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Independent Media liquidation looms; unions battle SAA, govt over job cuts; world's richest move into cash
Sekunjalo Independent Media on Tuesday received an application for its liquidation from the Public Investment Corporation citing SIM and its executive chairperson Dr Iqbal Survé as respondents. Iqbal Survé's Independent Media group is believed to owe at least R1.5bn to the PIC, which it borrowed to buy the company. SAA…
SAA to chop jobs; Allan Gray dies; Impala Plats eyes Zim deal; Saldanha Steel closes; Facebook fake ad fine; Traders like the Rand
South African Airways, the beleaguered state-owned airline that’s reliant on government financial support to continue operating, has started a restructuring process that could see its workforce cut by almost a fifth, says Bloomberg. Allan Gray, the billionaire founder of the Cape Town-based asset manager that bears his name and Bermuda-based…
France considers Eskom aid; Loadshedding dents rand surge; Branson considers SAA stake
In today's business headlines: France is considering providing financial support to Eskom according to the Business Times. British billionaire Richard Branson will look at buying a stake in South African Airways if he is approached. Eskom has warned that the power system remains constrained and vulnerable and that any shift…
Moody's next move: What's next for SA; Shoprite, Dischem, Multichoice, wine markets
Most analysts following South Africa expect it to lose its final investment-grade rating. But they disagree over when that might happen and what the consequences would be, says Bloomberg. Here's what might be next for SA. Shoprite’s lead independent director, Shirley Zinn, resigned abruptly, two days after Christo Wiese’s almost…
SA attracts $16bn; Hurry up and fix Eskom, investors urge govt; 2020 EM outlook; Intu plunges
*President Cyril Ramaphosa says the government is on track to lure $100bn in new investment within five years, with more than $16bn already committed and many more projects in the pipeline. He was speaking to Bloomberg television. Anglo American sees South Africa’s struggling state-owned power utility and regulatory uncertainty posing…
Wiese wins Shoprite battle; consumer sentiment plunges; Moody's hits Eskom; Dischem, Telkom
Christo Wiese, the retail magnate who saw his billions evaporate as the Steinhoff share price plunged amid a financial scandal that erupted in late 2017, has clung to his position of power at supermarket multinational Shoprite. South Africans are feeling very glum about the economy - and that’s official. The…
SA in last chance saloon - Moody's; debt soars; world funds Congo revival; Zim protests; US equities soar
South Africa is fighting to preserve its last remaining investment-grade credit rating and avert a forced selloff of billions of rand of its debt after Moody’s Investors Services gave it just over three months to get its finances in order, says Bloomberg. When Nelson Mandela came to power in 1994,…
More Springbok accolades; Moody’s holds back; 5G roll-out; Another investment drive; Aramco IPO green light
In today's business headlines: The Springboks have claimed more international awards with South Africans echoing the sentiment of captain Siya Kolisi that more could be achieved if they work together. There is hope that the renewed optimism in the country will enthuse markets after Moody's decision on Friday to maintain…
Christo Wiese in Shoprite battle; Nigerian bank eyes SA; SA maggots go global; Zim hunger crisis; Sibanye
Christo Wiese faces another corporate battle. The former billionaire, who lost fortunes when the Steinhoff share collapsed and was relegated from the ranks of a billionaire to a millionaire, could lose his grip on power at Shoprite. A major Nigerian financial services provider sees lucrative business opportunities in South Africa…
SA’s 29,000 millionaire civil servants; SAA up for sale; rand rattled; Mboweni’s last Tweet; ratings downgrade looms; Brexit latest
South Africa’s budget deficit is set to come in at just under 6%, from the previously estimated 4.5% and last year’s 4.3%, it was confirmed when Finance Minister Tito Mboweni released his Medium Term Budget Policy Statement. The budget deficit gives the country similar financial ratios to Pakistan and Argentina…
Is Mboweni's end of winter speech enough for Moody's?
Finance Minister Tito Mboweni's mid-term budget has been tabled in what he described as the end of winter for South Africa's economy, all eyes would be on Moody's at the end of this week to see whether he had done enough to ensure that the ratings agency does not downgrade…
Tax collection falls short by R53bn; but Caesar is watching
There has been a R53bn shortfall in tax collection in the 2019/2020 financial year with the largest revision coming from personal income tax of R25.3bn. This was revealed by Finance Minister Tito Mboweni in his mid-term budget. SARS commissioner Edward Kieswetter said it was a function of the performance of…
No debt relief for Eskom now or debt-equity swap - Dondo Mogojane
The government will not take further steps on reducing Eskom's R450bn debt burden until it has showed progress on reforms. Finance Minister Tito Mboweni said in his medium term budget speech that once there is enough progress at Eskom an appropriate size of debt relief will be announced. At a…
SAA bailout; SA Express could be sold - Tito Mboweni
Finance Minister Tito Mboweni announced in his medium term budget speech in Parliament that the government was talking with potential investors for South African Airways in an attempt to ease the burden that the airline is placing on the national budget. Mboweni said the government will repay loss-making SAA’s outstanding…
Mboweni urges discussions with unions on public wage bill
Finance Minister Tito Mboweni seems ready to challenge labour unions on the high cost of the public sector wage bill. Mboweni said in his mid-term budget speech in Parliament that the Government spends over R500bn on the wage bill which has more than tripled between 2006 and 2019. He said…
Tito in full flight, on the record - full presser ahead of MTBPS
Here's the full recording of Finance Minister Tito Mboweni's pre MTBPS press conference at the Parliamentary "lock-up" this afternoon. Brutally honest, he unpacked the challenges facing the young democracy, emphasising that the situation is so dire that shirking away from the issues will only make things worse. As he mentioned…
Mboweni - rising debt-to-GDP ratio is a serious concern
Finance Minister Tito Mboweni warned in his mid-term budget that the upward trajectory of the debt-to GDP ration in South Africa is a serious concern. It is set to reach 60.2% in 2023/2024 and 60.1% the following year. He said the danger of talking about a debt trap is that…
Mboweni cuts business flights and fancy cars for public officials
Finance Minister Tito Mboweni outlined the cost of fiscal leakage and wastage in South Africa in his mid-term budget and says he is planning to end the huge wastage of public resources. Mboweni said one of the high costs to the government is litigation. He is also taking measures to…
Eskom power plan; Rand fizzles; unemployment high; Sibanye eyes NY; SA scientists discover early man in Botswana
The government issued its big plan to save Eskom, but the details were a disappointment for many hoping to see faster, firmer action. In particular, Eskom’s debt burden hasn’t been dealt with, worry analysts. The rand weakened as much as 1% against the dollar after the release of the plan,…
Invictus II – Rugby can unite South Africa again - John Carlin
After spending time in South Africa where he witnessed South Africa becoming a democracy, John Carlin wrote the book, “Playing the enemy - Nelson Mandela and the Game that Made a Nation.” It told the story of how Nelson Mandela, the country’s newly elected leader forged a friendship with Springbok…