South Africa’s Competition Tribunal has blocked Vodacom Group’s R13.2 billion acquisition of a stake in Remgro’s fiber businesses. The deal was initially put at risk last year when the Competition Commission recommended that the tribunal prevent the acquisition due to antitrust concerns. This decision highlights the ongoing scrutiny of mergers and acquisitions in the telecommunications sector, where companies are investing heavily in infrastructure to capitalize on a growing, tech-savvy population. As wireless carriers aim to expand services ranging from entertainment to banking, maintaining competitive market conditions is crucial. Vodacom’s setback comes amid a broader trend in Africa, where operators are…
Author: Staff Writer
Shoprite, Africa’s largest retailer, has announced a 10.4% increase in sales for the first quarter of its financial year, alongside the opening of 68 new stores. In its operational update, the company reported that its Supermarkets RSA segment, which includes Shoprite, Usave, Checkers, and LiquorShop, achieved a sales growth of 11.4%, slightly lower than the 13.3% growth recorded in the same quarter last year. Internal selling price inflation has decreased, measuring 2.6% for August and September, down from 3% in July. The Supermarkets RSA segment opened 56 new stores while closing three during the quarter. Shoprite’s non-RSA operations also saw…
Drive Electric, a boutique car rental company in Cape Town and Johannesburg, has recently expanded its fleet to 40 electric vehicles. Initially launched in 2022 with Mini Cooper Electrics, the fleet now includes popular models like the BMW iX3 and Volvo XC40. The company caters primarily to travelers eager to explore South Africa using eco-friendly options. By offering short-term rentals without a deposit, customers pay only the daily rate and receive fully charged vehicles, with a range of approximately 350 km. Additional charging through Drive Electric’s partners is provided at no extra cost. While most clients typically drive less than…
Kenya is poised to receive a much-anticipated R11 billion ($611 million) from the International Monetary Fund (IMF) on October 30, as confirmed by the Central Bank governor, Kamau Thugge, who is attending the annual Bretton Woods Institutions convention in Washington, D.C. The Kenyan government has met all the necessary targets set by the IMF in its loan program review. In June, Kenya reached a staff-level agreement for the seventh review of its Extended Fund Facility and Extended Credit Facility arrangements. However, approval for the funds was delayed due to widespread protests against President William Ruto’s administration, leading to the withdrawal…
Sanlam Investments Multi-Manager (SIMM) has appointed Lethu Zulu as the head of hedge funds. Zulu will manage local and global hedge funds, overseeing a significant asset class valued at R7 billion. This marks Zulu’s return to SIMM, where he previously served from February 2016 to November 2021. He will report to Paul Wilson, the chief investment officer. Before rejoining SIMM, Zulu worked at Alexforbes, where he managed global and specialist portfolios, focusing on hedge funds, equities, and fixed income. With a strong academic background, Zulu holds honours degrees in computational and applied mathematics and investment and corporate finance from the…
Absa Group Ltd. has secured a significant R2.8 billion trade-financing facility from the UK’s British International Investment (BII), aimed at bolstering small and medium-sized enterprises (SMEs) across Africa. This strategic partnership addresses the continent’s estimated R1.8 trillion trade financing gap, which has been exacerbated by recent global challenges. The funds will primarily support SMEs in vital sectors like agriculture and healthcare, enhancing liquidity where it is most needed. Absa and BII have collaborated for over five years, facilitating more than R15 billion in trade volumes across various African markets, including Nigeria and Kenya. Trade financing is essential for businesses engaged…
President Cyril Ramaphosa has appointed Dr. Crispian Olver as the new deputy chairperson of the Presidential Climate Commission (PCC), effective January 1, 2025. This appointment follows the retirement of Valli Moosa, who held the position since the commission’s inception in 2020. Dr. Olver has been the PCC’s executive director, supporting Moosa since the commission’s formation. Established in response to the 2018 Presidential Jobs Summit, the PCC coordinates the transition to a low-carbon, inclusive economy. With the Climate Change Act signed by Ramaphosa in July, the PCC has now become a Schedule 3A public entity. Dr. Olver brings extensive experience, having…
Mantengu Mining Limited, listed on the JSE’s AltX, has recently acquired Sublime Technologies from Sintex Minerals. As the only producer and distributor of silicon carbide (SiC) in Africa, Sublime is a strategic fit for Mantengu’s investment goals aimed at enhancing the mining sector’s intrinsic value. This acquisition secures a profitable venture, with Mantengu committing to preserving all jobs. SiC, a vital compound of silicon and carbon, has diverse applications across various markets. In the abrasives market, it serves as a key ingredient in products like grinding wheels and sandpaper. The refractory market leverages its high-temperature resistance for furnace materials, while…
Mercedes-Benz’s third-quarter profits plummeted over 50% to R33 billion, down from R55 billion last year. Sales slipped 7% to R522 billion, with vehicle deliveries falling 3%. Luxury car sales dropped 12% worldwide. According to Mercedes, the poor results stem from a “challenging market environment and fierce competition” in China. Chief Financial Officer Harald Wilhelm admitted the earnings didn’t meet expectations. Germany’s auto giants are struggling in China, a crucial market, amid economic turbulence and growing competition from local carmakers. Mercedes predicts 2024 sales will be slightly lower than last year, with fourth-quarter sales matching third-quarter levels. This is Mercedes’ second…
Retail giant Pick n Pay announced that its upcoming listing of the discount chain Boxer is now projected to raise approximately R8 billion, surpassing earlier estimates of R6 billion. The listing is set for the JSE’s main board by the end of 2024, marking a significant milestone for Boxer, which is positioned as one of South Africa’s leading retailers. A secondary listing on A2X will also take place, potentially including an overallotment option capped at R500 million, should demand exceed expectations. As of late August, Boxer operates 489 stores across various formats, boasting a remarkable 12% sales growth in its…