Star 2024-09-25

Businesses in South Africa are feeling a bit more confident about the country’s policy direction as a result of structural reforms embarked on since the formation of the Government of National Unity (GNU), and the continuing suspension of load shedding. This is revealed in the North-West University (NWU) Business School Policy Uncertainty Index (PUI) for the third quarter of 2024 published on Monday, which has substantially eased to 53.5 points from 68.3 points in the second quarter, but remains above the baseline of 50 points. NWU Business School economist Professor Raymond Parsons said the considerable easing was the outcome of various positive factors that, on balance, outweighed the negative ones over the past three months. Parsons said that to a large extent, that reflected the blend of reduced…

Sentiment in the retail industry in South Africa has ticked up, though it remains in contractionary territory as consumers have begun feeling confident that the cost of living is slightly easing. The Bureau for Economic Research (BER) said on Monday that business confidence among retailers increased by six percentage points to 45% in the third quarter after aligning with the long-term average in the second quarter. The BER said that consumers’ real disposable income was boosted by inflation at a three-year low while the absence of load shedding, the market-friendly election outcome, and expectations of an interest rate-cutting cycle likely also contributed to the rise in confidence among retailers. The BER’s retail survey echoed the de- celeration in price growth indicated by headline consumer price inflation, which slowed for a…

Mining company lands a funding grant from the US government SOUTH32’s plans to advance its Arizona- based Hermosa project towards manganese production has received a boost after the company landed a $166 million (R2.9bn) funding grant from the US government. With existing manganese operations in South Africa and Australia, South32 invested $372m at Hermosa – which is also earmarked to produce zinc and copper – during its 2024 full year. This investment was sunk into installation of critical path infrastructure as well as progressing studies and permitting, including for the Clark manganese segment of Hermosa. The US Department of Energy has now granted South32 up to $166m in funding to develop battery-grade manganese. The commodity is a key component in the renewable energy industry as it is a stabilising component…

South African Reserve Bank (SARB) Governor, Lesetja Kganyago yesterday said that “central banking is a punching bag” and that everybody had an opinion on how it should be conducting itself in terms of monetary policy. Kganyago was addressing an audience during a memorial service hosted by the South African Revenue Service (Sars) for Pravin Gordhan, an anti-apartheid activist who held various government posts including as Commissioner of Sars and Minister of Finance. Speaking just days after the SARB’s Monetary Policy Committee voted to drop the interest rate for the first time in four years, Kganyago said: “If you want to destroy a democracy, go for his (Gordhan’s) institutions. Undermine those institutions. Attack those institutions.” He added: “And I am speaking be- cause central banking is a punching bag. In South…

RECENTLY, I had the privilege to represent the Citrus Growers’ Association Grower Development Company (GDC) at Asia Fruit Logistica in Hong Kong. The conference is the biggest gathering of global fruit exporters to Asia, and countries such as China, Vietnam, South Korea and India represent huge growth opportunities for South African fruit exports. The delegation of GDC officials was there to represent the growing interests of black citrus growers in South Africa, and as a testament to how the grouping has been able to commercialise their enterprises and take part in South Africa’s citrus success story. President Cyril Ramaphosa recently mentioned the success when he spoke in Parliament about the Agriculture and Agro-processing Master Plan, a government tool designed to address ownership, production and market access for designated groups. Ramaphosa…

The INTERNATIONAL Renewable Energy Agency (Irena) said on Monday that renewables remained competitive, despite fossil fuel prices returning closer to historical cost levels. According to the Irena’s Renewable Power Generation Costs in 2023 report released on Monday at the Global Renewables Summit during the UN General Assembly, utility-scale renewable projects had lower costs than their fossil fuel-fired alternatives, with renewable power capacity additions setting a record of 473GW in 2023, 81% or 382GW of newly commissioned. Irena’s director-general, Francesco La Camera, said renewable power remained cost-competitive vis-à-vis fossil fuels. “The virtuous cycle of long-term support policies has accelerated renewables. In return, growth has led to technology improvements and cost reductions,” La Camera said. “Prices for renewables are no excuse any more, on the contrary. The record growth of renewables in…