Star 2025-09-02

500 jobs on the line at manufacturing operations in Gqeberha and Silverton The spectre of job losses looms over South Africa as Ford Motor Company of Southern Africa (FMCSA) has announced plans to retrench nearly 500 workers across its manufacturing operations in Gqeberha and Silverton. This comes as Ford gave notice to retrench more than 500 workers as it streamlines its manufacturing operations at both the Struandale Engine Plant and the Silverton Assembly Plant. Ford has proposed to realign its manufacturing operation in both the Silverton Manufacturing Plant (SVO) and the Struandale Engine Plant (SEP) to correspond with existing and projected manufacturing requirements in both plants. This drastic move has ignited concerns among organised labour groups, prompting urgent calls for a comprehensive industrialisation policy to tackle the escalating unemployment crisis.…

The latest data from the Absa Purchasing Managers’ Index (PMI) has stirred alarms among economic analysts, revealing a disconcerting retreat into contractionary territory in the manufacturing sector. Released on Monday, the August PMI indicates a decline of 1.4 points to 49.5, marking a significant regression after a brief moment of optimism in July when the index had edged into expansionary territory for the first time in nine months. The PMI, which is compiled by the Bureau for Economic Research (BER) on behalf of Absa, serves as a critical barometer of manufacturing activity in South Africa. This latest figure highlights a subdued atmosphere in the sector, with both domestic and export demand facing persistent sluggishness. Absa noted that despite July's 2.3-point improvement, economic activity remains lacklustre as new sales orders plummeted…

Vehicle export volumes in South Africa are anticipated to come under increased pressure in the near term as the sector continues to adjust to higher tariff barriers to the United States market in spite of rising by 6.2% in August. The Automotive Business Council (Naamsa) on Monday said exports would also be pressured by the adjustment to the knock-on implications of the tariffs resulting in increasing global competition in other traditional export markets. This comes as the 30% tariffs imposed by the Trump administration on South African exports kicked in during the month of August, leaving the automotive and agricultural industries as the hardest hit. Vehicle exports to the US dropped by 73% in the first quarter of 2025, followed by a further decline of 80% and 85% in…

JSE-listed Blue Label Telecoms, soon to be renamed Blu Label Unlimited (BLT), on Monday announced a restructuring of Cell C ahead of a potential listing of the mobile phone operator. In an announcement to its shareholders, BLT said the pre-listing restructuring will involve various transactions to optimise Cell C’s capital structure and balance sheet, in preparation for a separation from BLT and a listing on the JSE. Cell C has a strong market presence in South Africa and has seen strengthened management over the past 24 months, successfully returning it to a strong growth trajectory with significant improvements in operations and financial metrics. Cell C operates on a capital-light approach to its mobile network, using its own spectrum assets with the physical infrastructure owned by other mobile network operators. Cell…

Bidvest’s international services, trading and distribution group operations reported mixed results from its various divisions, but “a great deal of execution went into the year” to June 30, and benefits from this will materialise in coming years, CEO Mpumi Madisa said Monday. The group did 9 acquisitions through the year, concluding a two-year spate of 24 acquisitions and disposals. Madisa said in an online presentation they had executed almost all transactions in their proactively built pipeline, and the focus now was to ensure these businesses delivered on potential and generated strong cash flow. “We will be driving growth across all 11 territories,” she said. The share price fell 5.67% to R223.46 on the JSE by yesterday midday, a price about 27% lower than the price a year ago. Included in…

There is surely no greater sign of the urgent need for reform of the electricity sector than the way Eskom’s electricity tariffs are set. The whole system is far from the way prices should be set – through a competitive market in which firms aim to sell to consumers by offering them better value than others. The current approach was made clear last week with the revelation that the regulator Nersa has agreed to a court order that Eskom can collect an extra R54 billion in tariffs over the next few years. That is because of a mistake Nersa made back in January when setting the tariffs Eskom can charge. Eskom was already going to increase prices by almost 13% this year, and now it will be able to increase…