Star 2025-01-27

Lesetja Kganyago, South African Reserve Bank (SARB) governor, was unanimously elected to the office of Chancellor of Stellenbosch University (SU) on Friday. This follows the end of Justice Edwin Cameron’s term in December 2024. The Chancellor is the titular head of the University. An electoral college consisting of all members of the SU Council and the executive committee of the Senate met to elect the SU’s 16th Chancellor. Kganyago received an honorary doctorate from SU in 2018 and the SU viewed him as one of the finest public-policy minds in the country. In December 2020, Nelson Mandela University also conferred upon him an honorary Doctorate of Commerce. He holds a Master of Science degree in development economics from London University (School of Oriental and African Studies) and a Bachelor of…

Newly-inaugurated United States President, Donald Trump’s decision to remove that country from the Paris Agreement on climate change will adversely affect global momentum and South Africa’s ability to source funding from the US. Yet, it also presents an opportunity for South Africa to innovate and become a leader, as the most industrialised country in Africa – setting the tone and pace for Just Energy Transition (JET). The Minister of Forestry, Fisheries and the Environment, Dr Dion George, has expressed disappointment over Trump’s withdrawal from the Paris Agreement a week ago, soon after he was inaugurated as the 47th President of the world’s largest economy. “Americans have a pressing moral obligation, not only to lead in reducing emissions, but to support developing economies in contributing to the global effort, and to…

Richard Bay Coal Terminal is working with industry players and Transnet to find solutions Richards Bay Coal Terminal (RBCT) has set its sights on ramping up capacity and improving export volumes, but faces significant hurdles stemming from logistical challenges and operational inefficiencies. While the terminal offloaded an impressive 6 342 trains and exported 52 million tons of coal in 2024—an increase from 47.2 million tons the previous year—it is constrained by issues including spare parts availability, cable theft, and broader viability concerns. This was described as “really positive” by executives at the company on Friday during a media tour. “We are navigating complex logistics challenges (and) our key to success is to collaborate with Transnet. We are on an operational efficiency drive and we are intensifying our efforts to…

The rand remained stable over the weekend at a range of R18.38 - R18.41 against the US dollar, maintaining its rebound that started on 10 January, as the South African Reserve Bank (SARB) is poised to lower the costs of borrowing this month. The SARB is expected to announce a 25 basis points rate cut on Thursday on the back of slower pace of inflation after the headline consumer price index increased to 3% in December from 2.9% in November, mainly driven by slower deflation in transport and increasing food inflation. Consumer prices, one of the main factors for monetary policy decisions, remain at the lower end of the SARB’s 3-6% target range and still below the 4.5% midpoint for five consecutive months now. Inflation is forecast to drift upwards…

Adrian Gore, the CEO of Discovery, said in a LinkedIn post on Friday that he had a fascinating few days at the World Economic Forum’s Annual Meeting in Davos and wanted to share a few things that stood out to him. The first is the transformation in sentiment around South Africa, both from within the country and from the global business and investment community. Ending loadshedding and the partnership between business and the government has created a completely different dynamic, which we need to capitalise on. South Africa’s leadership of the B20 and G20 will also play a key role in this. There is really a sense of a different emerging South Africa. The big institutional investors see a difference. “So that is very powerful,” he said in a video…

The trade policies and rhetoric under Donald Trump’s administration have significantly influenced global markets, including South African equities. In November, Trump announced aggressive tariffs targeting China, Mexico, Canada, and other nations. A US weighted average tariff of up to 18% spurred fear-driven markets, with US Treasury yields increasing aggressively as investors priced in heightened economic uncertainty. This raised concerns about a potential global trade war, a scenario that could halt global trade and significantly impact economies. While Trump’s rhetoric has been aggressive, it is unlikely that he will implement such extreme tariffs. His advisory committee includes sound economic advisers, and his first term demonstrated strategic targeting with focus more towards intermediate goods, protecting consumers. Trump is likely to adopt a more measured approach, as evidenced by his comments during an…