Indholdsfortegnelse for 2024-07-26 i Mercury

African trade ministers have urged the US government to do away with the annual reviews of the African Growth and Opportunity Act (Agoa) and expressed concerns over the unilateral removal of eligible members from the trade agreement by the US. The ministers also expressed the importance of an expeditious renewal of Agoa by the end of 2024, with non-controversial enhancements and amendments for a minimum of 16 years to provide the required predictability and certainty to the trade and investments relationships between the two sides and to address graduation side by side with the extension of Agoa to preserve existing regional value chains. This was expressed in a read-out statement of African ministers under the African Union yesterday at the 21st Agoa Forum in Washington D.C. where they are seeking…

The backlog of air service licence applications and foreign operators permits (FOPs) is stacking up again after the Department of Transport (DoT) stopped paying preparation allowances for members of both the domestic and international Air Services Licensing Council (ASLC), citing a review of the allowances and prudence in the management of public funds. The ASLC is a statutory body responsible for awarding or revoking traffic rights to airlines based in SA subject to operational, safety, and liability requirements. The members – professionals of varying disciplines in the legal and aviation sector – were appointed to the councils by the Minister of Transport at the height of backlogs in March 2022 after the sector had a close to two-year period with no regulatory functions in the aviation space. The timing of…

THE inaugural South African State of Climate Action Report, developed by the Presidential Climate Commission (PCC), was officially handed over to Department of Forestry, Fisheries, and the Environment Minister (DFFE), Dr Dion George. The report found that, even with South Africa’s commitments to addressing climate change, it must “accelerate implementation efforts, particularly in areas of governance, financing, and market reform”. Among the issues the PCC found to be hindering a move towards Net Zero – the UN’s 2050 target for a climate-free world – were incoherent policies, weak governance structures, insufficient finance, and inconsistent actions by the government and other stakeholders. “Our country continues to face significant climatic risks and impacts. Floods and droughts have ravaged different parts of our country in recent months, with the impacts affecting the poorest…

South Africa has abundant resources and strategic geographic position, yet faces numerous economic, political, and social challenges that make local investment a high-risk endeavour. Given the current landscape, it is prudent for South African investors to consider diversifying their portfolios by investing internationally. What are some of the critical reasons for this strategy and its potential benefits for South Africans who remain in the country? South Africa’s economic growth has been erratic, marked by a sluggish recovery post-Covid-19 and further exacerbated by structural issues such as power shortages and logistical bottlenecks. The inflation rate has been volatile, reaching 6.9% in 2022 due to spikes in food and fuel prices, while the South African rand has depreciated significantly, undermining the value of local investments. In contrast, many international markets, particularly in…

Anglo American is pushing ahead with the streamlining and restructuring processes to refocus the company on copper, iron ore and crop nutrients although it is suffering impairment hits along the way, with revenues, dividends and earnings for the June 2024 interim period taking big knocks. Anglo American CEO Duncan Wanbald said yesterday that the company, which is demerging Anglo American Platinum and De Beers as well as divesting out of nickel and steelmaking coal, was “moving at pace to create a much more agile and structurally profitable” mining company. Its “steelmaking coal divestment process (is) under way, with strong interest reiterated post the Grosvenor (explosion) incident”. The nickel divestment process was also in progress. At a media briefing yesterday, Wanbald said operations would probably resume at Grosvenor under a new…

Mixed-use development Oasis Sibaya is part of a vision to transform the northern parts of Durban offering a combination of family lifestyle with hospitality living in a safe and secure environment. This is according to Brian Mpono, one of the directors of Oasis Sibaya, who was speaking at a private launch of the development at Sibaya Casino & Entertainment Kingdom yesterday ahead of the public launch on Saturday. Mpono, who is also the CEO of the Oceans uMhlanga Development, said this development is an indication of the confidence investors have in Durban. He said eThekwini Municipality has been instrumental in creating a favourable environment for investors. “Money follows confidence. My heartfelt thanks goes to eThekwini Municipality for enabling an environment of investment because the developers could have gone elsewhere but…

The updated BAIC Beijing X55 luxury SUV is easing off the assembly line at the company’s impressive facility at Coega, in the Eastern Cape, putting to rest some speculation that it was just an empty shell. Although the 70 000m² was commissioned in 2016 and heading for completion, the Covid lockdown scuppered all those plans and the entire operation had to be restarted, delaying plans for actually getting the semi-knocked down units built and to local dealers. BAIC Automobile South Africa was established in 2016 as a joint venture between the China BAIC Group and the South African Industrial Development Corporation, in which BAIC owns 65% of the shares and the IDC owns 35% of the shares. In its current assembly-only status, the plant has a potential capacity to produce…

While spending a week with the recently facelifted Kia Picanto, there were a few things that stood out for me. For starters, a small hatchback like this can be quite fun to chuck around. With its compact dimensions, agile handling and slick-shifting manual gearbox, you feel a connection with the road that is missing in many of the towering SUVs that many people opt for nowadays. But given that the Picanto is one of the smallest cars for sale in South Africa today, you also feel a bit dwarfed by everything else on the road. South Africans still have an appetite for compact hatches if they’re well priced, but sales figures show that the Suzuki Swift is about as small as most people are willing to go nowadays, while the…

Wian Roux finished 63rd in the men’s individual archery event at the Paris Olympics yesterday. Roux, in his first senior Olympics, could only manage a score of 601 – avoiding last place by one point. The former youth Olympian took part in a ranking round, where 64 archers had two halves where they had to shoot 72 arrows to determine their rankings for the single elimination bracket. The result means that Roux will be up against it as he will next face second-placed Kim Je-deok on July 31 in the elimination round as the race for the final kicks off. A first half, first-round score of 48, including 2x10, kick-started the 21-year-old’s Olympic run, and saw off early jitters as all archers shot their best shot with only one target…

Thanks to the sponsorship of gambling company Betway, the Premier Soccer League’s Premiership will remain the richest league in Africa. PSL chairman Irvin Khoza finally addressed his organisation’s sponsorship conundrum on Wednesday after it became clear that MultiChoice were ending their Premiership sponsorship. The cash-strapped PSL did not announce that MultiChoice were pulling out of their five-year deal, but it became apparent last week when they asked clubs to postpone the launch of their kits for the new season. The sponsorship for the naming rights of the Betway Premiership is worth “about” R900 million over three years. Khoza did not give the exact amount, but at R300m for each of the next three seasons, the Premiership enjoys a significant increase. The DStv sponsorship came into effect in September 2020, when…

MC Mining Limited has secured a A$1 million or US$700 000 (R1.3 billion) loan facility from Eagle Canyon International, which is linked to the company’s current CEO and MD Christine He, in a further show of support by the company’s directors and shareholders. He controls Eagle Canyon International, with the new unsecured loan facility having a final maturity date of June 30 next year. Interest for the facility will have to be paid monthly at the prevailing Australian Reserve Bank Rate for medium business that currently stands at 6.25% plus a margin of 3%. “The facility will be utilised for general working capital and is a further positive step in stabilising the company’s liquidity position,” said Mathews Senosi, MC Mining interim chairperson. Senosi added that the facility “reflects the…

A journey starts with the destination, and then we plan how to get there. The route we choose, using the means available, particularly in city traffic or South African health care, determines when we can expect to arrive at our intended destination. As South Africans, we have set our destination as a future of healthcare equality, but the route mapped out for us in the National Health Insurance Act is potholed, long, and winding. As the health minister points out, structural imbalances between private and public health care must be addressed. However, the fork in the road ahead could put us on the highway to equalising health care, to the detriment of scarce healthcare resources, which may result in more rationalisation of services for those who need them most. The…

British American Tobacco (BAT) is on track to meet earnings guidance for 2024 even though global industry volumes are expected to be 2% lower, with weakness in the US, France and Sudan offset by an improving outlook in Türkiye and Mexico. The group said at the release of interim results yesterday that it anticipated low-single figure organic constant currency revenue growth for the year. It also forecast low-single figure organic adjusted profit from operations growth, including a .2% transactional foreign exchange headwind. Capital expenditure in 2024 was expected to be about £600 million (R14.1 billion). “We have made progress in enhancing financial flexibility, enabling the initiation of a sustainable share buy-back programme. “Guided by our refined strategy, I am confident we will progressively improve our performance to deliver 3–5% revenue,…

WORKING South Africans are more positive about their finances than they have been since the onset of the Covid-19 pandemic in early 2020. This is the good-news message to come out of the 2024 Old Mutual Savings and Investment Monitor Report released this week. While economic challenges remain, we appear to have turned the corner in managing our money and improving our prospects. Voyukazi Mabude, head of knowledge and insights at Old Mutual, says the latest report reveals how working South Africans, from young adults starting their careers to those planning for retirement, are determined to secure their financial futures despite ongoing economic hurdles. “The report highlights how South Africans are not only resilient but also innovative, taking proactive steps to improve their finances by reducing their reliance on debt,…

Hammerson, the UK-based owner of city centre destinations with a secondary listing on the JSE, yesterday declared a 5% higher interim dividend of 0.756 pence a share on a payout ratio of 76%, following a strong year operationally and further moves on the third year of a turnaround trajectory. Further good news for shareholders was the announcement that the board intended to increase the policy payout ratio from its current policy of 60–70%, to 80–85%, after the sale of the Value Retail assets. Plans were afoot to also simplify the share capital through a 1 for 10 share consolidation, and to increase distributable reserves by reducing the company’s share premium account. “I am pleased to report we’ve had a strong first half. We are realising the benefits of our investments…

The lawyers for Yanga “Bara” Nyalara and co-accused Wanda Tofile have described the absolute anonymity sought by the State for a witness as “boxing with their hands tied behind their backs”. The High Court sitting at Goodwood Prison heard that the State wanted the witness, identified as Mr Z, to be allowed to testify wearing a mask, in-camera and his name to be withheld for his protection. The State argued there were justifiable fears or dangers after Mr Z survived two alleged attacks. Two other witnesses had been killed. Representatives for the State and defence have requested that their names not be published. In court on Wednesday, the defence stated that Nyalara and Tofile agree that the witness’s name be withheld and that he testify via CCTV, saying this would…

TOO much work, too few judges. This is the situation at the Gauteng high courts – especially in the Pretoria division – with the result that litigants who are launching civil trials will have to wait until January 2029 before they will be heard by a judge. The Pretoria Attorneys Association has raised its concern in this regard and in written submissions in a bid to find a solution to the crisis. It is contained in comments made to a committee who is investigating and making recommendations to the justice ministry regarding, among others, the streamlining and workings of the divisions of the high courts. Under phase two, the committee is required to evaluate the judicial establishment of each division of the high court to ensure an equitable distribution…

There is something a bit strange about having an on-road experience in a car destined to arrive in local showrooms only in two years’ time but Volkswagen, globally committed to electric vehicles, is running a series of trials with the SUV-styled ID.4. Part of this strategy is allowing local media the chance to drive it, along with selected fleet customers and private buyers who have already expressed an interest. The chairperson and managing director of Volkswagen Group Africa (VWGA), Martina Biene, says: “This is not a new thing for Volkswagen and we previously placed some of the ID.3 models into the market as a gauge of public opinion. “From that, we found there was very much a preference for SUV-type vehicles and decided the ID.4 would be a better fit…

Former Ferrari team principal Mattia Binotto has been named as the new leader of the Audi Formula One project, the German constructor announced this week. Audi is set to debut in F1 from 2026, after taking full ownership of the Sauber team earlier this year. As of August 1, Swiss-born Italian Binotto will replace Sauber CEO Andreas Seidl – the man originally named as the head of the future Audi team. “I am delighted that we have been able to recruit Mattia Binotto for our ambitious Formula 1 project,” said Audi CEO Gernot Doellner. “With his extensive experience of more than 25 years in Formula 1, he will undoubtedly be able to make a decisive contribution for Audi.” The 54-year-old Binotto makes his return to F1 less than two years…

Temba Bavuma will have an opportunity to lead a Proteas Test side with a lot of new faces to the same heights we have seen the white-ball teams reach over the past two years. The South Africans will kick off their campaign against the West Indies that forms part of the World Test Championship (WTC) in less than two weeks, and having finished third the last time out, they will want to kick on and win it. And with a new-look team, a different coach in Shukri Conrad and a couple of fresh faces, they have an opportunity to kick-start the tour on a positive note against a West Indies side also going through a huge rebuild, with a host of the popular names having made way. Bavuma missed out…

The tussle between two shareholders for control of poultry group Quantum Foods heated up yesterday after one of the protagonists demanded a meeting to oust the chairperson, in what one analyst described as an “ongoing battle between legends for a company that makes no money”. Quantum Foods Holdings said yesterday its 18% shareholder Country Bird Holdings (CBH) had demanded a shareholder meeting to discuss the proposed removal of chairperson Wouter Hanekom. CBH also called for the removal of Quantum’s lead independent director, Geoffrey Fortuin, from the animal feeds and poultry product group. The latest call for a shareholder meeting follows that of another shareholder, Braemar Trading, which in March also demanded a shareholder meeting to remove Hanekom from his position. Braemar is a company owned by the controversial Zimbabwean business…

MPACT Group said yesterday that the Competition Commission does not aim to impose a penalty against it following the settling of the price fixing complaints by competitor packaging group New Era Packaging. The commission, which acts as the investigating and recommending body for the Competition Tribunal, said this week that New Era had reached a settlement and agreed to pay R21.3 million amid claims that it and Mpact co-operated to establish prices of key products. The commission would forward the consent agreement to the Tribunal, which aims to settle two complaints against New Era without admission of liability. Mpact, on the other hand, had successfully sought immunity from prosecution in both complaints, in the process agreeing to co-operate with the commission. The commission initiated the first complaint for an investigation…

PLATINUM group metals (PGM) and chrome miner Tharisa Minerals have signed a wind and solar electricity wheeling agreement with renewable energy firm Etana Energy which will provide about 44% of the South African miner’s power requirements. The long-term power purchase agreement signed with Etana covers the procurement of renewable energy for the company’s Tharisa Mine on the western limb of the Bushveld Complex. “The 15-year agreement with Etana Energy Proprietary Limited will see Etana provide up to 44% of the Tharisa Mine’s electricity energy demand via wheeled energy from wind and solar farms in the Western Cape and Northern Cape, using the existing electricity transmission grid,” said Tharisa in a statement yesterday. Tharisa planned for the wheeled energy from Etana to come on stream in 2026, a development that would…

SIBANYE-Stillwater yesterday said it would delay by two weeks the release of its half-year financial results after a cyberattack on its IT system earlier this month caused disruption to its operations. The company said the publication of its operating and financial results for the period ended June 30, 2024, had been rescheduled to September 12. On July 11, Sibanye became a victim of cybercriminals after its IT systems were affected globally and it was yet to determine what sort of breach had occurred. It had brought in external experts to assist. Sibanye said although the cyberattack had a limited impact on its core operations, it had caused temporary system outages which resulted in the implementation of back-up manual processes on certain systems at the operations. Sibanye said since the attack…

Lexus has just transformed its LBX compact crossover into something of a baby bombshell with the release of the “Morizo RR” performance model. Sadly, it appears that this little firecracker will be yet another object of JDM (Japanese Domestic Market) envy, as for now Lexus is only building 100 of them for its home market. Further to that it’s available only through a special lottery that will ultimately determine who gets to buy one. There’s a lot more to the LBX Morizo RR than just a shouty body kit. The Japanese luxury brand has dropped the Toyota GR Corolla’s 1.6-litre three-cylinder turbopetrol engine into the engine bay to create something that’s somewhat unique in its class. Paired with either an “intelligent” six-speed manual (IMT) or eight-speed automatic gearbox, the engine…

It WAS probably the proverbial kick under the behind that the Blitzboks needed to make them realise their potential, but Team South Africa made it out of the pool stages for a place in the quarter-finals of the Rugby Sevens at the Paris Olympics yesterday. They put up a brilliant offensive display to seal a magnificent 49-5 win over Japan for a first win at the Stade de France and safe passage as the final qualifying team to the knockout stages. The South Africans delivered arguably one of their best performances this season, scoring seven tries in the romp to get over the line as the second-best third-placed side to qualify for the medal play-offs. The quarter-final was the hurdle the Blitzboks struggled over at the previous Olympics, but they…

Max Verstappen returns to his favourite track seeking to end a run of three races without a win by extending a sequence of three successive Belgian Grand Prix victories at Spa-Francorchamps. Red Bull’s Belgian-born triple world champion cut an unhappy and petulant tone in Budapest last weekend, finishing fifth and peppering the airwaves with swearing and complaints about car and team. The team and their runaway championship leader, now 76 points clear of McLaren’s Lando Norris after 13 of 24 races, will be looking to go into the August break with momentum restored rather than pressure increased. “Hungary was a tricky race and a weekend to forget and move forward from,” said Verstappen, who won 19 of 22 races last year and has not had a run of four races…

THE Proteas Test team flew to the Caribbean last night for the two-match series scheduled to get under way on August 7, and coach Shukri Conrad found himself having to scramble for a replacement fast bowler at the last minute. Cricket South Africa’s medical team announced that 24-year-old quick Gerald Coetzee is not fit for the trip to the Caribbean due to a side strain that he suffered during the Major League Cricket tournament in the US earlier this month. Conrad opted for uncapped bowling all-rounder Migael Pretorius as Coetzee’s replacement. This is Pretorius’ second Test experience, having received his maiden call-up in December 2020 when SA hosted Sri Lanka. He is 64 first-class games deep into his red-ball career, however, and is currently Somerset’s leading wicket taker in County…