Star 2023-10-10

MINISTER of Electricity Kgosientsho Ramokgopa has flagged illegal connections as a major impact on the country’s distribution infrastructure and a hindrance to Eskom’s generation capacity. Illegal connections cost Eskom billions of rand in revenue with the struggling power utility losing R22 billion from “non-technical issues” last year, R7bn in Gauteng alone. Ramokgopa said yesterday that illegal connections were placing significant strain on the grid, and needed to be addressed as it affected the energy ecosystem in the country. “We have made the point that the amount of illegal connections, in addition to posing an immediate physical danger, also plays a significant amount of strain on the distribution infrastructure,” Ramokgopa said. “The capacity of the distribution infrastructure is a function of the demand, and really when Eskom and municipalities…

THE NOBEL Prize in Economics was awarded to American economist Claudia Goldin yesterday for her research that has helped understand the role of women in the labour market. The 77-year-old Harvard professor, who is the third woman to be awarded the prestigious economics prize, was given the nod “for having advanced our understanding of women’s labour market outcomes”, the jury said. “Her research reveals the causes of change, as well as the main sources of the remaining gender gap,” it added in a statement. Globally, about 50% of women participate in the labour market compared to 80% of men, but women earn less and are less likely to reach the top of the career ladder, the prize committee noted. The Nobel Prize in Economics has the fewest number of women…

THE INTERNATIONAL Monetary Fund (IMF) has warned that the governments in emerging markets and developing economies (EMDEs) will not be able to finance the large climate mitigation investment needs, but the private sector will have to cover a major share of this. This was said in the October 2023 Global Financial Stability Report at the official kick-off of the IMF/World Bank annual meetings in Marrakech, Morocco yesterday. Achieving the transition to net-zero emissions by 2050 requires substantial climate mitigation investment in EMDEs, which currently emit around two-thirds of greenhouse gases. According to the International Energy Agency’s report in June, these countries will need about $2 trillion (R38.6trln) annually by 2030 to reach that ambitious goal, with most of that funding flowing into the energy industry. This is a fivefold…

Developments have seen global oil prices shooting up and markets worry over tight oil flows Investor sentiment in the currency and commodity trading turned sour yesterday as risk aversion in global markets heightened due to the escalating violence in the Middle East. Palestinian militant group Hamas launched the biggest attack on Israel in decades on Saturday, killing several hundreds and taking others hostage. In a swift response to what some have called Israel’s 9/11, Israeli fighter jets bombarded parts of the Gaza Strip, which also resulted in major casualties.The developments in the Middle East saw global oil prices shooting up as the markets worried that the conflict could disrupt already tight oil flows following Saudi Arabia and Russia’s production cuts. Brent crude oil prices rose by 4% to around $88…

FAMOUS Brands, the owner of brands including Steers, Debonairs Pizza, Milky Lane, among others, said yesterday headline earnings per share was expected to be between 221 cents and 178c per share for the six months to August 31, representing a change of between 3% and -17% when compared to the prior comparable period. “The business continued to improve its revenue performance mainly due to further improvements across the value chain. However, the high levels of sustained load shedding, related cost pressures and a challenging economic environment impacted the profitability of the group,” the company said in a trading update. Basic earnings per share (Beps) was expected to be between 225c and 174c, representing a decrease of between 13% and 33% compared to the prior comparable period. A reduction in…

SIRIUS Real Estate, owner and operator of branded business parks in Germany and the UK, said its like-for-like rent roll had increased by 7.7% for the six months to September 30, in line with its expectations. The group said in a trading update yesterday – the interim results are expected to be released on November 20 – that it continued to see strong trading, despite a backdrop of negative headlines, referencing challenging economic conditions in both Germany and the UK. In Germany, occupancy remained stable and rental growth ahead of inflation was achieved as the group used its proprietary asset management platform to maximise the value of its space. “The sale of Kassel at above book value, which we announced on October 3, 2023, together with strong trad- ing across…