South Africa Roundup: Mass shootings, Jumia exits SA, wine making
Mass shootings
South Africa is grappling with an alarming increase in mass shootings, highlighted by a recent incident in Lusikisiki that claimed 18 lives. This surge in violence occurs against a backdrop of the nation's high homicide rates, which exceeded 12,000 in just the first half of the year, ENCA reports. Renowned crime expert Mary de Haas offers critical insights into the underlying factors contributing to this escalating crisis.
Murder and crime
In a related case, a man accused of involvement with mass shootings, Siphosoxolo Myekethe faces 18 counts of murder and unlawful possession of a firearm. Africanews reports that he has opted to waive bail, remaining in custody as legal proceedings unfold. The brutal attacks in Lusikisiki took place across two residences, tragically resulting in the fatalities of 15 women, two men, and a teenage boy, while a two-month-old baby miraculously survived these horrific events. Myekethe was on parole for a prior murder conviction at the time of these incidents, highlighting the complexities surrounding gun violence in South Africa. Despite strict gun laws, the pervasive issue of illegal firearms exacerbates the situation, showcasing the urgent need for comprehensive strategies to tackle this crisis.
Growth among leading grocery retailers
Turning to economic news, South Africa's Trade Intelligence published its bi-annual Corporate Retail Comparative Report (CRCR) for the first half of 2024, revealing stagnation in real growth among the nation's leading grocery retailers. Despite an uptick in turnover, primarily driven by price inflation and an increase in the opening of new stores, major players like Shoprite, Boxer, and Clicks recorded minimal real growth. The report highlighted a concerning trend, with average gross margins sinking to a four-year low of 21.4%, placing pressure on profits and compelling these retailers to invest in technological advancements, supply chain efficiencies, and private label brands. Notably, the competitive landscape is shifting, particularly among high-income consumers, with Checkers showing a marked advantage over Woolworths Food.
Jumia exits SA
On the e-commerce front, Jumia Technologies has announced its exit from South Africa and Tunisia to streamline operations and focus on markets with greater growth potential. The closure will see Jumia cease operations of the online fashion retailer Zando in South Africa, as well as its presence in Tunisia — which together represented a mere 2.7% of total orders and 3% of Gross Merchandise Value in early 2023. CEO Francis Dufay cited challenging macroeconomic conditions and fierce competition as key drivers behind this strategic decision, which will also result in approximately 110 job cuts. The company intends to concentrate on more promising markets, including Egypt, Kenya, Morocco, and Nigeria, where it anticipates enhanced growth opportunities. No plans were disclosed regarding the sale of its discontinued operations, according to Wine.co.za.
Winemaking
In an effort to cultivate talent within the wine sector, South Africa Wine has introduced the 2024 Graduate Placement Programme. This initiative aims to connect skilled tertiary graduates — with a focus on black graduates — to member companies through placement opportunities lasting 6 to 12 months. The programme aspires to widen skills development and create pathways for young South Africans in critical roles spanning viticulture, winemaking, logistics, marketscreener reports. Kachné Ross, the People and Skills Development Manager, underscores the programme's dedication to fostering individual growth while enhancing innovation within the industry. Collaborative efforts with Agrijob will provide recruitment services at no cost to participating member companies, while also offering R5,000 monthly salary contributions for each graduate placed, effectively mitigating hiring expenses. The initiative represents a focused effort to build a diverse workforce, encouraging wine businesses to engage for their mutual benefit.
