Cape Times 2024-06-04

PRIVATE equity company Brait, partly owned by well known South African businessperson Christo Wiese, saw its price plunge more than 16% on the JSE yesterday after it announced recapita- lisation plans that included a R1.5 billion rights issue. Brait’s share price closed 17.39% lower at 95 cents on the JSE yesterday. Its invest- ments includes 67% of international fitness group Virgin Active, 18% of UK fashion retailer New Look and 38% of local food producer Premier, which listed separately in March last year. Brait’s share price has fallen steadily, by more than 70% over the past 12 months. Independent market analyst Ryk de Klerk said that in general, as he had not looked at Brait, it was not a good time to announce a rights issue, because there…

SHELL South Africa is considering its next moves regarding continued investment in offshore exploration for oil after the Supreme Court of Appeal (SCA) yesterday dismissed its appeal against an earlier court ruling that set aside exploration rights and renewals for oil and gas exploration off the Wild Coast. The SCA ruling came after the Makhanda High Court had ruled that exploration rights awarded to Shell were unlawful as communities near the affected areas had not been properly notified and consulted. Shell was appealing against this ruling, with the SCA dismissing the appeal in a judgment delivered yesterday. “The appeal is dismissed with costs, including those of two counsel to be paid jointly and severally by the appellants,” ruled the SCA. It also said renewal rights for Shell had been “suspended…

Nicola Mawson FINANCIAL markets remained stoic with the rand fairly stable yesterday as investors weighed prospects of a business-friendly coalition following the historic general elections, which saw the ruling ANC losing its parliamentary majority for the first time since the 1994 democratic elections. After four consecutive days of declines, the JSE all share index opened more than 1% higher yesterday, trading above the 77 600 point level, buoyed by financials, investment, healthcare groups and telecoms stocks. The index closed yesterday at 77 746 points, up 1.36% Even though the rand had weakened back towards the R19 mark to the US dollar as coalition dynamics spooked investors last week, the domestic currency saw some nascent strength on the ANC’s stance to coalitions and pulled back 0.5% to R18.51/$1…

BUSINESS and civic organisations have called on political parties’ coalition negotiators to be mindful of addressing looming challenges, including policy uncertainty, the need to build business confidence, and efficient administration as the economy is ushered into uncharted territory. This comes as the ruling ANC embarks on negotiations with opposition parties to form a coalition government after losing its parliamentary majority for the first time since demo-cracy, winning 40.18% of the national vote, with the DA coming second at 21.81% and the newly formed MK Party scoring 14.58%. Business organisations yesterday said that the election results were important, as the country had endured significant hardships over the past 15 years due to misgovernance during the State capture years, the Covid-19 pandemic, self-inflicted unrest in July 2021, and several episodes of…

MANUFACTURING activity in South Africa plunged to a four-month low in May as sentiment returned to contractionary territory, in spite of another month of no load shedding. The seasonally adjusted Absa Purchasing Managers’ Index (PMI) released yesterday, fell below 50 points in May, dropping significantly to 43.8 points from 54 points in April, the lowest reading in four months. This decline signalled a renewed deterioration in the country’s manufacturing sector, primarily driven by a significant drop in demand, and uncertainties related to last week’s general election. The PMI, which is conducted by the Bureau for Economic Research (BER) and sponsored by Absa, showed the manufacturing’s weakness was broad-based. The business activity index declined to 38.1 points in May from 57.2 points in April, the second lowest…

THE FINANCIAL technology (fintech) sector is rapidly transforming the financial landscape globally, and South Africa is no exception. The emergence of fintech start-ups has introduced innovative solutions that challenge traditional financial institutions, offering consumers and businesses more efficient, accessible and cost-effective financial services. This disruption is particularly evident in three areas: mobile payments, wealth management and crowdfunding. In each, fintech’s impact is reshaping the way financial services are delivered and consumed. Mobile payments are one of the most significant fintech innovations in South Africa, driven by the high penetration of cellphones and the need for accessible financial services. Companies like SnapScan, Zapper, and Yoco are leading the charge, providing easy-to-use mobile payment solutions that enable consumers to make transactions quickly and securely using their smartphones. These solutions are particularly beneficial…