Star 2025-02-14

Volvo confirms its intent to refine operations, decrease number of local dealerships VOLVO Cars South Africa’s bold shift towards electric vehicles (EVs) has stirred up controversy, with workers’ representatives yesterday strongly opposing the company’s announcement of a restructuring plan that includes reducing its dealership network. This strategic shift, meant to bolster Volvo’s position as the top-selling electric vehicle brand in the country, has raised concerns about job security among employees. Volvo is reportedly refining its operations, including adjustments to its marketing and commercial strategy, which will strengthen how Volvo vehicles are positioned and retailed through the dealer network as the top-selling EV brand in South Africa. Volvo confirmed its intent to refine operations, indicating that the number of local dealerships would decrease, although it did not specify the extent of…

iOCO, the new name for EOH Holdings since December 2024, has turned the corner and investors rewarded it with a sharp 10.56% rise in the share price on Thursday afternoon. A trading statement showed that it expects to lift headline earnings a share between 270% and 290% for the six months to January 31, 2025. The share price was trading at R2.81 late Thursday, more than double the R1.17 it traded at a year ago. The group has also appointed new leadership. Earnings per share is expected to be between 18 cents and 21 cents, an improvement of between 220% and 240% from the loss per share of 15 cents reported for the comparative six months ended January 31, 2024. Headline earnings per share is expected to be between 19…

FutureCoal launched its Southern Africa Chapter on Thursday, with Seriti Resources CEO Mike Teke appointed as its inaugural chairman, marking a significant milestone for the coal industry in Southern Africa. This initiative brings together four leading coal-rich nations: South Africa, Mozambique, Zimbabwe, and Botswana, which collectively possess an estimated 150 billion tons of coal reserves, cementing their status as major players in the global coal landscape. The new Chapter aims to build on FutureCoal’s commitment to champion sustainable transformation across the entire coal value chain. By uniting industry leaders, governments, and international partners, it seeks to establish consistent policies and strategies that promote the responsible and sustainable use of coal—an essential resource in sectors such as power generation, heavy industries, critical minerals, and hydrogen production. “Launching the inaugural FutureCoal…

Finance Minister, Enoch Godongwana will deliver South Africa’s 2025 National Budget Speech on 19 February 2025 against the backdrop of persistent economic challenges and a constrained fiscal environment. Balancing growth and fiscal sustainability Despite the initial optimism following the formation of the Government of National Unity (GNU), South Africa’s economy remains constrained. The key theme for this year’s budget will likely be balancing expenditure and revenue in a low-growth environment, without the ability to significantly raise taxes or increase debt. A major focus will be fiscal consolidation, ensuring that our debt to Gross Domestic Product (GDP) levels stabilise over the next three years while managing expenses such as the public sector wage bill. Government must tread a fine line between maintaining essential spending and avoiding excessive reliance on borrowing. Driving…

The former, deceased, and disgraced CEO of what was Steinhoff, Markus Jooste, long blamed an Austrian businessman, Andreas Seifert, for the company’s demise, arguing that it was Seifert who instigated investigations in what has become known as South Africa’s biggest corporate scandal to date. However, a 7 000-page PwC investigation into the company, which was delisted in both Johannesburg and Frankfurt in October 2023 as the noose tightened around key players in the fraud, shows that a business deal between the two parties was misrepresented in Steinhoff’s books. Jooste claimed in Parliamentary hearings in September 2018 that it was lawsuits Seifert laid against the company after the joint venture collapsed that resulted in Steinhoff being investigated. Steinhoff, in several statements during 2017, initially denied any financial wrongdoing and also stated…

The South African government is currently considering further tax increases on alcoholic beverages, ostensibly to combat alcohol abuse. At first glance, this might seem like a logical and well-intended initiative. However, as with many simplistic solutions to complex problems, history has shown that so-called sin taxes are not only ineffective but often make the problem worse. Rather than reducing alcohol abuse, this policy is far more likely to cause greater harm. It creates what is known as the Cobra Effect, where a supposed “solution” exacerbates the original problem or creates unforeseen complications. What Is the Cobra Effect? The Cobra Effect originates from colonial India, when the British government offered a bounty for killing cobra snakes to reduce the number of these deadly reptiles. Clever locals soon realized that breeding cobras…