Star 2024-01-11

GLOBAL diamond giant De Beers said yesterday that it would go ahead with a planned $1 billion (R18.65bn) investment to extend the life of its flagship Jwaneng mine in Botswana, even as last year’s downturn in gem demand persists. The Anglo American unit and the Botswana government, which jointly own Debswana Diamond Company, have approved the spending that will convert the Jwaneng pit into an underground operation. Debswana said that in 2018, it planned an investment to extend the lifespan of the mine by 11 years from 2024. De Beers said the spending was necessary as long-term supply of rough gems was expected to tighten. Last year, Angola started mining at its new Luele project, the biggest in the country and one of the world’s largest by estimated resources,…

GLOBAL leaders, when assessing risk, have a mostly negative outlook for the next two years, that is expected to worsen over a decade, according to the World Economic Forum’s Global Risks Perception Survey (GRPS) that was released yesterday. Surveyed in September 2023, the majority of respondents (54%) antici- pated some instability and a moderate risk of global catastrophes, while another 30% expect even more turbulent conditions than currently. The outlook was markedly more negative over the 10-year time horizon, with nearly two-thirds of respon- dents expecting a stormy or turbulent outlook, the survey, which is the WEF’s premier source of original global risks data, showed. The GRPS carried insights from 1 490 experts across academia, business, government, the international community and civil society. Two-thirds of respondents ranked extreme weather…

INVESTORS in South Africa have remained concerned about the growing geopolitical tensions in the Middle East and potential impact on inflation and, that it could delay interest rate cuts across major economies. This comes as the recent attacks on the Red Sea have brought immediate and substantial strains on global supply chains as ships can no longer go through these waters, forcing them to reroute. Goods such as back-to-school supplies, which need to be shipped now, are going to see major delays, limiting the availability of these goods and furthering the volatility that has been experienced in consumer inflation. The Houthis have launched at least 26 drone attacks on vessels passing through the Red Sea en route to the Suez Canal and key global economies since November 19 in protest…

GLOBAL unemployment rate will increase slightly in 2024, the UN said yesterday as it raised concerns about stagnant productivity, worsening inequalities and inflation biting into disposable income. The UN’s labour agency said the economic recovery from the Covid-19 pandemic has slowed down, with ongoing geopolitical tensions and persistent inflation triggering aggressive moves by central banks. That said, global growth in 2023 was modestly higher than anticipated, and labour markets showed surprising resilience, the International Labour Organisation (ILO) said. However, real wages declined in most of the G20 countries as wage increases failed to keep pace with inflation, said the ILO. The 2022 global unemployment rate stood at 5.3% and made a modest improvement last year to 5.1%. However, in 2024 an extra two million workers are expected to be looking…

Among a few African states to sign Just Energy Transition Partnerships Despite being described as a potential hotspot for political instability this year, South Africa stands to benefit from international financing targeted for energy transition, ratings agency Moody’s Investors Service said yesterday. South Africa is among a few African countries, that include Senegal, that have signed Just Energy Transition Partnerships. This week South Africa announced the approval of a R19 billion loan guarantee facility with the African Development Bank for its energy transition programme, with the British Commonwealth, foreign office and development office part of the partnership. However, with elections looming this year, and analysts fearing political risks from waning popularity and support for the ruling ANC, Moody’s has flagged South Africa as a “potential flash point for political…

South Africa must intensify efforts to address the energy crisis, allowing businesses to operate more efficiently, according to Cathay Pacific, the leading carrier of Hong Kong, in an interview with Business Report. Shanna Docherty, the regional head for Trade Sales for Cathay Pacific in the Middle East and Africa, said load shedding was a pain point experienced across industries in South Africa and had a significant revenue impact on companies of all sizes. “As an airline, we have to manage the risks posed by load shedding and ensure contingency plans are in place to avoid any disruptions or reduced productivity,” Docherty said. Talking about the airline’s outlook, Docherty said Cathay aimed to expand its operations in South Africa this year with a daily service. This after the company’s successful return…