Star 2024-06-05

STANDARD Bank CEO Sim Tshabalala yesterday said that business will have to get on with life and adapt to the new post-election environment, no matter which coalition government emerges. This comes as political parties are engaged in crucial discussions about forming a coalition government before Sunday next week’s deadline after the ANC lost its parliamentary majority for the first time since 1994. Tshabalala yesterday said it was not up to business to figure out the permutations of the future, but what business can do was to imagine what the possibilities were and make sure that it was able to respond. “If you’re a democrat and you respect the Constitution of the Republic of South Africa, you have to accept what the electorate says and you have to run your business…

AN UNEXPECTEDLY moribund economy was reflected in the 0.1% decline in first quarter gross domestic product (GDP), and it was likely to remain stagnant for the rest of the year, barring a boost from the global economy, economists said yesterday. “Surprising slightly on the downside, SA’s GDP print contracted 0.1% quarter-on-quarter. Weaker manufacturing, mining and construction drove much of the downward momentum on the production (supply) side, while the expenditure (demand) side witnessed a decline across all components,” said Anchor Capital’s fixed Income investment analyst, Casey Sprake. Analysts polled by Reuters had projected a slight 0.1% increase in first quarter GDP, while the SA Reserve Bank (SARB) had projected 0.2% growth. Last year GDP grew 0.6%, with the SARB estimating load shedding had shaved 1.5% off that. This year the…

FITCH Ratings has warned that the ANC’s pursuit of coalition partners to retain its governance mandate, after plunging below the required 50% majority threshold, could significantly affect South Africa’s credit profile. President Cyril Ramaphosa’s ANC polled 40% of the May 29 ballot, leaving it in need of forming a coalition with rival parties. At the same time, SA’s economy is unstable amid sluggish economic growth and a precarious credit profile. Although markets and the rand have been holding steady amid growing sentiment that the politically unlikely coalition with the DA was business- and investor-friendly, the permutations have been ushering in a certain degree of uncertainty. “The various permutations of government could have very different implications for policy, with potentially significant effects for South Africa’s credit profile,” Fitch Ratings said yesterday.…

A SIT-IN PROTEST by more than 200 mineworkers has erupted at Sibanye-Stillwater’s Kwezi Shaft in Kroondal, Rustenburg, although the National Union of Mineworkers (NUM) claimed that its members were being forced to remain underground by other employees. As many as 211 employees re- mained underground, starting the morning of June 3. At another shaft, K6, there was further disruption to the night shift, with about 250 employees “gathering in a central waiting place” on the surface, according to Sibanye-Stillwater, which confirmed the protest actions. “This unfortunate turn of events transpired following the annual payments made to beneficiaries of the Rustenburg and Marikana employee share option schemes (Esops) on Friday, June 1, 2024,” Sibanye-Stillwater said in an emailed statement. “The striking Kroondal employees are reportedly aggrieved to not have received Esop…

THE INTERNATIONAL Energy Agency (IEA) has included South Africa, along with its global counterparts, among the countries whose current ambitions are not aligned with the COP28 pledge to triple global renewable power capa- city by 2030, which is one of the key elements to achieving net zero emissions by mid-century and limiting warming to 1.5ºC. In its latest report yesterday on tracking countries’ ambitions and identifying policies to bridge the gap, the IEA said even if all countries were to fully implement their current ambitions, the world would fall 30% short of tripling global renewable capacity to more than 11 000GW by 2030. The IEA said if all ambitions were to be achieved, global installed renewable capacity would be 2.2 times the 2022 level by 2030. The report noted…

POLITICAL economist Moeletsi Mbeki has reiterated his long-standing belief that South Africa should do away with Broad-Based Black Economic Em- powerment (B-BBEE), saying this policy has been the main driver of corruption and inefficiency within the government. Mbeki has been one of BEE’s biggest detractors, together with affirmative action, arguing that they were the main drivers of corruption in South Africa and a disservice to the economy. Speaking at PSG’s Think Big series yesterday, Mbeki however said that it was unlikely that policies will change when a new government is installed, given the outcome of the recent elections and the parties with the most votes. “The ANC represents the black middle class, that’s why its primary policy has been black economic empowerment,” he said. Mbeki also noted that critical areas…