Star 2023-05-31

SHARES in Tiger Brands, which owns brands including All Gold, Black Cat and Koo, nosedived 19% after it delivered interim earnings which were below market expectations, and flagged load shedding cost and operational headwinds. In its six months ended March 31, 2023, South Africa’s biggest food producer said despite strong revenue growth, its performance for the reported period was impacted by a challenging operating environment due to prolonged periods of load shedding, while high levels of inflation and lower disposable income adversely impacted consumer behaviour in terms of volumes and basket mix. The shares yesterday hit an intraday low of R153.88. The shares later closed 16.83% lower at R157.82 on the JSE. However, they have increased by 33.47% in the past year. During the reporting period, its load shedding costs…

The proliferation of illigal trade poses a significant ‘top 5’ risk to the local economy SOUTH Africa’s economy is bleeding billions of rand every year due to rampant illicit activities such as illegal mining, trade in counterfeit goods, wildlife trafficking, bootlegged fuel, and illicit alcohol and tobacco. These are the findings of a new report on “organised crime, corruption and illicit trade” published yesterday by the Transnational Alliance to Combat Illicit Trade (Tracit). The report, which was released in partnership with Business Unity South Africa, shows that illicit trade is one of the biggest threats to stability and economic growth in South Africa. Tracit said South Africa faced challenges from illicit trade on multiple fronts, including, but not limited to, alcohol, cigarettes, fishing, mining, counterfeit electronics, pharmaceuticals, food and apparel.…

THE JOBS FUND has requested an additional allocation of R3 billion from the National Treasury’s already constrained fiscus in a bid to keep the youth employed as the prevailing economic climate in South Africa has dealt private sector businesses a signifi- cant blow over the recent years. This comes as the Jobs Fund on Monday said it was looking for experienced Private and Public Sector organisations and NPO intermediaries to submit applications for its 11th funding round titled: Breaking Barriers: Future Proofing South Africa’s Employment Options. The fund was started more than 10 years ago with R9bn recapitalisation. It co-finances projects by public, private and non-governmental organisations that will significantly contribute to job creation. This involves the use of public money to catalyse innovation and investment on behalf of…

THE BATTLEFRONT for the control of Eskom intensifies, and the three ministers (the three mouse-kateers) placed in charge of Eskom are about to bash heads over the split mandate as to who is responsible and controls what in Eskom. In a short media statement, the president announced the transfer of powers to the Minister of Electricity. The statement reads: “The president has signed a procla- mation that transfers to the Minister of Electricity certain powers and functions entrusted by the Electricity Regulation Act (Act No 4 of 2006). Specifically, this relates to all powers and functions contained in Section 34(1) of the Electricity Regulation Act, which were previously entrusted to the Minister of Mineral Resources and Energy. “Section 34(1) of the Electricity Regu- lation Act empowers the minister to…

SOUTH Africa is in an unnecessary energy crisis, because nobody wants to follow the democratic outcomes of the country’s Energy Planning. In particular, the electricity crisis is a result of the vicious circle. The failure is a result of not sticking to the democratically agreed Integrated Resource Plan (IRP). This can only be informed by the most updated Integrated Energy Plan (IEP). This plan in itself is a product of the White Energy Paper of 1998. The White Energy Paper reads as follows: “South Africa is a country endowed with abundant energy resources. Fossil fuels, such as coal, uranium, liquid fuels and gas, play a central role in the socio-economic development of our country, while simultaneously providing the necessary infrastructural economic base for the country to become an attractive…

DAIRY giant Clover will reap the bene- fits from a servitisation deal at its Queensburgh mega-factory with energy solutions company, Energy Partners (EP). As part of this industry-leading partnership, EP designed, invested R360 million and constructed the integrated refrigeration, power and steam plant, which it will operate and maintain over the next 20 years. Servitisation, whereby clients pay for a service rather than the equipment itself, means that Clover will only pay a fee per unit of the refrigeration and steam it uses, enabling the dairy company to lower its operational costs by as much as R792m over the period of the agreement. EP CEO Manie de Waal said yesterday in a statement that the model highlighted an opportunity for commercial and industrial businesses to increase their bottom line…