- Clicks has appointed Mfundiso “JJ” Njeke as its new chair, succeeding David Nurek, who will retire at the AGM in January. Njeke, a former chair of the SA Institute of Chartered Accountants and co-founder of Kagiso Trust Investments, has been on Clicks’ board since 2020. He currently chairs the audit and risk committee and serves as lead independent director. Njeke will step down from the Delta Property Fund board to focus on his new role. Nurek, who has served since 1996, led Clicks through significant growth and change. Recently, Clicks decided to divest its shareholding in Unicorn Pharmaceuticals following a court ruling.
- South Africa’s official unemployment rate rose to 33.5% in the second quarter of 2024, up from 32.9% in the first quarter, marking the highest rate since 2022, according to Statistics SA. This increase contradicts economists’ expectations, who predicted a decrease to below 32%. Currently, 8.4 million South Africans are unemployed, compared to 5.2 million a decade ago, with over 76% unemployed for more than a year. The expanded unemployment rate, including discouraged job seekers, reached 42.6%. North West Province recorded the highest expanded unemployment rate at 54.2%. While jobs in trade and agriculture declined, manufacturing and informal sectors saw growth. Unemployment among university graduates fell to 9.7%. The jobless rate for those with only a matric or less is significantly higher, at 35.8% and 39.3%, respectively, with black Africans experiencing a higher unemployment rate of 37.6% compared to the national average.
- Sasol has appointed Walt Bruns as Chief Financial Officer, succeeding Hanré Rossouw, who will step down at the end of August to pursue another career opportunity. Bruns, who is currently the CFO of Sasol Southern Africa, will assume his new role on September 1. He has been with Sasol for 15 years, holding various senior management positions, including over three years as CFO of Sasol’s global chemicals business. Bruns is a chartered accountant with a B.Com degree from the University of Stellenbosch and post-graduate diplomas from the University of Cape Town. Sasol highlighted Bruns’ deep knowledge of the business and global experience in the chemicals and energy sectors as key assets for his new role. “Bruns will focus on driving sustainable value and supporting Sasol’s strategic transformation,” the company stated. Sasol’s board chair, Trix Kennealy, expressed gratitude to Rossouw for his contributions and welcomed Bruns, citing his alignment with Sasol’s financial objectives.
- Transnet expects to return to profitability by the 2025 financial year, CEO Michelle Phillips announced. The group aims to ship 170 million tons (Mt) of cargo this year but is currently 2Mt behind target. This is an improvement from last year’s 154Mt. Transnet faces significant challenges, including a R130 billion debt, costing over R1 billion monthly in interest. Despite avoiding bailouts, the government granted R2.5 billion for flood recovery and locomotives, with an additional R47 billion guarantee facility to increase borrowing. The company plans to corporatise the National Ports Authority and modernise port facilities to boost performance and attract private sector investment.
- The mayor of Johannesburg, Kabelo Gwamanda, has resigned amid ongoing political instability and financial difficulties in the city. Gwamanda’s resignation will take effect once a new mayor is elected on 16 August. Johannesburg, plagued by frequent changes in leadership and deteriorating services, has had eight mayors since 2019. The city requires R221 billion ($12.1 billion) for essential infrastructure maintenance and upgrades. Recent challenges include erratic power, water shortages, and overdue payments from major customers. The resignation follows South Africa’s May 29 elections, which altered the political landscape, influencing coalition dynamics within the city.
- South African motorists can expect further relief in September, with forecasts indicating a fourth consecutive month of petrol price cuts. The Central Energy Fund (CEF) predicts significant reductions due to a drop in oil prices amid concerns of a US economic slowdown. Petrol 93 is expected to decrease by R0.64 per litre, Petrol 95 by R0.68, Diesel (0.05%) by R0.59, and Diesel (0.005%) by R0.81. Recent declines have reduced petrol prices by R2.44 per litre and diesel by R1.77. However, price changes are subject to fluctuations in oil prices and the rand-dollar exchange rate.
- Starbucks has appointed Chipotle Mexican Grill head Brian Niccol as its new CEO amid a management shake-up influenced by pressures from activist investor Elliott Investment Management. Niccol replaces Laxman Narasimhan, who took the role in April last year to lead a “reinvention” of the company. Over the past five years, Starbucks’ stock has lost about 20% of its value, underperforming the S&P 500’s 80% gain. Following the announcement, Starbucks shares rose by 21%, equivalent to R4,022. Chipotle shares fell by 9%, around R1,722. Elliott has been urging Starbucks to expand its board, improve governance, and boost performance.
- Deputy Finance Minister David Masondo affirmed the government’s commitment to respecting pension funds’ investment mandates, emphasizing the creation of policies that enhance returns and ensure market stability. Speaking at an Old Mutual event in Johannesburg, Masondo did not suggest any imminent changes to Regulation 28, despite recent comments from Trade Minister Parks Tau advocating for pension fund investment in infrastructure. Regulation 28 was amended in 2022 to increase exposure to infrastructure investments. Masondo highlighted ongoing structural reforms, including Operation Vulindlela’s second phase, aimed at improving local government stability and driving economic growth. He expressed optimism about South Africa’s economic trajectory, anticipating higher growth rates.
- A consortium of Chinese companies led by China Harbour Engineering Co has secured a contract to build a 100 MW solar plant in Botswana, the country’s second large-scale renewable energy project. The partnership, including China Water and Electric Development Co and local investors, aims to complete the project by the second quarter of 2026. Valued at approximately R1.4 billion, the contract was signed in Jwaneng, with President Mokgweetsi Masisi in attendance. Botswana, currently reliant on coal for 98% of its electricity, plans to increase renewable energy to 50% of its demand by 2036, supported by upcoming solar and battery-storage projects.
- Retail group Pick n Pay announced on Tuesday that the Ackerman family’s voting rights have decreased to 49%, a reduction of three percentage points. Ackerman Investment Holdings, the sole holder of Pick n Pay’s B shares, previously controlled the company but will now see its voting power fall below 50% following a R4-billion rights offer. This change also means the Ackermans will forfeit their right to nominate the chairperson, CEO, and CFO. The reduction in voting rights is part of Pick n Pay’s transformation strategy. The Ackerman family, which originally purchased four stores in 1967, will continue to influence the company despite the decrease. The recent rights issue was oversubscribed, reflecting confidence in the group’s turnaround efforts, with Boxer’s planned listing expected to raise up to R8 billion. Gareth Ackerman will step down as chair next year but will remain on the board.
MORE BUSINESS NEWS…
Super Group has reported that South Africa’s logistics challenges are reducing the competitiveness of domestic hauliers, as copper exports are redirected from Durban to ports like Walvis Bay and Dar es Salaam. The JSE-listed company warned shareholders of a nearly one-third drop in full-year profit, causing a 14% decline in its share price to R25.39. Factors like a weak rand, load-shedding, and Transnet’s inefficiencies have led to long turnaround times at ports and border delays, impacting revenue. Meanwhile, neighboring ports have benefited from increased investments. Super Group also faces issues like supply chain disruptions, geopolitical tensions, and bad debts from coal mining clients.
SA’s largest general insurer Santam flagged a between 25% to 45% rise in headline earnings per share for its six months to end-June, attributable to improved underwriting results for conventional insurance business as well as earnings growth at the alternative risk transfer businesses. The net underwriting margin for conventional insurance business is expected to be within the long-term target range of 5% to 10% of net earned premiums, despite significant weather-related catastrophes and other large losses, it said. Shares of Santam were up 4.5% on Tuesday afternoon and gained about 13% in the past year.
Jubilee Metals, a metals-processing company operating in SA and Zambia, announced the first production of copper concentrate on Monday from the front-end module at its Roan concentrator facility in Zambia, which following the announcement of commencement of production on 8 August. The group has been looking to replicate its success with chrome and platinum group metals in SA, with Zambia offering the prospect of a huge supply of on-surface copper waste material and a junior mining sector with limited processing facilities. It is targeting both the transitional weathered copper reefs, regarded as too complex and low value, as well as the historical processed tails. Shares of Jubilee, valued at over R4 billion on the JSE, were up almost 3% in late-afternoon trade, but have fallen about 16.5% in the past year.
HomeChoice International, a JSE-listed consumer fintech group, has increased its interim dividend by more than a third due to rising customer demand for its digital products, such as those allowing them to stagger payments. The company, valued at about R2.7 billion on the JSE, declared an interim dividend of 95c for the period ending in June, a 36% increase from the 70c reported last year, and representing about a R101 million payout. Overall revenue rose almost 15% to R2 billion and profit 35% to R203 million, with fintech revenue, now the largest part of HomeChoice’s business, increasing 31.5% to R1.1 billion. Customers in this part of the business also surged more than three quarters, with the group saying it was benefiting from its own customers spreading the word. In recent years, HomeChoice has transformed itself into a consumer services business in the fintech space, with its legacy home shopping business now accounting for only 5% of total sales. In somewhat volatile trade on Tuesday HomeChoice was up 13% in the late afternoon. It has gained about 44% in the past year.
18 properties across five provinces that form part of the Telkom portfolio will go on sale on 29 August. Hosted by In2assets, a national property marketing and auction company, the event will be livestreamed, allowing bidders from around the globe to participate. “This significant auction event features a diverse array of high-end commercial and industrial properties, primarily seen as prime redevelopment opportunities, spread across five provinces in South Africa,” the company says in its invitation. In2assets specialises in the sale of commercial, industrial, and residential properties across South Africa, with a strong focus on providing innovative auction solutions and connecting buyers with prime investment opportunities. To register for the auction, contact the In2assets Team on 0861 444 769 or email info@in2assets.com. For more information, the full listing can be viewed on the in2assets website: https://www.in2assets.co.za/telkom2
Liberty Group has secured a contempt of court order against poet Bob Sihle Mano for sending “obscene threats” to its CEO over alleged use of his words in advertising without permission. Mano, previously imprisoned for the same issue, risks a longer sentence for future breaches. The Johannesburg High Court labeled Mano’s behavior “disturbing,” as he demanded credit for Liberty’s 2017 campaigns and sent vulgar emails to its leadership, including CEO Yuresh Maharaj. Despite a 2018 interdict, Mano continued emailing threats. Judge Leonie Windell upheld Liberty’s request but declined further imprisonment, citing potential reform, and ordered Mano to cover Liberty’s legal costs.
Junior miner Eastern Platinum reported on Tuesday that net income attributable to equity shareholders more than halved to $3.5 million (R63.5 million) in its second quarter to end June, from $7.7 million. The decrease in net income was largely attributable to lower chrome sales in the quarter offset by a decrease in finance costs and a foreign exchange gain in the period due to the strengthening of the rand. The company derived revenue from the processing of PGM and chrome concentrates at the Crocodile River Mine in Limpopo, with the group reporting that inclement weather and operational challenges incurred in the current period, as lower grade sections of the tailing storage facilities, containing vegetation and other impediments, were being processed. Eastplats was unchanged in afternoon trade but has gained almost 30% in the past year.
Mercedes-Benz Korea released the names of its electric vehicle battery suppliers on Tuesday, bowing to public outrage after one of its cars burst into flame in a parking lot earlier this month. The 1 August fire damaged hundreds of vehicles and created a national panic, with car parks across South Korea imposing a wave of adhoc restrictions amid growing calls for transparency on battery supply chains. South Korea is a major producer of batteries and electric vehicles, including local carmakers Hyundai and Kia, with EVs making up 9.3% of new cars purchased last year, higher than in the US.” Although the analysis is still in progress, the CCTV footage suggests that this fire exhibits all the signs of being caused by a battery,” a spokesman at the Incheon Fire Department told AFP.
Samsung Electronics’ biggest workers’ union in South Korea said on Tuesday it would begin a four-day strike from Thursday to pressure the company over higher wages and bonuses after talks with management fell through in July. Lee Hyun-kuk, vice president of the National Samsung Electronics Union (NSEU), said in a live YouTube broadcast: “This strike is strategically designed to damage the company. He said the union, whose 36 500 members make up about 30% of Samsung Electronics’ South Korean workforce, expects the company would not have enough backup office workers to support production lines during the planned strike, as many workers would be away for a national holiday on Thursday. Samsung said in a statement: “The company plans to ensure there are no production disruptions and adheres to the no-work, no-pay principles, while we continue our effort to resume talks with the union.”
New virtual mobile network operator (MVNO) C-Connect has launched in South Africa, aiming to enhance choice and competition in the mobile market. Utilizing C-Cell’s network infrastructure, C-Connect offers cost-effective prepaid services with a unique rewards program. Subscribers earn 10% back in Cha-Ching, an in-app currency, on top-ups, which can be redeemed for various lifestyle products and services. C-Connect’s SIM-only plans feature straightforward, no-frills services with added benefits. Users can sign up and complete the Rica process via the C-Connect app or website, with options for SIM delivery or pickup, and top-ups available through multiple methods.