Star 2024-05-22

FIBRE network operator Frogfoot has argued that Vodacom, Vumatel, and Dark Fibre Africa (DFA) should not be allowed to merge to form the largest fibre infrastructure company in South Africa, Maziv, as this would limit competition. This was argued yesterday on the second day of the ongoing Competition Tribunal’s hearing into the proposed merger, to which the Competition Commission is opposed as it believes it would be anti-competitive. Frogfoot founder and director Abraham van der Merwe said that the deal would limit downstream players’ ability to connect to different fibre providers’ networks. He said this would limit competition, as Vodacom’s network would no longer be available as a “counterweight” to DFA. Concerns have been raised that Vodacom will have main control over the merged company, even though it will only…

SOUTH African fund managers surveyed by the Bank of America (BofA) are expecting local equities to rally post next week's elections with a preference tilted towards domestic stocks, although political risks are rising. In its latest South Africa Fund Manager Survey, BofA said yesterday local fund managers had flagged uncertainty ahead of the election, but were optimistic that domestic stocks would rally post the election. “The focus has shifted from resources to domestics. A higher net 68% would overweight domestic stocks but still a 50/50 tussle on whether it's too early to buy interest rate sensitives,” reads the report. “Political risks rising, but 74% expect domestic stocks to rally post elections May 29.” South Africa holds a crucial election against the backdrop of high unemployment, plunging mining productivity and…

MICROSOFT South Africa will come to the rescue of thousands of unemployed youth with a R1.32 billion investment for the development of black-owned SMMEs in both tech and non-tech sectors over the next 10 years in a bid to close the digital skills gap. The global tech giant yesterday said the investment makes provision for skills development of young black South Africans in emerging technologies, and includes a commitment to research and development to prepare South African industries for the fourth industrial revolution (4IR). The R1.3bn Microsoft deal is the largest by a single company under the Equity Equivalent Investment Programme (EEIP) provisions of the Broad-Based Black Economic Empowerment Act (B-BBEE Act), and brings the total value of agreements concluded during this administration to more than R8.2bn. Microsoft SA…

THE ECONOMIC Intervention Forum of South Africa (Eifsa) has described as a “sad day” the conclusion of the sale of South Africa’s largest fuel station chain, Engen, to Dutch energy giant Vitol Emerald Bidco’s subsidiary, Vico Energy. Engen and Vivo Energy announced the completion of the transaction to combine their respective businesses, with Malaysian State energy company Petronas selling its 74% shareholding in Engen to Vivo Energy, creating a pan-African energy champion. In a statement released yesterday, the partners said the combined Vivo Energy Group now had more than 3 900 service stations, and more than two billion litres of storage capacity across 28 African markets. Mthunzi Luthuli, chairperson of Eifsa said they noted the announcement of the Engen-Vivo Energy transaction with sadness. Eifsa had last year lodged a…

THE KINGDOM of eSwatini’s government, through Absa Bank, has issued a R4 billion bond programme on the JSE debt board, marking an opportunity to introduce the country to the global investment community. This new issuance is the latest to list under the “Protea Bonds” segment. Protea Bonds are unique in that they describe rand-denominated bond issues by foreign governments on the JSE. “The listing on the JSE … provides an opportunity for the Kingdom to introduce itself to the international investment community. This programme will help us diversify funding sources, contribute to regional economic integration initiatives, and raise the capital required for us to meet our infrastructure and developmental needs,” said eSwatini Finance Minister Neal Rijkenberg in a statement. In the country’s national budget speech in February, Rijkenberg said…

THE WORLD Economic Forum (WEF) expected international tourist arrivals and the travel sector’s contribution to global economic growth to return to pre-pandemic levels this year, driven by the lifting of Covid-19-related travel restrictions and strong pent-up demand. This is according to the findings of the Travel and Tourism Development Index 2024 (TTDI), a biennial report published by the WEF in collaboration with the University of Surrey. The report analysed the travel and tourism sectors of 119 countries across a range of factors and policies. The global tourism industry was expected to recover from the lows of the Covid-19 pandemic and surpass the levels seen before the crisis. This was largely being driven by a significant increase in demand worldwide, which had coincided with more available flights, better international openness, and…