Star 2024-09-30

Group’s ‘strategic clarity and cash generative operations’ place it in a strong position RCL FOODS, after successfully separating from Rainbow this year and Vector Logistics in 2023, will focus on scaling up its remaining businesses, CEO Paul Cruikshank said in the annual report released on Friday. The group’s “strategic clarity and cash generative operations” places it in a strong position to consider potential bolt-on acquisitions, and a number of opportunities had been investigated in the past year, he said. “Our central business services platform remains a key strategic capability in this regard,” he said. Group brands include Yum Yum, Ouma, Epol and Canine Cuisine. Organic growth via expansion into adjacent categories and new geographies would also be pursued, with the recently-integrated KwaZulu- Natal-based Sunshine Bakery business being an example. He…

The SOUTH African Sugar Association (Sasa) says the industry is trying to become a sugarecane-based one rather than just a sugar industry, a move that requires diversification and producing more product from the sugarcane stalk than sugar only. Sasa national market and trade director Sifiso Mhlaba said the association had done extensive research in this regard, looking at countries that had done so successfully. “Those countries include Brazil and India. What is very clear is the role of government and the creation of an enabling environment to ensure that the sugar industry can diversify, produce these alternative products and be sustainable,” Mhlaba said. In a media engagement in Cape Town last week, Sasa said the industry has pursued alternate revenue streams, focusing on renewable energy, to move away from only…

THE AIR TRAFFIC and Navigation Services (ATNS) has devised a five point in- strument flight procedure plan, ap- proved by the South African Civil Aviation Authority (Sacaa), in response to the surge of concerns about South Africa’s failing airline activities. This follows mishaps ranging from poor maintenance of runway lights to the recent suspension of ATNS, which forced airlines to incur additional expenses in alternative arrangements. The plan comes as Transport Minister Barbara Creecy, under pressure to take action at the height of concerns of the downgrade of the RSA airspace, mandated reforms from the ATNS in early August. ATNS’ five instrument flight procedures for OR Tambo International Airport and Polokwane International Airport includes procedures that are pending approval from Sacaa, that related to airports that are…

PROFITS from half-year operations for the period ending in June in Gemfields fell from $36.4 million to $26.4m after revenues and earnings before interest, tax, depreciation and amortisation (Ebitda) slowed down. Sean Gilbertson, CEO of Gemfields, said on Friday that the company had operated against a difficult operating environment for the period under review. “Gemfields is working through a complex year, balancing the avail- ability of cash with the considerable investments we’re making at the Kagem emerald mine in Zambia, the Montepuez ruby mine in Mozambique and our development assets,” he said. Construction of MRM’s $70m second processing plant was however on time and within budget for completion before the end of this year. On completion of this, Gemfields is looking forward to tripling its ore processing capacity. This would…

THE INTERNATIONAL Day of Non- Violence invites us to reflect on how in the South African and African contexts our economies remain deeply entangled in conflict and violence – and what we all can do to reshape them for peace positive development. On October 2 each year, the UN invites us all to recognise the International Day of Non-Violence, intending to help “to secure a culture of peace, tolerance, understanding and non- violence”. This builds from the “sacred right to peace” enshrined in the UN Declaration on the Right of Peoples to Peace. For those of us who move in the business and development spheres in Africa, reflection on this day might lead us to admit that our economies and the role of the private sector within them are far…

THE PAST WEEK saw Chinese stocks rise by 20% to 30% following the Chinese government’s announcement of measures to stimulate the economy. This caused much excitement in the market, although some investors are sceptical about whether this rally will continue and translate to real economic growth or if it is just another flash in the pan. It didn’t take much to boost the stocks; most investors were underweight on Chinese stocks due to an under-performing economy, high interest rates and a housing market slowdown, which was reflecting in Chinese equities as stocks were trading at relatively low margins. It is no surprise that stock prices jumped significantly. Stock of the week: Tencent The PPS Managed Fund has had relatively high exposure to Chinese stocks before the government intervention and was…