Star 2024-09-11

TWO OF THE world’s largest shipping companies, Maersk and Hapag-Lloyd, have announced two new potential networks, one of which goes past the Cape of Good Hope, in a move that could be indirectly positive for South Africa’s economy. The two entities, which unveiled a long-term collaboration in January 2024, indicated in a statement yesterday that the alternative Cape of Good Hope network was being proposed “due to the ongoing disruptions in the Red Sea”. They are also looking at a Trans-Suez Network. The chosen network will be unveiled in October. Maersk had already said earlier this year that it would divert all vessels around Africa instead of using the Red Sea and Suez Canal for the “foreseeable future” after Yemeni rebels attacked its merchant ships. On Maersk’s website, it states:…

MANUFACTURING activity in South Africa is expected to rise sharply for the remainder of the year, supported by the suspension of load shedding and lower interest rates, after output started the third quarter of 2024 on a solid note, rebounding more than expected in July. Data from Statistics South Africa (StatsSA) yesterday showed that manu- facturing production in South Africa rose by 1.7% year-on-year in July, recovering from a revised 5.5% decline in June. The manufacturing print in July was more than an expected 0.7% increase, and marked the first rise in industrial activity after two consecutive months of decreases. StatsSA yesterday said manufacturing production ramped up due to a sharp rebound in the production of food and beverages, and basic iron and steel, non-ferrous metal products, metal products and…

CAXTON & CTP Publishers and Printers (Caxton) yesterday retracted statements it made in a dispute with Mpact, which it was attempting to acquire, after the JSE publicly censured the media company yesterday. Caxton is paper and plastics packaging and recycling company Mpact’s biggest shareholder, with just more than a third of its shares as at December 31. It had, at the time of the dispute in 2022, sought to take control of Mpact. “The JSE has concluded that Caxton has breached the JSE Listings Requirements by publishing certain statements in Caxton’s announcements dated August 12, 2022, and October 6, 2022, respectively. Accordingly, Caxton hereby retracts the following previously published statements,” Caxton directors said in a statement on the JSE’s news services yesterday. Statements it retracted included one made on August…

ANGLOGOLD Ashanti’s $2.5 billion (R44.8bn) acquisition of smaller rival, Centamin, which operates Egypt’s biggest gold mine, has been approved by its board, although shareholders in the SA and New York-listed miner reacted indifferently, with the company’s share price falling by 4.9% just before the close of yesterday’s trade session on the JSE. Shares in AngloGold Ashanti fell to R483.50, extending the stock’s 3.84% and 4.45% loss of value in the past seven and 30 days respectively. In contrast, shares in Centamin, which is listed in London, appreciated by 23.68%. AngloGold Ashanti recommended the acquisition at a premium of 37% to Centamin’s share price of 120 pence as at the close of September 9. Market analysts said the acquisition was a significant merger transaction in the gold sector, which…

THE DEVELOPMENT Bank of Southern Africa recently published a working paper on the hydrogen economy. As the world turns towards greener energy solutions, hydrogen stands out as a transformative force in our quest for sustainability. Development Finance Institutions (DFIs) are playing an important role in nurturing this growing sector, particularly in emerging markets and developing economies. Their involvement goes far beyond just providing funds, they are shaping the future of hydrogen by managing risks, influencing policies and offering crucial technical support. Bridging the financial gap Hydrogen technology holds incredible promise, but it demands substantial investment. In developing countries, where the annual need for funding can reach around $100 billion (R1.8 trillion), traditional financiers often hesi- tate due to the high risks and costs involved. This is where DFIs…

DONALD Trump’s plan to force dollar dominance in global trade has a high risk of causing economic disruption that could ultimately weaken the US currency, according to a long-range scenario by a Commerzbank strategist. In a note this week, Ulrich Leuchtmann, the bank’s head of foreign exchange research, analysed a theo- retical chain of events that could play out in US financial markets if Trump’s threat to impose 100% tariffs on countries that shun the dollar, a pledge made at a rally in Wisconsin on Saturday, becomes reality. In Leuchtmann’s view, investors should pay attention to Trump’s campaign promises. He warned that prohibitive tariffs could have the opposite of their intended effect. It was possible that the harsh policy would be an incentive for countries to move away from the…