Indholdsfortegnelse for 2024-05-24 i Mercury

PETMIN-owned Tendele Coal Mining’s bid to resume and expand mining at its majority-controlled Somkhele coal mine in KwaZulu-Natal has sparked controversy with surrounding communities again. Community and environmental groups around the Somkhele mine are complaining about the company’s disregard for due process in the compilation of data for an environmental impact assessment (EIA), as well as in the relocation and resettling of displaced villagers. Somkhele, ultimately controlled by Petmin which de-listed from the JSE in 2017, is South Africa’s biggest mine for metallurgical anthracite, with capacity to produce 1.2 million tons of hard coal. The mine, which had depleted its life of mine, stopped operations in 2022. The resumption of operations hinged on an expansion project which, however, was opposed by communities around the mine, sparking off litigation actions…

PRICEWaterhouseCoopers (PwC) South Africa has called for sustain- able solutions to adequately feed the South African population following evidence that households were buying less food as their spending power declines alongside elevated inflation. In its fifth South Africa Economic Outlook report for 2024, PwC said failure to find solutions around food security could be problematic as the population is expected to grow by another four million people by the year 2030. PwC South Africa chief economist, Lullu Krugel, said South Africans were buying less food, because of pressure on household finances. “As a society, we need to make better use of our resources to ensure that food production is increased and that improved nutrition is available to more people at affordable prices,” Krugel said. “This requires agricultural players to produce…

MANY YEARS ago I thought Rwanda was mad to go ahead with a census of civil registration, and I will explain why. However, in retrospect, it showed great vision, and there are lessons South Africa can take from Rwanda as it gears up to work towards implementing National Health Insurance (NHI). It is akin to a tale of two twins separated at birth. To put it in perspective, Statistics South Africa played a significant role in the making of the Institute of Statistics of Rwanda, and we enjoyed a mutually beneficial relationship. Twelve years after the bloody geno- cide that ripped through Rwanda, Rwanda hosted South Africa and other nations on the derivation of indicators of fragility. We then flanked out into the Civil Registration and Vital Statistics (CRVS) as…

REVENUE momentum at higher-end lender Investec would likely continue into the 2025 financial year, underpinned by book growth, stronger client activity levels and success in client acquisition strategies, partly offset by interest rate cuts, CEO Fani Titi said yesterday. Speaking at the release of results for the year to March 31, he said the bank’s management anticipates the return on equity (ROE) to be 14% in the new financial year, with the southern Africa business expected to report an ROE of 18.5%, while the UK & Other operations return on tangible equity (Rote) was expected to be 14%. The forecast group ROE is slightly lower than the 14.6% achieved in 2024, above 13.7% in 2023 and in the midpoint of the group’s 12% to 16% target range. He said costs…

JSE-LISTED Tsogo Sun will be re-evalu- ating some of its business units after it delivered less than sterling results in the year to March following headwinds which have burdened the local economy for the past two years. The country’s largest hospitality group, 49.5% owned by Hosken Consolidated Investments, said yesterday that it was hampered by load shedding and a lack of disposable income among South African consumers. However, it said that “good progress” was being made in its solar panel installation, which will continue throughout the 2025 financial year. Tsogo Sun’s income rose 2% to R11.5 billion, although it noted that “the cost of diesel and the adverse effect on income due to load shedding continued to negatively impact the group’s results.” It reported adjusted earnings before interest,…

The Sharks have a golden opportunity to put smiles on the faces of their fans when they play England’s Gloucester in tonight’s Challenge Cup final in London (9pm SA time kick-off). Durbanites know that it has been a rough season for the Sharks in the United Rugby Championship, but they have come good in the European knockout competition that runs concurrently with the URC. As captain Eben Etzebeth put it yesterday: “Four months ago, it was a dark place at the Sharks, so to come from there and have a chance to win silverware is big.” The Sharks last won a trophy in 2018 when they beat Western Province in the Currie Cup final. Since then, they have lost two Currie Cup finals to the Bulls – in 2020 and…

Four workers were allegedly shot at with rubber bullets at close range by security personnel on Wednesday as the labour dispute between the National Union of Metalworkers of South Africa (Numsa) and South African Steel Mills (SASM) escalated to violence. This came as workers embarked on an indefinite strike at SASM, south of Johannesburg, on Wednesday as they pressed for the reinstatement of at least 124 fired colleagues and the closing of the industry wage gap. Numsa and SASM have both vowed to fight it out in court as the company intends to appeal a judgment handed down by the Labour Court, which gave the union carte blanche to organise workers. Numsa regional secretary Kabelo Ramokhathali on Wednesday claimed the workers were shot at by private security company personnel as…

Sea Harvest-owned fishing vessel MFV Lepanto has sunk 350m deep into the ocean, not only making it impossible for the boat to be retrieved, but also a challenge for divers to search and find the bodies of 11 fishermen. This was among the reasons the search was called off, according to Forestry, Fisheries and Environment Minister Barbara Creecy, who visited Sea Harvest’s offices to meet some families, survivors and company management. Three vessels were fishing together about 34 nautical miles offshore from Hout Bay when one, the MFV Lepanto with 20 crew on board, experienced distress. Creecy said: “One of the sister vessels which noted the incident issued a mayday call while the vessel in distress sank quickly. “Nine crew members were rescued and 11 are presumed deceased at this…

South Africans are on track for significant petrol and diesel price cuts in June. A substantial over-recovery has developed for both fuel types and this looks set to translate into savings at the pumps from next month. According to the Automobile Association (AA), the latest available data from the Central Energy Fund (CEF) is pointing to price decreases of around 63 cents for 93 Unleaded petrol and 61 cents for 95 Unleaded, while diesel looks likely to drop by around 74 cents and illuminating paraffin by 69 cents. However, should the current rand and oil price scenarios play out until the end of this month, that over recovery stands to grow and a petrol price decrease of around R1 per litre is plausible. That would see the price of 95…

Sharks captain Eben Etzebeth says tonight’s Challenge Cup final against Gloucester in London (9pm kick-off, SA time) is the most important of his career outside of a Test match for the Springboks. That is a big statement from a player who has played on the biggest stages worldwide since he began playing for the Stormers in 2012. That was two years after the Stormers lost a Super Rugby final against the Bulls. “This is not international level obviously, but at club level, it is the most important game I have played. I never went to a final with the Stormers,” said Etzebeth. “Yes, I did play in a Currie Cup final, but that is not as important. We all know the big final (Leinster against Toulouse in the Champions Cup)…

There shouldn’t be any lack of service delivery or support when Kaizer Chiefs land in the Mother City ahead of their must-win DStv Premiership clash against Cape Town Spurs tomorrow (3pm kick-off). And as such, coach Cavin Johnson expects the club’s 12th man to come out in full force to rally behind the team at the Cape Town Stadium. This is the final game of the season that Chiefs need to win at all costs if they are to finish in the top eight and play in the MTN8 next season, after another disastrous campaign. “The reignition (between the team and the fans) will happen in due course,” Johnson said. “It’s been three games now since we won a game. And that’s what our people want: They want us to…

US TREASURY Secretary Janet Yellen said yesterday she was concerned by a threat from Israel to cut off Palestinian banks from their Israeli correspondent banks, a move that would close a critical lifeline for the Palestinian economy. Yellen told a news conference ahead of a G7 finance ministers meeting beginning on Friday that the US and its partners “need to do everything possible to increase humanitarian assistance to Palestinians in Gaza, to curtail violence in the West Bank, and to stabilise the West Bank’s economy.” She said she would bring up the issue at the meeting of the Group of seven industrial democracies in the lakeside resort town of Stresa in northern Italy. “I expect other countries to express concern about the impact of such a decision on the…

FINANCIAL markets in South Africa retreated yesterday after the US Federal Reserve (Fed) remained hawkish about tapering monetary policy as inflation in the world’s largest economy was forecast to remain stubborn above the target range for longer. The JSE all share index was 0.6% lower at 79 024 index points while the rand plunged by 1% to R18.45 against the US dollar by 5pm yesterday on the back of the strengthening greenback. The JSE and the rand also weakened as the US economy showed resilience as the S&P Global Purchasing Managers’ Index (PMI) smashed expectations and pointed to robust economic growth in the US private sector activity and a fresh acceleration in inflationary pressures in May. However, it was the Federal Open Market Committee (FOMC) minutes that had driven…

RAND MERCHANT Bank (RMB) yesterday said Vivo Energy’s acquisition of Engen South Africa’s operations aligned seamlessly with the combined businesses’ strategic vision and would solidify its position as a key player in the African energy market. RMB said the combination of Engen and Vivo Energy invited enhanced distribution capabilities, resulting in value creation not only for shareholders but for employees, customers and the communities served by Engen. RMB’s co-head of corporate finance, Krishna Nagar, said the deal strategically positioned Vivo Energy and Engen to harness synergies across their businesses, capitalise on regional growth opportunities, and enhance overall market presence. Nagar said the acquisition significantly expanded Vivo Energy’s footprint into southern Africa, providing it access to new markets and reinforcing its commitment to serving diverse communities across the African continent. “We…

STRONGER demand and elevated prices of chrome, boosted by rising exports to China, as well as increased global production of stainless steel helped Tharisa avert heavy blows from the plunge in platinum group metals (PGM) prices. The low PGM prices are forcing larger operators to scale down production, curtail capital and shut down some shafts. Tharisa has also had to delay its Zimbabwean Karo platinum production. Nonetheless, the company has been receiving an uplift from chrome, whose prices have been inching up, on the back of stronger demand from China and global steel manufacturing. “Continued real demand for chrome concentrates from China, necessary to maintain its stainless steel appetite, and the rich mineral endowment in South Africa continues to support the demand from South Africa,” Tharisa said yesterday. It added…

The DA came under attack from ActionSA leader Herman Mashaba, who blamed the political party for allowing the problem of dirty water in Hammanskraal to continue after it assumed power in the City of Tshwane in 2016. Mashaba was speaking during a community meeting at Ebenezer Bible Church in Temba last week. He told the audience that the recurring water crisis in the township was attributed to corruption before 2016 when the municipality was under the ANC administration. He then slammed former Tshwane mayor Solly Msimanga for failing to fix the water crisis despite several promises made by his political party to do so. “In 2016 when the DA took over under Solly Msimanga I thought (that) because the DA has always proclaimed that where they govern the government work…

IT’S heartening to see that Ford has added the Territory family midsize SUV into its offerings, giving blue oval aficionados an alternative to their traditional bakkie and Everest offerings. It’s a tough segment that they’re playing in with up to 34 other contenders vying for attention, including the Toyota RAV4, VW Tiguan, Kia Sportage, Hyundai Tucson and of course Chinese offerings like the Jaecoo J7, Haval H6, Chery Tiggo 7 and 8 Pro and 8 Pro Max. The Territory has a strong Chinese connection, being manufactured in Nanchang by Jiangling Motors Co, more commonly known as JMC, as part of a joint venture with Ford. We recently had the top-spec Titanium on test for a few days that included a drive to the massively impressive Nampo agricultural show just outside…

A bad week for Springbok coach Rassie Erasmus just got worse with the news that No 8 Jasper Wiese will miss the first six Test matches of 2024 because of suspension. Earlier this week, Erasmus learned that fullback Damian Willemse will miss a similar period of international rugby because of a finger injury that requires surgery. Two weeks ago, the Bok coach watched midfielder Lukhanyo Am crock his shoulder playing for the Sharks, and he will miss at least the two matches against visiting Ireland in the first half of July. On the injury list for some time are another No 8 in Kwagga Smith, loosehead prop Steven Kitshoff, hooker Malcolm Marx, flank Deon Fourie and two scrumhalves in Faf de Klerk and Jaden Hendrikse. Wiese was the natural successor…

SEVEN days remain until the first ball is bowled in the 2024 edition of the ICC Men’s T20 World Cup in the Caribbean and US. However, only one team – England – have assembled all their players in preparation for the showpiece event as other nations await the conclusion of the Indian Premier League to have access to their players. Who would’ve thought that one tournament and one board, the BCCI (Board of Control for Cricket in India) would have the power to take precedence over a World Cup? One can only wonder whether the IPL and the BCCI have been allowed too much power. The BCCI blatantly planned a nine-week tournament knowing full well it would hinder other countries’ preparations for the World Cup, and possibly the quality of…

Manie Libbok says he “definitely wants to be part of the exciting vision” that the Stormers have for the future after concluding a three-year contract extension yesterday. The Springbok World Cup winner from last year has become a top-class flyhalf in Cape Town after enduring a difficult few seasons at the Bulls and Sharks. The 26-year-old, who hails from Humansdorp in the Eastern Cape, played for the Junior Springboks in 2016 and 2017, and had joined the Bulls in 2016 straight out of Hoërskool Outeniqua in George, having previously attended HTS Daniël Pienaar in Uitenhage. But he wasn’t given many opportunities in the senior team at both the Bulls and then later the Sharks in 2020 and 2021, and made the big move to the Stormers later that year –…

IN THIS WEEK’S Personal Finance Saturday Page, we look at how the Pension Funds Adjudicator can help with unpaid pension contributions. Muvhango Lukhaimane, the Pension Funds Adjudicator, has recourse and can order employers to pay benefits that are due, and this order can be executed by a sheriff of the court. On investing offshore, we answer whether investors should wait for the rand to strengthen before taking their money offshore. We also look at the world of crypto- currency, and why there are fewer bitcoin billionaires than you think. South African learning institutions have been plagued with corruption for years. In this week’s edition, we look at how corruption at these learning institutions is much worse than anyone anticipated. If you have any questions on investment, tax, and insurance,…

LONDON Stock Exchange-listed Petra Diamonds is the world’s largest producer of rough diamonds by value and is focused on the highest margin section of the diamond pipeline. With South African miners susceptible to production disruptions from rotational power cuts by Eskom, Petra Diamonds has turned to independent renewable energy suppliers while also helping to curb emissions from operations. The company announced yesterday that it had entered into long-term Power Purchase Agreements (PPAs) for the procurement of wheeled renewable energy for its Cullinan and Finsch diamond mines with Etana Energy, a licensed South African energy trader. Petra Diamond CEO, Richard Duffy, said the agreements signed by the company will see Etana supplying each of Petra Diamonds’ two mines in South Africa with up to 72% of the expected load requirement from…

THE NEWLY formed Multi-modal Inland Port Association (Mipa), set up by businesses in the logistics sector to fast-track rail reforms and efficiency, is pushing the establishment of freight villages in strategic areas of the rail network in efforts to win back the 85% market share that road logistics has over the rail sector. Mipa is envisaging different models of product-specific freight villages to act as a midpoint between the point of origin of goods and ports. It said yesterday that these freight villages would have the capacity to process a variety of products, including a range of fruit, range of containers, range of dry bulk, range for processed foods, and range for fuel. This comes on the back of South Africa’s rail volumes plummeting to 15-year lows. The SA Reserve…

BID CORPORATION traded well in the 10 months to April 2023, with much lower food inflation and real, constant currency growth continuing from the first half, directors of the international food services group said yesterday. Bidcorp’s estimated weighted average food inflation of about 2.6% to April 2024 had declined significantly from 15.2% a year ago. Currency volatility impacted rand-translated results, with year-to-date (ytd) movements to the end of April 2024 having a 9% positive impact on rand numbers, the group said in an update yesterday. Australia and New Zealand delivered strong trading results despite weaker economic conditions, particularly in New Zealand. Sales in home currencies in Australia were up 4,6% ytd and New Zealand up 10.4% ytd, excluding two big contracts exited in October 2022. Europe operations continued to perform…

SOUTH African households have become more dependent on the government’s social assistance as social grants remain the main source of income for almost one-quarter of households nationally on the back of stagnant economic growth and widespread unemployment. This was revealed by Statistics SA (Stats SA) during the release of the General Household Survey 2023 yesterday. Stats SA said social grants remained crucial for household survival, especially in the poorest provinces. It said the proportion of households and individuals benefiting from social grants increased from 12.8% in 2003 to 30.9% in 2019, and surged to 39.4% in 2023 due to the introduction of the special Covid-19 Social Relief of Distress (SRD) grant Statistician-General Risenga Maluleke said households that considered social grants their main source of income increased sharply in 2020, mainly…

African economies have become less diversified and the competitiveness of their exports has declined, leaving the continent vulnerable to external shocks. In addition, the countries are not transforming their economies at a consistent or steady rate. These are some of the key findings of the latest African Transformation Index (ATI), a tool used to measure the progress of African countries in relation to economic transformation. The 2023 index was launched during a summit hosted by the African Center for Economic Transformation (ACET), the University of Pretoria’s (UP) Faculty of Economic and Management Sciences and Future Africa. The summit was in commemoration of Africa Day tomorrow and was themed: “Growth Is Not Enough. Africa Needs to Transform”. Speaking at the summit attended by Tito Mboweni, ACET board chairman, and officials from…

KILLER and rapist Luyanda Botha, currently serving life imprisonment for the rape and murder of Uyinene Mrwetyana, will return to the dock next month for an attempted rape that allegedly occurred in 2014. Botha is accused of the attempted rape of a 21-year-old nursing student at a training college when he visited the victim at a college in Athlone. He appeared in the Wynberg Magistrate’s Court on May 10 after charges against him were reinstated following his conviction and sentence regarding Mrwetyana’s brutal murder and rape. National Prosecuting Authority spokesperson Eric Ntabazalila said Botha was being tried at the Wynberg Magistrate’s Court where Botha had pleaded not guilty. “The State alleges that Botha, who is serving life imprisonment for the rape and brutal murder of Uyinene Mrwetyana, visited a woman…

Zwartkops Raceway has always held a special place in my heart, so heading there for the third round of the GR Cup driven by Netstar had me fired up and confident of doing well. After the unfortunate brake failure incidents at Kyalami, Toyota installed new Powerbrakes in all our cars. This meant that our first practice on Friday was all about bedding in those new brakes. Sean Nurse (Autotrader) quickly hit his stride, laying down a blistering lap, with Devon Scott (GR Driving Academy) hot on his heels in second place. I was struggling to find my pace, lagging behind the rest of the pack. But just before the final practice session, I called up my old friend Mandla Mdakane, a Toyota Gazoo Racing rally driver. With his invaluable feedback,…

Sharks coach John Plumtree has experienced top rugby finals since his days as a flank for the Natal team that shocked Northern Transvaal in Pretoria in 1990. The big Kiwi has won Currie Cups as a player and as a coach he has won and lost finals with the Sharks, Swansea in Wales and the Hurricanes in New Zealand. So when he says he knows what will be important in tonight’s Challenge Cup final against Gloucester at Tottenham Hotspur Stadium (9pm kick-off, SA time), you know he learnt it the hard way. “I guess I have picked up things over my years in finals, and some of them non-negotiable if you want to give yourself the best chance of winning,” he said from London yesterday. “The most important thing is…

Just one match stands between Rulani Mokwena and football immortality. At the tender age of 37, the Mamelodi Sundowns coach is on the verge of achieving something so great it will probably see him eclipse the members of his revered football family in stature. A descendant of the famous Sono family – which includes South African football legends such as the late Eric “Scara” Sono and his sons Ephraim “Jomo” Sono and Julius “KK” Sono – Mokwena need only lead the Brazilians to avoiding defeat to Cape Town City tomorrow at Loftus Versfeld (3pm kick-off) to become a football IMMORTAL. That result will see Sundowns become the first club in the history of South African football to go through a full league season unbeaten. It is an unthinkable feat, one…