Star 2023-04-13

GLOBAL streaming giant Netflix released a report yesterday detailing the economic impact that the company has had on South Africa and the greater sub-Saharan Africa region. Since 2016, Netflix says it has contributed R1.8 billion in local South African content, with a further R2.5bn contributed towards the country’s gross domestic product (GDP). The report stated that the GDP amount stems from direct investments in content production, which had a ripple effect, that generated extended fiscal contributions to the local creative community and the broader economy. The South African Revenue Service (Sars) had collected R605 million from Netflix between 2016 and 2022, and paid R2.4bn to local talent in the country. The company said more than 7 000 jobs had been created in this period through Netflix productions…

SOUTH African markets traded in the red yesterday due to steep losses from the financial heavyweights, while the country’s economic growth prospects shrank further on heightened power cuts. The JSE All Share index was slightly down by 0.3% to around 77 788 points after two consecutive sessions of gains, before gaining to touch 78 000 points later in the afternoon. It later closed at 77 740.69 points. The JSE in intraday trade was weighed down by losses in Old Mutual and Nedbank, as Old Mutual’s share price was 6% down to R11.11 per share while Nedbank fell 4% to R241.81 per share. Investors were focused on the US inflation data and Federal Open Market Committee minutes, which could provide crucial guidance on the monetary policy trajectory of…

PRESIDENT Cyril Ramaphosa yesterday signed into law the Employment Equity Amendment Bill of 2020 – a measure trade union Solidarity said it planned to fight in court. This was announced by Presidential spokesperson Vincent Magwenya during a media briefing yesterday. According to Magwenya, the bill seeks to progress the transformation of South Africa’s workforce by “setting equity targets for economic sectors and geographical regions, and requiring enterprises to develop transformation plans”, with new measures to also promote workplace diversity and equality. On May 17, 2022, the bill of 2020 was passed by Parliament. The Bill amends the Employment Equity Act of 1998 (Act No 55 of 1998) with new measures to promote diversity and equality in the workplace. Among its key provisions, the Amendment Bill empowers the Minister of…

Bring inflation back to target, address public finance risks, safeguard financial stability THE INTERNATIONAL Monetary Fund (IMF) has warned that South Africa’s fiscal metrics could deteriorate further in the medium term than initially forecast amid high inflation, rising borrowing costs, a weaker growth outlook and elevated financial risks. In its Fiscal Monitor report yesterday, the IMF said South Africa’s government debt in relation to gross domestic product (GDP) was expected to increase, while the budget deficit could widen more than expected in the three years to 2026. The report, which proposes a “Path to Policy Normalisation”, discusses how exceptional economic conditions since the pandemic have shaped fiscal outcomes. It calls for consistent policies to bring inflation back to target, address public finance risks while protecting the most vulnerable and…

ENERGY woes are synonymous with South Africa right now. As the country’s fleet of mostly coal-powered plants struggles to keep up with electricity demand, South Africans are enduring daily power outages that last six to 10 hours a day. The need for solutions is beyond urgent. I say “solutions” because providing the reliable power that South Africa needs now and ensuring that the growing country will have what it needs well into the future will require multiple strategies. Due to the country’s current reliance on coal to fire its power plants and coal mines to fuel the economy, increased coal usage must be one of those solutions for the time being. South Africa also will need to continue building its renewable energy sector, and it has committed to do so…

STOR-AGE had entered into a joint venture (JV) agreement with Nuveen Real Estate, and the JV had acquired the four property Easistore portfolio in the UK, a statement from Stor-Age, the JSE-listed self-storage group said yesterday. Stor-Age’s equity contribution in the deal is £4.4 million (R100.4m), with an estimated forecast pre-tax yield on investment of 15%. Nuveen will acquire 90% and Stor-Age a 10% equity interest in the JV, with the properties to be branded and managed by Storage King under its third-party management platform – Management 1st. Stor-Age said the JV was an opportunity to partner with one of the world’s largest, most established global investment managers. Nuveen has $154 billion (R2.8 trillion) of assets under management, with an 85-year investment track record, for which the…