Cape Times 2022-12-22

THE CLOSURE of petroleum refineries and outdated regulations pose serious economic challenges and jeopardises more than just the security of supply of products such as petrol and diesel, the Liquid Fuels Wholesalers Association (LFWA) has warned. CEO Peter Morgan said the country does not just get petrol and diesel from refineries, but also many by-products that have linkages to other economic activities. He said this includes by- products like bitumen, used to make tar for road construction, and other chemicals used in the construction sector. “When you are not refining as an economy, you must start importing these by-products. Imagine the repercussions of having to import the tar that is used to build new roads,” Morgan said. He said major headwinds for local oil refineries were new rules published by…

THE SOCIAL Policy Initiative (SPI) has welcomed Finance Minister Enoch Godongwana’s commitment to continue paying the Covid-19 Social Relief of Distress (SRD) grants. However, the feminist research think-and-do tank yesterday lamented the amount of R350, saying it fell short of a decent income for struggling South Africans. The ANC resolved at its elective conference that it wanted the R350 social grant to continue as a basic income grant, when it lapses in 2024. In his Medium-Term Budget Speech, Godongwana recently said the SRD grant for adults would not be terminated in future, after it was extended for another year to the end of March, 2024. Godongwana said the grant was irreversible and it was likely to form the basis for an introduction of a basic income grant for South Africans.…

This comes after Pretoria High Court grants Nersa a 20-day extension SOUTH Africans will eat their Christmas dinners in the dark about whether they will pay up to 32% more on their electricity consumption in the new year, in spite of rolling blackouts. This comes after the North Gauteng High Court in Pretoria yesterday granted the Energy Regulator of South Africa (Nersa) a 20-day extension to make the final decision on Eskom’s revenue application for the 2023/24 financial year. The high court yesterday said Nersa should make a decision on Eskom’s revenue application for a 32% tariff hike for the 2023/24 financial year on or before January 12, 2023. In July this year, the same court issued an order for Nersa to make a final decision on this particular Eskom…

“Man’s goodness is a flame that can be hidden but never extinguished.” – Nelson Mandela AS THE year comes to an end, let us reflect on what I call “a year of cosmic experiences”. As I see it, we are living in the most exciting times ever in the history of our country, and the world, with a time for new vibrations and new (or renewed) energy fields, as we all embrace a new digital era and a way of working and living. Over the past couple of years, we have generally experienced a world (and a South Africa) that has worked on negative thoughts: “breaking news” of such horrors as rape, brutal murders, theft and corruption. The list is long… It has become the norm, with the old saying…

THE FUTURE of sovereign bonds, emanating both locally and globally, remains uncertain. But locally the asset class looks alluring in an investment market that has flatlined elsewhere. The JSE All-Bond Index (ALBI) has returned 3.8% over a one-year period in rand terms, but lost -2.8% in dollar terms. While underperforming inflation over the past year, South African bonds have performed much better than the US Treasuries and UK Gilts. According to Bloomberg’s US Government Bond Index, it has retracted by 12% over the past year and the Bloomberg UK Government Bond Index is almost a third below its value a year ago. However, near-term returns must be viewed in context, says Chantal Marx, head of investment research and content at FNB wealth and investments. “A rising interest rate environment detracts…

STUBBORNLY high inflation, soaring borrowing costs and geopolitical uncertainty hindered dealmaking in 2022, sending global mergers and acquisitions activity down by almost a third compared to last year’s record haul. Companies announced $3.5 trillion (R61 trillion) of deals in 2022, according to data compiled by Bloomberg, striking transactions to bulk up existing businesses, push into new sectors or reorganise operations against a volatile backdrop of slumping equity markets and forceful antitrust actions. Megadeals announced early in the year were soon replaced by jitters about getting mergers and acquisitions (M&A) over the finish line, with monthly deal activity plummeting by almost half from May to June. The volumes have yet to recover. “It’s really the tale of two years,” said Melissa Sawyer, the global head of Sullivan & Cromwell’s M&A group.…