Star 2025-04-16

The National Energy Regulator of South Africa (Nersa) has recently announced pivotal changes that are set to affect the fuel prices across the nation in the upcoming financial years. The regulator has sanctioned a fuel price increase proxy of 5.23 cents per litre (c/ℓ) for the 2025/26 financial year, which will be followed by a further increase of 3.80 c/ℓ in the 2026/27 financial year. This increase primarily addresses the costs associated with transporting fuel from Durban to Johannesburg. The Minister of Mineral and Petroleum Resources will ultimately determine the implementation of these increases, which are expected to allow Transnet to achieve a substantial increase in allowable revenue. Forecasts indicate an 8.73% rise from R7.21 billion in the 2024/25 financial year to R7.84bn in 2025/26. Furthermore, allowable revenue is…

MTN is the only publicly invested group in South Africa with a significant investment in Iran MTN chairman Mcebisi Jonas' appointment as the new Special Envoy to the US has been construed by some as possibly the worst move for South Africa, and his past comments of US President Donald Trump being a “racist, homophobe” and “rightwinger” is only half the problem. Jonas' appointment comes after former South Africa's Ambassador to the US, Ebrahim Rassool, was recently expelled from the country after criticizing President Donald Trump in public. MTN is the only publicly invested group in South Africa with a significant investment in Iran, holding a 49% stake in the Irancell telecom operator, the second-largest mobile network operator in that country, which is 49% owned by MTN and 51% by…

The South African Reserve Bank (Sarb) has warned that the possibility for further rate cuts in emerging economies was now very limited as major central banks across the world were set to adopt a cautious approach on monetary policy amid heightened inflation risks. This comes as the US decision to impose hefty import tariffs on more than 75 countries shook the markets last week, plunging the global economy to a brink of a potential recession as fears of spiking inflation rose. Sarb Governor Lesetja Kganyago on Tueday said economic fault lines, stemming from policy shifts and heightened trade tensions, have emerged, adding to pre-existing geopolitical tensions. Kganyago said these shocks presented new risks to both growth and inflation, and have rendered the global economic outlook more difficult to predict. “Today…

The looming strike of more than 20 000 workers at Transnet has raised concern of industry players about the potential impact it could have on the South African economy and the logistics sector. This comes as discontent is brewing among the members of the United National Transport Union (UNTU) after they declared a deadlock in talks for the 2025/2026 financial year on Monday, rejecting Transnet’s latest wage offer of 6%. In stark contrast, the South African Transport and Allied Workers Union (Satawu) has accepted the wage offer, revealing a split within the workforce. UNTU said they found management’s approach to the conciliation process deeply regrettable, especially given the serious socio-economic consequences that industrial action may carry. The Commission for Conciliation, Mediation and Arbitration will issue a certificate of non-resolution, legally…

US President Donald Trump’s “Liberation Day” announcement of sweeping new tariffs on imports from more than 180 countries will be remembered as a man-made economic tsunami. Many are already comparing it to President Herbert Hoover’s 1930 Smoot-Hawley Tariff Act, which slashed global trade by 66% in five years and deepened the Great Depression. Trump’s tariffs – most of which have been abruptly paused for 90 days – have rattled financial markets, prompting analysts to warn that the United States could enter a recession in 2025. The global implications can hardly be underestimated. As the world’s largest economy, the US has an outsize impact on other countries’ exports and growth. Adding to the uncertainty is Trump’s erratic approach to policymaking, which is nurturing doubts about the US dollar’s viability as a…

South African businesses now face a crucial compliance challenge after the Department of Employment and Labour on Tuesday gazetted two sets of Employment Equity (EE) Regulations effective January 1, 2025. The Department of Employment and Labour said in a statement, "The publication of these EE Regulations represents a pivotal step toward advancing transformation and inclusivity in the South African labour market. Employers are encouraged to familiarise themselves with the new regulatory framework to ensure compliance and alignment with employment equity objectives." The regulations mandate designated employers to meet sector-specific equity targets by 2030, with hefty fines for non-compliance. Non-compliance carries penalties of up to R1.5 million or 2% of annual turnover. Over 200 employers have already faced Labour Court for prior violations. The published regulations include: 1. General Administrative Regulations:…