Star 2023-06-07

Economy slightly avoided two consecutive quarters of negative growth ECONOMIC growth in South Africa could detract sharply in the second quarter on the back of intensified power cuts after averting a technical recession in the first three months of 2023. Data from Statistics South Africa (StatsSA) yesterday showed that the economy slightly avoided two consecutive quarters of negative growth, buoyed by manufacturing, finance, real estate and business services. StatsSA said gross domestic product (GDP) rose by 0.4% in the three months to March following an upwardly revised 1.1% decline in the previous three months to December 2022. Despite the 0.4% rise in the first quarter of 2023, GDP remains below the all-time high of R1.161 trillion reached in the third quarter of 2022. Economists have thus warned that growth…

THE INTERNATIONAL Monetary Fund (IMF) has urged the South African government to start implementing reforms that foster private investment, a balanced energy transition, and good governance. This was just one of the recommendations the IMF Executive Board made after concluding their bilateral discussions under the 2023 Article IV Consultation with South Africa. In a detailed report yesterday, the IMF also recommended further measures to reform State-owned enterprises, open key network industries to private sector participation, reduce the regu- latory burden, and enhance labour market flexibility and the quality of education. The IMF said it recognised that resolving the ongoing energy crisis remained the top priority, providing an opportunity to accelerate the roll-out of renewables. The lender of last resort also backed the steadfast implementation of the government’s energy transition plan…

THE MINISTRY of Transport has announced that Leonard Ramatlakane has been relieved of his duties as a board member and chairperson of the Passenger Rail Agency of SA (Prasa). According to the statement, this move followed an investigation by the agency on the misuse of one of its properties in Cape Town by Ramatlakane. It should be noted that despite these issues, Transport Minister Lydia Sindisiwe Chikunga expressed her appreciation to the chairperson for “his leadership and sterling work that led to the recovery of 13 rail lines by the entity”. “This exceeded the target of 10 rail lines that were initially earmarked by Prasa for recovery. It is under his watch that Prasa was able to restore a sizeable number of Prasa Rail services in various metros in…

SHARES in SAB Zenzele Kabili closed 11.11% higher after it indicated yesterday that it would be paying a cash dividend of 45 cents per share to all shareholders by June 26. The share closed 11.11% up at R40 yesterday. However, in general the counter has not seen a strong performance with the share price having fallen 31.97% in a year. SAB Zenzele Kabili being a shareholder of global brewer Anheuser-Busch InBev (AB InBev), received a total amount of R77 million, based on the 5 105 685 shares it holds in AB InBev. “Taking into account the applicable debt repayments and with tight operating cost management, SAB Zenzele Kabili was able to declare a dividend of R0.45 per share from the dividend income it received from AB InBev,” the company…

THE RAND remained virtually unchanged at R19.25 to the US dollar yesterday due to some positive domestic news, moving further away from a record low of R19.85/$1 touched late last month. This was a slight improvement after the rand closed 1.2% firmer at R19.27 on Monday and 3.25% stronger since hitting a record low of R19.91 on Thursday last week. However, the currency remains stubbornly weak and refuses to fall below the psychological R19-mark to the greenback. Nevertheless, investors welcomed the latest data which showed South Africa’s economy averted a technical recession in the first quarter, despite record levels of load shedding. Statistics South Africa yesterday reported that the economy grew by 0.4% in the first three months of 2023, narrowly surviving a technical recession following an upwardly revised 1.1%…

SOUTH Africa’s energy market is witnessing a remarkable transformation as it shifts towards renewable energy to combat the persistent load shedding crisis, which resulted in 208 days of blackouts in 2022. As the world confronts the detrimental effects of human activities on the environment, renewable energy offers a way to address climate change challenges without halting industry and development. The National Renewable Energy Independent Power Producer Procurement Programme has played a significant role in accelerating the growth of Independent Power Producers (IPPs) and expanding the role of private providers in the energy market. Additionally, recent key legislative changes and the allowance of wheeling for private companies have further contributed to the adoption of renewable energy solutions and expanded the role of private providers in the energy market. Big businesses that…