Star 2024-11-13

MultiChoice Group, which is in the process of becoming part of the France-based global broadcast group Canal+, said yesterday that it anticipated resolving its negative equity position by the end of this month. The results for the six months to September 30, released yesterday, showed that trading profit fell by 46% due to foreign exchange headwinds in the Rest of Africa business (R2.3 billion) and investment in Showmax (R1.6bn). MultiChoice chief financial officer Tim Jacob said that the group has faced unprecedented external headwinds in the past year, the most notable being currency depreciation that has reduced trading profit by close to R7bn over 18 months. Falling subscriber numbers were also problematic in Nigeria and Zambia, in particular, due to the weak consumer environment in Nigeria, and load shedding currently…

The rand shrugged off the positive data that South Africa had reduced its unemployment rate and plunged to its lowest in three months yesterday pressured by a stronger dollar and lower precious metals prices. Statistics South Africa (StatsSA) yesterday said the official unemployment rate fell by 1.4 percentage points to 32.1% in the third quarter of 2024, down from a two-year high of 33.5% in the second quarter. Despite this, the rand continued to take a hammering from the stronger dollar, which has strengthened since Donald Trump won the 2024 US presidential race. The domestic currency fell by 1% to R18.10 against the greenback, its weakest since mid-August, reflecting broader caution in emerging markets and wary of the economic impact of Trump’s trade actions and potential inflationary fiscal policies. Investec…

Renergen’s application to have construction suspended on a solar plant being built on disputed land at its onshore gas facility has been rejected by the Department of Mineral and Petroleum Resources (DMRE), according to the solar facility developer SOLA Group, but Renergen says the matter is not yet finalised. SOLA Group, which is 40% owned by well-known businessman Patrice Motsepe, said in a statement the DMRE had rejected a suspension application submitted by Tetra4, a subsidiary of Renergen, which would have seen all construction work on the SOLA Group’s 195MW Springbok solar project suspended. If built, it will be the biggest facility of its kind in South Africa. “We are happy that the department’s decision today confirms we have all lawful permits in place and may continue construction on the…

South Africa is rapidly gaining recognition as an attractive destination for global investors thanks to its strategic positioning and abundant natural resources. Amid a climate of political stability and commitment to national unity, South Africa stands out for its relatively low valuations compared to other emerging markets such as the BRICS nations. This creates a fertile ground for foreign direct investment (FDI). Currently, South Africa trades at a significant price-to-earnings (PE) discount relative to both developed and emerging markets. This presents a prime opportunity for foreign investors to deploy capital to JSE-listed stocks at appealing levels, with potential upside from a predicted market rally. Over the past year, the JSE All Share Index (ALSI) has outperformed counterparts like the FTSE All Share and EuroStoxx, driven by investor optimism surrounding the…

SA Canegrowers warned yesterday that KwaZulu-Natal’s sugarcane growers were facing a challenging season as unusually dry weather has driven this year’s harvest to 10% below the average yield. Higgins Mdluli, chairman of SA Canegrowers, said the 2024 season’s reduced yield underscored the increasing vulnerability of the industry to climate pressures, particularly for their rain-fed growers. Mdluli said that from 2020, South Africa’s cane growers produced an average of 18 million tons of sugarcane per season but this season will yield a crop of under 17 million tons. “While we are fortunate to still meet local demand, the reduced export potential impacts our growers’ income and the broader economy,” he said. Mdluli said the most affected areas were the North Coast, South Coast, and Midlands, but the drier-than-usual season affected most…

Consumers are still under severe financial strain although sentiment has improved since the suspension of load shedding, the formation of a coalition government, reduced inflation and interest rates, and the ability to access some retirement savings. This is revealed in DebtBusters’ Q3 2024 Debt Index, which was released yesterday. According to the quarterly evaluation of debt counselling applications, demand for debt counselling increased by 6% compared to the same quarter last year and online debt management grew by 10%, despite a series of positive developments. Benay Sager, executive head of DebtBusters, said income growth has not kept up with significant cost increases over the past eight years, and consumers were using short-term unsecured credit and personal loans to make up the shortfall. As a result, consumers need to allocate two-thirds…