Star 2026-04-21

As the clock ticks down on the ceasefire between the United States (US) and Iran, Brent crude oil prices surged by more than 5% to above $95 per barrel on Monday. Uncertainty loomed over global markets as investors braced for potential volatility following Iran's weekend announcement that it will not engage in talks with the United States until the current ceasefire expires on Tuesday. This development has prompted President Trump to adopt a more aggressive stance, raising eyebrows and concerns on Wall Street and beyond. On Friday, Wall Street celebrated a record week, with the S&P 500 ending the trading session up by 1.2%. Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank said that last week was marked by a questionable rally on hopes that peace was just around the corner,…

Finance Minister Enoch Godongwana has ruled out calls for personal income tax cuts and the expansion of VAT zero-rating on additional essential goods, saying South Africa’s current fiscal position does not allow for major tax reductions. Godongwana said this in a parliamentary reply to questions posed by uMkhonto weSizwe MP Sithembile Nkosi, who had asked whether the National Treasury would consider lowering personal income tax or broadening VAT zero-rating to ease financial pressure on working-class households. "Budget 2026 aimed to limit the tax burden on individuals and households, within the limitations of the fiscal framework. In this regard, personal income tax (PIT) brackets, tax rebates, as well as several tax thresholds and limits, were adjusted for inflation in order to reduce taxpayers' tax liabilities," Godongwana said. "South Africa’s personal income…

Labat Africa has issued a trading update indicating a sharp improvement in its financial performance for the year ending 31 May 2026, with revenue expected to more than double compared to the previous year. The tech investment group on Monday said it has reasonable certainty that its results will differ by more than 20% from those reported for the year ended 31 May 2025. The group, which previously focused on cannabis sector investments, expects revenue to rise by between 146.78% and 166.78%, reaching approximately R511 million, up from R199m in the prior year. This surge reflects increased operational activity across its portfolio. However, earnings per share (EPS) are projected to decline by between 12.85% and 32.85%, to around 8.17 cents per share, compared with 10.59 cents previously. Despite this dip,…

Ministers hail R9.2 billion project’s shift from preparation to full-scale construction The second phase of the Lesotho Highlands Water Project has entered a critical new stage, with the official launch of a second tunnel boring machine (TBM) marking accelerated progress on one of Africa’s most ambitious cross-border infrastructure projects. Minister of Water and Sanitation, Pemmy Majodina, and Lesotho’s Minister of Natural Resources, Mohlomi Moleko, on Monday unveiled the Polihali TBM in Mokhotlong, Lesotho, a milestone that underscores the R9.2 billion project’s shift from preparation to full-scale underground construction. Phase II of the project is designed to significantly boost water supply to Gauteng while simultaneously strengthening Lesotho’s energy capacity through the planned Oxbow Hydropower Scheme. At its core is the construction of the 38.5-kilometre Polihali Transfer Tunnel, which will channel water…

South Africa’s already moribund industrial base is set to come under further pressure because of the war in the Middle East, the economy could see growth slow even further. Manufacturing is a key push side driver of the economy and ideally should be a bigger growth driver than it is. Currently, almost two thirds of gross domestic product (GDP) is consumption based through consumer spending. Industrial output creates a virtuous cycle in that manufacturing provides structural, sustainable growth by driving high-quality employment, generating technological progress, and improving a nation’s trade balance. Consumer spending, conversely, primarily drives the service sector, which often relies on rising debt and can result in high consumer debt levels, which are unsustainable in the long term. As an indicator of manufacturing’s importance, it contributes about 12%…

Recent regulatory action against an audit partner in the VBS Mutual Bank audit has again drawn attention to the role of assurance in governance. These moments are often framed in terms of individual accountability. They also invite a broader reflection on the place of assurance within the governance system itself. Modern governance is supported by a layered architecture of assurance. External auditors provide independent opinions on financial statements. Internal audit evaluates the effectiveness of controls and risk management. Legal advisors interpret regulatory obligations and provide guidance on complex matters. Consultants bring specialised expertise, often shaping strategic and operational decisions. Professional bodies set standards, enforce discipline and sustain the credibility of the professions that operate within this ecosystem. These mechanisms exist to strengthen confidence, enabling boards, management and stakeholders to operate…