Star 2024-10-02

PIC manages Government Employee Pension Fund with 1.3 million members As the Public Investment Corporation (PIC) – South Africa's largest asset manager – approaches the R2.7 trillion benchmark in assets under management, taxpayers should be vigilant, cautioned prominent Chartered Accountant (CA) Khaya Sithole yesterday. Highlighting the crucial link between the PIC and government employees' pensions, Sithole warned that any shortfall in the PIC’s assets relative to its liabilities could pose a significant financial burden on the public. Founded 113 years ago, the PIC manages a diversified portfolio for clients such as the Government Employee Pension Fund (GEPF), which has almost 1.3 million active members from across the government, including those who serve as policemen, nurses, and teachers, among other entities. The GEPF’s diversified portfolio accounts for 87.97% of PIC’s assets…

Capitec lifted headline earnings per share by 36% to R6.4 billion in the six months to August 31 as the leading retail bank in the country in terms of customer numbers continued to draw new business from its digital, product diversification and client-centric solutions. The digital bank, now with 23 million customers, saw net transaction and commission income increase 19% to R6.9bn in an economy that barely grew. Value-added services and Capitec Connect revenue grew by a strong 79% to R2bn. Return on shareholder equity increased to 29% from 24% at the same time a year ago. The interim dividend was raised 36% to R20.85. Old Mutual Wealth Private Client research analyst Tasneem Samodien said personal banking led the way for Capitec, with strong headline earnings growth (48%) driven by…

South Africa’s automotive industry is clinging to optimism amid modest signs of recovery, driven mainly by the recent reduction in interest rates. In September, the South African Reserve Bank initiated a much-anticipated interest rates cutting cycle with a 0.25% reduction—an event expected to be the first in a succession of cuts over the next 18 months. This decision has been eagerly awaited by both consumers and economists, as the automotive sector grapples with a continued slump in vehicle sales and exports. The Automotive Business Council (Naamsa) reported yet another modest decline in total new vehicle sales for September, slipping by 4.1% to 44 081 units compared to the same period last year. Nevertheless, a glimmer of hope shines through as passenger car sales saw a slight uptick, hinting at a…

South Africa’s partnership between the government and the private sector, with phase two launched last night, has set itself the “stretch goal” of adding a million new jobs to the economy through adding 3% to gross domestic product (GDP) growth by 2025. The initial partnership was established in June last year to tackle the electricity supply crisis, the severe challenges in freight rail and port operations, and crime and corruption. These areas were identified as the most immediate obstacles to faster growth and job creation and resolving them was set to enable economic growth. Some 140 companies, with those listed being worth R11 trillion, representing 136 million employees are represented through the partnership. Addressing an audience of business leaders last night, President Cyril Ramaphosa, said: “If we can achieve, as…

Much has been written about Pravin Gordhan since his Friday 13 September death. Informed opinions range from depicting him as a god-like idol to satanic evil. His most cited crime was that he privatised South African Airways (SAA) and was privatising and destroying State-Owned Enterprises (SOEs). His final act was to choose to die in a private hospital. Whither NHI? After a brief pause, the radical “left” started speaking ill of the dead, accusing Gordhan of heinous capitalism despite being a devout communist and struggle hero. Contrary to their lie, he privatised nothing. Instead, he went to ideologically extreme lengths to preserve nationalisation at any cost. Social media turned against him. Half a million (70%) of social media posts were negative. His loved ones reminded us that he devoted and…

The demand for lithium-ion batteries (Li-ion) is set to soar dramatically over the next decade, with projections indicating the market will exceed $400 billion by 2035, according to a recent report by IDTechEx. At the heart of this explosive growth lies an ever-increasing utilisation of Li-ion batteries in consumer electronics, electric vehicles (EVs), and the widespread adoption of renewable energy sources reliant on efficient energy storage solutions. Dr Alex Holland, the research director at IDTechEx, said this research looked at the falling battery costs and how this will affect the Li-ion battery market long term. “The cost of raw materials such as lithium, nickel, cobalt, and graphite play a pivotal role in shaping the overall cost structure of lithium-ion batteries. As these materials are core components of a battery cell…