Star 2023-12-06

THE RAND retreated to its lowest in two weeks yesterday and stocks on the JSE extended losses, in spite of improving metals prices, after economic growth in South Africa surprised on the downside in the third quarter of 2023. Statistics South Africa (StatsSA) said yesterday that gross domestic product (GDP) for the three months ended September fell into contraction, dipping by 0.2% in the third quarter compared to the downwardly revised 0.5% growth in the second quarter. StatsSA said economic growth was being hobbled by the deepening energy crisis and the logistics bottlenecks as agriculture, manufacturing and construction were the most impacted sectors. PPS Investments portfolio manager Reza Hendrickse said although growth continued to be unimpressive, it had managed to exceed expectations in most quarters during recent years. “Going forward,…

SOUTH African wine producers expect a good and somewhat larger 2024 grape crop compared to the relatively small harvest of this year, according to the first of four wine crop estimates issued annually by viticulturists and producer cellars.This estimate, however, was still lower than the average harvests of the past 10 years. South Africa Wine said that cool and wet conditions characterised the post-harvest period and provided welcome relief during the recovery of vines after the harvest. The lower crop load of last year, the early completion of the harvest and sufficient water availability positively contributed to vineyard reserves to start the winter on a good footing, it said. Etienne Terblanche, manager of Vinpro’s team of viticulture experts who issued the harvest estimates together with the industry body, Sawis, said…

The country’s overall contraction was dragged down by the performances of agriculture, manufacturing and construction SOUTH Africa’s economy is at the risk of slipping into a technical recession in the last three months of this year if the energy and logistics crises are not dealt with as gross domestic product (GDP) contracted in the third quarter of 2023, dragged by agriculture, manufacturing and construction. A technical recession is when a country faces a back-to-back decline for two consecutive quarters in the GDP output, a situation it narrowly avoided in the first quarter of this year. This comes as GDP fell more than expected by 0.2% in the three months to September, after two consecutive quarters of growth, following a downwardly revised 0.5% growth in the second quarter. Statistics South Africa…

DOVES Group has concluded an underwriting partnership with African Unity Life, a collaboration that aims to signal the start of revitalisation following the challenges posed by the curatorship of 3Sixty Life. Doves Group runs a national network with more than 160 branches in all nine provinces, providing insurance, funeral services, and related products. African Unity Life is a life insurer and financial services provider insuring more than three million lives. “This partnership with African Unity Life is not just a business strategy; it is a leap into a future where we see our company not only recovering from the loss of 3Sixty Life, but also thriving,” Doves Group executive director Minki Rasenyalo said in a statement yesterday. The focus going forward would be on selling both short and long-term…

SOUTH African private sector business activity flatlined in November, with a cooling of price pressures counteracted by supply chain disruptions due to a port crisis, a survey showed yesterday. The S&P Global South Africa Purchasing Managers’ Index (PMI) rose to 50 points in November from 48.9 points in October. A reading above 50 points shows growth, below 50 points reflects a contraction and 50 points is considered neutral. Both input costs and output charges rose at their softest rates since December 2020 and the cooling of price pressures supported weaker falls in output and new orders, S&P said. However, supply chain disruptions continued in November due to a port crisis and many firms faced longer waits for their inputs, the survey showed. “Downside risk…

TRANSACTION Capital’s minibus taxi financing subsidiary SA Taxi’s woes worsened after it reported a R3.7 billion headline loss for the year to September 30, this after a R2.1bn loss was reported in the first half. Notwithstanding this, SA Taxi’s operational restructure, focused on stabilising the business through cost reductions and repositioning the business in the pre-owned minibus tax market, was on track for completion in March 2024, the group’s directors said in the annual results yesterday. They said the headline loss was driven mainly by a R1.1bn increase in repossessed vehicle stock write-downs as further material changes were made to SA Taxi in the second half. Subsequent to these once-off provisions, the net asset value of SA Taxi was R1.6bn, including a R2.2bn non-interest bearing shareholder loan to be…