Star 2025-01-31

Eskom made a R17.83 billion profit in the six months to September 30, a very strong turnaround over the R55.02bn loss at the last year-end, due to better cash flows, higher tariffs and state debt relief, but liquidity remains a longer-term risk. Profit before finance costs nearly doubled to R40.7bn, from R21.87bn at the end of the interim period last year, the utility, which this week celebrated more than 300 days without having to implement loadshedding, said in its interim results. Further indication of a restoration of balance sheet health was the R33.01bn cash balance, double the R16.36bn held in cash at the same time last year, which the utility’s board said was mainly due to the debt relief support received, as well as the improvement in the cash…

Projections from National Treasury reveal that SA’s government debt will exceed R6.05 trln The International Monetary Fund (IMF) is weighing proposals for South Africa’s government to adopt a "debt-ceiling" strategy akin to that of the US government, aiming to address the nation’s rapidly escalating and unsustainable debt burden. This suggestion unfolds as the IMF emphasises the need for the South African government to embrace more ambitious fiscal consolidation efforts in a bid to mitigate the country’s rising debt levels and fortify its fiscal buffers. Projections from the National Treasury reveal that South Africa's government debt, currently standing at R5.2 trillion, is expected to exceed R6.05 trln, constituting 75.5% of gross domestic product (GDP) by the 2025/26 financial year. Alarmingly, debt-service costs are fast becoming the predominant component of government expenditure,…

Fintech group Lesaka Technologies' deal to acquire 100% of the issued and outstanding ordinary shares of Recharger for R507 million has got the green light from the Competition Commission, but with conditions.“The Commission has approved the proposed transaction whereby Lesaka SA intends to acquire Recharger, with conditions,” it said in a statement on Thursday. Lesaka, formerly called Net1 UPS, is listed on the JSE as well as the Nasdaq. The Lesaka Group is active in financial technology and uses its proprietary banking and payment technologies to deliver financial services solutions and software to merchants in Southern Africa. Recharger is a South African prepaid electricity submetering and payments business with a base of over 460000 registered prepaid electricity meters. Recharger enables landlords to collect payment for utilities usage from tenants in…

The South African Reserve Bank (SARB) has adopted a circumspect stance regarding the potential for further interest rate cuts this year amidst a backdrop of uncertain global economic conditions. The SARB on Thursday cut its key interest rate by another 25 basis points to 7.50% per annum as anticipated, marking the third successive reduction since September 2024. SARB Governor Lesetja Kganyago said four members of the Monetary Policy Committee (MPC) preferred this action, while two supported an unchanged stance. The SARB's announcement follows after the US Federal Reserve (Fed) announced on Wednesday that its interest rate will be kept unchanged following a 25 basis points cut in December, the third consecutive interest rate cut for a cumulative 100 basis points last year. Riaan Grobler, head of advisory services at Everest…

Parliament’s Portfolio Committee on Communications and Digital Technologies has proposed the removal of business rescue practitioners (BRPs) of the South African Post Office (SAPO), Anoosh Rooplal and Juanito Damons, in a decisive move reflecting growing frustration over its precarious state. The committee’s dissatisfaction stems from the duo’s failure to formulate a viable plan to restore the entity’s liquidity and solvency, leading to a substantial burden on taxpayers, as highlighted by committee chairperson Khusela Diko during a media briefing on integrated portfolio clusters on Thursday. Diko said the committee had, after three meetings with the rescue practitioners, remained unconvinced by their ability to future-proof the State-Owned Entity and propose its sustainability. She said the committee had resolved to approach Minister of Communications and Digital Technologies, Solly Malatsi, in a bid…

The Beefmaster Group has expressed cautious optimism for the future of South Africa’s beef industry despite challenges faced in 2024. Gert Blignaut, CEO of Beefmaster Group, on Thursday said that last year was tough for the business and the industry. “Slaughter prices continued to fall, input prices such as feed prices continued to rise, and farmers' calf prices couldn’t get off the ground,” he said. “The consumer faced significant financial strain, resulting in low spending. Despite these challenges, production volumes showed remarkable resilience.” Blignaut said that it was likely that the industry reached the highest slaughter figures of the last six years, with about 2.8 million cattle going to slaughter in South Africa. However, he said this increased supply and lower demand due to constrained consumer spending put additional pressure…