Star 2021-07-20

Siphelele Dludla siphelele.dludla@inl.co.za BUSINESS has rallied behind the government in getting the economy going again following last week’s protests that shook investor confidence and slumped the rand. Business seemed to be slowly getting back to normal yesterday after a group of about 30 captains of industry met with a government delegation last week to tackle the crisis. Business Leadership SA (BLSA) said yesterday that the issues business leaders were facing in getting the economy going again had led to collaboration with the government. BLSA chief executive Busi Mavuso said business was helping to identify areas of priority. These include key logistics that need to be reopened to ensure supply chains are able to start moving food, medicines and fuel again. In the wake of the meeting, Mavuso said the N3…

SANDILE mCHUNU sandile.mchunu@inl.co.za THE LEWIS Group said 58 of its stores were looted and damaged last week through the widespread violence and looting in KwaZulu-Natal and parts of Gauteng. The events had a significant impact on its store operations, the group said in a statement yesterday. “A total of 58 stores were looted and damaged and are currently not able to trade, including 54 stores in the ‘traditional’ segment across the Lewis, Beares and Best Home & Electric brands and four UFO stores.” At the height of the unrest last week more than 260 stores across the group were closed as a precautionary measure to ensure the safety of staff and customers, and to minimise losses. “Management is assessing the extent of the vandalism and it is too early to…

Woolworths reports 9.7 percent sales growth in 2021 financial year Dineo Faku dineo.faku@inl.co.za FOOD, fashion and beauty giant Woolworths (Woolies), said the third wave had been a setback for the group’s recovery in South Africa as it announced a 9.7 percent growth in sales for the year ended June 2021 compared to a year earlier. Woolies, whose stores are spread across South Africa, New Zealand and Australia, said its food business continued to be the star performer with a 6.9 percent growth in sales and a 5.7 percent in comparable stores and online sales surged. The price movement was 5.2 percent and underlying product inflation was 4.9 percent. The food business grew in both market share and volumes, despite the high base a year earlier…

Amsa declares a force majeure over violent protests in KZN and Gauteng Dineo Faku dineo.faku@inl.co.za ARCELORMITTAL South Africa (Amsa), the country’s primary steel producer, has declared a force majeure with its customers following the violent protests and looting in Kwazulu-Natal and Gauteng last week. The mayhem that began when former presi- dent Jacob Zuma began serving his 15-month jail sentence morphed into civil unrest that saw the torching of trucks, the looting of shopping centres and the destruction of property. The company said that last week’s unrest had affected major highways and transport routes with roads being blocked, widespread vandalism and vehicles, especially the trucks of transport companies, being petrol-bombed and stoned. Amsa said the KwaZulu-Natal rail corridor to and from Newcastle was also affected, with flows coming to a…

Siphelele Dludla siphelele.dludla@inl.co.za The INVESTMENT community has shot down as unfeasible the proposed multibillion-rand basic income grant scheme as the government mulls introducing it to curb poverty. President Cyril Ramaphosa on Sunday gave the biggest hint that the government was investigating the feasibility of introducing a basic income grant in South Africa. Investors have said they would await more clarity on the full cost to the fiscus that this new grant would entail as more than a third of the South African population was unemployed. Anchor Capital investment analyst Casey Delport said yesterday that as it currently stands, they had a mixed view on the implementation of a basic wage. Delport said from a socio-political perspective, there was indeed a strong argument to be made for its implementation. “However, from…

Sandile Mchunu sandile.mchunu@inl.co.za ASCENDIS Health said yesterday that it had reached a deal to sell its Ascendis Animal Health division for R770.19 million as it ramps-up the disposal of non-core assets to reduce its unsustainable debt levels. The South African-based global health and care company concluded the sale of a shares agreement between subsidiary Ascendis Health SA Holdings and the purchaser, Acorn Agri & Food, as well as with the guarantor AAF Invest, for the disposal of the entire issued share capital of the Ascendis Animal Health division. The Animal Health division consists of Ascendis Vet, Ascendis Animal and Kyron Prescriptions and Kyron Laboratories (Kyron). The net asset value of Animal Health at the end of December 2020 was R567.39m and the profit after tax was R32.85m. The group…