SMEs Embrace AI to Boost Efficiency and Competitiveness

Small and medium-sized enterprises (SMEs) are increasingly turning to artificial intelligence (AI) to enhance their operations, improve customer experiences, and stay competitive in a rapidly evolving market. ​ A recent study published in the Journal of Business Management highlights the key AI applications being adopted by SMEs and the challenges they face in implementation. ​The findings reveal that while only 28% of SMEs have integrated AI solutions, those that have are seeing significant benefits. ​

The use of AI in SMEs

Artificial Intelligence (AI) is revolutionizing the way small and medium-sized enterprises (SMEs) operate, offering numerous opportunities to enhance efficiency, improve customer experiences, and stay competitive. Implementing AI in SMEs can seem daunting, but with a strategic approach, it can yield significant benefits.

Amendments to the South African Companies Act

The recent proposal by the Minister of Finance to increase the Value-Added Tax (VAT) rate by 0.5% on 1 May has sparked significant discussion. One of the key points of contention is the implementation of this increase without parliamentary approval, as outlined in Section 7.4 of the VAT Act.

The Institute of Race Relations Report

The Institute of Race Relations (IRR) has recently unveiled a report that underscores the substantial financial burden imposed by Broad-Based Black Economic Empowerment (BEE) premiums on South Africa. The report, titled "Cut VAT & BEE," estimates that the legitimate cost of BEE premiums in public procurement is approximately R17 billion per annum. To put this into perspective, this amount is equivalent to the cost of constructing around 42,000 kilometers of new paved roads, enough to stretch from Cape Town to Beijing and back.

Understanding the South African Budget Process: From Proposal to Parliamentary Ratification

South Africa Increases Carbon Tax to Combat Climate Change

In a significant move to bolster its climate change mitigation efforts, South Africa has announced an increase in its carbon tax. Effective from January 1, 2025, the carbon tax will rise from R190 to R236 per tonne of carbon dioxide equivalent (tCO2e). Additionally, from April 2, 2025, the carbon fuel levy will increase by 3c/litre to 14c/litre for petrol and 17c/litre for diesel, as mandated by the Carbon Tax Act of 2019.

South Africa to Increase VAT Rate in 2025

In a significant move to boost revenue, the South African government has announced a two-phase increase in the Value Added Tax (VAT) rate. The first increase of 0.5 percentage points will take effect on 1 May 2025, followed by another 0.5 percentage point increase on 1 April 2026. This decision comes after careful consideration of the potential contributions of various tax instruments, with VAT being identified as an efficient and broad-based source of revenue.

Review of the 2025 Budget Speech

The 2025 Budget Speech addressed the economic stagnation of the past decade, with GDP growth averaging less than 2%. In 2024, the economy grew by only 0.6%, and medium-term projections estimate an average growth of 1.8%. The speech emphasized the need for faster, inclusive economic growth to meet developmental goals.

SARS Reports Over 2 Million Tax Directive Applications for Savings Withdrawals

The South African Revenue Service (SARS) has announced a significant milestone in the implementation of the two-pot system, with a total of 2,664,279 applications for tax directives received to date. Of these, 2,403,379 applications have been approved, resulting in a total gross lump sum payout of R 43.42 billion.

IMF Issues Warning to South Africa Amid Economic Challenges

CIPC Initiates Deregistration of Non-Compliant Companies

The Companies and Intellectual Property Commission (CIPC) has announced a significant wave of deregistrations due to continued non-compliance with the Companies Act. As of January 17, 2025, a large volume of companies have been deregistered for failing to meet obligations such as Annual Returns and Beneficial Ownership declarations.

SARS Invites Public Input on 2025 Budget

IMF Concludes Annual Consultation with South Africa: Positive Outlook Amid Challenges

The International Monetary Fund (IMF) recently concluded its 2024 Article IV annual consultation with South Africa, highlighting a cautiously optimistic economic outlook. The IMF team, which visited from November 11-25, engaged with various stakeholders to discuss policies aimed at ensuring macroeconomic stability and fostering sustainable growth.

How to Obtain a Tax Directive from SARS

Obtaining a tax directive from the South African Revenue Service (SARS) is a crucial step for employers, fund administrators, and insurers to ensure the correct deduction of employees' tax from lump sum payments. This process is essential for managing tax liabilities on retirement funds, severance packages, and other lump sum benefits.

Africa: A Continent of Growth and Opportunity

Africa, a vast continent covering 30.2 million square kilometres, is home to approximately 1.5 billion people, representing about 18.6% of the world's population. ​ With its diverse climates ranging from hot deserts to tropical rainforests and frozen glaciers, Africa is a land of immense natural beauty and resources. ​ The continent is rich in oil, gold, platinum, and diamonds, many of which remain untapped due to infrastructure and financing challenges. ​

29th Conference of the Parties (COP29)

The 29th Conference of the Parties (COP29) to the UN Framework Convention on Climate Change (UNFCCC) recently concluded in Baku, Azerbaijan, and it has been a pivotal event in the global climate agenda. Here are the key outcomes and implications of COP29:

AI Revolutionizes Accounting for SMEs: Streamlining Finances and Boosting Productivity

Small and medium-sized enterprises (SMEs) are increasingly turning to Artificial Intelligence (AI) to revolutionize their accounting processes, improving efficiency, accuracy, and financial insights.AI-powered accounting software can automate tasks such as:

2024 Medium-Term Budget Policy Statement (MTBPS)

The 2024 Medium-Term Budget Policy Statement (MTBPS) in South Africa, presented by Finance Minister Enoch Godongwana on October 30, 2024, outlined the government's strategic response to economic challenges and fiscal constraints amid declining tax revenues. This year’s MTBPS comes at a time when the National Treasury faces a significant revenue shortfall of around R22.3 billion for 2024/25, attributed to lower-than-expected collections across various tax categories, including income tax and fuel levies. Factors like reduced energy-related imports and weaker private sector employment have contributed to this shortfall, while domestic VAT has performed slightly better due to increased corporate earnings in certain sectors.

SARS Enhances Security with Biometric Authentication for eFiling

Africa Overview

“Africa is on its way to becoming a preferred investment destination, a potential pole of global growth, and a place of immense innovation and creativity. But there is also a long way to go — and Africa’s governments must as a matter of urgency turn their attention to those who are being left behind. I believe Africa and its leaders can rise to this challenge. If they do, Africa will become more prosperous, stable and equitable.”

Updated Specification for the Two-Pot retirement system

Since the implementation of the Two-Pot Retirement System on 1 September 2024, SARS has taken note of the challenges the industry is experiencing. To this end, various enhancements have been incorporated into the SARS interface. These enhancements and changes inter alia include:

The Importance of Estate Planning: Securing Your Legacy

In an ever-changing world, the importance of estate planning cannot be overstated. Estate planning is not just for the wealthy or the elderly; it is a crucial process for anyone over the age of eighteen. ​ It involves creating a strategic plan to manage and distribute your assets during your lifetime and after your death, ensuring that your wishes are honoured and your loved ones are protected. ​

The Crucial Role of Trustees in South African Trusts

In South Africa, the role of trustees in managing trusts is pivotal to ensuring the proper administration and safeguarding of trust assets. ​ Trustees are appointed to act in a fiduciary capacity, holding and managing assets for the benefit of the trust's beneficiaries. ​ Their responsibilities are governed by the Trust Property Control Act and the trust deed, which outlines the framework within which they must operate. ​

SMEs Embrace AI to Boost Efficiency and Competitiveness

Berlin, October 2023 — Small and medium-sized enterprises (SMEs) are increasingly turning to artificial intelligence (AI) to enhance their operations, improve customer experiences, and stay competitive in a rapidly evolving market. ​ A recent study published in the Journal of Business Management highlights the key AI applications being adopted by SMEs and the challenges they face in implementation. ​The findings reveal that while only 28% of SMEs have integrated AI solutions, those that have are seeing significant benefits. ​