Star 2023-04-14

HEINEKEN and South African Breweries, the two leading beer groups operating in the country, yesterday announced a whopping R21.3 billion of new investment projects over the next five years. Earlier this year Heineken finalised the acquisition of Distell and Namibia Breweries, which were to be combined with Heineken South Africa into a new Heineken majority-owned business, Heineken Beverages. Yesterday at the 2023 South Africa Investment Conference (SAIC), Heineken Beverages announced a R15.5bn investment over five years, including a R3.8bn investment for a new greenfield brewery, and a R1.7bn investment into a maltery. The remaining R10bn investment would be used for capital expenditure projects to expand and maintain existing operations in South Africa, Heineken SA managing director Jordi Borr said in a statement. In 2019, Heineken South Africa had announced…

PANELLISTS at a breakaway session at the Fifth South African Investment Conference in Sandton said yesterday that good efficient and reliable infrastructure was a mission critical component for economic growth. Part of the attraction of South Africa as a gateway to the rest of Africa was that it had a world class communication and logistics network. Sadly the impact of Covid-19 and the associated lockdowns meant there was an increase in the theft of copper cable and metal from electricity pylons so that State-owned utilities Transnet and Eskom are no longer the reliable providers of rail and power, respectively. The theme of the conference is “Accelerating economic growth by building partnerships”, and the panellists were at pains to emphasise that the current challenges facing South Africa could only be solved…

SOUTH Africa’s economy might have truly entered a technical recession in the first quarter of 2023 after mining output remained on the downside in February, adding on other negative economic growth indicators. Data from Statistics South Africa (StatsSA) yesterday showed that mining production sank worse-than-expected by 5% year-on-year in February, following an upwardly revised 2.7% decline in January. This was the 13th consecutive month of contraction in mining activity, amid the adverse impact of prolonged load shedding imposed by troubled utility Eskom. Production in the mining industry has been negatively impacted since January 2022 by energy supply constraints due to heightened load shedding, prolonged industrial action, and logistical challenges from Transnet. StatsSA said the annual decline in mining output was broad-based, with eight out of 12 divisions falling in February.…

Ramaphosa sets new target to mobilise approximately R2 trillion in new investments over another five-year period THE ONGOING energy crisis has overshadowed President Cyril Ramaphosa’s achievement after his target of raising R1.2 trillion in a five-year period was reached yesterday at the South African Investment Conference (SAIC) following an ambitious drive to kickstart the economy and create jobs. Ramaphosa yesterday announced that the 5th SAIC had achieved the target of reaching R1.2trln worth of investments, which was set in 2018 after the previous four conferences attracted R1.14trln in investment pledges. Ramaphosa has now set a new target to mobilise approximately R2trln in new investments over another five-year period, between now and 2028. However, Ramaphosa acknowledged that the energy crisis, which remains unresolved, was a thorn in the government’s plans…

AROUND 18 months into the Covid-19 pandemic, commentators and governments alike noticed a prevalent feeling of disinterest and listlessness regarding new information about the virus and steps that could be taken to control its spread. People just didn’t want to hear about masks anymore or news about new treatments. The phenomenon was termed “Covid fatigue”. More than a year into Russia’s war with Ukraine, a similar attitude has developed. News about the latest developments in the conflict no longer dominates headlines, and the war is no longer the standard “water cooler” conversation. Quite simply, there are other things going on, especially in South Africa. However, people interested in economics should guard against Ukraine fatigue. The latest developments, in fact, could signal not only important opportunities for strategic investment in global…

AVENG’S share price slumped 19.83% to close at R9.54 on the JSE yesterday after it flagged additional losses and delays in a major project by its Australian construction subsidiary. The group’s Australia-based Southeast Asia construction unit McConnell Dowell, one of two major subsidiaries in the group, said it now expected to report an operating loss in the year to June 30 due to higher provisions for the BLNG project in the Philippines. In February 2023, Aveng said the Batangas LNG terminal project in the Southeast Asia business unit of McConnell Dowell was loss-making. The project had started during the Covid-19 pandemic, and saw delays and disruptions caused by the pandemic, including supply chain disruptions and the inability to mobilise people to work locations. Australian border closures made travel impossible over…