Star 2023-07-12

FINANCIAL experts have weighed in on the ongoing discussion about the potential introduction of a BRICS common currency, backed by gold, between Brazil, Russia, India, China and South Africa, saying it was not a straightforward process and could backfire reducing trade and investment. There has been considerable discussion about a new BRICS currency that could challenge the US dollar as the world's reserve currency or, at the very least, provide an alternative. This comes as South Africa’s ruling party, the ANC, on Monday confirmed that the upcoming BRICS Summit will discuss the proposal of a common currency between the global south countries as part of “de-dollarisation” and strengthening trade. ANC first deputy secretary-general Nomvula Mokonyane said the BRICS countries wanted to do away with the dominance of a single currency…

THE REPRESENTATIVE of Pricewaterhouse- Coopers of Habib Overseas Bank, Craig Du Plessis, yesterday announced that more than 63% of qualifying Habib Overseas Bank depositors had to date received their funds through the South African Reserve Bank (SARB) guarantee payment mechanism. To date R43 million had been paid to 858 of the 1 574 qualifying depositors. A further 183 meetings had been scheduled for eligible depositors to come into the selected First National Bank (FNB) branches to receive their funds, it said in a statement. This follows an announcement made by the SARB on June 8 that eligible Habib Overseas Bank depositors would be paid up to R100 000 each and that FNB would facilitate these payments. Since June 12, FNB had been contacting eligible depositors through email…

ALUMINIUM semi-fabricator Hulamin faces an indefinite strike at its KwaZulu-Natal operations as its 1 800 workers downed tools. Workers want an increase in the company’s medical aid contribution and for contributions to the Pension Fund to be equalised and to be settled separate from salary negotiations. The medical aid contributions are currently capped at 40% by the employer with the workers contributing the balance. The National Union of Metal Workers South Africa (Numsa), which represents 1 050 of the workers, said it would sustain the strike with production being interrupted until a meaningful offer was put on the table. Numsa’s head of communications, Phakamile Hlubi-Majola, said: “Management is resisting and they have not tabled an offer. They say they want to combine these issues with wage negotiations. “However,…

Complaints against the company show overcharging was almost 72% in some cases The Competition Commission has found that Sasol Gas has been overcharging the price of natural piped gas by as much as 72%. In a statement yesterday, the commission said this followed complaints against the company of charging excessive prices on natural gas for almost a decade. Natural gas is used as an alternative source of energy to electricity and is used by industrial, commercial, and domestic customers. Sasol Gas is the only supplier of natural piped gas in South Africa and supplies gas to traders and end-users in the country through a network of transmission and distribution pipelines. Sasol Gas sources natural gas from the Pande and Temane gas fields in Mozambique through an 865km long pipeline that…

MANUFACTURING output in South Africa is expected to remain volatile in the months ahead in spite of recording a second month in a row of positive year-on-year growth in May. Data from Statistics South Africa (StatsSA) yesterday showed that manu- facturing production rose more than expected and increased by 2.5% year-on-year in May, above market forecasts of a 2.3% rise, following an upwardly revised 3.6% surge in April. This second consecutive month of growth in industrial activity followed six consecutive months of decline, mainly boosted by the manufacture of motor vehicles, parts and accessories and other transport equipment. StatsSA’s director of industry statistics Nicolai Claassen said eight of the 10 manufacturing divisions recorded a rise in economic activity. “The automotive division was the largest positive contributor to the overall rise…

REINET Investments said yesterday that with continued high interest rates, elevated inflation, the ongoing Ukraine crisis and instability in the global financial system, the world economic growth forecast was reduced and greater volatility was expected. In its annual report for the year ended March 31, 2023, its chairperson, Johann Rupert, said additional financial sector stresses were already causing a noticeable slowdown in growth with inflation not expected to reach central bank target levels for some time to come. “The global banking sector has faced considerable disruption in recent months, while neither Reinet nor its underlying investments have been significantly impacted, ongoing vigilance and reviews of banking relationships are essential. Similarly, Reinet continues to monitor the situation in Russia and Ukraine; and while there is no direct exposure, it considers any…