Star 2024-01-25

THE COST OF living crisis for South Africans continues to spiral after data released yesterday showed that the cost of a basic grocery food basket had increased by 8.3% in just a year. This was according to the January 2024 Household Affordability Index and Key Data, compiled by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD). The index showed that in January 2024, the average cost of a household food basket was R5 324.86. Month-on-month, the food basket increased by R86.66 (1.7%), from R5 238.20 in December 2023 to R5 324.86 in Janu-ary 2024. Year-on-year, it increased by R407.44 (8.3%), from R4 917.42 in January 2023 to R5 324.86 in January 2024. The food items that increased the most in price in January were potatoes…

PETROSA said yesterday a joint venture with private company Theza Oil & Gas Exploration and Equator Holdings would conduct a feasibility study on the redevelopment of the gas exploration infrastructure offshore of Mossel Bay. The State-owned oil company said in a “clarification” statement yesterday that “the respective governance processes, including Public Finance Management Act (PFMA) requirements, will be observed to advance the partnerships. In particular, the Section 54 PFMA processes which afford PetroSA the opportunity to conduct due diligence, progress feasibility assessments, secure governance approvals towards the final investment decision and financial close.” PetroSA likely emphasised its commitment to good governance after questions were raised about the ability of Equator Holdings, led by controversial businessman Lawrence Mulaudzi, to undertake the work. The DA said it had submitted a Promotion of…

South Africa’s business industry has pinned its hopes on government leaders to conclude the long-running discussions with Saudi Arabia over investing to help the country improve its oil refining capacity. Saudi Arabia, the world’s second largest oil producer, has been in talks dating back to 2018 with South Africa's Central Energy Fund (CEF) to partner with Saudi Aramco to build a $10 billion (R189bn), 300 000 barrel a day crude oil and petrochemicals refinery plant in Richards Bay to come on stream by 2028. Speaking at a press briefing in honour of the visiting Saudi business delegation yesterday, the head of Invest SA, Yunus Hoosen, said, “I think as part of our broad energy mix and energy security, there are ongoing discussions bilaterally between the DMRE (Department of Mineral Resources…

THE SA TRANSPORT and Allied Workers Union (Satawu) yesterday called for Transnet National Ports Authority CEO Pepi Silinga to be fired from office, saying he was likely to interfere with investigations into his alleged irregular picking of close associates for a lucrative ports fencing upgrade tender. The tender’s value has controversially ballooned from R80 million to R300m. Transnet acting group CEO Michelle Phillips confirmed yesterday that the port and logistics parastatal had launched an independent probe into Silinga. It had also referred allegations of corruption against the executive to the Special Investigating Unit (SIU). However, Satawu said yesterday that Silinga had to be removed from office as he was likely to tamper with investigations. Transnet CEO Portia Derby retired from the company last year following years of lobbying by…

GIVEN the infrastructure problems South Africa was contending with, the country was likely to achieve less than 1.5% economic growth this year and this would not result in the net-job growth for the country. This was according to Ravi Naidoo, the CEO of the Youth Employment Service (YES). In an interview with Business Report, the CEO said that while many citizens would all like to see 5% gross domestic product (GDP) growth like the National Development Plan (NDP) required, South Africa would be able to make some progress if it achieved 2%-3% growth in the next couple of years. The organisation, which transforms companies, communities and youth lives by connecting youth to economic opportunities, said load shedding and now the rail and ports were undermining the local economy. Naidoo said…

A RESURGENT rand later this year, a possible pause in rate hikes and less elevated power cuts were expected to lift South Africa’s economy to a 1.5% gross domestic product (GDP) growth this year, Bank of America said yesterday, citing a projected weakness in the US dollar that will prop up emerging markets towards a re-rated commodities outlook. Tatonga Rusike, a sub-Saharan analyst for Bank of America, said: “South Africans will head to the polls later this year and it is expected that although struggling with plummeting confidence in its policies, the ruling ANC party will form a coalition with smaller opposition political parties.” The 2024 elections were likely to herald “a busy year for SA”. “It is going to be a busy year for SA. We think that GDP…