Star 2024-11-08

Logistics company Grindrod has suspended port and terminal operations in Mozambique after South Africa temporarily closed the main border with its north-eastern neighbour over safety concerns after a violent crackdown on post-election protests, the company said yesterday. The suspension will hit the movement of goods and commodities in a region already battling with logistical bottlenecks as under-funded state-owned port and rail companies struggle to provide adequate services. At least 18 people have been killed in the protests, human rights groups have said, as opposition supporters demonstrate against what they say is a fraudulent election win by Frelimo, the party that has ruled Mozambique since 1975. South Africa’s border authority said on Wednesday that it had closed the Lebombo border after receiving reports of vehicles being torched on the Mozambique side.…

South Africa’s second largest grocery store, Pick n Pay, is gearing up for an aggressive expansion strategy that will see new outlets sprout across the nation from 2026. The retailer, which also has clothing outlets, is nearing the completion of a significant turnaround plan aimed at rectifying its previous struggles, including shrinking market share and substantial financial losses. This includes inroads in sorting out its balance sheet, a R4 billion rights offer that saw the Ackerman family relinquish control of what started as a family business, and listing Boxer Superstores to raise as much as R8bn. In a discussion with Business Report yesterday, Pick n Pay CEO Sean Summers articulated the company’s robust recovery initiatives that included shedding its Boxer brand through a public listing, closing downtrodden stores and refining…

South African retailers, particularly in the fast-moving consumer goods (FMCG), and tech & durables sectors, are set to benefit from heightened retail activity as consumer confidence starts to recover ahead of Black Friday. Consumer intelligence company NIQ South Africa yesterday unveiled its latest State of the Retail Nation analysis for the first nine months of 2024, revealing a clear shift in consumer sentiment and providing a solid foundation for anticipated sales growth as the Black Friday and festive seasons approach. According to NIQ’s data, 42% of South African consumers feel they are in a better financial situation compared to a year ago. This upbeat sentiment is, however, counterbalanced by persistent challenges, with 33% of respondents feeling financially worse off. Factors contributing to this sentiment include soaring living costs (80%), an…

South African region’s adjusted EBITDA represented a third consecutive record performance Global paper mill company Sappi yesterday reported that it has more than doubled its fourth-quarter dividend following a standout financial performance in South Africa. And despite the paper and packaging market continuing to be affected by global economic and geopolitical tensions, supply chain instability and fluctuating input costs, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the first quarter of 2025 was expected to be “significantly above that of the prior year”, CEO Steve Binnie said in a telephone interview yesterday. EBITDA for 2024 came to $684 million (R11.99 billion), exceeding management expectations, against the backdrop of a subdued global economic environment, low consumer confidence, and geopolitical uncertainty. Quarterly profit turned around to $79m from a $40m…

Every week there’s a commentator telling all and sundry about the township economy. How big it is, how lucrative it has become and all the trappings. No less than five years ago you couldn’t find any decent write up, statistics and basic research about this economy. The term itself was popularised by the former Gauteng Premier David Makhura and his team. So, what is this “township economy”. As part of our dipstick research, (yep, everybody is doing research in this market now) we got a chance to engage with some officials with the aim of understanding this enigma. They conducted research (here we go again) in to the nine biggest townships in Gauteng. Some of the interesting statistics from that was the identification of five major sectors that supposedly inform…

The South African sugar industry is poised for a significant transformation, buoyed by commitments from government officials to help sustain and diversify this essential sector. During a key meeting in Durban in Wednesday, Deputy Minister of Trade, Industry and Competition (the dtic), Zuko Godlimpi, alongside Deputy Minister of Agriculture, Rural Development and Land Reform, Zoleka Capa, announced plans to bolster the sugarcane-based value chain, particularly in the economically impactful regions of KwaZulu-Natal and Mpumalanga. Industry stakeholders, led by the South African Farmers Development Association (SAFDA), expressed enthusiasm for Godlimpi’s proactive approach. “He has displayed an impeccable grasp of our issues. We saw this being clearly demonstrated at the Executive Oversight Committee meeting for Sugar Master Plan yesterday,” said a SAFDA representative. “We look forward to working with the Departments of…