Star 2023-02-16

The prices of food and non-alcoholic beverages have risen to their highest in nearly 14 years THE COST OF living in South Africa is expected to remain elevated for the better part of the year as interest rates could increase nonetheless in spite of consumer prices easing for the third month in a row in January. Data from Statistics South Africa (StatsSA) yesterday showed that the annual inflation rate slowed to 6.9% in January, from 7.2% in December. Though this headline print was the lowest since May 2022, it was still above the upper limit of the South African Reserve Bank’s (SARB) target range of 3% to 6%. FNB senior economist Koketso Mano said there should be an upward monthly pressure driven by the lift in fuel prices, as well…

AS DRDGOLD yesterday reported an increase in its half-year profit its CEO lashed out at the government’s monopoly on electricity supply as well as the slow pace of transition of the country’s energy footprint to reliable, renewable power. DRDGold said due to power utility Eskom’s struggles to supply enough electricity, it had processed less ore due to power cuts. DRDGold CEO Niël Pretorius said for some time, neglect and corruption had eroded delivery at key State-owned entities, Transnet and Eskom in particular. “It seems as though certain elements within the ruling party – desperate to cling to the State’s monopoly on electricity supply – are frustrating efforts to decentralise and privatise power generation.” He said very little progress had been made to transition to reliable, renewable power for no…

THE SA CHAMBER of Commerce and Industry (Sacci) yesterday warned that the ongoing electricity supply shortages would have serious implications for the economy as it hampers confidence and spooks foreign investors. This comes as Fitch Ratings agency also said that the power crisis was the most acute aspect of South Africa’s current economic difficulties. Business confidence in South Africa fell from a more than seven-year high in January mainly due to the adverse effects of the worsening power crisis, after gaining strong momentum towards the end of 2022. Sacci yesterday said that the Business Confidence Index (BCI) dipped by 4.4 index points, sinking to 112.9 points in January from 117.3 points in December. It was October 2015 when the BCI last recorded a level higher than the 117.3…

WITH FOOD prices continuing to increase every month, often well above general inflation, the Competition Commission yesterday indicated that it was proceeding with an investigation into the fresh produce market. Statistics SA yesterday confirmed what consumers who buy groceries every month will know, that food prices are continuing to rise. It said annual food and non-alcoholic beverages inflation climbed to 13.4% in January, the highest reading since April 2009, when the rate was 13.6%. Of all the products in the CPI basket, bread and cereals recorded the highest rate in January (21.8%). This was up from 20.6% in December and was the highest reading for this category since February 2009 (23.8%). Data released by the Pietermaritzburg Economic Justice and Dignity Group (PMBJED) recently also showed sharp annual price increases.…

LIFE HEALTHCARE Group Holdings’ share price was a top performer on the JSE yesterday, rising as much as 13.2% after it reported solid trading in the four months to January 31 and that it has received offers for its UK-based AMG business. The private healthcare and hospital group said it had received “several unsolicited proposals” from third parties to acquire AMG. The share price traded at R19.21 yesterday afternoon, still well off the R24.15 that the share traded at a year ago. It closed 13.86% up at R19.31 on the JSE yesterday. AMG is one of the largest independent diagnostic and molecular imaging providers in the UK and Europe, and also owns five cyclotrons in the UK and six cyclotrons across Europe. It operates 236 sites across the UK and…

PAN AFRICAN Resources said yesterday that the reduced gold production over the past six months could primarily be attributed to the performance of Barberton Mines’ underground operations. In its interim financial results for the six months ended December 31, 2022, the mid-tier African-focused gold producer said gold production for the second half of the 2023 financial year was 92 307 ounces (oz) compared to 2021’s 108 085 oz. The group said full-year production guidance maintained between 195 000 oz and 205 000 oz, subject to Eskom’s electricity consistency supply as the power utility still implemented load shedding amid an operational crisis. For the period under review, the group said its profit after tax of $28.9 million (R516.12m) decreased by 37% from…