Star 2024-10-16

Nedbank Private Equity (NPE), through the Nedbank Corporate and Investment Banking division, and Mineworkers Investment Company (MIC) have partnered to acquire a majority stake in black-owned Tropic Plastic and Packaging Industry (Tropic). The transaction for an undisclosed sum will see the existing management team of Tropic also acquire a minority interest in the business. The deal not only secures a substantial realisation of investment of a pioneering black-owned business, but also charts Tropic into a new phase of growth from a family-owned business into a private-equity owned business, a statement said yesterday. Tropic was founded in 1963 and has grown from a family-founded and run business into one of the largest privately owned, fully integrated producers of flexible packaging products in Africa. “This acquisition not only enhances our portfolio but…

The South African Revenue Service (SARS) has granted fuel importers a special one-year permission to import kerosene fuel, following an engagement with industry to avert fuel shortages at all airports. This decision follows urgent warnings from the local fuel industry regarding the risk of severe fuel shortages at all major airports, particularly in the wake of refinery closures in KwaZulu-Natal. The implications of this development are far-reaching, underscoring the importance of stable fuel supplies not only for the aviation sector but also for the broader South African economy. On Monday, industry representatives raised alarms about dwindling aviation fuel supplies, urging SARS to extend the existing time-bound licence for jet fuel imports. The concerns were heightened by the closure of the Engen and Sapref refineries, which has critically impacted the production…

In a landscape marked by economic turbulence, the South African Chamber of Commerce and Industry (SACCI) has reported a modest rebound in its Business Confidence Index (BCI) for September 2024. Following a decline earlier this year, the BCI reflected a slowly revitalising business climate, albeit shadowed by persistent underlying challenges that define the current economic context. Releasing the September data yesterday, SACCI indicated that the BCI had seen a decline of 6.9 index points from March to May 2024. Fortunately, by August the index had bounced back, gaining 3.7 index points, only to slip again to 110.2 in September. Despite this fluctuation, SACCI’s CEO Alan Mukoki and economist Richard Downing described the year thus far as a period of steady recovery, with the overall average for the first nine months…

The South African Reserve Bank (SARB) has said that it was keenly aware that while economic storms may be clearing, a cautious approach remained vital. As the nation readies for the final Monetary Policy Committee (MPC) meeting of the year next month, SARB Governor Lesetja Kganyago conveyed an optimistic yet tempered outlook during the second Monetary Policy Review held yesterday. Opening with a tribute to the late former SARB Governor and former finance minister Tito Mboweni, Kganyago addressed the audience with words of encouragement, stating that there were now “signs that the storm is clearing.” This statement marks a significant shift since the previous meeting in April, a time when South Africa was grappling with a precarious balance of inflationary concerns, fragile growth, and heightened political unease. Currently, Kganyago said,…

SOE tells Parliament that its position has weakened, with debt at about R230 billion Transnet’s high debt of about R230 billion and a maintenance backlog of over R70bn were among the most serious stumbling blocks to its recovery plan, the utility told the Parliamentary Portfolio Committee on Transport yesterday. The rail, ports and pipelines operator said despite these challenges, the implementation of a recovery plan had shown positive results, with a notable 28% improvement in coal corridor performance, and a total of 771 metric tons of rail freight transported over 24 weeks. It said a decline in profits had been accelerated by legal obligations, after the Gauteng High Court earlier this year awarded Sasol and TotalEnergies R6bn in damages over a battle with Transnet over tariffs for the transportation of…

In a strong message to the international business community, Minister of Trade, Industry and Competition Parks Tau, declared the country “open for business” during the third Business Forum Southern Africa & Indian Ocean held yesterday. Speaking via video link from Cape Town, Tau encouraged French businesses to seize the opportunity to invest in a nation characterised by stable governance and a resilient democracy. “The ties between French companies and South Africa run deep, and we are aiming to strengthen those bonds with strong engagement with investors,” Tau stated, underlining the potential for further collaboration between the two nations. “With approximately 500 French companies operating in South Africa, employing nearly 70 000 people and pledging an impressive R70 billion in investments since 2018, the groundwork for future partnerships seems promising.” The…