Star 2024-11-01

Glencore has been hammered by export rail constraints in South Africa, with its export thermal coal production taking a knock in the three months to September, although output of copper was higher. The diversified resources group’s overall energy coal production of 73.1 million tons for the quarter was down 7% on the comparable 2023 period. Glencore yesterday said this was a reflection of “the progressive impact of scheduled mine closures, longwall moves in Australia in 2024, export rail constraints in South Africa and permit delays” at Cerrejón. Glencore’s South African thermal production at 12 million tons for the period under sagged by 1.3 million tons or 10% compared to the same period a year earlier. The miner said it was prepared to ramp up production should Transnet restore rail capacity.…

Diversified resources group doubles back on statements made to shareholders last week BHP is keeping its options open regarding the prospect of a renewed bid for Anglo American despite having already solidified its copper portfolio. The diversified resource group was yesterday forced to double back on chairman Ken MacKenzie’s statements to shareholders earlier in the week. Mackenzie told shareholders this week that BHP has moved on after Anglo American rebuffed its offer. BHP, which was mainly interested in Anglo American’s copper portfolio after suggesting the spinning off of units such as Anglo American Platinum as a condition to its offer, yesterday said it now has a firm copper portfolio. “We have achieved a world-leading position in copper, which is key to renewable energy, electric vehicles and, increasingly, data centres,” said…

Finance Minister Enoch Godongwana has reiterated that South Africa’s main challenge in resolving its problems was weak economic growth, not the enormous government debt burden, which is forecast to breach R6 trillion in 2025/26. Speaking at a breakfast event with RMB yesterday to ruminate about the 2024 Medium-Term Budget Policy Statement (MTBPS), Godongwana said the country had to focus on gowing the economy. Presenting the MTBPS on Wednesday, Godongwana has said South Africa’s government debt was unsustainable and the National Treasury was anticipating that government debt will reach more than R6.05 trillion, or 75.5% of gross domestic product (GDP) in 2025/26. “South Africa has a growth problem. If you’ve got a growing economy, it will solve the problem of unemployment. It will solve the problem of poverty. So South Africa…

Trade minister Parks Tau said the country was pursuing more robust trade and investment ties within the continent and with China – its biggest trade partner – as the global trade environment becomes increasingly fraught. Tau told Reuters that while he had extensive and positive engagements with leaders in the US, and collaborative relationships with Europe, South Africa was keen to develop more trade within Africa. He said that globally, trade was becoming increasingly complicated as the US and China imposed tariffs on each other, while Europe had added carbon import taxes. “There’s almost an undeclared trade war,” he said after attending the FT Africa summit in London. “It has a direct impact on us.” Concerns have risen among global finance leaders that if Donald Trump were to win next…

With its diversified economy, robust industrial base in East Africa, and strategic location as a regional trade hub, Kenya is uniquely positioned to capture a portion of the market shift as companies look for alternatives to China and other non-native trade markets. This favourable positioning allows Kenya to attract competitive brands and encourage international manufacturers, producers, and investors in the textile industry to take advantage of first-mover benefits. Kenya has preferential access to markets within the region, the European Union, the US, and Asia that can create a platform for locally produced goods for both local and international markets. The country is actively enhancing its critical infrastructure to lower business costs, facilitate the movement of people and goods, boost competitiveness, and attract investment in key sectors such as manufacturing. Kenya’s…

Two of the biggest brewers Anheuser-Busch InBev and Carlsberg sold less than forecast in the third quarter as consumers, particularly in China, cut their spending by drinking less or choosing cheaper beer. The world leader AB InBev's profits and revenues fell short of analyst expectations, sending its shares almost 4% lower as a $2 billion (R35bn) share buyback and a guidance raise failed to win over investors. Its volumes and revenues slipped by double digits in China, with other large territories the US, Mexico and Europe also seeing volume declines. AB InBev cited lower consumer demand, and said sales in bars and restaurants in China were particularly slow. Beer makers had anticipated a rebound in margins and volumes this year, but sluggish economies and high inflation and interest rates have…