Star 2023-02-14

Bank paints a grim picture of the impact of electricity cuts on South Africa’s economic growth outlook for 2023, calling it a “polycrisis” ABSA BANK HAS painted a grim picture of the impact of load shedding on South Africa’s economic growth outlook for 2023, saying that the country remained in something of a “polycrisis” and “at risk of a rupture”. This comes as crippling power cuts in South Africa, which have been implemented on a daily basis this year, have cost the economy billions of rand in lost activity. Load shedding has been a daily occurrence since late last year, with the last reprieve on December 25 to allow people to enjoy Christmas. In its quarterly perspectives yesterday, Absa cut its gross domestic product (GDP) forecast for the fourth quarter…

FOR AN EXAMPLE of the costly impact of load shedding on business, look no further than leading tile manufacturer and retailer Italtile, which has had to tackle the energy crisis on virtually every front. Chief financial officer Brandon Wood said at the release of the interim results yesterday in a telephone interview, that they faced multiple challenges in the six months to December 31, many of them relating to the energy crisis. The group’s own 80 retail outlets had to buy generators which added to costs, with two locations exploring operating on battery power off the grid. Investments in solar are ongoing. The group’s total store network had increased by three stores to 214. The manufacturing operations, which make up 40% of group profit, was affected by load shedding and…

ANGLO American Platinum (Amplats) said yesterday, despite a 2% increase in the rand basket price, the expected decrease in annual headline earnings and basic earnings was primarily driven by a decrease in sales volumes of platinum group metal (PGM). In its trading statement for the 12 months ended December 31, 2022, the mining firm said that headline earnings for the period were likely to decrease by between 33% and 52% compared with the 12 months ended December 31, 2021. Headline earnings were likely to be between R38 billion and R53bn, compared with R79bn in the prior period, and headline earnings per share would decrease to between R144.31 and R201.28 per share compared with R300.42 in 2021. According to the JSE-listed PGM miner, this has been driven primarily by a…

THE GOVERNMENT Employee Pension Fund (GEPF) plans to buy a 30% stake in South Africa’s fastest-growing work and lifestyle precinct, Waterfall City, north of Johannesburg for R2.8 billion. The deal saw JSE-listed real estate investment trust (Reit) Attacq’s share price surge 15.41% to close at R8.24 on the JSE yesterday. Waterfall City is Attacq’s flagship development, its other retail centres include Mall of Africa, Brooklyn Mall and Eikestad Mall. Attacq said it had entered into an agreement with the GEPF, which was represented by the Public Investment Corporation to acquire a 30% stake in Waterfall City owner, and Attacq’s fully owned subsidiary, Waterfall Investment Company (Awic). The GEPF would buy the stake at about 10% below book value, with the investment made through Awic issuing new equity, and…

CURRO Holdings yesterday issued an upbeat trading update as the independent school provider eyes buoyant interim earnings ahead after it grew its average learner numbers by almost 4% as enrolment rose in the year ended December 31, 2022. In its trading statement for the year ended December 31, 2022, the group said it expects an increase in profits when it releases its 2022 annual results next month, as enrolment grew by 3.5% year-on-year to 72 835 learners in the reported period, as it experienced strong enrolments interests. It had 70 408 learners on February 23, 2022. Recurring headline earnings per share (Rheps) are likely to increase to between 51.5 cents to 59.5c or 25.9% to 45.5% higher. Headline earnings per share (Heps) were expected to rise to…

Pop and R&B superstar Rihanna made a grand return to the stage on Sunday, floating high above the Super Bowl field, thrilling the crowd with a fast-paced medley of her hits and revealing that she is pregnant with her second child. Dressed in a hot pink jumpsuit and baggy coat, Rihanna opened the biggest showcase in music by singing Bitch Better Have My Money as she stood, with a noticeably rounded belly, on a platform suspended in the air. She was gradually lowered to the ground as she went through well-known songs from Only Girl (In the World) to Rude Boy and Work. Rihanna was surrounded throughout the 13-minute performance by dozens of dancers in baggy white outfits. It was the 34-year-old Grammy winner’s first stage performance in five years.…