Pretoria News 2022-10-21

THE COMMISSIONER of the Financial Sector Conduct Authority (FSCA), Unathi Kamlana, says it is not in the public interest to have cryptocurrencies, or more correctly crypto assets, operating outside the regulatory net. He was speaking at a press briefing yesterday unpacking the gazetting of the Declaration of Crypto Assets as a Financial Product under the Financial Advisory and Intermediary Services (Fais) Act. The declaration states that crypto assets, which so far have fallen outside financial regulation in South Africa, are now defined as financial pro- ducts under the Fais Act, offering considerable protections to consumers buying or investing in them. “This is a market segment that is growing, and people are choosing to have an exposure to crypto, and given the FSCA’s role as regulators of the financial sector, we…

MUCH to the relief of the business sector, the Transnet strike has officially come to an end after two weeks of disruption to operations that are a lifeblood to South Africa’s economy. However, Transnet is now counting the costs and has begun with the implementation of recovery plans across its operations as the industrial action left untold damage to the country’s economy. The South African Association of Freight Forwarders (SAAFF), which represents more than 300 clearing and forwarding agents, said yesterday that its members incurred logistics costs of nearly R7 billion over the 11 days of industrial action at the ports. SAAFF said South Africa also lost the opportunity of moving R65.3bn worth of goods, with a possibility that some would be moved later but the rest are gone…

DR HLENGANI Mathebula authored Why we must protect SARB, and this appeared in City Press of October 16. Quoting Ernest Hemingway, 1935, he attributes South Africa’s stagnant economy to mismanagement and corruption, both of which do not apply to the SA Reserve Bank (SARB), which we must protect. In other words, he sees no contribution of the SARB to stagnating of the economy for the past decade and half or so. It is hard to imagine any person with even the simplest understanding of economics absolving the SARB from the economic mess South Africa finds itself in. Recently, even the avowedly right-wing neo-liberal supporters of the bank have condemned its misguided stance as harming the economy. He goes on to write that “that’s why there have been calls by some…

SASOL’S share price slumped up to 9% yesterday morning after it declared force majeure on the local supply and export of certain chemical products, while its 2023 first quarter sales volumes were down. The chemicals and fuels group said in an operational update that production rates at plants in Secunda and Sasolburg had been impacted by the Transnet strike that ended earlier this week. Sasol’s shares closed 8.08% lower at R289.53 on the JSE yesterday, 34.7% below a 52-week high. The Natref refinery, the only operating oil refinery in the country, continued to function as no disruption was caused to Transnet’s pipeline. Sasol said port and rail activities had recommenced after the strike, and the discharge of containers from ships in the harbour was being prioritised, this after the conclusion…

CLICKS Group increased retail sales 11.7% in the year to August 2022 after it lifted margins, tightly controlled costs, generated strong cash flows and provided better returns to shareholders. Group turnover increased 6% to R39.6 billion. Headline earnings per share increased by 33.5%. The dividend for the year under review increased 30% to 637 cents per share. Chief executive Bertina Engel- brecht said in a telephone interview that while the 6% might be slightly below what had initially been targeted for the full year, the group posted excellent results considering the headwinds that were overcome. Cash inflows came to R4.3bn and the return on equity increased to 48% from 38.2%. During the year R1.7bn was returned to shareholders in dividend payments and share buy-backs. Engelbrecht said the majority…

VUNANI Capital Partners (VCP), the black-owned financial services company listed on the Equity Express Security Exchange, said yesterday that taxed profit increased strongly to R806 million in the six months to August 31 from R21.6m at the same time a year before. A 38c per share interim dividend was declared, well up on last year’s 3c interim payout. Directors said the improvement was largely been due to a strong performance from the resources and energy division and the Africa-focused businesses. Chief executive Mark Anderson said in a statement: “Although VCP is affected by challenging global and domestic economic conditions, the group has performed well, demonstrating a resilient investment portfolio and positive growth owed largely to the more than 50% increase in energy prices which impacted positively on…