Star 2021-05-12

EDWARD WEST edward.west@inl.co.za THE DIFFERENCES between the Public Investment Corporation (PIC) executive and senior staff in a department that manages its unlisted investments, Isibaya Fund, was a “management matter” that was “being attended to internally”, a PIC spokesperson said yesterday. Senior employees at Isibaya berated the executives of the continent’s biggest asset manager for failing to renew a mandate with its biggest client, the Government Employees Pension Fund (GEPF), and for general mismanagement, reports citing a letter seen by Bloomberg News said yesterday. The spokesperson said the PIC continued to invest on behalf of the GEPF. The Isibaya Fund was founded in 1995 and manages unlisted commercially viable African projects that have a strong transformation and development impact. According to the PIC’s 2020 report, Isibaya’s total unlisted investments, including unlisted…

Bongani Hans bongani.hans@inl.co.za SOUTH African banks have all but admitted to having done little to support black businesses financially, and have justified this by saying they were looking at the interests of their depositors. This amid a growing outcry against financial discrimination and exclusion among black businesses. In response to questions, the Banking Association South Africa (Basa), which represents 36 banks, referred to a recent statement which stated that the banks were aware that much still needed to be done for the economy to better reflect the demographics of the country. The banks said total empowerment financing dropped 19.5 percent to R203.7 billion in 2019 and exposure to black economic empowerment deals dropped 35 percent from the previous year to R107bn in 2019. Chief economist at Econometrix…

Siphelele Dludla siphelele.dludla@inl.co.za THE RAND BROKE below the key psychological mark of R14 to the dollar yesterday to touch R13.96, buoyed by positive sentiment as manufacturing output rose more than expected. This was the second consecutive day this week that the rand dipped below R14 to the greenback, after briefly hitting R13.99 on Monday, driven by the surge in commodity prices. By 5pm, the rand was bid at R14 against the dollar, 0.01 percent higher from the previous day’s fix at the same time. Citadel Global director Bianca Botes said the rand was testing a sustainable move below R14 to the dollar, boosted by a strong risk appetite, a weaker dollar and robust commodity prices. “Commodity-driven currencies, such as the rand, continue to enjoy benefits over the dollar, as…

Dineo Faku dineo.faku@inl.co.za HARMONY Gold Mining Company reaped the fruits from the acquisition of Mponeng mine and a higher gold price, delivering strong earnings during the nine months ended March 2021, despite an “uncharacteristically slow start up” of operations following the Christmas break and Covid-19 pandemic compliance disruption. JSE-listed Harmony posted a 360 percent increase in adjusted earnings before interest, taxation, depreciation and amortisation of R9.4 billion from R2.05bn a year earlier on the improved gold price, better grades and production numbers post the acquisition of Mponeng. Harmony, which acquired Mponeng from AngloGold Ashanti last year, enjoyed a 23 percent higher rand gold price at R868 964/kg during the nine months ended March 2021 and posted a 13.5 percent increase in production to 34…

NUTRITIONAL Holdings yesterday warned its shareholders that it had entered into negotiations regarding additional global contracts, which might have a material effect on the price of the company’s shares. The warning comes after the investment holding company concluded two contracts worth more than R2 billion with overseas companies. Nutritional Holdings as interests in the manufacture, marketing and distribution of staple dry foods, cannabis infusions, oils, extracts and related edibles. Nutritional Holdings concluded a R1.26bn three-year contract with GIH Distributors for the supply of Immune Booster to Germany. It will supply 50 000 units a month to GIH. This will increase to 200 000 units a month in the third year. The contract started at the beginning of January. The group also concluded a contract with Grovenor Supplements…

SOUTH African consumers who sought help to manage their debt increased by 31 percent compared to the same time last year, the DebtBusters debt index for the first quarter has found. Debt counselling company DebtBusters head Benay Sager said yesterday the sudden increase was the culmination of consumers becoming more proactive about their debt and the lack of increase in real income. “Although nominal income is 7 percent higher compared to 2016 levels, when cumulative inflation of 24 percent is factored in, real incomes have shrunk by 17 percent in five years. Many consumers are compelled to borrow to make up the shortfall,” said Sager. The index, which tracked client trends quarter-on-quarter and over the past five years, also found people applying for debt counselling with…