Star 2025-06-20

Moody's Ratings has warned that Transnet's ratings will remain under review for downgrade until the South African government completes the process to allocate additional guarantees by the end of July. This comes after the government announced on Thursday last week that it had entered a process to allocate additional guarantees to allow the State-owned freight and logistics company to cover at least all debt redemptions over the next five years and enable it to fund its capital expenditure program. The Minister of Transport, with the concurrence of the Minister of Finance, approved a R51 billion guarantee facility for Transnet’s capital investment programme and debt obligations. The facility will enable Transnet to refinance maturing debt and ensure the organisation’s continued access to adequate resources and facilities to be able to continue…

Trade union Cosatu on Wednesday lauded the Public Investment Corporation (PIC) for surpassing R3 trillion in assets under management, marking what it described as a historic milestone for the continent’s biggest investment fund. The PIC, which primarily manages assets on behalf of the Government Employees’ Pension Fund (GEPF), has seen significant growth from R2.7trl a year ago and R1.8trl during the Covid-19 pandemic. Roughly 87% of the PIC’s funds are sourced from the GEPF, with additional contributions from the Unemployment Insurance Fund (UIF) and the Compensation Fund, among others. "It is sacrosanct that at all times the PIC invests and manages these funds, workers’ hard-earned monies, in a manner that expands and enables them to fulfill their legislative mandates of allowing public servants to retire in security and comfort, to…

Manufacturing business confidence dipped in the second quarter amid domestic and global uncertainty. This was revealed in the second quarter 2025 Absa Manufacturing Survey. Business confidence declined marginally to 33 points, down from 34 in quarter one, an outcome some noted could have been significantly worse given prevailing conditions. The manufacturing survey was conducted by the Bureau for Economic Research (BER) drawing insights from approximately 700 manufacturing businesses. Economists have echoed similar sentiments. The confidence index ranges from 0 (no confidence) to 100 (extreme confidence). Absa said domestically, manufacturers also faced several challenges. These included subdued product demand, rising electricity tariffs and water supply disruptions – particularly in Gauteng, compounding to the sector’s strain. Sachin Chanderdhev, a sector specialist for the Manufacturing Sector at Absa Business Banking said…

Reserve Bank identifies climate change as one of three major threats to the stability of SA The South African Reserve Bank (Sarb) has issued a stern warning regarding the perpetual risks that climate change poses to the financial sector. In its latest Financial Stability Review (FSR) published on Thursday, the Sarb identified climate change as one of three major threats to the financial stability of the nation, alongside the looming spectre of cyber incidents and persistently low economic growth. In the review, the Sarb highlighted a growing consensus within academic and regulatory literature that climate change introduces two primary types of risks: physical risks and transition risks. Physical risks are defined as the economic losses stemming from the increasing frequency and intensity of adverse weather events, such as floods, droughts,…

Welcome to Prosper Nation, a weekly column dedicated to reshaping the narrative about South Africa’s potential - and charting a new path to sustainable prosperity. This platform is born out of a belief that our greatest national resource is not mineral wealth or coastal beauty but our people and our untapped collective ambition. Each week, I will unpack the ideas, strategies, and stories that hold the power to turn South Africa into one of the Top 10 most prosperous nations on earth. Why Prosper Nation and Why Now? South Africa is brimming with potential. Yet we stand at a crossroads: high youth unemployment, structural inequality, and political fatigue have made many South Africans lose faith in our collective future. But I’ve seen what’s possible when belief is restored. In 2010,…

South African markets traded on the backfoot on Thursday on the back of geopolitical risks arising from the war in the Middle East and the US Federal Reserve (Fed) revised down its growth forecasts for the US. The rand fell 0.6% to R18.12 against the US dollar during early morning trade but still remained above the R18-mark by late afternoon while the JSE All Share Index eased by 0.2% to 94 785 points. The markets have remained on edge across the world as the war between Israel and Iran has intensified, pushing global oil prices to their highest in four months. An Iranian missile barrage left at least 240 people wounded as they struck several sites across Israel, damaging a hospital in the country’s south while targeting a military site.…