Star 2024-07-05

Sentiment among CEOs of leading companies in South Africa has remained optimistic about economic and market conditions on the back of a stable political environment and electricity supply since the formation of the Government of National Unity (GNU). The Merchantec CEO Confidence Index released yesterday recorded a 13% increase in CEO confidence, rising to a score of 51.4 points in the second quarter. This improvement was driven by a 24% increase in the consumer staples sector and the recent absence of load shedding after Eskom suspended rotational power cuts in the second quarter. The index is a quarterly copyright report that has collated the views of CEOs of listed, large private and multinational companies in South Africa since 2009. It is compiled by Merchantec Capital, a mergers and acquisitions specialist…

The National Employers’ Association of South Africa (Neasa) yesterday provided clarity for all affected parties on the relevant deadlines and periods of validity of the Zimbabwean exemption permits (ZEP) dispensation. There are more than a million Zimbabweans living in South Africa, according to South Africa’s census data. It said for the current holders of the original ZEPs, the deadline has been extended and was valid until November 29, 2024. Current holders of the original ZEPs were entitled to apply for new exemption permits, while new exemption permits issued were valid until November 29, 2025. It said the original ZEP holders who had already applied for waivers and for other visas did not have to apply for the “new” exemption permits; and therefore, if an original ZEP holder had applied for…

Stocks on the JSE hit an all-time high yesterday as investors were buoyed by continued optimism about potential interest rate cuts this half by the US Federal Reserve (Fed). The JSE All-Share Index rose 0.9% to 81 155 points yesterday, reaching record-levels, as the Federal Open Market Committee (FOMC) minutes on Wednesday night showed Fed officials sticking to their cautious outlook with only one rate cut this year. Markets, however, are betting on more cuts given recent data showing both a cooling economy and a slowing labour market in the US. AdvTECH and Vodacom led the charge yesterday, both rising 4.3% followed by Equited, Karoo and Impala Platinum gaining 3.6%, 3.5%, and 3.3% by 5pm, respectively. Investec chief economist Annabel Bishop said there was now 100% certainty of the…

THE SA Farmers Development Association (Safda) and SA Canegrowers have successfully resolved a recent impasse regarding millions of rand in transformation funding. Sugar industry players in South Africa were at loggerheads last week over the funding, and allegations of fronting and racism against black small-scale growers. Sugar industry transformation interventions were introduced by the sugar industry in November 2018, championed by Safda. The total agreed amount of the fund was R1 billion over five seasons, which translated into just over R200 million per season. Contributions making up the transformation fund are extracted from levies contributed by all sugar industry members. Safda last week accused the SA Canegrowers industry association of “fronting”, and “condemned” what it called “disturbing anti-transformation tendencies”. However, Safda executive chairperson Dr Siyabonga Madlala said yesterday that “these…

South Africans are increasingly buying down on chicken products to stretch their money as the soaring cost of living continues to place severe pressure on household budgets. This is according to the latest import statistics released yesterday and compiled by food distributor, Hume International. The data showed that total import volumes of whole birds had nearly tripled compared with the same period last year, and the total import volumes of chicken wings and drumsticks-products typically used by local manufacturers to supply fast-food chains, effectively doubled and leapt 94.08% and 108.74% year-on-year, respectively. Hume International operations and logistics director Roy Thomas said these shifts first served as evidence of the real impact of the bird flu outbreak in South Africa during the latter months of last year. “Imports have always bridged…

Through the combined actions of the City of Johannesburg, City Power and the National Energy Regulator of South Africa (Nersa), residents are facing a looming, dire cost-of-living crisis. Just when residents thought there was light at the end of the tunnel, City Power has pulled the rug out from under them with the stealthily executed introduction of load reduction – otherwise known as load shedding. Claims that the move was necessary due to increased electricity usage during the winter months seem disingenuous. Temperatures have dropped, people are staying indoors more and they need to keep warm. Consequently, electricity usage is bound to increase. This begs the question: How is it possible that, despite their many years of combined experience, neither Eskom nor City Power had made any contingency plans to…