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This Week’s Theme Fuel Levy Extended – But May Prices Jump Sharply Fuel prices climb The government extended its temporary fuel levy reduction through to 2 June 2026, keeping the discount at 300 cents per litre on petrol. Despite the relief, prices still jumped sharply from 6 May – 95 Unleaded rose by R3.27 per litre, driven by international oil price movements that outpaced the levy cushion. The relief halves in June and falls away entirely from 1 July, so now is the time to revise transport cost assumptions in project bids and fleet budgets. VAT threshold changes From 1 April 2026, the VAT registration threshold increased to R2.3 million. This change allows some SMMEs to consider deregistering from VAT, potentially simplifying their administration. However, there are exit VAT costs and implications for cash flow to consider, which businesses need to understand before making any decisions. B-BBEE compliance focus The focus on B-BBEE compliance for government tenders remains strong, with updated guidelines reinforcing the preference point system for SMMEs. Certification and accurate affidavits are vital for businesses bidding on public sector work. Keeping your B-BBEE status current and understanding how it affects your tender scores is a continuous requirement. What to do next: Review your operational budgets immediately to account for the fuel price increase, and assess your VAT registration status against the new R2.3 million threshold. Ensure your B-BBEE certification is current and accurately reflects your enterprise status for upcoming bids. |
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Two moves worth making this week: |
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Refer & Earn
Know an SMME we should fund? Refer them and earn when their deal closes. |
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02 Funding Conditions What the market looks like this week |
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Sentiment Cautious SA Prime Rate The SARB held rates at the most recent MPC decision; the next decision is expected in May 2026. Borrowing costs remain in a moderately restrictive stance. ZAR / USD R16.72 ▲ +1.2% this week Brent Crude $112.71/bbl ▲ +1.3% this week Gold $4,559/oz ▼ -0.7% this week Yahoo Finance · 5 May 2026, 12:50 CAT Despite an extended fuel levy reduction, petrol prices rose sharply from 6 May – driven by international oil movements that outpaced the relief. Transport-dependent SMMEs should update fleet cost assumptions now and plan ahead: the levy relief halves in June and ends in July. |
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03 Tender Radar Open tenders relevant to your business |
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Need Funding This Week?
A purchase order in hand or invoices waiting on payment? |
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05 Tip of the Week |
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With fuel prices rising despite temporary levy relief, revise your transport costs in all current and future project bids now – and plan for steeper increases as the levy reduction halves in June and ends entirely in July. Accurately reflecting increased fuel expenses is crucial for maintaining profitability on contracts where transport is a major cost. |
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06 This Week’s Case Invoice Discounting |
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Deal size: R4.2m Security firm covers wages while client pays slowly A national security firm secured a contract with a large government department but faced 90-day payment terms for their invoices. They needed to pay guards weekly and cover operational expenses daily. Invoice discounting provided an upfront cash advance on their approved invoices. This allowed the firm to meet payroll and maintain services without interruption, bridging the gap until the department paid. This is a fictional illustration of how Sourcefin’s products are typically used. Names and figures are not real. |
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Built for the SMME journey Every business started with an idea and the drive to deliver. Sourcefin stands alongside South African entrepreneurs, providing the working capital to turn confirmed orders into delivered projects. We believe in your ability to build, grow, and contribute to our economy, one successful deal at a time. |
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