Star 2022-10-20

INFLATION in South Africa is now firmly poised to end the year 2022 at an elevated rate above the upper limit of the SA Reserve Bank’s (SARB’s) target range of 3% to 6%, for the first time in six years. This is in spite of the annual headline consumer inflation slowing for the second month in a row in September after reaching its peak in July as fuel prices declined for the second time in as many months. Statistics South Africa (StatsSA) yesterday said that the consumer price index (CPI) eased to 7.5% in September from 7.6% in August, edging further down from the 13-year high of 7.8% recorded in July. This means that inflation has stayed above 7% for four consecutive months since June, and for five months in…

TELKOM SA’s share price slumped more than 24% yesterday after it announced that the talks about its acquisition by rival MTN were over as the parties were unable to reach agreement, and there is uncertainty too about Rain’s offer. The share price closed at R34.62 on the JSE yesterday. The slump comes after the price rose sharply from as low as R32.76 in June, just before the first announcement in July that MTN and Telkom were in talks. Mergence Investment Managers head of equity Peter Takaendesa said the share price fell back to where it had been prior to when MTN first made a proposal to Telkom, so investors had not even factored in a possible premium for Telkom doing another transaction with another party. Takaendesa said depending…

CLOSE to 6 000 of Eskom’s more than 42 000 employees, about 14%, have undeclared business interests within the organisation as the utility leans more on the Special Investigations Unit (SIU) and the Hawks to untie intricate webs of corruption. This has effected the power utility’s procurement of coal, diesel, spare parts amounting to billions of rands dating back from the State Capture years. Parliament’s Standing Committee on Public Accounts (Scopa) was told by Eskom; the Hawks’ general, Godfrey Lebeya and SIU’s head, Andy Mothibi, of numerous corruption networks still fleecing off quality coal, which sells at three times more on the black market. This as Eskom is also in a gigantic battle to recover some of the billions of rands siphoned off through questionable…

THE LAND BANK will be resuming lending to new development clients with a blended finance mechanism to help commercial farmers access to much-needed finance amidst rising costs for fertiliser and other essentials. The State-owned bank has operated at “suboptimal” levels since it defaulted on its debt obligations in 2020, and could not fully resume its borrowing and lending activities until a settlement was concluded. Land Bank chairperson Thabi Nkosi told the Standing Committee on Finance in Parliament yesterday that one of their priorities was to finalise the revised funding model. Nkosi said that as a result, the bank would launch the Blended Finance Scheme in partnership with the Department of Agriculture, Land Reform and Rural Development. “Significant progress has been made to stabilise the bank, however the long-term financial sustainability…

STANDARD Bank Group’s share price shot up 6.8% yesterday morning after an operational update said attributable earnings leapt 42% in the nine months to September 30 compared with the same period a year before. The biggest financial services group in Africa released the figures as part of its quarterly reporting to the Industrial and Commercial Bank of China (ICBC), which has a 20% stake in Standard Bank, to enable ICBC to equity account the local bank's results. In the nine-month period Standard Bank’s headline earnings adjustable items were not material. In the six months to June 30 the group reported its second consecutive record performance, with headline earnings up 33% to R15.3 billion. At that time management said they were facing an uncertain environment and increased competition, but the…

ACSION said yesterday that a potential cash offer for the property company might lead to a delisting from the JSE. “Shareholders are advised that Acsion is considering a potential de- listing of the company’s shares from the securities exchange operated by the JSE, on the basis that the delisting would be accompanied by a cash offer, which, if successfully concluded, may have a material effect on the price of the company’s securities,“ it said. Shareholders were told to exercise caution in dealing with the shares. The firm, with a market cap of more than R2 billion, has an investment portfolio consisting of eight well-established, strategically located retail properties, a light industrial property and a mixed-used development, all located in South Africa, as well as an international retail property situated…