Pretoria News 2022-10-17

FINANCE Minister Enoch Godo- ngwana will need to focus on policies that accelerate real economic growth and address the financial future of State-owned enterprises (SOEs) when he tables his Medium-Term Budget Policy Statement (MTBPS) on October 26. This is the view of investors and economists as Godongwana prepares to inform the country how he plans to sail the economy out of stormy waters amid the rising cost of living and subdued growth. The local economy has faced a number of headwinds over the past three quarters. These include the Russia-Ukraine war, which caused inflation to surge to a 13-year high; floods in Kwa- Zulu-Natal that disrupted manufacturing activity; Eskom’s rolling power cuts, which severely curtailed business activities; and industrial action at Transnet that has hampered export volumes. And the…

THE INTERNATIONAL Monetary Fund (IMF) has lamented the impact of the ongoing electricity crisis on the South African fiscus as the mining industry misses out on the windfall of the global commodity boom. The IMF on Friday said that though its latest assessment of South Africa’s outlook was a little bit behind the curve, the problems with electricity production had severely hampered the country’s productive sectors. This comes as Eskom suspended its rotational power cuts for the first time in a month since it started implementing various levels of load shedding due to ongoing supply challenges to meet demand. The struggling power utility has told businesses to brace for regular power cuts over the next 18 months at least, as it suggested a regular Stage 2 loadshedding regime, which the…

ESKOM’S signing of agreements with Independent Power Producers (IPPs) to lease land at Majuba and Tutuka power stations might snag on financial close as winners of bid window 5 under the Risk Mitigation Independent Power Producer Procurement Programme are still struggling with obtaining funding months after the bids were awarded. Energy analysts said the signing of lease agreements did not automatically guarantee funding for the projects by bid winners HDF Energy South Africa, Red Rocket SA, Sola Group and Mainstream Renewable Power Developments South Africa, which are all expected to add to the grid 24 months after they obtain the financial close. “It is anticipated the generators will be connected to the grid within 24 to 36 months from financial closure, subject to environmental, land zoning and other regulatory approvals,”…

QUANTUM Food Holdings expects headline earnings per share to fall 63%, or by 32.9 cents a share, when compared with the 52.2c reported in the previous financial year to end-September 2021, it said Friday. In an update, the group said it had seen a significant increase in feed raw material costs; curtailed egg selling prices in a weak consumer environment resulting in lower margins for the egg business, lower demand for layer livestock, and further outbreaks of highly pathogenic avian influenza (HPAI) in South Africa. There had also been a “significant” increase in the cost of electricity, gas, fuel and Eskom load shedding cycles; and extreme weather conditions in the Western Cape. Performance was also negatively impacted by labour unrest at the Kaalfontein layer farm in Gauteng, partially offset…

MONDI, the multinational packaging and paper group, said on Friday that, despite the significant geopolitical and macroeconomic uncertainties, it was confident it would continue to demonstrate resilience. In its trading update for the third quarter, the group said it anticipated continued inflationary pressures on its cost base as it entered the fourth quarter. “The group remained well placed to deliver sustainably into the future, underpinned by our integrated cost-advantaged asset base, culture of continuous improvement, portfolio of sustainable packaging solutions, the strategic flexibility offered by our unique platform for growth, and strong cash generation and financial position,” it said. Mondi flagged the fact that underlying earnings before interest, tax, depreciation and amortisation from continuing operations, excluding the Russian operations, for the third quarter was €450 million (R8 billion),…

IF THERE is one saying in the cybersecurity world that is true, it is the quote by the American mathematician, Professor John Paulos, that “uncertainty is the only certainty there is, and knowing how to live with insecurity is the only security”. Over the past few months we have seen an increase in cyberattacks by financially motivated criminals, with identity theft high on the list. Research by TransUnion showed that 11% of South African consumers have been a victim of identity theft. When gaining access to vital personal information such as an identity number, it is relatively easy for a cybercriminal to acquire a credit card in your name, withdraw money from your bank account, or open a cellphone account and running up tens of thousands of rand in your…