Star 2025-04-04

Organised black businesses must urgently consider acquiring the struggling retail giant Pick n Pay and redefine the landscape of retail ownership in South Africa, former Statistician-General Pali Lehohla said on Thursday. Pick n Pay, a leading South African retailer, is currently facing significant challenges, including financial losses, store closures, and a portfolio review. In 2024, the company reported a loss exceeding R3 billion, the first annual loss in 57 years, attributable to factors such as store writedowns and declining sales volumes. As part of its turnaround plan, the retailer is closing 32 supermarkets, phasing out the QualiSave brand, and transitioning underperforming stores to the Boxer brand. Lehohla was speaking at the National African Federated Chamber of Commerce and Industry’s (Nafcoc) 60th anniversary event in Durban. Nafcoc is a representative organisation…

Farming associations across South Africa have expressed serious concern regarding the future of the agricultural sector following the announcement from US President Donald Trump indicating that tariffs of up to 30% could be imposed on South African exports. The announcement has left uncertainty hanging over the agricultural industry, which relies heavily on trade with the US. Agricultural Business Chamber of SA (Agbiz) chief economist, Wandile Sihlobo, said they were yet to receive full details of how the tariffs will apply. "It is perhaps more prudent to work on the assumption that the duty-free access South Africa enjoyed through African Growth and Opportunity Act (Agoa) is probably over or, at best, will be limited," Sihlobo said. "We know now that a baseline tariff of 10% will apply to imports from all…

President Trump unveiled a 10% tariff on all imports, with higher rates for countries with trade surpluses The hefty tariffs imposed by the US President Donald Trump on imports to the world’s largest economy left a trail of turmoil on global financial markets, with the JSE All Share Index plunging 3.4% to 86 083 index points, its worst performance in more than a month. President Trump on Wednesday unveiled a 10% tariff on all imports, with significantly higher rates for countries with trade surpluses - 30% for South Africa, 34% for China, and 20% for Europe, the country’s other large trading partners. Investec chief economist, Annabel Bishop, said financial markets have had a markedly negative reaction, and further volatility was likely on adjustments, either “up” or “down” causing uncertainty to…

The aluminium sector has said it was relieved to seem exempted from the sweeping 30% tariffs on products announced by US President Donald Trump, which exempts strategic minerals under which aluminium falls. Muzi Manzi, CEO of the Aluminium Federation of South Africa (AFISA), on Thursday said while he was yet to assess the actual executive order, it appeared that aluminium was exempted, which was in line with the sector’s confidence as the US had shortages of the mineral. “If, as it appears, we have not been slapped with the additional tariffs, if anything, we have been exempted because the US has demand issues with aluminium,” Manzi said. “It is classified as a strategic mineral along with some other commodities. The only thing that could have an effect is if demand…

President Trump's announcement of sweeping reciprocal tariffs, while framed as a move towards fair trade, throws a significant wrench into the gears of global supply chains and presents a particularly complex challenge for South Africa. The core premise—that tariffs should mirror those imposed on US goods—sounds equitable on the surface. However, the sheer scale of the disparities, with some countries facing near-50% tariffs, signals a potential for major trade disruption. For global supply chains, this announcement creates a landscape of heightened uncertainty and increased costs. Companies operating across borders will face the prospect of significantly higher tariffs, forcing them to reassess sourcing strategies, production locations, and pricing models. This could lead to a fragmentation of supply chains, as businesses seek to diversify their operations to mitigate the impact of the…

Resilient South African corporates and investors have adopted an overall positive sentiment on the economy on the back of expected strong earnings despite risks emanating from fiscal pressures, tensions with the United States and government of national unity (GNU) disagreements. Bank of America economists and analysts said on Thursday that South African corporates are optimistic of a positive earnings outlook. Michael Jacks, head of South Africa research at Bank of America Merill Lynch, said that South African firms have exhibited resilience “despite a host of headwinds” such as logistics logjams they have had to deal with over the past few years. “However, the overall sentiment, we'd say, from corporates was posititive… that's mainly attributable to the earnings growth outlook,” said Jacks during a virtual briefing with media. “The vast majority…