Cape Times 2023-05-17

This despite StatsSA recording 258 000 new employees finding jobs in first quarter of this year THE RATE OF unemployment in South Africa is bound to remain high in the medium term as the economy struggles to create jobs on the back of an electricity crisis that suffocates energy-intensive industries which absorb the most labour force. Statistics South Africa (StatsSA) yesterday said that the unemployment rate edged up slightly by 0.2 of a percentage point to 32.9% in the three months to March, from 32.7% in the fourth quarter of 2022. This was the first increase in the unemployment rate in more than a year after the economy withstood the disruption caused by KwaZulu-Natal floods, heightened load shedding and the two-week-long Transnet strike last year. However, Eskom has…

MINISTER of Mineral Resources and Energy Gwede Mantashe said yesterday that the lack of grid capacity was the single challenge the country faced. Speaking at the tabling of his department’s budget vote in Parliament yesterday, Mantashe said: “The single-most challenge we face to address the energy crisis is the grid unavailability.” He said despite the country struggling with the grid capacity and load shedding rollouts, connectivity and universal access to electricity for citizens was important. Mantashe said, notwithstanding, the headwinds, the department re- mained steadfast in setting objectives that it should meet in its programme to ensure universal access to electricity for the poor. He said the department aimed to connect 917 000 households to the grid. Mantashe said: “Today, 673 946 households are connected to…

FINANCE Minister Enoch Godongwana has hinted that the government could begin a process of downsizing its headcount of more than 1.2 million workers and freeze recruitment for certain positions as part of “difficult trade-offs” aimed to ease pressure on the fiscus due to the rising public sector wage bill. This is likely to be fiercely contested by workers unions who have been playing hard-ball against the government’s austerity measures on the back of rising cost of living as a result of elevated consumer inflation. Presenting the National Treasury Budget Vote in Parliament yesterday, Godongwana said the Treasury would continue to ensure that public finances are restored to a sustainable footing, by stabilising debt, promoting economic growth, and cushioning the economy from financial and other shocks. However, Godongwana said a…

IN SOUTH Africa, the conversation around energy is intensifying. As we grapple with the impact of load shedding and a strained national grid, there’s a growing consensus that we need to expedite our transition to renewable energy, particularly solar. With most of South Africa receiving about 2 500 hours of sunshine per year, and solar radiation levels between 4.5 and 6.5kW/h per m² daily, the country’s abundant solar resources makes solar one of the cheapest sources of energy currently available to South Africans. Solar provides a promising solution to the load-shedding crisis, offering both immediate relief and long-term sustainability. Innovative financing models and business strategies, particularly from financial institutions, have made solar energy accessible and feasible not only for households, but also for commercial, industrial and utility scales. Sapvia…

SANTAM said yesterday that the three months to March 31 had brought an adverse claims experience, particularly from bad weather and power surge claims impacting the property class of business. The short-term insurer, a leader in the local market, said in an operational update that operating conditions were challenging, with insurance growth prospects dampened by the impact of electricity supply disruptions on economic growth and pressure on personal disposable income from higher inflation and interest rates. The insurance market was also competitive. “The group showed operational resilience and achieved sound financial results for the period. The corrective underwriting actions have had a positive effect, with further benefits expected in coming months. “The underwriting performance of the motor class showed significant improvement compared to the comparative period in 2022,” the…

OCTODEC Investments’ Johannesburg and Tshwane properties generated a 10.7% increase in distributable income to R234.5 million in the six months to February 28 as people returned to the CBDs after Covid and the group started developing again. Distributable income per share was up by the same percentage to 88.1 cents. The dividend was raised 20% to 60c a share, reflecting a higher payout ratio of distributable income, compared with the past two years. Rental income from the R11.1 billion residential, retail, industrial, offices and parking portfolio grew 3.2% to R974.2m, and on a like-for-like basis it increased by 4.1% versus 1.2% in 2022. MD Jeffrey Wapnick said there was a great deal of negative sentiment about in South Africa, but business people needed to “get out…