front of you on the road or in a line, and other days, it makes your blood boil. That’s life. Some days, you shrug off the chaos and dance your way through it.

If someone hasn’t learned manners at a young age, it’s likely going to be an uphill battle. But it’s never too late to learn. And it can make a world of difference. I’m not here to teach manners—far from it. I need to learn more myself. But I do know that manners, courtesy, and etiquette help smooth out the rough edges of daily interactions.

Ah, the delightful scent of fresh ink. That tactile pleasure of holding a newspaper—crinkling it, folding it, and yes, maybe even using it to line the birdcage later. So imagine my joy when I heard The Onion—the satirical beacon of truth in a world gone mad—has returned to print. Yes, that’s right, print as in dead trees, people! Now, if The Onion can pull off this retro miracle, surely the rest of our beleaguered, click-bait riddled media can follow suit?

But alas, while The Onion is experimenting with actual paper (a radical innovation in 2024), the rest of the news industry seems more interested in turning into a glorified app store. I can see the logic, of course. If you can’t beat the kids at their TikToks and Instagrams, you might as well jump into the abyss with them, shedding your soul in the process. Or, if you’re particularly trendy, you could just let an algorithm write your articles. Who needs journalists when a machine can churn out headlines like “10 Reasons You Won’t Believe Number 7”?

One must applaud The Onion, however. Their decision to go to print at a time when most publications are busy moving to “digital-only” (read: corporate purgatory) is akin to a ship sailing straight into an iceberg with a hearty “full steam ahead!” But this is no reckless whim. No, The Onion has seen the future, and it involves good old-fashioned satire you can hold in your hands—without needing to scroll, swipe, or sit through another irritating cookie pop-up. How quaint!

This move, of course, stands in stark contrast to the fate of many of our local papers, which have been retreating to the digital realm like rats fleeing a sinking ship. “Print is dead,” they say. “Nobody wants to pay for actual news anymore,” they cry, while eyeing the latest Kardashian-Jenner gossip numbers like a Wall Street broker monitoring a spike in stock prices. Meanwhile, the actual readers—yes, the poor souls still interested in things like facts and quality writing—are left with an endless stream of thinly veiled advertorials and opinion pieces that barely rise above the level of an overheard conversation in a coffee shop.

Let us not forget one recent triumph of innovation—a digital publisher here in our fair land boldly produced a weekend print edition (yes, really). What a marvel that was! It made its valiant debut via a supermarket chain, where I’m sure it was nestled between the discount laundry detergent and an impulse-buy chocolate bar. Yet despite this prime real estate, I can’t seem to find it anymore. Could it be that the public’s appetite for sanctimonious editorials on climate change and earnest debates about tax reform has somehow waned? Who could have guessed!

But I digress. The real point is this: newspapers don’t have to die. They don’t have to go quietly into that good night, flinging themselves into the murky waters of the digital-only abyss. After all, The Onion has proven there’s life yet in the world of print. If a satirical rag can pull it off, then surely there’s hope for the rest? Or perhaps not, as one industry insider confided, “Why bother when algorithms can do it for us?”

Still, one can’t help but feel a little nostalgic. There’s something so… human about reading a real, physical newspaper. Something that algorithms, digital clicks, and listicles about “The Top 10 Things That’ll Make You Question Your Existence” just can’t replace. If The Onion’s print success is anything to go by, perhaps it’s time for other publishers to rethink their strategy. After all, if a coffee shop patron can chuckle over headlines like “Experts Admit They Don’t Know Why Jeff Bezos Bought the Moon,” why can’t a proper news outlet offer something similar?

Of course, there’s always the money question. You see, it turns out there’s a certain type of person who likes owning newspapers (and not just to impress their friends). Let’s call them “billionaires.” Jeff Bezos, that well-known space enthusiast, famously snapped up The Washington Post. And why not? It’s not like they were doing anything interesting with it before. Add in a few more media moguls with some spare change and voilà—maybe print isn’t dead, just waiting for a wealthy savior with questionable motives.

In the meantime, for the rest of us, it’s nice to know that The Onion remains in the hands of people who understand what a publication should be: funny, irreverent, and full of the kind of headlines that make you spit out your morning coffee. If they can keep the print flame alive, who knows? Perhaps one day, we’ll even see a Private Eye pullout section in The Financial Times. Stranger things have happened.

Starting a business in South Africa can feel like a mountain to climb, but there’s plenty of material online to help guide you through it. There are countless videos, blogs, and articles dedicated to easy start-up ideas, but let’s cut through the noise. When we talk about “easy” start-ups, it’s crucial to acknowledge that no business is truly easy. Any venture requires effort, whether it’s generating leads, turning them into prospects, or simply doing the legwork to get your name out there.

The term “easy” can be misleading. Take a sales job, for example. People often think it’s straightforward, but the reality involves constant outreach, follow-ups, and marketing. The grind of putting flyers in letterboxes or making cold calls isn’t glamorous, but it’s essential if you’re starting small. Passion is non-negotiable because that’s what will carry you through the tough days. The question is, how can you channel that drive into something that doesn’t deplete all your energy from the outset?

Here’s where Bill Gates’ infamous quote comes in: he said he prefers to hire lazy people because they find the simplest way to get the job done. Whether or not you agree with that, the point stands—why make things harder for yourself? You need a start-up that, while not “easy,” doesn’t overextend your resources in the first week. With that in mind, here are three start-ups that could be a good fit if you’re looking to avoid burnout while still building something worthwhile.

Firstly, the digital space is booming. Consider becoming a content creator, whether it’s writing blogs, curating social media for small businesses, or even starting a YouTube channel. These ventures require low upfront costs and minimal equipment—just your creativity and time. Second, there’s the option of starting an online tutoring service. If you have expertise in a subject, be it math, languages, or coding, platforms like Zoom make it simple to offer lessons to students both locally and globally. Lastly, there’s the local logistics or delivery service space. It may seem like a saturated market, but focusing on niche delivery—such as offering reliable courier services in underserved areas—can quickly carve out a profitable corner for yourself.

The common thread in these ideas is that while none of them are effortless, they all have a relatively low barrier to entry and don’t require an extensive amount of initial capital or energy. Just be sure to choose something you’re passionate about, because no start-up will succeed without a significant investment of effort—even the so-called easy ones.