South Africa will experience slow economic growth over ---- due to weak consumer demand, declining business confidence, relatively subdued commodities prices, and sporadic strikes and persistently unreliable power supply. The economy will benefit from lower oil prices but because growth will be dependent on structural reform, an area where we have seen minimal progress, we have downgraded our ---- real GDP growth forecast to -.- , down from -.- in ----. ...South Africa will experience slow economic growth over ---- due to weak consumer demand, declining business confidence, relatively subdued commodities prices, and sporadic strikes and persistently unreliable power supply. The economy will benefit from lower oil prices but because growth will be dependent on structural reform, an area where we have seen minimal progress, we have downgraded our ---- real GDP growth forecast to -.- , down from -.- in ----. Private consumption and, to a lesser extent, investment will be the main beneficiaries of lower oil prices. ...Following KFC s success, Yum! Brands re-opened its first Pizza Hut outlet on September -- ----, after six years of absence. Since its first store opened in May ----, Burger King has also expanded quickly in South Africa.
...BMI View: We hold an optimistic outlook for the food and drink industry over ---- and ---- owing to the well-established South African food market, with industry players well-placed to overcome short-term consumer downturn. The drinks market will benefit from an emerging affluent consumer base boosting premium demand, while the soft drinks industry faces a more volatile outlook owing to the ongoing sugar tax debate. ...BMI View: We hold an optimistic outlook for the food and drink industry over ---- and ---- owing to the well-established South African food market, with industry players well-placed to overcome short-term consumer downturn. The drinks market will benefit from an emerging affluent consumer base boosting premium demand, while the soft drinks industry faces a more volatile outlook owing to the ongoing sugar tax debate. Retailers increasing value-added offerings will win over its cash-strapped core consumer base amid pressing economic pressures. Food and Drink Spending (---------) Food, sales, ZARmn Non-alcoholic drinks, sales, ZARmn ---- ---- ---- ----f ----f ----f ----f ----f - ---,--- ---,--- ---,--- ---,--- f = BMI forecast.
...Rising food prices will weigh on household spending over ----; however, we have a positive outlook on food producers that diversify product offerings to better suit the weakening consumer outlook. Soft drink sales will be volatile to new industry risks presented by the ongoing economic headwinds, as well as the proposal of a -- tax on sugary drinks for implementation in April ----. ...
