Star 2021-09-27

Siphelele Dludla siphelele.dludla@inl.co.za THE SOUTH African Reserve Bank (SARB) has remained bullish about this year’s economic growth prospects, in spite of the prolonged lockdown and negative impact of the July riots. The SARB, on Thursday, revised upwards South Africa’s gross domestic product (GDP) to 5.3 percent, from a previous forecast of 4.2 percent, despite the much larger negative effect on output. SARB Governor Lesetja Kganyago, said the July events – widespread looting and violence in KwaZulu-Natal and Gauteng – and the pandemic, were likely to have lasting effects on investor confidence and job creation, impeding recovery in labour-intensive sectors hardest hit by the lockdowns. However, Kganyago said, the risks to the medium-term domestic growth outlook were assessed to be balanced, as most of the bounce-back from the recovery…

Siphelele Dludla siphelele.dludla@inl.co.za THE WORLD Economic Forum (WEF) has warned that it is critical that existing finance continues to target cleaner energy solutions to meet the financial requirements for Africa’s future energy needs. The WEF said Africa’s power sector would play a central role in the transition from fossil fuel-driven power generation to a renewable-strong energy mix. A new White Paper outlining the key considerations in setting the course for Africa’s energy future was released last week at the 2021 Sustainable Development Impact Summit. The report, “Financing the Future of Energy,” outlines Africa’s electricity landscape and financing options in context with the global drive to reduce carbon emissions. According to the WEF’s White Paper written in collaboration with Deloitte, the migration to a multi-stakeholder-oriented net-zero power grid is being driven…

Dineo Faku dineo.faku@inl.co.za CLICKS has appointed Bertina Engelbrecht as its first female chief executive. Engelbrecht, 58, an admitted attorney and the group’s corporate affairs director, has been appointed as chief executive-designate. She starts in January, making her South Africa’s first black female to lead a JSE-listed retail group. Engelbrecht will take the top post after the resignation of Vikesh Ramsunder, who held the position for three years after taking the helm of the beauty, health and pharmaceutical retailer. Ramsunder will step down at the end of December to take up the post as a chief executive at an Australian listed company, Clicks said last week. Ramsunder is expected to continue as a strategic adviser to the group until the end of August, next year. Engelbrecht joined the group in 2006…

Dineo Faku dineo.faku@inl.co.za STEINHOFF International Holdings has gained the approval of a Dutch court to compensate shareholders who lost their monies when the company’s share price went bust in 2017. The company said last week that the District Court of Amsterdam had issued an order confirming its proposed global settlement. The group said the settlement plan would become binding following an eight-day period if no appeal was lodged within that period. Steinhoff chief executive Louis du Preez said: “While our task is not yet complete, this judgment is a further significant milestone in concluding the global litigation settlement. “With the decision of the Dutch committee of representation and the court, together with the positive voting in all of the recent claimant meetings in South Africa, we have seen overwhelming support…

MR MARKET is now more often than not spooked by the word “taper”. Since the start of the coronavirus pandemic last year, the Federal Reserve Bank (Fed) supported the US economy. Interest rates were slashed to near zero percent while the Fed is purchasing $120 billion (R1.8 trillion) of government bonds monthly. The economy has recovered to such an extent that the Fed is considering tapering of these asset purchases. On Friday, Cleveland Federal Reserve Bank president Loretta Mester said the Fed should start reducing its support for the economy in November and could start raising interest rates by the end of next year. Tapering of asset purchases, specifically of long-term bonds, is likely to lead to rising long-term interest rates and therefore to a steepening of the…

Banele Ginindza banele.ginindza@inl.co.za NIGERIAN Tax authorities have given the entertainment conglomerate MultiChoice until next month to prove its commitment to comply with regulatory directives, until a final decision is made on whether to levy a R4.4 billion fine. The saga which began earlier this year has taken several dramatic twists akin to communications giant MTN, which also a couple of years back faced the censure of Nigerian authorities over disputed regulatory issues, involving the non-disclosure of subscribers. On Thursday, Nigerian media reported that the Federal Inland Revenue Service’s (Firs’) tax appeal tribunal postponed a decision to October 10 for MultiChoice to prove it had deposited the first tranche of the fine, which the group claimed it had paid as part of its statutory tax obligations. MultiChoice is on the…