Star 2026-01-07

Labour unions are warning of an impending confrontation with government over the urgent setting and implementation of new electricity tariffs for ferrochrome smelters, after Transalloys has become the latest company to issue a retrenchment notice amid persistently high power costs. Transalloys said in late December that it had issued a Section 189 notice that could impact 600 jobs, which could take effect in the coming weeks. The company warned that it is no longer able to sustain operations under the current electricity pricing regime. Transalloys CEO, Konstantin Sadovnik, said electricity is the smelter’s biggest cost driver and that, at current Nersa-approved tariff levels, the company was unable to compete with international rivals. "That gap makes sustained operation impossible. The smelter has no choice in the matter. We regret placing this…

S&P Global says headline PMI declined to 47.7 in December, from 49.0 in November Business conditions in South Africa deteriorated sharply in December, with the S&P Global South Africa Purchasing Managers’ Index (PMI) falling to its weakest level in nearly a year as subdued demand weighed heavily on output and new orders. S&P Global on Tuesday said the headline PMI declined to 47.7 in December from 49.0 in November, remaining below the 50-point mark that separates expansion from contraction and signalling a faster decline in private-sector activity. The index has now been in contraction territory throughout the final quarter of the year, with December’s reading the lowest in 11 months. According to S&P Global, the downturn was driven by a sharp fall in business activity, which contracted at its steepest…

Business sentiment about construction activity among civil engineering contractors improved to a multi-year high in the fourth quarter of 2025, boosted also by much better profitability. The FNB/BER Civil Confidence Index gained nine points to reach 52 in the fourth quarter of 2025. The underlying data measuring construction activity and overall profitability improved noticeably. "The civil construction survey is the best non-official gauge for infrastructure investment. On that score, the survey results are quite positive. However, the spread of activity seems to be clustered in renewable energy generation and mining, which is not bad – or even surprising – but does suggest that key reforms in other areas of the economy are still lacking," said Siphamandla Mkhwanazi, senior economist at FNB. In terms of the short-term outlook for work, the…

Airports Company South Africa (Acsa) has dismissed allegations that it lacks the capacity to manage security checkpoints at its airports, particularly passenger and baggage screening points, following reports that the entity has been informally recruiting private security staff to plug staffing gaps. The claims emerge in the wake of serious security breaches last year, most notably an incident in which a passenger departed from OR Tambo International Airport (ORTIA) and was later found in possession of two training hand grenades upon arrival at Bole International Airport in Addis Ababa, Ethiopia. Workers employed by private security firms have alleged that ACSA has been “poaching” experienced personnel to work at screening checkpoints, despite internal policies that only Acsa-branded uniforms should be visible at these points. Those left behind at private firms say…

Botswana’s long-standing growth model, anchored in diamond revenues and strong public institutions, is facing mounting strain, with deep-seated structural bottlenecks threatening the country’s medium-term growth prospects and efforts to diversify the economy, according to a new International Monetary Fund (IMF) analysis. In its recent Selected Issues Paper, "Addressing Growth Bottlenecks in Botswana", the IMF warned that while Botswana achieved exceptional economic and social progress after independence, economic momentum has weakened markedly over the past two decades. Growth has slowed, unemployment, particularly among the youth, has risen to persistently high levels, and fiscal and external buffers have eroded. The IMF said the situation has been exacerbated by a sharper-than-expected and likely prolonged decline in global diamond demand, which triggered a severe economic contraction in 2024. With fiscal space now constrained and…

Jubilee Metals Group, the JSE and London-listed company focused on mining copper in Zambia, said it has received $20 million so far from the sale of its South African chrome and platinum interests. Jubilee's board said in a statement Tuesday that following completion of the sale of its South African Chrome and PGM operations, the company had received a second cash instalment of $10m from Chrome One, the company that bought the operations from Jubilee. Jubilee's Tjate platinum PGM exploration project in South Africa is not included in the disposal and in time the board plans to consider how to unlock value from this resource. The payment follows the formal completion of the sale of the South African Chrome and PGM Operations to One Chrome last week. Following the disposal,…