Star 2026-04-16

Borrowing facility marks significant step in strengthening SA capital markets and support for private sector growth The International Finance Corporation (IFC) and Citigroup have signed a R1.6 billion borrowing facility aimed at expanding access to local currency financing in South Africa, marking a significant step toward strengthening the country’s capital markets and supporting private sector growth. Announced in Washington, D.C. on Tuesday on the sidelines of the IMF/World Bank Annual Meetings, the agreement forms part of the broader efforts by the World Bank Group to deepen financial systems in emerging markets by reducing reliance on foreign currency funding. As global economic uncertainty persists, initiatives like the IFC-Citi facility highlight the growing importance of partnerships that blend development objectives with private sector expertise — a model that could shape the future…

The Durban High Court will be the scene of tense hearings Thursday and Friday as stakeholders including the government and Industrial Development Corporation (IDC) try to block the final liquidation of South Africa’s biggest sugar producer Tongaat Hulett. The company entered business rescue in 2022 after years of financial distress caused by accounting irregularities, debt overload, and operational losses. Business Rescue Practitioners (BRPs) were appointed to restructure the debt and find investors to recapitalise the company, and the Vision Group was chosen. But this stalled over funding guarantees and compliance conditions, and as the liquidity position worsened and creditors pressed for repayment, resulting in the BRPs filing for liquidation in early 2026. The BRPs said in their latest update on the business rescue that until March 31, 2026, Tongaat continued…

A sharp decline in South Africa’s white maize prices has drawn mixed reactions from across the agricultural sector and consumer groups, highlighting a growing divide between relief for households and rising pressure on farmers. According to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, white maize spot prices have dropped by 39% year-on-year, currently trading at around R3,118 per ton. Sihlobo said that among other things, South Africa had a large maize harvest in the 2024-25 production season, but exports were slow in the marketing year that corresponded to this production year. “In essence, we have ample supplies. The outlook for the 2025-26 production season we are in also looks promising, with an expected harvest of 16.5 million tons, down 1% from the previous season…

The International Monetary Fund (IMF) has commended South Africa’s economic management, highlighting the country’s resilience in the face of mounting global uncertainties and regional risks. South Africa has faced a series of economic challenges in recent years, including energy constraints, fiscal pressures, and weak growth. However, the government has implemented a range of reforms aimed at stabilising public finances, improving governance in State-owned enterprises, and addressing structural bottlenecks. IMF managing director Kristalina Georgieva on Tuesday shared positive feedback following high-level discussions with Finance Minister Enoch Godongwana and South African Reserve Bank (Sarb) Governor Lesetja Kganyago, where discussions focused on economic risks facing both South Africa and the broader region. According to Georgieva, South Africa’s economy is showing increased resilience in the face of mounting global uncertainty, even as the IMF…

What started out as a geopolitical problem is now affecting energy markets, transportation systems, fertilizer supply, and, eventually, the price of producing food on a global scale. According to recent freight market data, the global supply chain is under increasing pressure. Cost pressures are increasing more quickly than the system can handle this, which will ultimately result in high food prices and an increase in food insecurity, particularly in Africa, Asia, and some parts of the Americas. About 30% of fertilizer, 20% of oil, 25% of liquid nitrogen gas, and 45% of sulphur pass via the Strait of Hormuz. These vital inputs are currently severely blocked. Fertilizer is at the center of the disturbance. According to World Bank data, fertilizer prices have skyrocketed globally as of March 2026. Diammonium phosphate…

President Cyril Ramaphosa has called for a decisive shift in how municipalities drive economic growth, placing small businesses and service delivery at the centre of efforts to rebuild local economies. Delivering the keynote address at the 2026 National Local Economic Development (LED) Summit in Ekurhuleni on Wednesday, Ramaphosa said municipalities must reposition themselves as “incubators of economic activity” rather than passive administrators. The summit follows the recent South Africa Investment Conference, which secured R890 billion in pledges. However, Ramaphosa stressed that investment ultimately materialises at local level. “When investors build their business in our country, they don’t set up factories… in front of the Union Buildings,” he said. “This investment takes place in metros, cities, towns and villages,” Ramaphosa said. He warned that weak governance continues to undermine economic potential,…