Jeremy’s weekly wrap: Coalition tensions, water crisis warnings, and a Pret a Manger debut

South Africa’s government of national unity (GNU) is facing its toughest test yet, with the Democratic Alliance (DA) opposing the Expropriation and National Health Insurance (NHI) Bills. On Moneyweb@Midday, Ray Hartley from the Brenthurst Foundation explained how these bills – seen by the DA as threats to property rights and economic stability – have deepened rifts within the coalition. The ANC’s push to pass pre-GNU legislation without broad consultation has frustrated the DA, raising doubts about the coalition’s long-term viability.

President Cyril Ramaphosa’s shrinking political window may be driving these policy moves, but the fallout – especially around NHI funding and expropriation risks – has already unsettled markets and investor confidence.

You can also listen to this podcast on iono.fm here.

Meanwhile, South Africa’s water crisis has reached load shedding levels of urgency, with Dr Andrew Dickson from CBI-electric: low voltage warning that deteriorating infrastructure and mismanagement are leading to massive water losses.

Unlike electricity, water has no alternative, making the crisis more severe. However, smart technology – through AI-driven monitoring, data analytics, and smart metering – could drastically reduce wastage and improve efficiency. While upfront costs are high, the long-term savings could be significant. Despite government prioritisation, implementation remains slow due to funding constraints and bureaucratic inertia, raising concerns about whether solutions will arrive in time.

You can also listen to this podcast on iono.fm here.

On a lighter note, British food and coffee giant Pret a Manger is entering South Africa’s competitive food scene, with CEO Pano Christou confirming the first store will open on 14 February at Melrose Arch. The brand is blending global quality with local flavours, including chakalaka-infused menu items. While affordability and value for money are key concerns, Christou is confident in Pret’s success, backed by its partnership with Millat Group. Expansion plans include additional Johannesburg locations and, later, Cape Town, as the brand positions itself to appeal to young South African consumers.

You can also listen to this podcast on iono.fm here.

Finally, there’s good news for South African salary earners. Economist Elize Kruger highlighted a 12% increase in take-home pay in 2024, marking a recovery after two difficult years. Lower inflation, interest rate cuts, and improved business conditions have contributed to the rise. However, high unemployment remains the country’s biggest economic challenge, with millions still jobless. While salary growth is expected to continue in 2025, risks such as exchange rate volatility and weak GDP growth could slow the momentum. Without structural labour reforms and stronger economic growth, these wage gains will remain limited to the fortunate few with jobs.

You can also listen to this podcast on iono.fm here.

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