CTFA Annual Report 2022

EXECUTIVE DIRECTOR REPORT A D E L I A P I M E N T E L | E X E C U T I V E D I R E C T O R G lobal growth slowed in 2022 to 3.2%, more than 1 percentage point weaker than expected at the end of 2021, mainly weighed down by Russia's war of aggression in Ukraine and the associated cost-of-living crisis in many countries. Growth is projected to remain at below-trend rates in 2023 and 2024. In South Africa key socio-economic challenges include a high unemployment rate, poverty, inequality and inconsistent electricity supply. The National Treasury projected real economic growth of 2.1% in 2022, the year in which the economy was expected to return to pre-pandemic production levels. However, although GDP reached an all- time high in 2022, the economy has only grown by 0,3% from the 2019 pre-pandemic. GDP growth is expected to average 1.8% over the next three years. These factors contributed to a difficult climate for business to operate in 2022, which did not exclude the cosmetic and personal care industry. Notwithstanding, in 2022 the local and international regulatory environment continued with ongoing updates, discussions and mandates. Engagement with the National Department of Health in 2022 regarding the still pending promulgation of the published redraft of the Regulations relating to Labelling, Advertising and Composition of Cosmetics, R.1469, December 2017, remained at a standstill due to lack of capacity in the National Department of Health. Continuous communication with the National Department of Health will remain a focus for the CTFA, whilst we remain self-regulated and follow global best practice through the CTFA Compendium. In 2022 various interventions were held with local governmental departments , namely the Department of Forestry, Fisheries and the Environment (DFFE) on various legislative updates, the South African Bureau of Standards (SABS), the National Department of Agriculture, Land Reform and Rural Development (DALRRD) on cannabis and the South African Revenue Services (SARS) on Ad Valorem, amongst others. CTFA’s interactions with the Department of Trade Industry and Competition (DTIC) are underpinned by meetings with the DTIC Cosmetic Desk, held every second month. These meetings are held to discuss topics that are COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION OF SOUTH AFRICA 04