Cape Times 2024-10-24

Information and communication technology group EOH has made progress on its growth strategy, resolved many legacy issues and significantly streamlined its corporate office and administrative functions on its journey to financial stability, the group said yesterday. In the year to July 31, the headline loss per share (HLPS) for the group that operates across Africa, the UK, Europe, and the Middle East, improved substantially by 99% to 0.21 cents, after net finance costs reduced by 28% to R118 million. Revenue from continuing operations fell 3.1% to R6 billion after good growth from the International segment (27%) and Infrastructure services businesses (5%), with Digital revenue generation remaining robust. International revenue as a percentage of the total grew to 11% during the year from 8% the previous year and growth was good,…

September’s inflation figure of 3.8% is the lowest since March 2021, when it was 3.2% Cash-strapped consumers in South Africa could be set for some relief as the South African Reserve Bank (SARB) is expected to cut borrowing costs by a significant 0.5% in the final Monetary Policy Committee (MPC) meeting for the year next month. This comes after annual consumer headline inflation plunged to its lowest level in three-and-a-half years in September on the back of slowing fuel prices and stronger rand exchange rates. Data from Statistics SA (Stats SA) yesterday showed that the annual inflation rate fell for a fourth consecutive month to 3.8% in September, down from 4.4% in August. This is the lowest inflation print since March 2021 when the rate was 3.2%, and was below…

In a landscape marked by global economic fluctuations, Southern African CEOs are expressing cautious optimism for the next year. The inaugural Africa edition of the KPMG 2024 CEO Outlook released yesterday revealed a decline in CEO confidence in the global economy, dropping from 70% in 2023 to 52% in 2024. The survey saw more than 130 CEOs in Africa share their views on geopolitics, return-to-office, ESG and generative AI. However, participants unanimously in the survey agreed that upcoming structural reforms initiated by the Government of National Unity (GNU) could rejuvenate business sentiment moving forward. A significant component of these reforms is the streamlining of skilled worker visas, a topic that weighs heavily on the minds of many CEOs. The ability to attract and retain skilled professionals is seen as paramount…

Leaders from the expanded BRICS nations have set an ambitious agenda to enhance intra-BRICS trade by furthering the use of local currencies in financial transactions. Through the Kazan Declaration signed yesterday at the 16th BRICS Summit in Russia, they have mandated finance ministers and central bank governors from member countries to explore various options aimed at easing economic exchanges within the bloc. This comes as BRICS nations have embarked on strengthening correspondent banking networks within BRICS and enabling settlements in local currencies in line with the BRICS Cross-Border Payments Initiative (BCBPI), which is voluntary and non-binding, including in the BRICS Payment Task Force. In the Kazan Declaration, the leaders acknowledged the importance of exploring the feasibility of connecting BRICS countries’ financial market infrastructure. “We agree to discuss and study the…

South Africa’s biggest banks are still not progressing quickly enough on climate action, according to a new report by Just Share, a non-profit organisation that focuses on responsible investment for environmental change and the elimination of inequality. Its report, “How co-profitable is your bank in 2024” found that even the highest-scoring bank, Nedbank, achieved only a 65% score, a statement from the organisation said yesterday. All the major banks in South Africa have committed to achieving net-zero by 2050, which will involve decarbonising their portfolios and adopting clear investment policies for high-emitting sectors. The banks have also become actively involved in financing renewable energy projects and are the major funders. “The low scores across all five of the biggest banks suggest that none is tackling climate risk robustly when assessed…

After four years of steady advancement, Africa’s journey towards improved governance has hit a significant roadblock, according to the latest findings from The Mo Ibrahim Foundation. The biennial dataset titled the Ibrahim Index of African Governance (IIAG), which evaluates governance performance across the continent, yesterday revealed that in 2022, rising conflict, insecurity, and a shrinking democratic landscape have stifled the critical improvements made in human and economic development. At the overall governance level, South Africa ranks 4th in 2023, scoring slightly lower than in 2014, following a trend of slowing deterioration since 2014. Over the decade from 2014 to 2023, the report presents a complex landscape: while approximately 52.1% of Africa’s population resides in 33 out of 54 countries that have seen governance gains, the remaining populace lives in…