COMPANIES
- Nedbank Group, one of South Africa’s top five lenders, reported an 11% increase in its annual profit. Headline earnings grew to R15.7 billion ($823.67 million) from R14.1 billion the previous year, supported by strong revenue and associate income growth. The bank’s credit loss ratio also improved compared to the first half of the year.
- Shoprite reported a 13.9% increase in sales for the half-year ending December 2023, reaching R121 billion. All three major store brands, including Shoprite, Checkers, and Usave, achieved double-digit sales growth. The company’s success is attributed to its uninterrupted market share gains and outperforming competitors such as Pick n Pay, Massmart, Spar, and Woolworths.
ECONOMY
- The Department of Mineral Resources and Energy has announced that the price of petrol in South Africa will increase by R1.21 per litre, while the price of diesel will rise by nearly R1.19 per litre, starting from Wednesday, March 5. These increases are attributed to higher Brent crude oil prices and a slight depreciation of the rand against the dollar.
- The ANC has passed a bill through the home affairs committee that will allocate a larger share of funding for political parties to the ANC itself. The bill changes the formula for funding, resulting in reduced allocations for small parties and increased funding for the ANC. The move has been criticised by opposition parties, who argue that it is a money grab by the ANC and that the change should have involved more public consultation. The bill will now be debated in the National Assembly. Additionally, the bill grants the president powers to determine donation limits and disclosure thresholds, which has raised concerns about executive accountability.
EXECUTIVES
- El Kope, who has been serving as the acting chief financial officer at mobile operator Cell C, has been appointed to the position permanently. She has also joined the board as an executive director. Kope, a chartered accountant, has shown strong leadership and financial skills during her time as acting CFO, according to Cell C. She has previously worked for multinational companies such as Coca-Cola Africa, South African Breweries, and DHL.
- Nombulelo Guliwe has been appointed as the CEO of SA Tourism for a five-year term. The position had been vacant since May 2021, and Guliwe was identified as the preferred candidate by the SA Tourism Board. The appointment was approved by the Cabinet, ensuring the entity’s executive leadership is strengthened. Additionally, the SA Tourism Board appointments were finalised following a recruitment process.
- The Institute of Risk Management (IRM) has appointed Dorothy Maseke as joint deputy chair of its global board. Mariam Crichton and Esther Chesterman have also been appointed as independent directors. Maseke’s significant contributions to the IRM include serving as director and chair of the investment committee. She is also involved in establishing a professional body in Africa and is recognised for her work in nature finance and sustainable development.
STARTUPS
- Nigerian startup Dukka has developed a digital ecosystem that simplifies commerce for emerging markets. Its platform helps retailers automate operations, accept payments, and gain performance insights. Dukka’s technology enables individuals and small businesses to manage finances, capture sales, manage inventory, accept digital payments, and track business performance. The startup has raised nearly $1.5 million and has experienced significant user adoption, with plans for expansion into new markets.
- South African startup Cue has raised $2 million in a seed funding round to further integrate AI into its customer service chat software. The funding will support the development of advanced AI capabilities, enabling businesses to automate customer inquiries, enhance support performance through data analytics, and optimise customer engagement strategies. Cue has already worked with over 300 clients and expanded to the UK.
DEALS
- Canal+ has increased its bid for MultiChoice to R125 per share. The pay-TV operator’s previous offer of R105 per share was rejected in February. Canal+ plans to make a mandatory offer to MultiChoice shareholders and both companies have agreed to cooperate, with MultiChoice granting exclusivity to Canal+.
- Private equity firm Adenia Partners has acquired The Courier Guy, a last-mile logistics company in South Africa, to tap into the country’s growing e-commerce market. The acquisition aims to capitalise on the opportunities presented by the expansion of e-commerce and the entry of global marketplace giants.
ESG
- Imports of solar panels, lithium-ion batteries, and inverters in South Africa reached a record R70 billion. This surge was accompanied by the recovery of wind turbine imports following a two-year decline, according to analysis by Trade & Industrial Policy Strategies. The increase in solar panel imports was particularly significant, with about 5 GW worth of panels imported in 2023.
- Global energy-related carbon dioxide (CO2) emissions increased by 1.1% in 2023, a smaller rise compared to the previous year, despite accelerated energy demand. The expansion of renewable energy sources such as solar photovoltaic (PV), wind, nuclear power, and electric cars helped mitigate greater reliance on fossil fuels. The International Energy Agency (IEA) stated that without clean energy technologies, CO2 emissions would have been three times higher in the past five years.
MOTORING
- Volkswagen South Africa has ceased production of the entry-level Amarok models, citing economic challenges and shifting market demands. The move is part of VW’s strategy to streamline its product offerings and focus on higher-trim variants to meet evolving consumer preferences and maintain competitiveness in the market.
- Volvo has launched the new EX30 electric vehicle (EV) in South Africa, making it one of the country’s more affordable EV options. Priced at R775,900, it is the second-cheapest EV in the market, just slightly more expensive than the BYD Atto 3, which starts at R768,000. Both models come with a range of features and include warranty and maintenance plans. These EV offerings represent a significant reduction in the entry-level price range for EVs in South Africa.
TECHNOLOGY
- The Companies and Intellectual Property Commission (CIPC) in South Africa has experienced an attempted security breach, resulting in the exposure of personal information belonging to employees and clients. The breach prompted the shutdown of certain CIPC systems, and although the compromise was contained, personal information was unlawfully accessed. The extent of the exposure is under investigation, and affected individuals are advised to monitor credit card transactions.
- Over the past fifteen years, prices for DStv’s higher-tier packages have increased by up to 114%. The latest price hikes, ranging from 3.1% to 7.8%, will take effect from April 1, 2024. DStv Premium subscribers will pay R929 per month, while Compact Plus and Compact customers will see monthly increases of R40 and R20, respectively.
GLOBAL
- Dangote Sugar Refinery, Nigeria’s largest sugar producer, has reported its first annual loss due to the devaluation of the Nigerian currency. The company, owned by Aliko Dangote, recorded a net loss of 73.8 billion naira ($47.7 million) in 2023, compared to a profit of 54.7 billion naira the previous year. Despite the loss, revenue increased by 9.5% to 441.45 billion naira.
- Four former Twitter executives, including former CEO Parag Agrawal, have filed a $128 million lawsuit against Elon Musk, alleging that he failed to pay them severance after acquiring the social network. This comes after a separate complaint by rank-and-file employees seeking $500 million in unpaid severance. Musk has not publicly commented on the lawsuit.
- China has set a 5% target for GDP growth, consistent with analysts’ expectations. Premier Li Qiang, in his annual government work report, acknowledged challenges such as regional tensions and an aging population. Achieving the target may be ambitious due to structural issues in the Chinese economy and shifting priorities.