Star 2025-05-09

Renewable energy sector project in limbo due to President Trump’s Executive Orders The establishment of the Energy One Stop Shop (EOSS) project, an initiative aimed at revolutionising South Africa’s renewable energy sector, is currently in limbo due to a significant funding shortfall. Yunus Hoosen, head of Invest South Africa (InvestSA), disclosed to Parliament’s Portfolio Committee on Trade and Industry on Wednesday that the project was seeking an additional R60 million to continue its rollout across all provinces. The setback follows the withdrawal of funding from the United States under former President Donald Trump’s Executive Orders. "We have done the functional specs. We have been funded by donor agencies. We lost a little bit of funding from the US but we continue to talk to a number of other donors…

Transnet National Ports Authority (TNPA) has named five companies as preferred bidders for the development of liquid bulk and green fuel terminals in the South Dunes Precinct of the Port of Richards Bay. With the project valuing approximately R17 billion, this venture marks a substantial expansion of the port's liquid bulk handling capacity, while also propelling the nation towards a more sustainable energy future. Following a Request for Proposals (RFP) issued on 6 December 2023, TNPA on Thursday said it has awarded preferred bidder status to KZN Oils, Linsen Nambi, Protank, Bidvest/Mnambithi Consortium, and KNGM Engineering. This ambitious project encompasses funding, design, development, construction, operation, maintenance, and eventual transfer of liquid bulk terminals over a 25-year concession period. Terminal designs will enable the handling of a range of essential petrochemical…

Analysts are warning that the economic ramifications of rising military tensions between India and Pakistan could extend far beyond South Asia, impacting nations like South Africa that count India among their top trading partners. Earlier this week, India's Ministry of Defence announced the launch of Operation Sindoor, targeting nine alleged terrorist camps in Pakistan and Pakistan-occupied Kashmir. This military action was framed by Indian authorities as a direct response to the tragic deaths of 26 civilians in Pahalgam, Kashmir, attributed to alleged terrorist attacks on 22 April. In retaliation, the Indian military has reported increased firing from Pakistan on its northern and western borders. Given the deep interdependencies forged through trade and partnerships, particularly within BRICS—a coalition that includes both countries—these escalating tensions are raising eyebrows among economic experts in…

Manufacturing output in South Africa is facing a challenging start to 2025, with output continuing to decline and showing signs of deeper economic troubles. The sector continued on its downward spiral in March, ending the first quarter of 2025 on the backfoot and likely to negatively contribute to the quarter’s gross domestic product (GDP) print. Data from Statistics South Africa (Stats SA) on Thursday showed that manufacturing production fell by 0.8% year-on-year in March, following a 3.2% slump in February. This marked the eighth consecutive month of annual contraction and the fifth consecutive month of declines in industrial activity, although it was the mildest in the sequence. Nicolai Klaassen, director of industry statistics at StatsSA said four of the 10 manufacturing divisions recorded lower production levels, with the petroleum, chemical…

The US Federal Reserve on Wednesday announced another pause in rate cuts and warned of higher risks to its inflation and unemployment goals in a likely reference to President Donald Trump's tariff rollout. Policymakers voted unanimously to hold the US central bank's key lending rate at between 4.25 percent and 4.50 percent, the Fed said in a statement. Speaking to reporters in Washington after the decision was published, Fed Chair Jerome Powell said there was "a great deal of uncertainty" about where the Trump administration's tariff policies will end up. The US president introduced steep levies last month on China and lower "baseline" levies of 10 percent on goods from most other countries, sparking weeks of turbulence in the financial markets. The White House also slapped higher tariffs on dozens…

The ability of International Container Terminal Services, Inc. (ICTSI) to successfully meet its R12 billion tender commitment to the Durban port has been underscored by its recently announced financial results for the quarter ending 31 March. The company posted revenue from operations of $745 million (R1.3 billion) – a 17% increase year on year. The results highlight its financial muscle and ability to operate South Africa’s largest container port in partnership with Transnet and to help unlock South Africa’s economic potential. In an affidavit filed at the Durban High court, Transnet CEO Michelle Phillips also admitted “ICTSI plainly had and continues to have the necessary financial capacity.” Yet the partnership between ICTSI and Transnet has been delayed by losing bidder Maersk who have stalled the process by pursuing a spurious…