Star 2024-09-13

A lowering of South Africa’s high real interest rates, currently the highest in the world with homeowners paying an average R4 000 per month more on their bonds, could boost confidence in the construction sector in the fourth quarter, economist Dr Roelof Botha said yesterday. The Afrimat Construction Index (ACI) increased 8.8% in the second quarter over the first quarter, but the year-on-year decline was 1.9%, which was unfortunate against the background of the dire need for housing development and the associated infrastructure, Dr Botha said. He said the ACI was not alone in reflecting subdued economic activity, with the latest Absa/BER Purchasing Managers’ Index for manufacturing having slipped below the neutral level of 50 points. He said the residential property market had also been dealt a severe…

SIBANYE-STILLWATER CEO Neal Froneman expects improvements to South Africa’s operation environment and further strengthening of the rand under the Government of National Unity (GNU) after the gold and platinum group metals (PGM) and lithium-focused miner sank to a basic loss of R7.5 billion for the first half to June 2024. With operations across South Africa’s gold and PGM industry, as well as developing the Keliber lithium project in Finland, Sibanye-Stillwater also has exposure to the US PGM sector. However, it has had to impair the US PGM operations to an amount of R7.5bn during the period under review, with the company gearing to cut platinum and palladium production from the US by 200 000 ounces “in the face of low metal prices that pushed it to a half-year…

CELL C, SOUTH Africa’s fourth-largest mobile operator, is confident it will have enough cash to settle its shareholder debt due in the next three to five years, as it continues to execute a turnaround plan, its top executives said. Under CEO Jorge Mendes, the once struggling company is going through another recapitalisation aimed at gaining financial independence from majority shareholder Blue Label Tele-com. Mendes said the group’s free cash flow before debt obligations is expected to turn positive in about two months, while its operational cash flow is basically positive, chief financial officer, El Kope, added. “That’s a very good position, because that allows us to stop borrowing money to run the business,” Mendes said in an interview late on Wednesday. “Now we start looking at ways of how to…

ELECTRICITY and Energy Minister Kgosientsho Ramokgopa yesterday re- stamped nuclear as part of the energy mix with the 2 500MW nuclear procurement process back on track after cleaning up legal loopholes. Ramokgopa also punted the idea of small modular reactors (SMRs) as part of strategy, which could have negated the need for the building of 14 000km of electricity transmission lines. Addressing a Nuclear Seminar aimed at unpacking the role of nuclear as a part of the mix, Ramokgopa extolled the country’s nuclear intellectuals to take the lead in demystifying the technology for which the country had an at least 76 year lead. South Africa has been directly operating the Koeberg nuclear power plant for 40 years, and could now be exporting the technology and expertise to…

IN A wide-ranging and open interview, Rayhaan Survé, the deputy chairman of Sekunjalo Investment Holdings (SIH) and the Survé Family Office, expressed his opinions on the future of the country’s economy, the part BRICS will play in the development of the nation, and the difficulties the youth of South Africa face in a changing employment environment. Survé, who oversees the Group’s investment portfolio with a particular focus on technology, biosciences, and sustainability, provided insightful analysis on the country’s economic future, sustainability, and the possibilities of digital transformation to change the terrain. With rates around 60%, youth unemployment is one of the most urgent issues South Africa faces. Survé suggested digital transformation as a way South Africa could encourage the youth to be entrepreneurs. “Covid knocked us hard, and we are…

ECONOMISTS said yesterday that the recovery of productivity and activity across South Africa’s mining sector was expected to remain moderate, given the ongoing inefficiencies in port, rail and water supply sectors. Latest data from Statistics South Africa (StatsSA) yesterday showed mining activity slumping by 1.4% on a year-on-year basis in July, although mineral sales for the same month increased by 24.5%. Iron ore recorded the biggest slump at a negative 19% while other metallic minerals shed 36.2%. Gold output was 3.5% weaker, despite higher bullion prices, although manganese ore production rebounded by 27%, in addition to a 23% firmer in output of chromium ore. South Africa’s mining activity for July also decreased by 0.9% compared to June output, following month on month of -1.7% in June and -0.9% in…