Cape Times 2022-02-22

Edward West edward.west@inl.co.za Telecom firms MTN, Vodacom, Telkom and Rain are likely to win spectrum in the March radio frequency spectrum auction, and two other companies, Cell C and Liquid Telecoms, might lease out spectrum if they were successful in the auction, analysts speculated yesterday. South Africa’s telecoms regulator Independent Communications Authority of South Africa (Icasa) said yesterday that all six applications it had received from telecoms firms had qualified to participate in a radio frequency spectrum auction, a process slowed by years of legislative delay. Icasa said the qualifying bidders were MTN, Vodacom, Telkom, Cell C, Rain Networks and Liquid Telecoms. Peter Takaendesa, an investment analyst at Mergence Investment Managers, said yesterday in a telephone interview that the auction was a significant event in South Africa’s telecoms sector, as…

Siphelele Dludla siphelele.dludla@inl.co.za THE FINANCIAL markets yesterday turned negative as the glimmer of hope for a diplomatic solution dimmed in the Russia and Ukraine stand-off, following the Kremlin’s afternoon comments. A Kremlin spokesperson, Dmitry Peskov, said there were no concrete plans in place for a summit over Ukraine between Russian President Vladimir Putin and his US counterpart, Joe Biden. This comes as Biden and Putin agreed to a proposal by France’s President Emanuel Macron to hold a summit over Ukraine. The news raised expectations that a diplomatic solution could be reached, and the invasion of Ukraine avoided amid intensifying clashes in the eastern part of the country. Peskov said a call or meeting between the US and Russian leaders could be set up at any moment. “But it’s premature to…

Philippa Larkin philippa.larkin@inl.co.za ANGLO American Platinum (Amplats), the world’s biggest platinum producer, yesterday delivered a whopping R80 billion dividend to its shareholders as it posted an annual 160 percent hike in profit, bolstered by higher platinum group metals prices (PGMs) and increased sales. The record production and pricing resulted in its headline earnings a share (heps) for the year ended December 31 increased to R79bn, equal to R300.42 per share from R30bn, or R115.54 a share the prior year. This as the mining firm reported a 22 percent increase in the rand basket price for its PGMs to R445.11 per PGM ounce. The year-on-year surge in pricing was driven by rhodium, which in dollars averaged $20 109 (R304 803) an ounce (oz) about 79 percent higher year-on-year. During the reporting…

Siphelele Dludla siphelele.dludla@inl.co.za CREDIT rating agencies are likely to keep South Africa’s sovereign debt rating at current levels as they wait to assess Finance Minister Enoch Godongwana’s Budget announcements tomorrow. Tomorrow’s Budget Review is expected to see fiscal consolidation forecasts kept largely unchanged from his November projections. Currently, all three major global rating agencies have kept South Africa’s sovereign debt below investment grade with varying outlooks, from negative to stable. Moody’s is set to meet on April 1 and November 18, to potentially deliver a credit rating action, while S&P Global dates are May 20 and November 18. Fitch Ratings does not publish dates for South Africa’s credit action, but tends to show a similar pattern. Investec chief economist Annabel Bishop yesterday said the Budget was not expected to see…

Dieketseng Maleke dieketseng.maleke@inl.co.za SA Post Office (Sapo) yesterday defended its vision of a turnaround of the troubled state-owned entity (SOE) as the Communications Workers’ Union (CWU) announced plans to take the cash-strapped entity to court in March due to non-payment of medical aid and pension fund contributions. Clyde Mervin said the union was consulting its lawyers to file the case. “I think it is reckless trading that the Post Office is not paying contributions towards employees’ benefits. Employees’ medical aid was suspended because of non-payment. We are definitely going to court,” he said. Sapo, which has been under administration since November, with questions around its status as a going concern, has been struggling to pay contributions towards medical aid, the Unemployment Insurance Fund (UIF) and the pension savings of its…

Nicola Daniels nicola.daniels@inl.co.za FINANCIAL technology solutions companies Mukuru Financial Services and Mukuru Africa have lost their bid to set aside and review a Department of Labour decision rejecting their application to employ over 100 foreign call centre staff. Western Cape High Court Judge Daniel Thulare found the companies had unfairly excluded South African citizens from employment opportunities in South Africa, in favour of foreign nationals. According to court papers, Mukuru Financial Services had – in their application to the department – stated they were unable to find suitably-qualified employees fluent in the indigenous languages of Zimbabwe and Malawi, as well as other relevant languages. They applied for 100 sales and support consultants, 10 controllers and five call centre team leaders. Mukuru Africa applied for 10 customer service representatives, five agents’…