Star 2023-11-28

THE SOUTH African mining jobs bloodbath continues as Wesizwe Platinum yesterday issued a section 189A at Bakubung Minerals, which could effect 571 employees out of 761, as it embarks on the possible restructuring of its operations amid a downturn in metal prices. The shares in the miner dived as much as 15% on the news to a low of 51 cents. In fact Wesizwe’s shares yesterday closed 16.67% lower at 50 cents on the JSE. Wesizwe said the contemplated retrenchment consultation process had further been compounded by the downturn in the mining industry as well as the two community strikes in the years 2022 and 2023 and the recent five-week unprotected strike in July, which affected the mine development progress adversely. The mine only reopened on August 21 after…

RUBBER stamping the NHI Bill would have damaging consequences for South Africa for generations and present a material risk to the economy, the business sector said yesterday as 25 000 doctors also voiced their concern. Business Unity South Africa (Busa) and B4SA called on the National Council of Provinces (NCOP) and Deputy President to defer the Bill for NCOP to properly consider concerns raised by the provinces and many stakeholders. Busa and B4SA said: “No consideration was given by the select committee to the many constitutional issues, both procedural and substantive, in the Bill, which were raised by four provinces and a wide range of stakeholders. “This amounts to a serious and significant procedural lapse and a violation and disregard of Parliament’s own public participation model, fundamentally undermining the…

THE MARKETS in South Africa opened the week on a weak footing yesterday, despite the gold rally, as unfavourable domestic factors such as intensified load shedding and logistics challenges dragged sentiment. The gold price strengthened above $2 000 (R37 493) an ounce yesterday, hitting its highest levels in more than six months and benefiting immensely from the dollar’s weakness, as traders piled on bets that US interest rates have already peaked. Last week, economic data con- tinued to paint a mixed scenario in the US, although weak consumer spending figures suggested the Federal Reserve’s rate hikes are finally starting to weigh on the broader economy. This comes as inflation is expected to continue falling next year, but at a much more gradual pace than in 2023, driven by…

Explores feasibility of using permission to occupy tenure as collateral for home loans THE NATIONAL Treasury yesterday published the Financial Inclusion Policy Framework for South Africa, which seeks to deepen financial inclusion for individuals and households, extend access to financial services for SMMEs, and leverage a more diversified provider and distribution base for financial services. It explores the feasibility of using other types of security such as permission to occupy tenure as acceptable collateral for financial institutions seeking to provide home loans or mortgages, in a bid to support wealth creation among the currently un- or under-served while also increasing the level of home ownership in South Africa. This is one of the 16 priority areas seeking to promote appropriate credit for assets and investment over consumption which has been…

IN THE CORRIDORS of power, where decisions shape the destiny of nations, one man has emerged as front runner for the dubious honour of being the architect of South Africa’s economic chaos – Minister of Public Enterprises Pravin Gordhan, at whose hands the country’s State-owned enterprises (SOEs) have all but collapsed. In a young and emerging demo- cracy, SOEs should play vital roles, such as contributing significantly to gross domestic product providing jobs, and supplying essential services to ensure the economic participation and inclusion of the people and businesses at all stages of the value creation chain. Instead, there has been a systematic breakdown of almost every SOE in this country, to the point where privatisation becomes the only solution – but then, perhaps that is the end game after…

ESKOM has welcomed the decision by S&P Global Ratings to upgrade the power utility’s credit ratings and revise its outlook as the government has come forth to shoulder the majority of the power utility’s debt. S&P on Friday upgraded Eskom’s long-term issuer credit rating to “B” from “CCC+” with a stable outlook on the group’s senior secured and senior unsecured debt. In addition, S&P Global also upgraded Eskom’s South Africa national scale rating to “zaBBB/zaA-2” from “zaB/zaB”. S&P said the credit rating up- grade was due to its expectation that the South African government’s R254 billion financial support package will cover Eskom’s debt servicing and repayment obligations over the current and coming two financial years. S&P credit analyst Omega Collocott said the stable outlook reflected their view that the…