Star SW-2021-03-26

Siphelele Dludla siphelele.dludla@inl.co.za THE INCLUSIVE Society Institute (ISI) has warned that unemployment in South Africa could rise above the 40 percent mark by 2023 if the economy grows less than 2 percent in the next few months. ISI said that its economic modelling showed that the current high level of unemployment was threatening to cripple any significant economic recovery, and vice versa. According to the ISI model, a weak gross domestic product (GDP) growth from 2021 to 2029 could see unemployment continue to linger at around 42 to 43 percent. ISI said at 2 percent sustained GDP growth over the next decade, the expanded definition of unemployment could be reduced to at least 38 percent by 2029. The reworked unemployment projections of the institute, based…

Siphelele Dludla siphelele.dludla@inl.co.za THE RAND fell yesterday after the SA Reserve Bank (SARB) moved to strike a balance between rising inflation risks and relatively fragile growth. The rand slipped 0.2 percent to R15.06 against the dollar by 5pm as SARB’s implied policy rate path of the Quarterly Projection Model indicated an increase of 25 basis points in each of the second and fourth quarters of 2021. SARB consumer inflation forecast for 2021 rose to 4.3 percent from 4 percent in January, while the core inflation forecast eased to 3.3 percent from 3.4 percent. The bank said inflation would average higher this year, but still within the 3 to 6 percent target range. SARB also revised up its economic growth forecast for 2021 to 3.8…

Siphelele Dludla siphelele.dludla@inl.co.za THE MARKET dove into the red yesterday with the JSE falling the most in almost two months dragged by the decline in retailers and banks after the SA Reserve Bank (SARB) raised its inflation forecasts for this year. The JSE All Share Index fell 0.73 percent to 64 783 index points, its lowest level since February 5, as fears over renewed lockdown restrictions will weaken the momentum in economic recovery. The rand also pared early gains while stocks traded at a near 2-month low, weakening 0.2 percent to R15.06 against the dollar by 5pm as the looming third wave of Covid-19 infections and possible tighter restrictions drove traders to the dollar. Analysts forecast that an appreciating collar could push the rand towards R15.17 and R15.35…

GIVEN MAJOLA given.majola@inl.co.za VARIOUS key representatives in the retail, petroleum, oil and gas sectors of the South African fuel retailing industry have come out strongly in support of the recent establishment of the Public Petroleum Products Act Compliance Forum by the Department of Mineral Resources and Energy. The forum was a means to clamp down on the sector’s non-compliance. Gadibolae Dihlabi, managing director of the Liquefied Petroleum Gas Association of South Africa (LPGSA), said they were concerned about the unacceptably high number of traders who were illegally filling or selling cylinders. “The consequences are dire and can lead to serious accidents. Collaboration is key, because it allows us to share information and strategies with other stakeholders, including the SAPS and the fire department,” said Dihlabi. She said that the more…

Sandile Mchunu sandile.mchunu@inl.co.za REMGRO’S half-year earnings took a knock due to Covid-19, which hit investee companies such as Mediclinic International and FirstRand. As a result, the investment holding company yesterday reported a 52.6 percent decline in headline earnings from continuing operations to R1.4 billion, and headline earnings per share from continuing operations fell 52.7 percent to 247.4 cents a share for the six months to the end of December, significantly affected by the decreased contribution of Mediclinic and no earnings from FirstRand. Mediclinic reported an 83 percent decline in earnings for the six months to the end of September last year and included the full impact of the Co- vid-19-related lockdown measures on its results. Mediclinic’s contribution to Remgro’s headline earnings declined 80.2 percent to R170…

Sandile Mchunu sandile.mchunu@inl.co.za THE SHARE price of Sabvest Capital (Sabcap) leapt by more than 14 percent on the JSE yesterday morning, despite the investment group reducing its dividend for the year to the end of December for the first time in 20 years as it decided to preserve cash due to the lingering Covid-19 threat, as well as for share buyback programmes. The share closed 9.07 percent higher at R38. Sabcap has interests in nine unlisted investments and three listed investments. Its listed investments include a 1.6 percent stake in Transaction Capital, 11.1 percent in Metrofile Holdings, and 7.3 percent in Corero Network Security, a cyber-security group listed on the London Stock Exchange. Sabcap’s unlisted investments include a 44.8 percent stake in Apex Partners, a 25 percent interest in Classic…