Star 2025-06-03

Airlines on Monday revised down their traffic and profit forecasts for 2025, citing "headwinds" for the global economy, with industry chiefs warning of the risk of increased tariffs impacting the sector. The International Air Transport Association (IATA) estimates fewer than five billion air journeys will take place this year, compared with the previously forecast 5.22 billion. "The first half of 2025 has brought significant uncertainties to global markets," IATA's Director General Willie Walsh told its annual general meeting in New Delhi. But he added: "Considering the headwinds, it's a strong result that demonstrates the resilience that airlines have worked hard to fortify." Cumulative airline profits will reach $36 billion (R646bn) this year, $600 million less than expected, IATA said. Commercial aviation revenues are expected to remain below the $1 trillion…

More mergers and acquisitions are expected for the global copper market in which South Africa is emerging as a key player amid a projected supply deficit. There has been a flurry of investment activity in copper in the past few months, with Harmony Gold saying last week that it was acquiring Harmony the CSA Copper mine in Australia for R18.4 billion. Last year, PwC said “the global pursuit of a just energy transition and the need for consolidation are reshaping the landscape of the South African mining” industry. Now, analysts say there is likely to be further merger and acquisition activity in the South African and global copper industry. Zimele Mbanjwa, an investment research analyst at FNB Wealth & Investments, told Business Report that single commodity producers are increasingly setting…

Automotive sector finds itself once again at the coalface of global economic shifts, says Naamsa CEO Domestic vehicle sales in South Africa saw a robust recovery in May with 45,308 units sold, marking an increase of 8 169 vehicles or a substantial 22.0% from 37 139 units in May 2024. "The automotive sector finds itself once again at the coalface of global economic shifts," Naamsa CEO Mikel Mabasa said on Monday. "The SARB's latest decision to lower interest rates is both timely and commendable. It directly supports consumer affordability and boosts production competitiveness at a time when global uncertainty is weighing heavily on our export markets. While the new tariff measures remain a concern, our industry has proven its resilience time and time again," Mabasa said. Sales overview Overall, out…

In today’s boardrooms, digital transformation is no longer a distant theme reserved for CIOs and consultants. It is a central governance concern; one that demands fluency, not just familiarity. As companies confront the disruptive tides of artificial intelligence, cybersecurity risks and evolving data ecosystems, a sobering question emerges: are boards equipped to govern in the digital age? While legislation in most jurisdictions does not yet mandate digital literacy as a formal prerequisite for directorship, it is increasingly becoming an unspoken expectation among investors, regulators and stakeholders who demand boards capable of navigating complex digital landscapes. A board that lacks digital fluency cannot effectively interrogate strategy, oversee risk, or drive innovation. Digital illiteracy has moved from the margins of boardroom discourse to the heart of strategic risk. The Cell C case…

Bringing billionaire Elon Musk’s controversial satellite internet system, Starlink, into South Africa’s airspace is in the country’s national interest because it will help meet its developmental goals, said Deputy Minister of the Department of International Relations and Cooperation, Alvin Botes. During a conference on illicit financial flows, mobilising domestic resources, and financing for development, hosted at SGN Grant Thornton’s offices at the end of last week, Botes said that any trade agreement would be subordinate to the Constitution and must facilitate development. Botes also hinted at government’s policy towards trade agreements with the United States following President Cyril Ramaphosa’s meeting with Trump on May 21. He said that the county’s policies are “not subordinate to trade incentives”. The Deputy Minister added: “We can only speak about what our constitutional imperatives…

The Absa Purchasing Managers’ Index (PMI) released on Monday indicated that the seasonally adjusted PMI decreased by 1.6 points to 43.1 in May 2025. Absa said that the PMI remained in contractionary territory for a seventh consecutive month. The PMI suggests that the manufacturing sector continued to suffer in May, despite some flickers of activity and demand improvement, albeit at extremely low levels. “However, a decline in the supplier deliveries index pushed the headline PMI lower. The business activity index indicated some improvement, increasing by 3.4 points to 43.4 in May. New sales orders also increased, by 2.2 points to 38.3 in May. This was likely due to domestic demand recovering slightly as export sales continued to deteriorate at a rapid rate.” Absa said the supplier deliveries index has been…