Star 2025-12-10

South Africa has taken a major step toward boosting long-term infrastructure investment after the National Treasury successfully raised R11.795 billion in the country’s first sovereign Infrastructure and Development Finance Bond. The landmark issuance, announced on Tuesday, attracted strong market appetite, with bids exceeding R26bn, more than double the amount on offer, resulting in a 2.2-times subscription rate. Treasury said the strong demand demonstrates investor confidence in the State’s redesigned infrastructure financing strategy. The bond forms part of a series of reforms unveiled in the 2024 Medium Term Budget Policy Statement, aimed at expanding investment in critical infrastructure to support economic growth and improve service delivery. The proceeds of the bond will be channelled exclusively into projects under government’s Budget Facility for Infrastructure (BFI). The BFI is a specialised mechanism within…

International airlines expect to transport a record 5.2 billion passengers in 2026 despite global headwinds affecting the sector, the industry's trade association said on Tuesday. Carriers are also now expecting higher profits than previously forecast for 2025, and predict earnings to come in at a comparable level next year, the International Air Transport Association (IATA) added. IATA, which groups around 360 carriers representing 80 percent of global air traffic, said 2025 profits are projected to reach $39.5 billion, up from the $36 billion they predicted at the body's annual general meeting in June. IATA's Director General Willie Walsh attributed the improved outlook to air freight's better performance, achieved despite trade disputes triggered by the United States. Profits in 2026 are projected at $41 billion, with persistent aircraft availability problems putting…

Recommendation appears in the 72-page Base Document tabled at the party’s National General Council The African National Congress (ANC) has revived its long-standing proposal to expand the South African Reserve Bank’s (Sarb) mandate beyond inflation targeting, arguing that the central bank must play a more central role in tackling unemployment, poverty and inequality. The recommendation appears in the 72-page Base Document tabled for discussion at the party's 5th National General Council (NGC). The document outlines a sweeping overhaul of the country’s developmental strategy, though critics argue it offers more rhetoric than concrete policy direction. In the section titled "Defining and Implementing an Effective Developmental Path for Growth and Social Equity", the ANC calls for a fundamental rebalancing of South Africa’s macroeconomic policy framework. The party argues that the Sarb’s…

South Africa may be heading into 2026 with renewed momentum after the North-West University (NWU) Business School’s Policy Uncertainty Index (PUI) showed a significant improvement in the final quarter of 2025. The index, released on Tuesday, eased to 64.9 from its record high of 81.0 in the third quarter, indicating a notable reduction in policy-related risks even though uncertainty remains above the neutral baseline of 50. Professor Raymond Parsons, economist at the NWU Business School, said the latest results suggest that “positive factors over the past three months have outweighed the negative ones,” allowing the economy to enter 2026 “on a note of cautious optimism.” Parsons emphasised that the global environment remains complex but generally supportive of growth. The International Monetary Fund (IMF) expects worldwide economic expansion of 3.2% in…

The Congress of South African Trade Unions (Cosatu) has welcomed the agreement between Eskom and major ferrochrome producers Samancor Chrome and the Glencore–Merafe Chrome Venture to halt planned retrenchments that threatened more than 7 000 jobs from December. The federation, however, says the temporary reprieve must pave the way for a permanent, affordable electricity solution to safeguard the future of South Africa’s ferrochrome sector. The memorandum of understanding (MOU) signed by Eskom, the producers and government establishes a joint multi-stakeholder task team to develop a long-term intervention to support industrial competitiveness without shifting additional costs onto other electricity users. The parties aim to present a proposed solution within three months. Cosatu parliamentary coordinator, Matthew Parks, said on Tuesday that the federation “warmly welcomes this job-saving agreement,” but emphasised that the…

The G20 Leaders’ Summit is over, now the hard work to implement and apply its many declarations must start. One particular declaration that must be taken to heart if we want to address a core challenge at the heart of our stalled economy, is the absolute necessity of reducing the rate of young people not in employment, education, or training (NEET) by a further 5% by 2030. This calls for a whole new way of thinking about teaching, learning, and employment, and South Africa’s government, its business leaders and institutions of higher learning will have to work together to change the narrative. For example, instead of complaining about skills shortages, we can collaborate to actively define and invest in the skills our economy needs; and rather than seeing training as…