Star 2025-02-17

Product opportunities are still at scoping and prefeasibility stages, says SASA CEO Mhlaba “It is important to note that most product diversification opportunities are still at scoping and prefeasibility stages,” said SASA CEO, Sfiso Mhlaba. The South African sugar industry has announced ambitious plans for product diversification, including plans for bioethanol petrol, sustainable aviation fuel, and electricity generation, in a bid to counter the challenges such as the sugar tax. This was announced by the South African Sugar Association (SASA) on Friday as part of the second phase of the Sugarcane Value Chain Masterplan 2030 to ensure the survival of 25 000 cane farmers nationally. Brian Tait, a consultant for SASA, said that product diversification was necessary, adding that sugarcane has many uses and product diversification will ensure the survival…

Transnet Port Terminals (TPT), which was dubbed by the World Bank amongst worst performing port operators in the world last year, has refuted the moniker with far improved vessels turnaround times and with original equipment manufacturers on speed dial. In an interview with Business Report last week, CEO Jabu Mdaki said TPT was receiving essential new equipment ahead of schedule as it sets for further developments from a R4 billion capex a year over the next four years. “We do believe that the improvements are showing. The fact that shipping lines are no longer facing delays is talking to the improvements that the shipping lines themselves are experiencing. So, our expectation is that this should be reflected in whatever index or indices that the World Bank is producing but certainly,…

South Africa’s economic landscape is bracing for a challenging fiscal period, with government revenue and expenditure gaps projected to stay above 4% of gross domestic product (GDP) for the 2025/26 financial year. This persistent discrepancy, as noted by Finance Minister Enoch Godongwana during the October 2024 Medium-Term Budget Policy Statement, may hinder the government's ability to stabilize its financial footing amidst rising debt levels. Nedbank economist Isaac Matshego anticipates that Godongwana will present a more optimistic economic outlook in the forthcoming budget speech, boosted by favourable weather conditions and an improved electricity supply. These factors, coupled with subdued inflation rates and reasonable global demand, create a conducive environment for economic growth. However, Matshego warns that significant downside risks linger, primarily due to the looming threat of an escalating trade war…

Gross domestic product (GDP) growth is a critical barometer of a nation’s economic health, reflecting the overall vitality of economic activity. When GDP expands, businesses see a rise in demand, consumer spending increases, and production ramps up. This growth creates a greater need for capital, which banks supply through loans and other financial products. In turn, banks benefit from this expansion as it leads to more transactions, investments, and an increased demand for financial services—ranging from working capital to infrastructure funding and individual lending. In a growing economy, the banking sector plays a pivotal role in sustaining and promoting that growth. By facilitating the flow of capital, enabling investments, and supporting business expansion, banks serve as intermediaries between savers and borrowers. The health of the banking industry not only reflects…

The Steinhoff implosion, an accounting scandal at Tongaat Hulett, and dodgy financials at Enron are all examples of corporate fraud that were laid bare through sources that put key information into the public domain. The latest development in the Steinhoff matter came on Friday, when two additional executives, Hein Odendal and Iwan Schelbert, handed themselves over to police as part of an ongoing investigation into fraud at the company by the Hawks. The two, who were charged with several contraventions of legislation, were released on bail of R150 000 at the Pretoria Specialised Commercial Crimes Court. Odendal, Schelbert, and another accused, the company’s former legal head, Stephanus Grobler, will appear in court again on May 30. The alleged mastermind behind the fraud, the then CEO and now deceased and disgraced,…

I will eat my hat if we get to the end of 2025 and SA still benefits from the African Growth and Opportunities Act (Agoa), the US legislation giving preferential access to the American market for most African states. Agoa is not a trade agreement and although valuable I believe the cost of the preferential access is beginning to outweigh the benefits. The decision our politicians need to make is if we are better of waiting for the axe to fall or whether we should choose the time and terms of our exit. I don’t believe grovelling before President Trump will accomplish anything. Trump seems determine to punish South Africa for things we mostly haven't done, but in a world untroubled by facts, this doesn’t seem to bother the First…