Star 2023-07-04

It is an important part of South Africa’s economy, contributing 8% of GDP Manufacturing activity in South Africa is expected to remain under pressure in the months ahead after sliding further into contractionary territory in June, in spite of less intense daytime load shedding during the month. Manufacturing is an important part of South Africa's economy, contributing 8% of gross domestic product (GDP), 12% to formal sector employment and at least 40% of the rand value of exports. The seasonally adjusted Absa headline Purchasing Managers’ Index (PMI) dropped further below the neutral 50-point level in June, declined by 1.6 index points to 47.6 points from 49.2 points in May. The June PMI reading marked the fifth consecutive month of contraction in manufacturing activity and was the lowest level…

THE PRICE of petrol (95 ULP and LRP) will fall by 17 cents per litre tomorrow, while the price of diesel (0.005% sulphur) will increase by 18c per litre, a statement from Department of Mineral Resources and Energy said yesterday. South Africa’s monthly fuel price changes are informed by international and local factors. Including the rand exchange rate and that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, eg shipping costs. FNB Senior economist Koketso Mano said they expect continued slight upward pressure on oil prices in the months ahead due to their belief the rand would remain under pressure in the short term, the possibility of further oil production cuts by major oil producers as global…

NEW VEHICLE sales surprised on the upside for the second month in a row as electricity supply stabilised, rising by a significant 14% from a year ago last month, in spite of dwindling exports, the impact of rising interest rates and weak economic growth. This comes as the aggregate domestic new vehicle sales rose to 46 810 units in June, from the 41 052 vehicles sold in June 2022, reflecting an increase of 5 758 units. The Automotive Business Council (Naamsa) yesterday said that the upbeat new vehicle market performance was encouraging given the multiplicity of negative considerations which still outweigh positive ones during the month of June. The unexpected extent of the upswing in the new vehicle market for the second month in a row exceeded…

ANGLO American plc said yesterday that the De Beers Group and the government of the Republic of Botswana have reached an agreement in principle on a new 10-year sales agreement for Debswana’s rough diamond production, through to 2033, and a 25-year extension of the Debswana mining licences, through to 2054. In a statement, the group said De Beers, its subsidiary, and the government of Botswana will work together to progress and implement the formal new sales agreement and mining licences. “In the interim, the terms of the most recent sales agreement, which expired on 30 June, will remain in place,” it said. The deal had been in talks for a while and Botswana President Mok- gweetsi Masisi had criticised the 54-year-old partnership saying his country will not back down on…

PAPER and packaging group Mondi said yesterday that all the approvals for the sale of its three Russian converting operations to the Gotek Group, for 1.6 billion roubles (R335.5bn), had been received and the sale was completed. On December 15, 2022, the group had announced that an agreement had been reached for the sale of the packaging converting operations. “Mondi has received net proceeds of €30.4 million (R625m) from this disposal into its Austrian bank account,” the group said in a statement. Net proceeds from the sale of all the group’s Russian assets would be distributed to shareholders “as soon as reasonably practicable following receipt, once our exit from Russia has been completed”, the group said. The proposed disposal of Mondi Syktyvkar, Mondi’s most significant facility in Russia,…

NORTHAM Platinum Holdings said yester- day it had restructured its banking facili- ties by settling and cancelling the term loan facility and increasing the revolving credit facility (RCF). The RCF was increased to R10 billion from R7.2bn. The R2.445bn term loan facility had been fully settled and cancelled. “As a result of the restruc- ture, Northam’s total available banking facilities now amount to R11bn, comprising the increased RCF of R10bn and existing general banking facilities of R1bn. “The remaining terms of the RCF remain un- changed, including the maturity date being August 2027,” a statement read. The term loan had a staggered maturity profile of four equal tranches, commencing in February 2026 and ending in August 2027. The restructure increased North- am’s available banking facilities and removed…