Star 2023-03-23

SARB now set to add more pain and increase interest rates by 25 basis points THE COST OF living in South Africa will remain elevated for a prolonged period after inflation in February rose for the first time in four months due to costs incurred by retailers to mitigate load shedding. As a result, the South African Reserve Bank (SARB) is now set to add more pain and increase interest rates by 25 basis points to 7.5% next week to contain rising consumer prices. Data from Statistics South Africa (StatsSA) yesterday showed that the annual headline consumer price inflation (CPI) edged to 7% in February from 6.9% in January, mainly driven by food and non-alcoholic beverages, and transport. This was the first time that inflation had risen since October last…

OUTSURANCE Group, which almost doubled its interim dividend to 56.8 cents per share from 23.5c, has identified Ireland’s motor and home insurance market as a new expansion opportunity. Ireland is “a strong strategic fit”, the group said in its results for the six months to December 31, released yesterday. Ireland had a growing insurance market, favourable distribution dynamics, historic market profitability and a familiar regulatory environment. The market entry is subject to obtaining a non-life insurance licence from the Central Bank of Ireland. The group already sells insurance products in Australia, New Zealand and Namibia. “While the general economic outlook is tough, we remain optimistic about growth prospects given our low market share and growth potential in newly identified markets and channels,” Outsurance Holdings CEO Marthinus Visser said in…

THE INTERNATIONAL Monetary Fund (IMF) has slashed South Africa’s growth forecast for 2023 significantly due to heightened power cuts, weak commodity prices and weakening global economy. The IMF yesterday lowered South Africa’s real gross domestic pro- duct (GDP) growth forecast for 2023 drastically to 0.1% from 1.2% previously projected in January. This forecast is contained in the concluding statement describing the preliminary findings of IMF staff at the end of an official staff visit in South Africa for consultations under Article IV of the IMF’s Articles of Agreement. IMF’s head of research in the African Department, Papa N’Diaye, said South Africa’s near-term growth outlook had deteriorated. N’Diaye led an IMF team on March 1 to 17 to hold meetings with the economic authorities and other counterparts from the public and…

AFTER three consecutive days of no power cuts, Eskom yesterday resumed its rotational load shedding as the resumption of economic activity after the national shutdown and the public holiday put a strain on the grid. The struggling power utility had given South Africa a reprieve from intensified power cuts for the first time this year on Sunday, suspending load shedding for 3 days in a row. This coincided with the EFF’s planned national shutdown to protest against load shedding on Monday, which saw a majority of businesses closing for trade and reducing demand for electricity. However, Investec chief economist Annabel Bishop yesterday said that protesting against load shedding by seeking to drive a national shutdown, made the situation worse, not better, as the electricity supply constraints could not be quickly…

CA SALES Holdings (CA&S) lifted its dividend 30.4% to 15.35 cents a share in its maiden year as a listed group and it is well placed to continue to deliver good results in the year ahead, CEO Duncan Lewis said yesterday. The retail group has a strong balance sheet and a diverse portfolio and geographic presence, he said at the end of the financial year to December 31 where headline earnings per share increased well by 31.2% to 78.2c per share. CA&S’s dual listing on the JSE and Botswana Stock Exchange in June 2022 had raised its profile among South African retail and institutional investors, and had increased the liquidity of the share, he said. The share priceclosed 2.71% higher at R7.20 on the JSE yesterday, close…

JSE AND 2X-listed Life Healthcare Group, announced yesterday that it was set to acquire TheraMed Nu- clear’s non-clinical imaging operations in Gauteng, in a bid to continue with its South African diversification strategy. The group declined to disclose how much the acquisition would cost, but said the transaction would be finalised mid-year. TheraMed Nuclear is a nuclear medicine and molecular imaging business offering advanced-techno- logy medical scanning services for the detection and treatment of diseases, such as organ dysfunction and cancer. Southern Africa Life Healthcare CEO Adam Pyle said: “The acquisition further entrenches our commitment to investing in medical imaging in South Africa, with our capability now extending into nuclear and molecular imaging. “As part of this journey, we plan to drive improved accessibility for clinicians and their patients in…