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What Sefalana’s results tell us about the economy

Feeling the pinch: Sefalana is noting the effects of the economic contraction on its customers
Feeling the pinch: Sefalana is noting the effects of the economic contraction on its customers

The country’s largest grocer by revenue and balance sheet has recorded an erosion in profit margins, driven primarily by a sharp slowdown in consumer spending and mounting household pressures. The trend points to deeper, structural weaknesses in the economy, with potential spillover effects across multiple sectors, writes TIMOTHY LEWANIKA

Beneath all the economic jargon on cash crunches, soft GDP figures and liquidity crunches are consumers bearing the brunt at the margins of society as disposable incomes continue to shrink leaving families struggling to make ends meet.

On one frontier, Sefalana latest results show how households are facing increasing pressures particularly from food inflation coupled with low disposable incomes that face erosion from growing inflation.

Editor's Comment
Public servants deserve better than union infighting

‘The strongest bond of human sympathy outside the family relation should be one uniting working people of all nations and tongues and kindreds’.- Abraham LincolnUntil then, the Council’s operations remain suspended, delaying critical decisions affecting thousands of public sector employees.The current standoff is between the Manual Workers Union on one side and the Six Cooperating Trade Unions, namely BONU, BOPEU, BTU, BDU, BOSETU and...

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