Star 2025-04-09

South Africa’s big banks adopted rigorous measures to contain costs last year after net interest margins (NIM) narrowed, in spite of improving business and consumer confidence, according to a report released by professional services firm BDO South Africa on Tuesday. All economic and bank indicators showed the environment was improving, but the big banks did not necessarily benefit. While the traditional bank metrics such as headline earning growth and credit loss ratio were all positive, if one digs deeper, the positive growth was not of the scale that was experienced in 2022 and 2023, Kevin Hoff, Partner & Head of BDO Financial Services South Africa, said in an online presentation. The average NIM declined by 6.25 basis points in 2024, in stark contrast to the 28 basis point increase the…

Transnet on Tuesday announced that it handled more than 200 000 twenty-foot equivalent units (TEU) in a single financial year at the Durban Multipurpose Terminal (MPT) for 2024/2025. This record target, which exceeded the target of 131 106 TEUs for the financial year, underscored the organisation’s commitment to enhancing trade capacity and efficiency, driven by a combination of increased trade volumes, improved operational capabilities, and strategic resource allocation. The previous volume record at the terminal was in the 2020/2021 financial year, with 182 198 TEUs. Jabu Mdaki, managing executive of Transnet Port Terminals, said that this is a momentous milestone for Transnet given the challenges experienced in 2023. “We had a crisis in Durban, and we faced challenges of vessel backlog and truck congestion. We would also like to thank…

The Association of Communications & Technology (ACT) - representing leading network operators including MTN, Vodacom, Telkom, and Rain - has publicly expressed its deep concerns regarding the Independent Communications Authority of South Africa’s (Icasa) recently proposed satellite services licensing framework. After three days of hearings, Icasa aims to establish what it describes as an “informed and inclusive approach to the framework for satellite service for satellite services in South Africa”. However, ACT CEO Nomvuyiso Batyi on Tuesday said all licensees in the sector, not just new satellite entrants, deserved a more considered regime. “It also believes that any attempt by Icasa to develop a satellite licensing framework with the hope of achieving universal broadband connectivity will be doomed to failure unless it first repairs the broken framework for universal…

President Donald Trump has heightened the stakes in the trade dispute between the two giants Brent crude oil price plummeted below $64 (R1 250) a barrel on Tuesday, marking their lowest point since April 2021, spurred by escalating tensions between the United States and China, raising concerns about future demand for oil as China is one of the world's largest oil consumers. The larger OPEC+ output hike planned for May and Saudi Arabia’s plans to cut official selling prices for next month also added to the Brent crude oil price pressure, it trading at its lowest level in nearly four years and shaving 4.5% off Sasol's share price just on Tuesday. US President Donald Trump has heightened the stakes in the ongoing trade dispute between the two economic giants, threatening…

The sudden hike of import tariffs by US President Donald Trump and his administration to countries across the world is set to reduce the volume of goods traded and affect citizen welfare across the globe. The Trump administration implemented a global 10% import tariff and a varying targeted reciprocal tariff to a host of countries, including South Africa. The reciprocal import tariff to be levied on South African export goods to the US is set at 30%. Historical data show that yearly trade between SA and US amounts to $23 billion (R449bn) and the US is SA’s second biggest trading partner after China. The high tariff will reduce the competitiveness of South African export goods to American markets, leading to reduced demand of SA exports in US markets, low income…

The Citrus Growers’ Association of Southern Africa (CGA) has made a fervent plea to the South African government, urging it to engage in immediate negotiations with the United States regarding potential tariff reductions or exemptions on citrus exports. This call to action comes as South African citrus producers brace for the implementation of a hefty additional 31% tariff on their exports to the US, coinciding with the arrival of early-season citrus intended for the American market. About 35 000 jobs are connected to SA-US citrus exports in one way or another. CEO of the CGA, Boitshoko Ntshabele, on Tueaday said increases in exports to the US was one of the cornerstones of the CGA’s target to create 100 000 additional jobs by 2032. “We are now looking at a potential…