Star 2021-11-19

Unchallenged as South Africa’s most influential daily newspaper, The Star covers the heart of the nation with unequalled reporting of local, national and international news and sport. It is widely considered to be a superb advertising environment.

South Africa
Independent Media Pty Ltd
R 6,99
R 1 099,99
253 Issues

in this issue

2 min
no new capital for zim mines as power, forex crunch bites

TAWANDA KAROMBO Harare MINING companies in Zimbabwe, including units of Impala Platinum and Anglo Platinum, are expecting no new external capitalisation as the industry battles power outages amid uncertainties with foreign currency. Zimbabwe holds the world’s second-largest reserves of platinum and chrome, while large deposits of lithi- um, diamond, coal and gold have attracted some investors. However, mining executives are expecting no new investment in operations. “Mining executives are pessimistic about the prospects to raise adequate external capital citing uncompetitiveness,” notes the 2021 mining sector survey of mining chief executives and other managers. “Most mining executives whose companies are planning to expand production plan to use their retained foreign currency or forex profits to expand.” The retained foreign currency is just about inadequate for operational requirements, say mining executives, because…

2 min
retailers’ r11.3bn black friday boost in additional sales

Dineo Faku THE BLACK Friday 2021 bargain bonanza is expected to generate around R11.3 billion in additional sales for South African retailers over November, according to the latest study by the Bureau of Market Research, conducted on behalf of Capital Connect. The research said the R11.3bn was only the retail impact of Black Friday; an anticipated R8.208bn wholesale impact is expected, giving rise to a total retail and wholesale impact of about R19.517bn as South Africans shop up a storm. The research estimated that general dealers were likely to make the most gains with 55 percent, or R6.2bn, in share of the value, followed by textiles, clothing, footwear and leather at 24.7 percent (R2.79bn), hardware, paint and glass at 8.6 percent (R972 million) and…

3 min
sarb lowers s africa’s growth forecast as it hikes repo rate gdp prognosis revised down due to larger negative effect on productivity

Siphelele Dludla SOUTH Africa’s economic growth for 2021 has been revised lower due to the larger negative effect on productivity than was previously estimated from the July unrest and other factors as a hawkish SA Reserve Bank (SARB) hiked the repo rate for first time in three years. The SARB yesterday forecast that the economy will grow by 5.2 percent this year, down from 5.3 percent it esti- mated in September. This was mainly due to the negative growth of 2.5 percent expected in the third quarter as the July civil unrest wiped at least R50 billion off the economy. SARB governor Lesetja Kganyago yesterday painted a bleak picture for the economic outlook. Kganyago pointed to electricity shortages, worsening terms of trade, low domestic investment,…

2 min
investec set to distribute 15% of ninety one to shareholders

Edward West INVESTEC plans to distribute a 15 percent stake in Ninety One to its shareholders, the group said yesterday in its results for the six months to September 30. Investec was previously the parent company of international asset management firm Ninety One, but had retained a 25 percent shareholding after the two businesses demerged last year. “Given the group’s strong capital generation, capital optimisation strategy, and in line with previous communication that 15 percent of Ninety One is surplus to our capital requirements, the board has resolved to distribute the 15 percent holding to shareholders, while retaining an approximate 10 percent interest,” Investec said in a statement yesterday. The distribution would be subject to regulatory, shareholder and other approvals. Investec chief executive Fani…

2 min
life healthcare’s diverse income sources a big help

Edward West LIFE HEALTHCARE Group performed well in the 12 months to September 30, following a robust performance from the international business, Alliance Medical Group (AMG) and in southern Africa, group chief executive Peter Wharton-Hood said yesterday. Revenue from continuing operations grew by 12.7 percent to R26.9 billion, with R17.57bn being derived from hospitals in southern Africa, R1.46bn from healthcare services in the region, R7.47bn from international diagnostic services and R388m from growth initiatives. The business was benefiting from its strategy of diversifying geographically and across business lines, he said in an online presentation. Normalised earnings before interest tax depreciation and amortisation (Ebitda) from continuing operations increased by 21.6 percent, and the normalised Ebitda margin improved to 18.8 percent from 17.4 percent. Overall AMG…

2 min
liberty eyes standard bank deal, and may also need to increase its pandemic reserve

Edward West LIBERTY Holdings said yesterday that it anticipated the deal for Standard Bank (SBG) to buy 100 percent of the insurance and investment group to be finalised in the first quarter of 2022. SBG and Liberty had enjoyed a “special relationship” since 1974, Liberty said in an operational update for the nine months to September 30. “The proposed transaction repre- sents a natural progression in this special relationship, increasing the integration and ability to collaborate to provide the best financial service offerings to clients through the most efficient means.” Liberty said positive sales trends seen in the first half of 2021 continued into the third quarter. Its Covid-19 pandemic reserve was being reassessed due to the 2020 and 2021 reserve being deleted from high mortality claims. Group…