Star 2024-10-30

Shoprite Holdings’ share price increased up to 4.2% on the JSE yesterday after it reported increased sales by 10.4% in its first quarter to end-September 2023, over the same time last year. The sales increase is strong considering sales rose by 12% in the group’s 2024 financial year to end-June to R240.7 billion, driven by their core South African supermarkets segment, while yesterday, Shoprite’s nearest rival Pick n Pay reported only a 3.7% increase in turnover in the 26 weeks to the end of August. The share price was trading at R303.13 yesterday afternoon on the JSE, which represented a 25% increase over 12 months and 61% increase over three years. In an operational update, the group said that 68 stores were opened during the first quarter. The majority of…

Transnet, the State-owned transport utility struggling for financial and operational viability, said yesterday it was amending its supply chain management (SCM) and procurement policies (TPP) to help it become more efficient and enable it to reach long-term partnerships with private sector companies. The utility said in a statement carried on the JSE’s news service that the amendments would improve efficiency in its procurement processes. The amendments would enable it to implement the departures from Treasury Instruction notes, granted by the National Treasury. Transnet’s plans to reach a greater number of partnerships with private sector companies to bring the State-owned utility back on its feet have been met with some political opposition. For instance, the Democratic Alliance expressed concern that Transnet’s past track record of corruption might deter potential business partnerships,…

Mobile network operator was set to own between 30% and 40% of the entity Vodacom, South Africa’s second- largest mobile network operator, could well appeal a Competition Tribunal ruling prohibiting a proposed multibillion-rand merger between it, Dark Fibre Africa (DFA) and Vumatel to create what would have been South Africa’s largest fibre operator. In a statement issued yesterday, the Tribunal said its reasons for the decision would be issued later. The Tribunal’s order follows the Competition Commission’s initial recommendation in August last year that the proposed merger be prohibited. Vodacom sought to buy DFA and Vumatel from Remgro through a combination of R6 billion cash and the contribution of some transmission access fibre network infrastructure at a valuation of R4.2bn, which would have expanded Maziv into the largest fibre infrastructure…

Minister of Finance Enoch Godongwana will today deliver the 2024 Medium- Term Budget Policy Statement (MTBPS). The MTBPS plays an important role by providing a mid-year review of fiscal performance around the targets set in the February Budget, noting any reallocations or adjustments to spending that have become necessary since the Budget was approved. The 2024 MTBPS is being presented amid a moderately improved economic outlook and the establishment of the Government of National Unity, which has pledged its commitment to prudent fiscal policy aimed at stabilising debt. Here is the 2024 MTBPS wish list of some organisations: n Board of Healthcare Funders (BHF): National government must announce two interventions to improve the affordability of private health care. 1. Permitting medical schemes to offer low-cost benefit options. Over nine million…

Shareholders in Centamin have passed resolutions giving approvals for AngloGold Ashanti’s acquisition of the company for $2.5 million (around R44 million). This comes as AngloGold Ashanti last month announced that its board had approved its decision to acquire Centamin, which operates Egypt’s biggest gold mine. The Egyptian mine has produced over 5.9 million ounces of gold since production started in 2009. “Today’s transaction will add a Tier 1 asset to our portfolio,” said AngloGold Ashanti CEO, Alberto Calderon. “The transaction is free cash flow accretive in the first full year of production and net asset value accretive from day one; it will also offer additional upsides as we leverage our corporate infrastructure and our core competencies in exploration, operations and asset optimisation.” Centamin yesterday confirmed that shareholders had, at meetings…

Demand for credit by businesses and households in South Africa is expected to ramp up in the months ahead as the South African Reserve Bank (SARB) has begun its interest rates easing cycle on the back of slowing inflation. Private sector credit extension (PSCE) data from the SARB yesterday showed that private sector credit slowed to 4.6% year-on-year last month, easing from a more than one-year high of 4.9% increase in August. However, the figure was stronger than the market’s expectations of 4.0% growth, marking the 39th consecutive month of growth in private credit albeit at a softer pace. Credit uptake by corporates, which constitutes more than half of total PSCE rose by 5.7% when compared to the same period last year, just moderately below August’s elevated reading of 6.4%.…