Star 2023-08-18

Zimbabwean companies – among them the local unit of South Africa-listed Nampak – are holding their breath as business uncertainty pervades the southern African country ahead of elections next week. Bitter disputes, most of them spilling into the courts, over the electoral framework have marred Zimbabwe ahead of the August 23 poll. The Zimbabwean election comes against the backdrop of sustained weakness in the Zimbabwe dollar, elevated inflation and fast paced dollarisation. The main opposition Citizens Coalition for Change charges that President Emmerson Mnangagwa’s ruling Zanu-PF party is abusing the judiciary and other state arms to side-line and frustrate rivals ahead of the crucial poll. Some of this uncertainty is now impacting on business confidence, muzzling business certainty. Industry executives are now looking to the post election period to refocus…

The BRICS Business Council has maintained that South Africa remains an attractive investment destination and a gateway for trade within African markets, in spite of ongoing logistical and energy challenges in the country. The Council’s Trade and Investment Working Group’s chairperson, advocate Mtho Xulu said yesterday one of their focus areas was to make the African Continental Free Trade Area (AfCFTA) the main priority to showcase the opportunities that exist in Africa. Xulu said they would be profiling Africa at the 15th BRICS Summit next week as a market but also bringing out the nuances found in the different blocs of Africa, within a messaging of a potential single market. “As much as we've seen trade growing over the last 10 years of the business council, we are unfortunately still…

Exxaro Resources, the South African diversified resources group, lowered its interim dividend 28% to 1 143 cents per share after lower sales prices and sales volumes, and logistics challenges affected operations. Revenue fell 15% to R18.94 billion, with coal making up R18.1bn of the total, after these challenges were offset by a slightly weaker exchange rate at the coal business. Revenue from the wind energy business was 17% higher. Energy generation from the Cennergi assets was higher, driven by better wind conditions despite an energy generation loss from an Eskom line fault. Group earnings before interest, tax, depreciation and amortisation (Ebitda) fell 28% to R7.66bn, mainly due to the 34% decline in coal Ebitda. Exxaro directors said bearish market sentiment in the first half was due to price declines from…

Business confidence this year to July is slightly higher than last year, but the overall level remains subdued, and has been stagnant over four months, the Sacci Business Confidence Index (BCI) showed yesterday. “This environment hinders improved longer-term prospects for the economy, resulting in limited fixed investment and inadequate conditions for robust economic growth and job creation. Additionally, the global economic environment is not favourable for South Africa as an open economy and investment destination, making it challenging to attract much-needed foreign capital and investment,” Sacci said. The South African Chamber of Commerce and Industry (Sacci) BCI was 106.9 in May, 1.9 index points higher than in June, but then declined by 1.5 index points again in July to reach 107.3. It had peaked at 117.3 in December last year,…

This is LIKELY due to it being a traditionally insulated industry with high barriers to entry by new competitors. Together with administrative procedures that make it difficult for existing customers to switch to an opposition financial provider, banks tend to be complacent. In-house research among nlighten- cx’s customer base shows that 50% of those who did move banks, despite the onerous administration involved, did so for reasons of trust and security, while another 50% did so for a better client experience. Better banking fees and better products/solutions – the two other categories listed in the research – played no part in the decision to switch banks. In a previous nlightencx snap poll conducted this year, which also looked at the banking sector in South Africa, only 24% of respondents were…

DRDGOLD yesterday flagged an expected increase of up to 18% in its earnings for the year ended June 30 due to the rand gold price rising by 16%. In a trading statement, the company said it expected its earnings per share to increase by 9% to 19%. Headline earnings per share (Heps) were likely to rise by 8% to 18%, amounting to about R1.40 to R1.54. DRDGold reported that revenue increased by R377.8 million, or 7%, to R5.5 billion compared to the previous comparable period’s R5.2m. The impact of the increase in revenue on earnings and headline earnings was moderated by an increase in cash operating costs of R224.3m, up 6% to R3.68bn compared to the 2022 financial year (R3.5bn). It said the expected increases in EPS and Heps for…