Star 2023-08-11

EXPAT Zimbabweans in South Africa accounted for 30% of the nearly US$1 billion (R19bn) remitted to the struggling southern African country in the first half of 2023, new central bank data – which also spotlights Standard Chartered (Stanchart) and two other banks as inadequately capitalised – shows. Officially, as many as 773 000 Zimbabweans have settled down in South Africa in search of better employment prospects, according to 2022 census data from Zimstats. Of these, about 178 000 hold special Zimbabwean exemption permits. Data from the Reserve Bank of Zimbabwe’s 2023 mid-term monetary policy shows that diaspora remittances for the six months to June 2023 “amount to US$919 million, a 15% increase from US$797m received during the same period” last year. Of the total diaspora remittances…

IRAN HAS ASKED South Africa for support in accelerating its bid to join the BRICS bloc of countries ahead of the crucial 15th Summit of Brazil, Russia, India, China and South Africa (BRICS) to be held in Johannesburg in a fortnight. This was revealed yesterday at the beginning of the 15th Session of the South Africa-Iran Joint Commission of Co-operation between Minister of International Relations Naledi Pandor and Iran’s foreign minister, Hossein Amir-Abdollahian. The Islamic Republic of Iran is one of 23 countries that have made formal expressions of interest in joining BRICS, and has been officially invited to attend the three-day summit. This shows South Africa’s diplomacy and foreign policy increasingly leaning towards the eastern countries such as China and Russia when the US and Western European countries would…

IN ORDER to keep Glencore Smelters in Rustenburg open and protect thousands of jobs, the National Union of Metalworkers of South Africa (Numsa) will be marching to the Rustenburg municipality today to demand that the district not charge the company a surcharge over and above the approved electricity tariff by the National Energy Regulator of South Africa (Nersa). The union said yesterday that Eskom was making an application to Nersa for a negotiated pricing agreement (NPA) for Glencore. “The municipality wishes to charge Glencore an additional surcharge, which is a fee over and above the cost of the Nersa electricity tariff,” it said. The surcharge is defined as a charge in excess of the municipal base tariff that a municipality may impose on fees for municipalities provided for, by or…

Pieterse takes over the reins at a time when the Treasury is facing a set of new challenges FINANCE Minister Enoch Godongwana has welcomed Cabinet’s approval of the promotion of Dr Duncan Pieterse as the new head of the National Treasury, saying that he has the necessary chutzpah to succeed in his new role. The government yesterday an- nounced that Cabinet has approved the appointment of Pieterse as Treasury’s director-general for a period of five years, beginning on September 1. Pieterse takes over the reins at the time when the Treasury is working on a solution, together with the Prudential Authority and other regulators and law enforcement agencies to address the remaining gaps in South Africa’s oversight of money laundering, the financing of terrorism and proliferation financing over the next…

A RISE IN insolvencies is becoming a growing concern for businesses offering trade credit, with load shedding posing significant challenges, according to Frank Knight, the CEO of Debtsource, a credit management services company. Additio- nal costs and disruptions caused by power outages could adversely affect cash flow and profitability. However, rising interest rates are the primary contributor to the rise in insolvencies. “Interest rate hikes corre- late with an increase in delinquency ratios in certain markets. Even a small increase in the repo rate leads to a corresponding rise in delinquency. “By staying informed about the potential impact on your custo- mers, you can proactively manage your credit exposure and adjust risk manage- ment strategies accordingly,” Knight says. SA’s elevated dependence on portfolio investment flows, currency volatility, and ageing infrastructure…

LISTED diversified investment group, African Equity Empowerment Investments (AEEI), a Sekunjalo Investment Holdings subsidiary, is no longer a shareholder in ICT group AYO Technology Solutions (AYO) following an unbundling that was initiated in March 2023. The unbundling of AYO was finalised at the end of July by way of a pro rata distribution in specie in the ratio of 1 AYO share for every 2.89 AEEI shares. AEEI had held a 49.36% stake in AYO. AEEI CEO Valentine Dzvova said: “AEEI is very pleased that AYO has reached a settlement with its significant shareholder, the Public Investment Corporation, in an agreement that will see the parties working towards the ICT group rebuilding its shareholder value. “We wish AYO well for the future in which we know, it has a…