Cape Times 2025-03-24

The government is racing against time to avert the collapse of the steel industry, engaging major player ArcelorMittal South Africa (Amsa) in crucial negotiations aimed at sustaining its Longs Steel business. Amsa had decided that it was closing its longs steel manufacturing plants in Vereening and Newscastle by April this year, but said on Thursday that it was engaging the government and financiers “regarding funding and related matters to enable the deferral of the wind-down of the longs” business. The company and government were also discussing steel industry issues that were affecting the viability of Amsa’s operations, including an influx of cheap scrap and imports of cheaper steel as well as logistical constraints. The Congress of South African Trade Unions (Cosatu) said it was supportive of these measures. It said…

Shaftesbury Capital’s share price soared over 13% on the JSE Thursday morning after announcing plans for a £570 million (around R13.4bn) cash injection through a long-term partnership with Norges Bank Investment Management (NBIM), the Norwegian sovereign wealth fund. The JSE, A2X, and London-listed UK property group will sell a 25% non-controlling interest in the Covent Garden estate to NBIM, with Shaftesbury retaining 75% ownership and management control over the estate. The deal values the Covent Garden estate at £2.7 billion, in line with an independent property valuation as of December 31, 2024, with expected cash proceeds of about £570m. On the JSE, Shaftesbury traded at R31.16 Thursday morning, a price marginally below the R33.50 it was trading at a year before. “This partnership brings together two long-term investors who have…

The Department of Transport has roped in the Development Bank of Southern Africa (DBSA) and the National Treasury to shepherd the newly formed Public Sector Participation (PSP) Unit in preparation for private investment. Transport Minister Barbara Creecy revealed the plans to habilitate Transnet through the PSP as Request for Information (RFI) was announced during a media briefing on Sunday. Creecy said arrangements were at final stage for the DBSA and Treasury to be be hosting institutions for the unit, The unit will comprise a team with extensive expertise in structuring PSP contracts and procurement, which is expected to to enhance State capacity and provide support to Transnet and Passenger Rail Agency of SA (Prasa) in the procurement of potential PSP projects. Creecy said the RFI was in response to numerous…

Walsh says recent article by President Ramaphosa clearly raises the stakes in the matter A US policy expert has warned that the new US Federal Maritime Commission (FMC) inquiry launched last week could pose significant risk for US-SA relations via potential shipping sanctions, at a time when relations between the two countries were already at an all-time low. The Federal Maritime Commission is gathering information about seven international maritime chokepoints to identify any regulations, policies, or practices that create unfavorable shipping conditions. The seven chokepoints being examined are: the Northern Sea Passage, the English Channel, the Malacca Strait, the Singapore Strait, the Strait of Gibraltar, the Panama Canal, and the Suez Canal. Michael Walsh, a non-resident senior fellow at the Foreign Policy Research Institute, an American think tank based in…

Financial services firm Investec expects a modest increase in operating profit for the year ending March 31, 2025, despite a tough economic climate, but headline earnings per share (Heps) could fall by up to 8% due to non-recurring gains from the prior year. In a pre-close trading update for the 11 months to February 28, 2025, Investec projected Heps between 67.2 pence (R15.66) and 73.5p, compared with 72.9p in 2024, reflecting a potential decline of 8% or a slight rise of 1%. Adjusted operating profit before tax is forecast to range from £888 million to £956m, up from £884.5m last year, buoyed by resilient client franchises. “We are pleased with the performance of our client franchises, which continued to report progress against our strategic priorities and support revenue growth in…

Deputy Minister of Finance, David Masondo, called for innovative financing solutions like blended finance to address a global infrastructure funding shortfall, estimated at $1 trillion to $1.5trl (R27trl) annually, during opening remarks at the G20 Infrastructure Investors’ Dialogue held last Thursday. Held at the Freedom Park Museum in Pretoria, the event focused on scaling up sustainable infrastructure investment through public-private collaboration. The event drew representatives from local and international financial institutions, G20 members, and long-term investors, reflecting South Africa’s commitment to its 2025 G20 presidency theme of “Solidarity, Equality, and Sustainability.” "This event comes at a critical period where, the world faces several crises including climate change, poverty, inequality and geopolitical tensions, amongst other challenges. Moreover, it comes at a time where, more than ever before, the significance of private…