Cape Times 2022-01-11

Siphelele Dludla siphelele.dludla@inl.co.za THE South African Reserve Bank (Sarb) could be forced to continue hiking interest rates for the second time in a row, as elevated inflation further pushes ongoing monetary policy normalisation in the world’s largest economy, the US. The International Monetary Fund (IMF) on Monday warned emerging economies to prepare for US interest rate hikes as the new Omicron variant has raised additional concerns of supply side pressures on inflation. The US inflation rate from December is expected to come in at 7 percent, a four-decade high, and the markets are already betting on the US Federal Reserve (Fed) raising rates earlier on the back of this, strong unemployment data, and a strong economy. In December, the Fed announced it would accelerate the pace of tapering and buy…

Edward West edward.west@inl.co.za THE new vehicle market is expected to continue its gradual recovery during 2022, albeit at a slower pace than in 2021 and a year-on-year improvement of around 8 percent in aggregate new vehicle sales volumes is projected, Naamsa, the Automotive Business Council said yesterday. Factoring an anticipated 15 percent improvement in vehicle exports, industry vehicle production of about 17 percent was projected for 2022 – the automotive industry is South Africa’s largest manufacturing sector. Vehicle sales rebounded strongly year-on-year by 22.1 percent to 464 122 units in 2021. This followed the massive 29.2 percent slide in vehicle sales to 380 206 units during 2020, due to the impact of the Covid-19 pandemic. “It was a very satisfying performance by an industry that has had to deal with…

Banele Ginindza banele.ginindza@inl.co.za WHILE Eskom seems to have put its house in order over the past month with no load shedding, there is uncertainty about its staying power over the next year. Eskom over the festive season brought on stream unit 4 of the Kusile power plant, which at full operational capacity is expected to add 800 megawatts (MW), but which is not expected at least for the next six months as the unit is commissioned gradually. Meanwhile, concerns have been raised about the scheduled maintenance of the Koeberg nuclear plant’s generators which will have to be shut down over the 10-months maintenance period, taking about 900MW off the grid with each generator shutdown. “We can be more positive about 2023. The current year is different… There is too much…

Dieketseng Maleke dieketseng.maleke@inl.co.za STEINHOFF’S shareholders appear more optimistic about the company’s future as its share price rose up to 8 percent to R5.39 on the JSE yesterday, following its announcement to list its American-based subsidiary Mattress Firm on the New York Stock Exchange. In a statement, the retailer said it had applied to the US Securities and Exchange Commission for an initial public offering as part of a possible listing on the bourse. Steinhoff successfully listed its European discount retailer Pepco in 2021. "The number of shares to be offered and the price range for the offering have not yet been determined. Mattress Firm intends to apply to list its common stock on the New York Stock Exchange, subject to notice of official issuance," it said. Steinhoff bought the 90-year-old…

Albert Einstein was absolutely right when he said, “We cannot solve our problems with the same thinking we used when we created them”. Whereas the context is right: in an era of multiple-stakeholder capitalism where every stakeholder’s contribution is being taken into consideration including inert land and the environment, South Africa still needs to embrace the evolving concept of new corporations and economic institutions. As a relatively new democracy we seem to have moved from total exclusion to unintentional controlled inclusion for purposes that are inimical to the emancipation of marginalised and disadvantaged communities. The concept of “shared value” defines a new way of achieving and measuring economic success, it is the bedrock of what companies and economic institutions do – not elementary social investment or sustainability. Thus, the boldest…

Edward West edward.west@inl.co.za REBOSIS Property Fund’s board has opted not to pay a dividend for the year to August 31, 2021 to continue reducing a heavy debt load. The fund did not pass the liquidity test to pay dividends for the year. It was in a net-operating loss position and also in breach of its bank debt covenants. It announced in October that it had entered into a R6.3 billion sales agreement with Ulricraft, a special-purpose vehicle owned by Vunani Capital Partners. Proceeds from the proposed deal, which involves the sale of 32 of Rebosis’s commercial buildings, including the “diamond building” on 11 Diagonal Street, Johannesburg – and which is still subject to several conditions – is aimed at reducing Rebosis’s debt. Rebosis’s share price increased 7.3 percent to 30…