Latest / Anele and the Club on 947 / The Money Minute: Zinathi Gquma Returns and chats the impact of rising fuel prices on small businesses

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The Money Minute: Zinathi Gquma Returns and chats the impact of rising fuel prices on small businesses · Anele and the Club on 947

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  Speaker 1: Wake up with a bang. Hey, wake up!
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  Speaker 2: Anele and the Club on 947.
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  Speaker 1: The Money Minute on Anele and the Club on 947.
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  Speaker 2: Coming up, your Money Minute with Standard Bank Business and
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  Speaker 2: Commercial Banking on 947.
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  Speaker 1: You know your business, but.
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  Speaker 2: A fresh perspective could help you spot your next opportunity.
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  Speaker 2: So stay tuned for expert insights, Standard Bank Business and
• 0:24
  Speaker 2: Commercial Banking. Real growth begins here. And look what the
• 0:27
  Speaker 2: cat dragged in. Zinati has decided to grace us with
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  Speaker 2: her presence.
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  Speaker 1: Oh, I have missed that sting. The money made it.
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  Speaker 1: The money made it. You guys said love back and
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  Speaker 1: I said say less.
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  Speaker 2: Say less.
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  Speaker 1: I am there, my darling. Well, Standard Bank said bring
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  Speaker 1: that Zunati back.
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  Speaker 2: Bring it back.
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  Speaker 1: There's a lot to discuss.
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  Speaker 2: My word, first one up, consumers feeling the pinch when
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  Speaker 2: it comes to fuel increase after fuel increase.
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  Speaker 1: It just seems like we can't take a break.
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  Speaker 2: Give us a context, a background of this challenge that
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  Speaker 2: all of us are facing.
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  Speaker 3: All of us, that's consumers and that's.
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  Speaker 1: Small businesses as well.
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  Speaker 3: Of course, we know that the fuel price has increased
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  Speaker 3: significantly since that war started between the U.S.
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  Speaker 1: And Iran in late February. To the point where now,
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  Speaker 1: how that's.
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  Speaker 3: Translated to the fuel prices that we pay is that
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  Speaker 3: diesel and petrol prices have gone up to all-time highs
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  Speaker 3: of more than 30 rand per liter. So since that
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  Speaker 3: war started, I think now it's in its ninth, tenth month. Okay.
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  Speaker 3: Petrol has increased by around 10 rand per litre and
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  Speaker 3: diesel by about 15 rand per litre. Of course, you've
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  Speaker 3: all felt it at the pumps, but also small businesses
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  Speaker 3: have felt it in the way that their costs have
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  Speaker 3: risen within their businesses. But of course, you know that
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  Speaker 3: it doesn't just end there with the challenge of.
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  Speaker 1: The fuel price.
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  Speaker 3: You know that other things increase, including interest rates on loans.
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  Speaker 3: But also this also affects the customers of the small
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  Speaker 3: businesses that we're talking about.
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  Speaker 1: And here's the thing. An Uber driver is a small business, right? Absolutely, yeah.
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  Speaker 1: And they are feeling that pinch.
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  Speaker 2: If you have a bakery and you're used to delivering cakes, right?
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  Speaker 2: All of a sudden, your prices have to go up
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  Speaker 2: by 300, 400 just for you to deliver those cakes
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  Speaker 2: because everything is just costing more.
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  Speaker 1: We think fuel and we think cars. But it's not
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  Speaker 1: only that because oil is used in so many other products. Exactly.
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  Speaker 3: Let me give you examples. There are two businesses that
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  Speaker 3: I spoke to in different industries.
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  Speaker 1: One in tourism.
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  Speaker 3: And the other in the farming business, and.
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  Speaker 1: They also have a restaurant.
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  Speaker 3: So starting off with the tourism one, they operate in
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  Speaker 3: the township tourism economy. So they have art tours to Soweto.
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  Speaker 3: They also operate a shuttle service. So their customers are
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  Speaker 3: destination management companies, hotels, and tour operators, and they have
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  Speaker 3: contracts with these companies. So what's interesting is that they
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  Speaker 3: decide on the prices a year before. So the prices
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  Speaker 3: for these contracts for 2026, for example, they decided in 2025,
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  Speaker 3: which is not reflective of the.
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  Speaker 1: Fuel prices that we are seeing now.
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  Speaker 3: So even now, they've already decided on the 2028 prices.
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  Speaker 1: And as much as, yes, the fuel price has gone
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  Speaker 1: up and.
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  Speaker 3: They can probably increase the prices, they still have to
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  Speaker 3: be competitive in the market.
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  Speaker 1: So they also cannot.
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  Speaker 3: increase the prices as much as they want to these customers.
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  Speaker 3: A second business is in the farming business. So they
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  Speaker 3: farm pigs and they have a restaurant as well. So
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  Speaker 3: on top of obviously the increase in the diesel prices
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  Speaker 3: that they use for the machinery, for the operations and
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  Speaker 3: the logistics of this business, that means that other things
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  Speaker 3: increase filtering through to pig feed. So now it costs
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  Speaker 3: more to feed the actual pigs, right? But also, I mean,
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  Speaker 3: the lady was telling me that she's struggling to even
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  Speaker 3: break even, so she's in loss-making territory. But also when
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  Speaker 3: it comes to the restaurant, consumers are also constrained to
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  Speaker 3: the point where she made a decision to move her
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  Speaker 3: restaurant business from Soweto to the suburbs, to where people
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  Speaker 3: can at least still afford the prices that she's charging
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  Speaker 3: at the restaurant.
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  Speaker 1: So it's pretty, pretty tough. Impact is across everything. Every
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  Speaker 1: single thing.
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  Speaker 2: By the time December comes around, even the office printer
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  Speaker 2: is tired of working. And if your business is growing,
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  Speaker 2: chances are your equipment could use a break whilst your
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  Speaker 2: team could use a little more space. The tricky part,
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  Speaker 2: your business doesn't stop growing just because your resources need
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  Speaker 2: a breather. Whether you need bigger office space, new equipment,
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  Speaker 2: or extra working capital, Standard Bank Business and Commercial Banking
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  Speaker 2: has a range of lending solutions that could help. So
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  Speaker 2: much like Uzunati was speaking about, if you're feeling the
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  Speaker 2: pinch for your small business, Standard Bank is saying, that's
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  Speaker 2: what we do.
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  Speaker 1: That's what we do. Come to us. Come to us.
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  Speaker 2: We help small businesses, you know, free up a little
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  Speaker 2: bit of breathing space. Do you know what I'm saying?
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  Speaker 2: Just breathing space. Standard Bank business and commercial banking has
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  Speaker 2: a range of lending solutions that could help you keep
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  Speaker 2: things growing. So search Standard Bank business and commercial banking
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  Speaker 2: because that's where real growth begins. Standard Bank is an
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  Speaker 2: authorized and registered credit provider T's and C's apply.
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  Speaker 1: Miss Anati, we'll catch you on CNBC. Good to be back.