Star 2024-04-29

THE DEPARTMENT of Mineral Resources and Energy has recommended a massive drive towards more natural gas exploration projects, while simultaneously calling for the importation in the short term of liquefied natural gas (LNG) from neighbouring countries to address South Africa’s energy mix on the back of gas shortages. These are among the recommendations and conclusions contained in the long-awaited draft Gas Master Plan (GMP2024), gazetted for public comment on Friday by Mineral Resources and Energy Minister Gwede Mantashe. The draft plan is a policy instrument that seeks to ensure security of gas supply by diversifying supply options from both local and international markets. Its main objective is to diversify energy sources with the intention of reducing South Africa’s heavy reliance on coal, and to realise an effective energy mix while…

THERE are likely to be other bids for Anglo American, which on Friday rejected BHP’s $39 billion (R738bn) unsolicited all-share buy offer that seemed to be targeted for the Johannesburg and London-listed mining conglomerate’s lucrative copper assets, even though some analysts believe the Australian mining company may raise its offer. BHP’s proposed acquisition of Anglo American, one of the country’s largest listed entities, seems to have courted widespread opposition from business and labour quarters. In an interview with Business Report, Cratos Asset Management portfolio manager Roy Topol said on Friday that this was because under its rejected initial offer, BHP did not want exposure to South Africa, which is suffering operational constraints such as ports, rail, water and electricity inefficiencies. “They (BHP) seemed to be keen on Anglo’s highly-valuable…

PALI LEHOHLA, the former Statistician-General of South Africa, on Friday slammed the lack of methodology and transparency around clients’ bank account closures. “All institutions have standards that must be communicated up front to their clients, particularly the banks, which are highly regulated,” he said in an interview with Business Report. He said banks had to ensure that clients were aware of their rights, and banks could not apply standards based on their own free will and decisions. Therefore, when it came to closing accounts, that had to be communicated up front as part of the regulatory environment and under what conditions bank account closures happened, and what the clients were entitled to by way of appeal. “It is a highly-regulated issue and these standards are global and if anyone says…

SOUTH Africa’s tough macroeconomic conditions are proving to be a challenge for the multinational mobility company, Bolt, as the crippling conditions are affecting the cost of living for both drivers and passengers. Bolt’s PR manager for Africa, Sandra Suzanne Buyole, told Business Report that they were aware that rising fuel prices were exerting additional pressure on drivers who used the Bolt app. “We are sympathetic to these challenges faced by drivers and our teams are constantly reviewing our prices to ensure drivers can operate profitably and provide great service to passengers,” Buyole said. The unaudited month-end data released by the Central Energy Fund (CEF) last week showed that the price of petrol could rise by around 36 cents per litre, while diesel was predicted to fall by about 30c.…

AGRICULTURAL analysts have re- mained optimistic that South Africa is not in a crisis, in spite of the damage to crops that occurred in February and March during the heatwave and the El Niño-induced dryness. The Agricultural Business Chamber (Agbiz) chief economist Wandile Sihlobo on Friday said that the recent drought presented upside risks to food price inflation, but not the overall basket. “The challenge is primarily the white maize, especially considering the potentially more robust regional demand later in the year,” Sihlobo said. “The favourable supplies of other grains in the world market, mainly yellow maize (also rice and wheat), and the moderating prices mean South Africa could be slightly cushioned in these commodities.” According to the April 2024 Household Affordability Index, the average cost of the Household Food…

Parliament must probe the methodology into bank account closures. In the spotlight is the metric of ‘reputational risk’ and there are claims that South African’s rights are being violated. Reputational risk modelling is not currently transparent or fair, nor does it have a just mechanism of recourse. It is also not standardised globally. Worst of all, the metrics are applied unfairly leading to discrimination. The issue was highlighted this month after Nedbank’s 2023 Annual Report revealed it had unbanked nearly 200 people on this unquantified, undisclosed metric. Nedbank’s Pillar 3 Risk and Capital Management Report for the year ended December 31, 2023, revealed it is now considered as one of the bank’s top ten risks and has subsequently been included on its risk scorecard. Financial Sector Conduct Authority (FCSA) commissioner…