Table of contents for 2025-02-06 in Cape Times

Hopes and expectations collide as country awaits President Ramaphosa’s SONA As South Africa approaches the eagerly awaited State of the Nation Address (Sona) by President Cyril Ramaphosa, anticipation is running high among economists and citizens alike. With pressing issues such as economic recovery, unemployment, and the energy crises front and centre, analysts are hoping that Ramaphosa's address will provide crucial insights into the government's strategies aimed at revitalising the nation. Investec chief economist Annabel Bishop said that investors will be focusing on the various crisis gripping the country such as weak growth, freight constraints, poor governance at a number of state entities, particularly municipalities and the need to fight crime and corruption. "The water and sanitation crisis, still high unemployment (poverty and weak growth) and GBV (gender-based violence) will also…

While local banks have made significant strides in black ownership and empowerment financing, they are struggling to meet key transformation targets in senior and top senior management levels, the latest Banking Association of South Africa (Basa) report says. According to Basa's 2024 Transformation in Banking Report, released on Thursday, which covers 96% of bank assets in South Africa, the banking sector has exceeded targets for black ownership and economic interest, with black ownership standing at 38% for 2023, well above the 25% target. However, despite this progress in lower levels of management, senior and top senior management remain a concern, with only 51% of senior managers and 36% of top senior managers being black, falling short of the 60% target. Of note, 90% of junior managers in banks are black,…

South Africa’s economic landscape entered 2025 with ominous signs as a marked decline in client demand resulted in significant reductions in the manufacturing business output. According to the latest S&P Global South Africa Purchasing Managers’ Index (PMI), released on Wednesday, the index plummeted to 47.4 in January, down from 49.9 in December. This figure, remaining below the neutral 50.0 threshold for the second consecutive month, marked the country’s lowest reading since July 2021. The S&P report highlights that the downturn in operating conditions was primarily linked to a sharp pull-back in client demand. The contraction of new business was particularly stark, reflecting the most considerable decline since March 2024. Anecdotal evidence from panellists pointed to diminished customer incomes, which were hampering sales, in addition to a persistent decrease in foreign…

This week marks my first time attending the Investing in African Mining Indaba or colloquially known as the Mining Indaba. The Mining Indaba has been running for more than 30 years and has marked itself as the premier event for leaders in the mining industry. Firstly, as a newbie, I was thoroughly overwhelmed by its sheer scale, but it does feel like the entire mining industry has converged to the Cape Town International Convention Centre . Secondly, the mining industry’s value and supply chain is quite expansive. From the mining houses themselves, to government, trade unions, financiers, telecommunications, logistics, occupational health and safety, energy, academia and other technology enabling sectors. It doesn’t just feel like all the hard hats from the mining shafts are here –but all of corporate Africa…

Sasol’s share price leapt 7% on Wednesday morning despite it issuing a sobering forecast for its financial performance for the six months ending December 31, 2024, predicting a significant downturn in its headline earnings per share (Heps). The shares leapt to an intraday high of R93.54 before moderating to R88.39 at 3.30pm. The shares are down 34.51% in the past three months. The South African petrochemicals giant on Wednesday projected a decline of between 26% and 36%, estimating Heps to fall in the range of R13.00 to R15.00, compared to R20.37 in the previous half-year. This forecast is largely attributed to declining fuel prices and diminished sales volumes during the period. Sasol also said that its earnings per share (Eps) were expected to drop even sharper, plunging between…

Yesterday marked nine years since the tragic entrapment of three miners, Pretty Nkambule, Yvonne Mnisi, and Solomon Nyirenda, at the Lily Mine in Barberton, Mpumalanga, on February 5, 2016. The families of the victims gathered at the site of the tragedy, where their grief was compounded by the ongoing disappointment stemming from the apparent lack of political will to bring about a resolution to their plight. Their attempts to pay tribute to the entrapped loved ones were almost thwarted after, on their arrival, rocks and stones were used to barricade the road leading to the site of bereavement. The Lily Mine tragedy made headlines when a section of the mine collapsed, sealing the container office where the three miners were working, about 70m below the surface. Initial attempts to reach…

When Morris Garages started producing the first MG small sport cars and roadsters in 1924, I’m sure Cecil Kimber would have baulked at the idea that someday they would be a Chinese-owned company. The cars I grew up with like the MGBs were unique in their look and design but were notoriously unreliable, much like many other cars out of England. The marque has changed hands more often than Jacob Zuma has reinvented himself but eventually found themselves bought out by Nanjing Automobile group in 2005, which merged into Shanghai Automotive Industry Corporation (SAIC) in 2007 and currently the world’s seventh biggest automobile manufacturer. There’s nothing cute and quirky anymore and as the world’s thirst for SUVs and Crossovers remains unquenched, that’s their line-up. Except, of course, for their…

The Toyota Rav4 has not only taken a back seat to the locally-manufactured Corolla Cross on local shores, it has in fact become one of the firm’s slowest sellers locally with monthly sales often falling beneath the 100 mark. But internationally, it remains Toyota’s second best-seller, beaten narrowly by the Corolla in 2024 with over 1.2 million sold across the globe. With the current version having been on sale since 2019, Toyota is getting ready to replace the Rav4 in late 2025. A camouflage prototype of the next-generation model was recently spotted undergoing testing in Michigan in the US, showing off what appears to be a larger and more angular bodyshell. The front end appears to mimic the latest Toyota design language seen on the facelifted Corolla…

Comparisons may be odious, but unfortunately for MI Cape Town, they are also inevitable. For the first time in three seasons, MI Cape Town not only reached the SA20 playoffs, but have also progressed straight through to the grand final at the Wanderers on Saturday at the first time of asking. Since they also topped the group stages with a record 35 points, it is hard to avoid the fact they have been unquestionably the best side in Season 3. So, what is the difference between this group who are hoping to be crowned champions at the Bullring, and the bumbling bunch that fumbled around for two seasons? “We’ve always had the players, but now I think we got together, and the senior group had a lot to do with…

DESPITE the loss to MI Cape Town in the first qualifier of the SA20 earlier this week, Paarl Royals all-rounder Dayyaan Galiem emphasised that the team are still in a good space. Having lost in Gqeberha on Tuesday night, the Royals will now play in the Qualifier 2 at SuperSport Park in Centurion today, with the encounter – against the winner of last night’s eliminator between Joburg Super Kings and Sunrisers Eastern Cape – scheduled to get underway at 5.30pm. The 28-year-old highlighted the abundance of knowledge of the conditions at Centurion within the Royals team as an advantage going into the fixture. Galiem himself, along with a few other Royals players, play their domestic cricket at the ground – something the 28-year-old reckons will play into their hands tonight.…

Some steel sector companies have resorted to using steel billets as a stop-gap measure in the mounting shortage of long steel products, as an ominous silence hangs over the fate of ArcelorMittal South Africa (Amsa), whose January-end deadline to mothball operations in Newcastle and Vereeniging looms heavily over the industry. On the eve of Amsa releasing its financial results on Friday and possibly making a public announcement on the final decision regarding its plants, participants at a webinar hosted by XA Global Advisors discussed the potential impact of Amsa’s decision. Participants said this directly impacts the future availability of long steel products in the Southern African Customs Union. Billets and blooms are semi-rolled products used by rolling mills for manufacturing steel products such as rounds, wire, rebar, or structural sections.…

Total annual gold demand reached a new, record high of 4 974 tons driven by strong central bank buying and growth in investment demand, according to the World Gold Council’s latest Gold Demand Trends report. The report, released at the Investing in African Mining in Cape Town on Wednesday, said the combination of record high gold prices and volumes resulted in the highest ever total value of demand at $382 billion (R7.1 trillion). “Gold once again dominated headlines in 2024, with prices reaching 40 record highs last year. Yet, the demand trajectory of 2024 was far from linear, with central banks posting strong demand in the first quarter before moderating through the middle of the year and finishing with a strong fourth,” said Louise Street, a senior markets analyst at…

Labour unions on Wednesday called for continuous improvements through real time monitoring, safety audits and retraining of mining workers to avoid continued fatalities underground after Harmony Gold reported five fatalities from separate incidents at two of its mines in South Africa. According to the Minerals Council, the South African formal mining industry reported 42 fatalities in 2024, a 24% reduction on the previous year. However, mining labour unions say mining companies should put more efforts to attain zero harm, with the Minerals Council also agreeing that the industry is “on the path to zero harm,” given the reduction in fatalities in the past year. However, the deaths of five Harmony Gold employees on Tuesday appeared set to muddy the progress the industry is making towards harm reduction. The South African…

Any successful business owner will tell you that with the right strategy, you can start 2025 strong – fuelled by the momentum and focus required to take your business to the next level. These five practical steps will set your business up for success in 2025: Tidy up your finances Now is the perfect time to get your finances in order by ensuring all books are up to date, all invoices are sent and that you have followed up on any outstanding debtors. When your financial information is accurate and well organised, you’ll be in a better position to identify areas of strength and weakness, which will enable you to make informed decisions in the year ahead. If you’ve been considering debt financing options to grow your business, now is…

As we look toward 2025, hedge funds will navigate a landscape where both challenges and opportunities are closely tied to the movements of offshore markets. While South Africa’s financial market may not provide the high-growth potential seen in the US, or tech sector powerhouses like Nvidia, it remains highly relevant due to its volatility. South Africa’s market, with its reactive nature, is especially prone to fluctuations, making it a fertile ground for hedge funds to benefit from market unpredictability. As global financial dynamics continue to evolve, the strategies and adaptability of hedge funds will be crucial in navigating the uncertainties of the coming year. Geopolitical Outlook Given South Africa’s trade-dependent economy, it is likely to experience significant turbulence from ongoing geopolitical uncertainties, namely the Trump trade wars, Israel-Palestine tensions, and…

There have been mixed reactions by workers' unions and the agricultural sector following the Department of Employment and Labour’s announcement of an increase in the National Minimum Wage (NMW) from R27.58 to R28.79, equivalent to R1.21 or 4.4 %. The Department said that South Africa introduced the implementation of the National Minimum Wage Act in 2019, which is subject to annual review and increases annually from March 1. The 2025 NMW amendments are a step forward in addressing income inequality, said John Botha, a labour market specialist. “By ensuring that farmworkers, domestic workers, and Expanded Public Works Programme ((EPWP) participants receive fair pay, the government is making progress in reducing wage disparities. Employers who embrace these changes may benefit from improved employee morale, reduced turnover, and enhanced productivity. With robust…

A benefit evening at the Artscape will celebrate the legacy of The Masque Theatre while raising funds to invest in its future. The Masque Theatre Arts Benefit is hosted by Siv Ngesi as MC, for one night only, and a range of South Africa’s most talented artists will perform on stage to honour The Masque’s 65 year legacy. Performers include the renowned South African Jazzart Dance Theatre, musician Ted Faulkner and his band, Pinch of Celt, acclaimed producer, writer, poet and performer Siphokazi Jonas and the students from the world-class Waterfront Theatre School who will perform a selection of dance and musical theatre. The Masque is an iconic cornerstone of Cape Town’s cultural landscape, celebrating decades of fostering creativity, inclusivity and community spirit. Founded by the visionary Bertie Stern, The…

Mercedes-Benz South Africa is launching some exciting cars this year, especially AMG-badged versions of the three-pointed star and new co-chief executive officer and executive director Mercedes-Benz Cars Claudius Steinhoff, is looking forward to a challenging but interesting year. “We have lots of challenges ahead but in the same breath, also lots of opportunities. “I sincerely believe that the automotive industry is currently experiencing the biggest transformation we have ever seen and to be honest, we as a brand are facing lots of challenges at the moment. “We have a plan and we are facing them head-on to see how we can beat the All Blacks of the motoring industry to ensure that our customers stay excited and that they regularly fall in love with Mercedes-Benz,” he said using a rugby…

While the Cape Town Stadium turf took a beating with the recent bout of concerts, the Stormers pack are still confident that they will be able to utilise their scrum weapon against the Bulls on Saturday. The forwards will take centre stage in the Mother City (2pm start) when they face each other in the scrums and lineouts, hoping to gain the ascendency. That will bring their dangerous backlines into play in the first North-South Derby of the United Rugby Championship season. In the front row, Stormers loosehead Sti Sithole will have a big task at hand should he get the starting nod against the Bulls’ Wilco Louw. Bulls No 3 Louw, a former Stormers tighthead, has been rampaging through his opponents this season, and will look to continue his…

EIGHT fights into his UFC career, Dricus du Plessis remains an unsolved puzzle for fighters in the middleweight division as the 31-year-old has remained undefeated heading into his ninth fight this coming Sunday in Sydney. Du Plessis is set to defend his world title for the second time, and this time against the very same man he dethroned – Sean Strickland – to become South Africa’s very first UFC world champion. His unbeaten record remains one of the biggest myths in the sport as the South African athlete is by no means the most talented fighter, nor is he the most stylish. In trying to decode the South African’s fighting style, experts have used the terms “awkward” and “unorthodox” in an attempt to make sense of or describe Du Plessis’…

Political tensions are escalating within South Africa’s economic landscape after the cancellation of a crucial meeting between the Select Committee on Economic Development and Trade and officials from the Department of Trade, Industry and Competition (the dtic). The meeting set for Wednesday was intended for a comprehensive briefing on the sensitive issues surrounding the African Growth and Opportunity Act (AGOA) and European Union (EU) restrictions on South African citrus imports. However, the absence of key government officials painted a stark picture of the communication breakdowns that are straining relations between lawmakers and the executive branch. Sonja Boshoff, chairperson of the Select Committee on Economic Development and Trade, expressed her frustration over the no-show of the dtic minister, Parks Tau, who had apologised late for his absence due to a concurrent…

Transnet Engineering (TE), responsible for the maintenance of the utilities rolling stock and key equipment in the ports, has made headway on getting more locomotives onto the tracks and has identified three key areas of potential collaboration with the private sector. This was according to Bessie Mabunda, the acting-CEO of TE since May last year, and who was interviewed on Wednesday at the Investing in African Mining Indaba that is being held in Cape Town. Mining companies continue to struggle with Transnet’s declining rail freight capabilities, which, despite recent efforts by industry, government and Transnet, has had the effect of curbing the revenues and export volumes of many mining groups. Mabunda said in May, when she started at TE, freight rail capacity was constrained by the 394 new generations locomotives…

In October 2020, before a joint sitting of both Houses of Parliament, President Cyril Ramaphosa tabled the government’s Economic Reconstruction and Recovery Plan (ERRP) – a comprehensive response to the global Covid-19 pandemic and lockdown that inflicted unimaginable harm on South Africa’s fragile economy (one that had already been battered from a decade of state capture and corruption). With priority areas focused on infrastructure development, industrialization and local production, energy and food security, as well as reviving the tourism sector, the ERRP was also designed to help and empower small, micro and medium enterprises (SMMEs). This is critical, especially considering that SMMEs constitute 40% of the country’s Gross Domestic Profit (GDP) and are at the forefront of creating employment opportunities in a country where the unemployment rate is currently sitting…

Market participants welcomed Copper360 announcement on Wednesday that it had reached “a major operational milestone with the successful execution of the first on-ore blast at Rietberg” mine last month, which saw its shares leap nearly 10%. From leaping to intraday high of R2.25, by 5pm the share was trading at R2.20. The share listed on the JSE in April 2023. “This marks the first such blast in 42 years, signalling the start of Copper 360’s transition from less predictable mine development towards structured hard rock mining,” said the company. With demand for copper projected to grow and its price on a strong footing, South African miners of the mineral, such as Copper360, are seizing the opportunities and are positioning to benefit from the looming high demand for the commodity. Copper…

A FORMER bank official who was fired after she used her own funds to open 99 “MyMo” accounts to meet her sales targets, has failed in her bid to get her job back. Natasha Neville, represented by her union, the South African Society of Banking Officials (Sasbo), asked the Johannesburg Labour Court to overturn the decision of a commissioner at the CCMA, which found her dismissal to be substantively fair. Neville was employed as a universal banker (UB) at Standard Bank, which amalgamated several roles into one, including that of clerk, sales consultant, and service consultant, but she was subsequently promoted to a team leader. Every UB was required to meet a sales target. In particular, they were required to solicit customers and have them agree to open a “MyMo…

Ford has announced its return to the Le Mans 24 Hours in 2027 in the premier Hypercar category with a prototype which will compete in the World Auto Endurance Championship (WEC). In a statement, the American manufacturer, which won the legendary event four years in a row from 1966 to 1969, said it hoped to “recapture the magic and success of Ford racing nearly 60 years ago”. Ford already made a winning return to the race in 2016 in the LMGTE (Grand Touring Endurance) category, beating Ferrari, as it did in 1966. “There is no track or race that means more to our history than Le Mans,” said Bill Ford, executive chairman of the manufacturer based near Detroit, Michigan. “It is where we took on Ferrari and won in the…

Much like the weather in Centurion that started off in blazing sunshine before the heavens opened in the afternoon yesterday, Proteas coach Rob Walter’s day only got progressively worse. Cricket SA released a statement at 10am with fast bowler Gerald Coetzee included in the Proteas Men’s squad for the upcoming ODI Tri-Series against Pakistan and New Zealand, which will be used as preparation for the ICC Champions Trophy later this month. Fast bowler Coetzee had not played since January 14 due to a left hamstring strain. By 2pm yesterday, CSA were forced to send out another release stating Coetzee had been ruled out after the 24-year-old experienced tightness in his groin while completing his 10 overs during training at the Centre of Excellence in Pretoria. It is a significant blow…

Kaizer Chiefs coach Nasreddine Nabi has pleaded with his troops to aim for more consistency, given that points will be crucial in the second half of the season. Chiefs had an up-and-down first half of the season. They missed out on the Carling Knockout and MTN8 trophies, and are fifth on the Premiership log. Their run in the Premiership has since seen them fall behind in the chasing pack. They trail log leaders Mamelodi Sundowns, who have three games in hand, by 14 points. Chiefs haven’t had it easy over the past few days. They faced arch-rivals Orlando Pirates in the Soweto Derby last Saturday and lost 1-0. They had a three-day turnover on Tuesday night as they hosted AmaZulu at the FNB Stadium, and drew that match 2-2. The…

The SA20 cricket tournament is wild. Every night is a high-energy affair. Walking around the stadiums, there are children and adults having a jolly good time. Then there’s the executive suits, where you can bump into anyone from Sports Minister Gayton McKenzie to Afrikaans pop icon Kurt Darren on any given night. For the past couple of weeks, though, I’ve shared the company of former Springbok rugby players Juan de Jongh and Rudy Paige. The duo have reinvented themselves as social media content creators, with their podcast ‘Behind the Ruck’ proving hugely popular. In fact, their unique humour and charm has seen pay-channel SuperSport call on their services during the SA20 to add some colour and off-field entertainment to the action out in the middle. For anyone who has ever…