The South African consumer continues to seek out short-term personal loans to try and keep their heads above water, but there are signs that interest rate cuts are starting to take effect.

That’s according to data drawn from the financial services product aggregator operated by Rival Financial Services which is a product owned by local publishing and research house Rival Industrial.
Marc Ashton from Rival comments: “While it is still early days, this financial product aggregator has provided us with some interesting insight into where the South African consumer is at in terms of confidence and whether they believe we are seeing a genuine economic rebound.”

Personal loans and debt consolidation remain high on the list but there are signs that consumers are now considering medical and life insurance products as well as savings consultations.

After three weeks of running the aggregator the following product classes have seen the most demand:

• Personal loans – 30%
• Medical insurance – 20%
• Life insurance / savings consultations – 13.33%
• Debt consolidation – 13.33%
• Short term insurance – 10%
• Funeral insurance – 7%
• Foreign exchange trading accounts – 3.33%
• Home loans – 3%

We would interpret this to mean that while many South African consumers are battling to make ends meet each month and are still seeking short-term credit, there is less pressure on a segment of the population who are seeking to buy insurance cover.

Ashton said he was a little surprised by the demand for funeral insurance products and would be watching this this trend closely as feedback from industry indicated increasing demand for this product.

Demand for home-loan and trading products (specifically foreign exchange) remains low.

Rival will provide monthly updates to industry as it attempts to map out trends and the mood of the local consumer.

To get competitive quotes on various financial services products please visit the Rival Financial Services site.

With over 1 billion ounces in reserves, South Africa’s platinum mining industry has probably the strongest outlook of any mining sector in the country. Despite the sharp decline in platinum prices since September 2008, the demand for platinum is rising in a range of industrial applications, meaning that global demand will continue to outstrip supply.

New analysis from Frost & Sullivan, A Strategic Review of South Africa’s Platinum Group Metals Mining Industry, finds that the country’s platinum production declined sharply from the 5,22 million ounces produced in 2007 to 4,53 million ounces in 2008. Output is however expected to climb to an estimated 5,70 million ounces in 2014.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by e-mail.

“The country’s platinum production will face more declines in the short term due to operational, resource and other constraints,” says Frost & Sullivan Research Analyst Wonder Nyanjowa. “However, the industry is set to experience exceptional growth once the global economy recovers.”

Despite the limited upside potential for platinum prices in the short to medium term, South Africa’s platinum mining industry is poised to enjoy phenomenal growth once the effects of the global economic slow down start lifting.

“South Africa’s platinum mining companies need to position themselves to be able to respond swiftly to changes in the global economy,” advises Nyanjowa. “Although the immediate concern for most executives is securing the future of their companies, it is also important that platinum mining companies are able to respond swiftly to an upturn.”

Frost & Sullivan believes that small and medium-sized platinum mining companies will contribute significantly to South Africa’s platinum production output over the next five years. They will achieve this by entering into strategic alliances with major companies to exploit the resources in their ownership.

One of the most significant challenges facing South Africa’s platinum mining companies is to contribute to government’s efforts towards ensuring sustainable development amongst communities that are affected by mining activities.

“Platinum mining companies in South Africa are facing the need to balance production and cost control targets with managing sophisticated relationships involving the environment, safety, community and stakeholder involvement,” explains Nyanjowa.

A Strategic Review of South Africa’s Platinum Group Metals Mining Industry is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes research in the following markets: South Africa’s Gold Mining Industry, South Africa’s Coal Mining Industry and,  Diamond Mining Industry in Central and Southern Africa. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

As the South African mineral and mining industry has expanded in recent years, the related mineral and mining chemicals markets have enjoyed steady growth. However, the global economic downturn has had a severe impact on mining activity, and this has in turn decreased the demand for chemicals in this sector.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), the growth partnership company, finds that the South Africa Mineral and Mining Chemicals Markets earned revenues of $592.7 million in 2008 and estimates this to reach $901.7 million in 2014. Explosives will continue to be the dominant product segment, while processing and water treatment chemicals will grow at a slower rate.

“The demand for explosives is set to continue driving the mineral and mining chemicals market in South Africa,” notes Frost & Sullivan chemicals programme manager Mani James. “Legislation requires mining companies to have safer processes embedded in their operating systems, boosting the uptake of mineral and mining chemicals.”

Bulk explosives and detonators are set to promote growth in the explosives market. Growth in these product segments is due to a shift in the use of less safe packaged explosives. The use of bulk explosives in open cast mining activities such as coal mining activities will support market expansion.

However, as mines look to save costs they will place pressure on manufacturers to lower their prices. The decline in demand for commodities will also have a direct impact on the demand for chemicals, forcing suppliers to compete more aggressively for market share.

“Chemical suppliers to mining companies tend to review contracts more regularly because of fluctuating prices,” explains James. “It is imperative that chemical suppliers adopt flexible and competitive pricing strategies to continue as preferred suppliers to mines.”

Moreover, due to the maturity of the market, the level of competition is high. Competition among suppliers is further heightened by the fact that customers are price sensitive and not particularly brand loyal.

Enhancing awareness among companies about environmental issues is a major factor that will influence the adoption of environmentally safe chemicals. The role of chemical suppliers in the safety processes of their customers is becoming increasingly important. Chemical suppliers can facilitate market share growth by assisting companies in complying with environmental regulations.

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