BHP Group, the global diversified mining and resources group, on Friday announced changes to its leadership team, the first since a new CEO-elect replaced former CEO Mike Henry.

Last month, the board announced that Brandon Craig would become CEO and director from July 1. On Friday, the group announced further changes to the executive leadership team.

"These new appointments ensure we continue to build organisational capacity, with the right mix of skills, experience, and perspectives to deliver BHP's strategy and pursue our growth agenda,” Craig said in a statement.

The President Americas role was being split into President North America and President South America. This would allow a greater focus on each of these regions, he said.

“Our operating environment is increasingly complex, but also rich in opportunity for companies that are best able to positively engage stakeholders, deploy capital to the right opportunities in a disciplined way, and deliver safe, reliable operational performance,” he said.

He said he was confident the new appointments would support BHP's progress in strategy, operating performance, growth, and our differentiated approach to social value creation – all in support of strong long-term shareholder returns.

Jessica Farrell was appointed President North America, effective July 1, 2026. Farrell is currently Vice President of Innovation, and prior to this, was Western Australia Nickel Asset President.

“Jess has more than 20 years of experience across a range of commodities and jurisdictions, holding senior roles at BHP. Jess brings a strong combination of operational leadership, strategic implementation, and partnership experience. She has a proven track record of navigating complex transitions while prioritising safety, employee, and community outcomes,” said Craig.

Jess would also act in the position of President South America, as recruitment is completed for that role.

Edgar Basto, current chief operating officer, would remain on the executive leadership team and report to the CEO as chief enterprise performance officer.

“In this new capacity, Edgar will remain accountable for BHP's Health, Safety, and Security and the BHP Operating System (BOS). In addition, Edgar will be accountable for strengthening contractor safety and further embedding operating discipline and performance across the enterprise,” said Craig.

Geraldine Slattery would continue as President Australia and would assume responsibility for Copper South Australia, bringing all of the Australian operating assets together under her leadership.

Staying in their roles are chief financial officer Vandita Pant and chief commercial officer Rag Udd. Chief development officer Catherine Raw will also remain.

Henry, who had led the group since 2020, had reshaped the group into a simpler, more manageable organization by selling off oil and gas operations and divesting non-core assets.

Craig’s appointment had, according to other reports, signalled a clear strategic direction for BHP: its next phase of growth would be driven by copper and potash assets concentrated in Canada, the US, and South America.

Craig joined BHP in 1999 and has accumulated more than 25 years of operational and corporate leadership experience across the group. Before assuming the Americas presidency in March 2024, he led BHP’s Western Australia iron ore business, where he improved operational performance and helped consolidate BHP’s position as the lowest-cost, highest-margin major iron ore producer.

BHP’s share price traded 1.63% lower at R668.08 on the JSE Friday afternoon, a price that was nonetheless 54% higher than the price it traded at a year ago.

BUSINESS REPORT

Discovery Health Medical Scheme (DHMS) says it remained financially resilient in 2025, while its members are living longer than they had ten years ago.

This emerged from South Africa’s largest open medical scheme of more than 2.7 million beneficiaries, at its annual general meeting held late last week. The scheme paid more than R89.4 billion in claims in 2025 from 64 million claims, reinforcing its role in enabling access to private healthcare at scale.

The recent HealthTrend26 report, based on more than 60 million life-years of Discovery Health Medical Scheme’s clinical, lifestyle and behavioural data, showed that earlier diagnosis, improved treatment pathways and sustained behaviour changes were contributing to better health outcomes.

Over the past decade, the overall mortality rate among its members has declined by 5,6%.

In cancer care, mortality among patients had declined by 48% over the past decade, while life expectancy for members living with cancer has increased by 7.1 years.

“The most sustainable way to keep healthcare affordable is to keep people healthier. By investing in innovation and personalised care, we are improving outcomes while addressing long-term sustainability,” said Discovery Health Medical Scheme principal officer, Charlotte Mbewu at the AGM.

She said the scheme, supported by Discovery Health as its administrator and managed care provider, invests in prevention, earlier detection and proactive care. Personalised, data-driven interventions help members to act sooner, thereby improving outcomes and reducing avoidable costs.

Mbewu said the scheme is focused on balancing affordability, access and quality in a challenging economic and healthcare environment.

“Healthcare affordability continues to place pressure on households. Our focus is on delivering real value to members – by improving health outcomes, managing risk responsibly and using the Scheme’s strength to support members when they need it most,” said Mbewu.

She said healthcare costs continued to outpace general economic growth in 2025, intensifying affordability pressures for members.

To provide relief, Discovery Health Medical Scheme implemented a three-month deferral of the 2026 contribution increase. This resulted in an effective annual increase of about 5.4%, compared with a weighted increase of 7.2%.

As a result of the deferral of contribution increase and other initiatives, 2026 contributions for Discovery Health Medical Scheme members were 17.7% lower - on a like-for-like basis - than those of the next seven largest open schemes.

“Affordability comes from carefully managing risk, improving health outcomes and ensuring sustainability over the long term,” said Mbewu.

The solvency ratio was maintained at about 32.6%, well above the 25% regulatory requirement, with reserves of around R39bn. In 2026, R1.5bn was returned to members through the deferral of the contribution increase.

“Our reserves are carefully managed to ensure sustainability and regulatory compliance, while continuing to deliver value back to members,” said Mbewu.

“The most sustainable way to keep healthcare affordable is to keep people healthier,” said Mbewu. “By investing in innovation and personalised care, we are improving outcomes while addressing long-term sustainability.”

The scheme’s approach balances immediate financial relief with long-term sustainability.

Benefit enhancements, expanded access to care and investment in innovation reflect the scheme’s response to members’ evolving needs.

“We also continue to proactively explore options for providing cover for new technologies and treatment innovations that can be prohibitively expensive. This includes ongoing engagement with manufacturers on pricing, alongside careful monitoring of emerging clinical evidence and budget implications,” she said.

BUSINESS REPORT

Deputy President Paul Mashatile has invited Chinese medical technology company Mindray Bio-Medical Electronics to expand its footprint in South Africa, including establishing local manufacturing, training centres and research partnerships to support the country's healthcare transformation.

Speaking during a meeting with Mindray executives in Shenzhen on Friday as part of his working visit to China, Mashatile said South Africa wanted to deepen long-term partnerships that go beyond investment to include technology transfer, skills development and job creation.

"China remains South Africa's largest trading partner and one of our most important sources of investment, technology and industrial collaboration," Mashatile said.

He said the visit underscored South Africa's commitment to strengthening trade, investment and industrial cooperation with China across strategic sectors, including healthcare, manufacturing, energy, infrastructure, digital technologies and innovation.

Mashatile said healthcare remained central to South Africa's development agenda as the government worked to build a modern, inclusive and resilient healthcare system capable of delivering quality services to all citizens.

"We are committed to building a modern, inclusive and resilient healthcare system that delivers quality healthcare services to all our people," he said.

He added that government was focused on improving healthcare infrastructure, accelerating digital transformation, strengthening the healthcare workforce and ensuring innovation improved health outcomes in both urban and rural communities.

Mashatile thanked Mindray for its longstanding presence in South Africa, saying the company's partnerships with public and private healthcare institutions demonstrated confidence in the country's healthcare market and broader economy.

"We appreciate the company's longstanding presence in our healthcare sector and the valuable partnerships that have been established with leading public and private healthcare institutions throughout the country," he said.

He identified several areas where South Africa sees opportunities to work with Mindray, including smart hospitals, telemedicine, advanced diagnostic and imaging equipment, healthcare information systems, workforce training, medical technology manufacturing, research and artificial intelligence in healthcare delivery.

Mashatile said Mindray's proposal to support digital healthcare transformation and skills development aligned closely with the country's priorities.

"We are particularly interested in exploring opportunities to establish centres of excellence, training facilities and partnerships with South African universities, hospitals and research institutions to strengthen healthcare capabilities and promote knowledge exchange," he said.

He also encouraged the company to consider expanding its local operations by establishing regional service and training centres while exploring opportunities for medical technology assembly, manufacturing and localisation in South Africa.

Mashatile said South Africa's position as a gateway to the African continent, combined with the opportunities created by the African Continental Free Trade Area (AfCFTA), offered companies such as Mindray access to one of the world's fastest-growing markets.

"As South Africa continues to strengthen its position as a gateway to the African continent, we believe there are significant opportunities for Mindray to utilise South Africa as a strategic base for serving healthcare markets across Africa," he said.

He reiterated government's commitment to supporting investors through policy certainty, investment facilitation and strategic partnerships, and invited Mindray to participate in the next South Africa Investment Conference.

Mashatile also encouraged the company to work with InvestSA and the government's One Stop Shop investment facilitation mechanism to accelerate project implementation and expand its contribution to healthcare transformation in South Africa and across the African continent.

"We look forward to deepening our partnership with Mindray and working together to improve healthcare outcomes, drive innovation and create lasting value for both our countries," he said.

BUSINESS REPORT

Global drug markets are undergoing a rapid transformation, with organised crime groups exploiting new technologies, geopolitical instability and the emergence of powerful synthetic drugs to expand into new markets, according to the United Nations Office on Drugs and Crime (UNODC).

In its World Drug Report 2026 released on Friday, the UN agency warned that drug traffickers are becoming increasingly innovative, creating new synthetic substances, diversifying trafficking routes and targeting emerging markets across Africa, Asia and the Middle East.

UNODC executive director Monica Juma said the world was witnessing an unprecedented surge in new drugs, many of which are more potent and dangerous than traditional narcotics.

"We have seen an unprecedented spike in new types of drugs on the market, and worryingly, some are more potent or dangerous than before," Juma said.

"And, we are already suffering the impact: millions of premature deaths and healthy years of life needlessly lost; drug trafficking networks that are distorting economies; the destruction of lives, communities and livelihoods; and the compounding of insecurity and violence."

Juma said governments needed to intensify efforts against organised crime syndicates through stronger intelligence sharing, coordinated law enforcement operations and greater investment in prevention and treatment programmes.

According to the report, an estimated 331 million people used drugs in 2024, representing 6.2% of the global population aged between 15 and 64. This marks a significant increase from 5.2% a decade earlier.

Cannabis remained the world's most widely used drug, with an estimated 256 million users in 2024, followed by opioids with 63 million users, amphetamines at 32 million, cocaine at 25 million and ecstasy at 21 million.

The report found that illicit drug manufacturers are increasingly developing synthetic drugs to evade regulations and law enforcement. The number of different drug types detected in seizures in 2024 was five times higher than before 2000.

A total of 755 new psychoactive substances were circulating globally in 2024, including 118 substances identified for the first time.

UNODC also highlighted a major shift in the global opioid market following Afghanistan's 2022 ban on opium cultivation, which has sharply reduced heroin production.

Although Myanmar increased opium production to more than 1,000 tons in 2025, this remains far below Afghanistan's output of more than 6,000 tons before the ban.

The report warned that traffickers are increasingly turning to synthetic opioids such as fentanyls, nitazenes and orphines as alternatives to heroin, potentially leading to a permanent transformation of the global opioid market.

Methamphetamine has also become a truly global drug, with new trafficking routes and production centres supplying emerging markets in Africa, Europe and the Middle East.

UNODC said Myanmar remains the largest producer, but suppliers from North America, West and Southern Africa, and South-West Asia are increasingly entering the market.

North American methamphetamine is also being trafficked across the Pacific to island nations, while disruptions to the captagon trade following the fall of Syria's Assad regime have contributed to increased methamphetamine use in parts of the Middle East.

The report also pointed to significant changes in cannabis markets, driven partly by legalisation and decriminalisation policies in several North American jurisdictions.

Cannabis use has risen by 40% over the past decade, while global prevalence increased from 3.8% in 2014 to 4.8% in 2024. Cannabis seizures also reached record levels in 2024.

Inter-regional cannabis trafficking has expanded significantly, with 57 countries outside North America identifying the region as a source of seized cannabis between 2015 and 2024, compared with just 11 countries during the previous decade.

Meanwhile, cocaine production has more than quadrupled over the past ten years, exceeding 4,000 tons of pure cocaine in 2024 as cultivation areas expanded and productivity improved.

UNODC said organised crime groups are increasingly targeting emerging consumer markets in Africa and Asia alongside established markets in Europe, North America and Oceania.

The report concluded that the social harms associated with drug use—including crime, violence and victimisation—are often worsened by poverty, homelessness, poor mental health and limited access to treatment and social services, underscoring the need for comprehensive prevention and public health interventions alongside law enforcement.

BUSINESS REPORT

The Public Investment Corporation (PIC) has reaffirmed its commitment to South Africa's emerging hydrogen economy, with board chairperson Dr David Masondo highlighting the strategic importance of its investment in Bambili Energy as a driver of industrialisation, mineral beneficiation and long-term economic growth.

As manager of approximately R3 trillion in assets on behalf of public sector clients, the PIC said it remains focused on deploying capital responsibly to support sustainable economic development, industrial expansion and long-term value creation while delivering returns for pension fund members.

Masondo visited HyPlat, a Cape Town-based subsidiary of Bambili Energy, on Thursday as part of the PIC board's oversight programme aimed at assessing the impact of investments funded by public sector pension capital.

HyPlat manufactures membrane electrode assemblies (MEAs), a key component used in hydrogen fuel cells and electrolysers. The company, which originated from the University of Cape Town through the Hydrogen South Africa (HySA) programme, has become South Africa's first manufacturer and exporter of MEAs to European customers.

The PIC invested in Bambili Energy in October 2023 on behalf of the Government Employees Pension Fund (GEPF) and the Department of Science, Technology and Innovation (DSTI), acquiring a 15% stake to help the company transition from research and development to commercial production.

Since then, Bambili Energy has completed a bankable feasibility study, paving the way for raising capital to build a large-scale manufacturing facility.

Masondo said the oversight visit demonstrated the PIC's commitment to ensuring its investments deliver meaningful economic outcomes.

"The purpose of today's visit is to ensure that the Board exercises effective oversight and assesses the outcomes of the PIC's investments on the ground. Investments such as Bambili Energy demonstrate how patient capital is driving industrialisation, adding value to our minerals, such as platinum, while enhancing energy security and supporting decarbonisation through hydrogen energy," he said.

"This represents critical South African innovation, deepens industrial capacity, and creates new opportunities in sectors that will shape the future global economy."

Hydrogen technologies are increasingly being recognised as a major growth industry globally, with demand expected to rise as countries seek cleaner energy solutions. Bambili Energy operates across the hydrogen value chain, producing membrane electrode assemblies, platinum-based catalysts and fuel cell systems.

The investment also supports South Africa's strategy of increasing local beneficiation of platinum group metals (PGMs), a resource in which the country holds a significant global competitive advantage.

Instead of exporting raw platinum, the company aims to manufacture high-value hydrogen technologies locally, strengthening domestic industrial capacity while creating additional demand for South African-mined PGMs.

According to the completed feasibility study, the planned manufacturing facility is expected to create around 440 direct jobs during construction. Once fully operational, direct employment is projected to increase to approximately 1,200 jobs.

Beyond employment creation, the project is expected to develop specialised technical skills, increase exports of locally manufactured hydrogen technologies and strengthen South Africa's position in the rapidly growing global clean-energy value chain.

The facility is planned to be strategically located close to research institutions, logistics infrastructure and the country's platinum mining ecosystem, positioning it as the anchor of a future hydrogen manufacturing cluster.

Bambili Energy has already begun developing the specialised workforce required for the sector through a partnership with the University of Pretoria. The collaboration has produced 30 qualified fuel cell technicians, while the training programme has received accreditation from the Quality Council for Trades and Occupations (QCTO).

During the oversight visit, the PIC board also reviewed the company's progress against the original investment objectives, assessed commercial milestones achieved since the investment and discussed future expansion plans as the company moves towards large-scale manufacturing.

The visit forms part of the PIC's broader governance and accountability programme, which involves engaging directly with investee companies across key sectors of the economy.

BUSINESS REPORT

The FNB/BER Civil Confidence Index held steady in the second quarter of 2026 after falling 9 index points to 43 in the first three months.

However, more than 55% of respondents were dissatisfied with prevailing business conditions, and growth in construction works slowed slightly.

The index measuring activity growth has deteriorated for the second consecutive quarter. Despite this, it remains above the long-run average.

“Based on the survey results, growth in construction works likely eased this quarter. This is largely due to the higher cost environment and the uptick in general economic uncertainty resulting from the US-Iran war,” said FNB senior economist Siphamandla Mkhwanazi in a statement.

Additionally, the survey showed strong activity growth in the second quarter of 2025, and because respondents are asked to compare the current quarter to a year ago, base effects may also result in a weaker index reading.

According to Statistics South Africa, the real value of construction works rose by a significant 5.1% year-on-year (y-o-y) in the first quarter, following a 0.2% y-o-y contraction in the fourth quarter of 2025.

“We should see work regain momentum if the current Middle East peace deal holds and normal trade flows resume. Demand from, among others, the energy, mining, and transport infrastructure sectors will persist,” said Mkhwanazi.

The higher cost environment has also led to increased competition in tendering prices. Yet sentiment remained supported by a relatively upbeat reading for overall profitability, which was unchanged from last quarter.

“For existing contracts, firms seem to have been able to pass on some of the higher input costs to clients,” said Mkhwanazi.

Regarding the outlook, the index measuring firms’ rating of insufficient new demand as a business constraint (a proxy for order books) moved further below its long-term average, signalling somewhat better order books.

The effect of weaker activity growth and keener tendering price competition on sentiment this quarter was offset by stable overall profitability and somewhat better order books, he said.

“On balance, the results were encouraging. The negative effect of rising input costs on work was expected, and activity should rebound once these cost pressures normalise, which is looking increasingly likely given the latest geopolitical developments,” said Mkhwanazi.

The findings correlate broadly with the Afrimat Construction Index (ACI), which was released days ago and which showed a marginal year-on-year increase of 0.3% in construction activity in the first quarter, boosted by year-on-year increases of more than 5% in the value of both construction works and buildings completed, whilst employment and sales of building materials also improved.

Economist Dr Roelof Botha, on behalf of Afrimat, said that although activity levels in construction remain subdued, the ACI’s seasonally adjusted reading had risen for a third consecutive quarter, the first time this has occurred since a brief recession in 2020.

BUSINESS REPORT

Trade union Solidarity has welcomed Samancor Chrome’s decision to halt its retrenchment process and gradually restart smelter operations, saying the development demonstrates how competitive electricity tariffs can help save jobs and revive South Africa’s struggling ferrochrome industry.

The announcement comes after Samancor secured an improved electricity tariff agreement with Eskom, alongside a five-year pricing outlook that provides greater certainty for its operations.

Under the approved framework, Eskom will charge Samancor an electricity tariff of 62 cents per kilowatt-hour, with annual increases linked to South Africa’s Producer Price Index plus one percentage point.

Samancor had previously initiated a Section 189A retrenchment process amid mounting cost pressures. The company supports approximately 2,230 direct jobs and 2,665 indirect jobs, while sustaining nearly 4,000 permanent mining jobs across Mpumalanga, Limpopo and the North West.

Solidarity on Thursday said the breakthrough should serve as a model for other smelting companies that remain under threat from high electricity costs and uncertain operating conditions.

According to Solidarity sector coordinator, Cornelius van Leeuwen, the outcome highlights the importance of cooperation between industry, government and Eskom in protecting jobs.

“Samancor’s announcement proves that solutions are possible when all stakeholders work together. This is excellent news for employees and their families, but it cannot mark the end of the process,” Van Leeuwen said.

“There are still companies waiting for the certainty they need before they can bring their own retrenchment processes to an end.”

The union also praised Samancor management, including CEO Desmond McManus, as well as Eskom and government representatives involved in negotiations that resulted in the revised tariff agreement.

The latest development follows a similar decision by Glencore-Merafe in May to withdraw retrenchment plans after securing improved electricity pricing arrangements.

The Glencore-Merafe Chrome Venture employs more than 2,000 workers directly and supports an additional 1,333 contractor positions. The venture is also estimated to underpin almost 24,000 indirect jobs through its linkages with the chrome and platinum mining value chains.

For labour representatives, the focus has now shifted to other ferrochrome producers that continue to face uncertainty.

Van Leeuwen said Solidarity was particularly concerned about the future of companies such as Ferroglobe and Transalloys, which are still navigating challenging operating conditions.

“Our attention is now focused particularly on companies such as Ferroglobe and Transalloys. We hope that the same pragmatic approach that has protected jobs at Samancor and Glencore-Merafe will also be extended to Ferroglobe, Transalloys, and other smelters,” he said.

South Africa's ferrochrome industry has faced years of pressure due to rising electricity tariffs, unreliable power supply and increasing global competition. The sector, once a global leader in ferrochrome production, has seen numerous smelters either shut down or reduce production because of escalating energy costs.

Electricity remains one of the largest input costs for ferrochrome producers, whose operations require large amounts of energy to process chrome ore into ferrochrome used in stainless steel manufacturing.

Industry stakeholders have repeatedly argued that without competitive power pricing, South Africa risks losing further beneficiation capacity and export opportunities despite possessing some of the world's largest chrome reserves.

Solidarity said recent developments suggest that tailored electricity tariff agreements could provide a viable path to recovery for the industry.

“Every smelter that remains operational protects not only hundreds or even thousands of direct jobs. It also safeguards contractors, local businesses, municipal economies, and South Africa’s ability to add value to its mineral resources,” Van Leeuwen said.

The union warned that prolonged uncertainty could have severe consequences for workers and communities dependent on the ferrochrome sector.

“Every day of delay places additional pressure on employees, their families, and the communities that depend on these industries,” he added.

Solidarity has called on Eskom, government and industry stakeholders to expedite outstanding negotiations to prevent further job losses and restore confidence in the sector.

The union believes the successful outcomes achieved at Samancor and Glencore-Merafe provide a blueprint for safeguarding employment and sustaining industrial activity in one of South Africa’s most important mineral beneficiation industries.

“Samancor and Glencore-Merafe have shown what is possible. We must now ensure that the same success story is repeated at Ferroglobe, Transalloys, and the remaining smelters,” Van Leeuwen said.

BUSINESS REPORT

South Africa’s producer inflation accelerated sharply in May, reaching its highest level in more than a year as a surge in fuel prices filtered through the manufacturing sector, raising concerns about potential knock-on effects for consumers and businesses.

Statistics South Africa (Stats SA) reported on Thursday that final manufactured producer price inflation (PPI) jumped to 7.8% year-on-year in May from 4.8% in April. On a monthly basis, producer prices increased by 2.6%.

The reading was significantly higher than market expectations and reflects the impact of rising oil prices during the month amid heightened tensions in the Middle East.

Investec economist Lara Hodes said the outcome surprised on the upside. Hodes said the oil price shock saw fuel prices increase notably again in May, with the Brent crude oil price averaging over $100 (R1,647) per barrel during the month.

“Specifically, petrol and diesel prices rose by a marked R3.27/litre and R5.27/litre respectively. The general fuel levy cut was extended into May, preventing larger upside pressure,” she said.

The coke, petroleum, chemical, rubber and plastic products category contributed 4.7 percentage points to the annual headline inflation rate and added 2 percentage points to the monthly increase.

Hodes said that progress has been made on ending the conflict in the Middle East; however, risks remain for a flare-up again.

“The Brent crude price has in turn fallen substantially, which will see fuel price cuts effected in July, even after fuel levy adjustments,” she said.

“Food products’ inflation, another key driver of PPI, rose by 0.1% m/m, lifting slightly to 0.9% y/y in May, from 0.3% y/y previously. The food products, beverages, and tobacco products category added 0.6% to the headline outcome,” she said.

“Oil prices have, however, dropped significantly, which could limit upside price pressure.”

Hodes added that disaggregation of the food basket indicates that meat and meat products’ inflation has eased significantly to 0.1% from 1.0% and 8.3% year-on-year recorded in April and March respectively, underpinned by base effects and increased slaughtering activity.

According to the Agricultural Business Chamber of South Africa (Agbiz), poultry production conditions are also favourable.

Agbiz said grain mill product prices fell by a further -9.1% in May, from -9.2% previously.

“Ample harvests are expected to continue exerting downward pressure on food prices this year. Specifically, the “summer grains and oilseeds production is forecast at a record 21.1 million tons, up 2% from the 2024-25 season,” according to Agbiz.

The Nedbank Group Economic Unit said the rise in producer inflation exceeded both its own forecast of 6.4% and the market expectation of 6.7%.

“The largest contributor to the rise was a sharp increase in fuel costs. PPI will remain elevated in June before starting to moderate in the second half of the year,” it said.

“Overall, the inflation outlook has improved following the reopening of the Strait of Hormuz, which has depressed the Brent crude oil price to near its pre-war level.”

Professor Waldo Krugell, an economist at North-West University said the increase was significant and warned that some of the higher costs would eventually be passed on to households.

“If it's in PPI a part of it will feed through to consumers in the end,” Krugell said.

Efficient Group chief economist Dawie Roodt said the increase was expected given the sharp rise in petroleum prices during May.

“PPI does not include any services, it's just underlying goods. What happened in May there was a huge increase in petroleum prices due to the increase in oil and that reflected in PPI,” Roodt said.

“This will filter through to the consumer price index but it does not mean that CPI will increase to 7.8% as PPI only includes goods but we can expect a filtering through.”

BUSINESS REPORT

Karoo farmers are poised for a strong year after exceptional rainfall across large parts of the region replenished grazing lands, boosted livestock production and reduced feed costs, according to the Agricultural Business Chamber of South Africa (Agbiz).

Agbiz chief economist Wandile Sihlobo on Thursday said the favourable rainfall received across the Karoo and Kalahari this year has created some of the best farming conditions seen in decades, offering significant financial relief to livestock producers who have endured repeated drought cycles.

“Commercial agriculture typically takes place on freehold land in South Africa. Freehold (private title deeds) farmland makes up 77.5 million hectares of South Africa’s surface area – or roughly 63%.”

South Africa’s agricultural sector spans a wide range of activities, including grain production, horticulture and livestock farming. However, extensive sheep and cattle farming dominates much of the country’s semi-arid interior.

According to Sihlobo, freehold farmland accounts for about 77.5 million hectares, or 63% of South Africa’s total surface area. Of that, 44.5 million hectares, representing 57% of the country’s farmland, are located in the Karoo and Kalahari regions.

“It is here that extensive livestock production takes place (mutton, lamb, wool, mohair, and cattle – largely in the Kalahari). For this reason, rainfall, the timing of rainfall, and the quality of natural grazing are critical to the financial well-being of farmers in this vast part of South Africa,” he said.

This year’s rainfall has been particularly beneficial because of both the volume and timing of precipitation.

Sihlobo said areas across the Karoo, including Beaufort West, Laingsburg, Graaff-Reinet, Middelburg, Britstown, Carnarvon, Victoria West, Williston, Brandvlei and Sutherland, had received exceptional rainfall.

The Kalahari has also benefited significantly, with the Kuruman River flowing again after years of drought. He said that there is something special about this year’s rainfall in the Karoo beyond the record totals that most farmers have highlighted.

“It was the timing and frequency. Regular (weekly) rainfall between 10 and 25 mm in March, April, May, and June is fantastic and has a much bigger impact on grazing quality than 100 mm in January or February.”

The improved grazing conditions have already translated into better livestock performance.

Sihlobo said sheep farmers are reporting strong lambing rates, healthier ewes and faster-growing lambs as a result of abundant natural grazing.

“The ewes are producing many lambs, the udders of the ewes are full, and the lambs gain weight very quickly. The only other year in recent history with similar fantastic conditions was 1974/75, which remains the wettest on record,” he said.

“On some farms, we see fountains, springs, and rivers running for the first time in the lifetime of these farmers.”

The rainfall has also replenished groundwater reserves and soil moisture levels, strengthening the sector’s resilience against potential dry conditions in the future.

Sihlobo said that if an El Niño weather pattern develops next year, many Karoo farmers would be better positioned to withstand its effects because of the current abundance of water and vegetation.

One of the biggest financial benefits for farmers is the sharp reduction in feed costs.

“The biggest benefit brought by the rains and the subsequent improvement in vegetation is that farmers do not have to buy any feed. Considering the current higher wool and lamb prices, we expect farm profits in the Karoo to get a well-needed boost.”

Higher wool and lamb prices have been supported by drought-related production challenges in Australia, one of the world’s largest sheep-producing countries, as well as sustained demand from China.

“What is more important is to note that all lambs produced and slaughtered in the Karoo will have access only to natural Karoo veld vegetation this year,” Sihlobo said.

“So, every lamb produced in 2026 should automatically have complied with the requirements for the Karoo Lamb Geographical Indication, provided the farm is in the Karoo region and registered with the Department of Agriculture.”

Bennie van Zyl, general manager of TLU SA, welcomed the development, saying improved grazing conditions are critical for livestock farmers.

“The main factor for them is feed for livestock to be productive and so this is good news that there is favourable rainfall and more grazing area for livestock,” he said.

BUSINESS REPORT

Tharisa, the mining, metals, and innovation company dual-listed on the Johannesburg and London stock exchanges, said Thursday it has secured a new R750 million asset revolving finance facility from Nedbank as its underground mining begins to ramp up.

The facility has a built-in option facility, termed an accordion, that enables Tharisa to increase the amount to R1.25 billion. The facility ensures that Tharisa's underground fleet, comprising the specialised equipment necessary to support safe, efficient, and high-capacity underground extraction, is fully funded, a statement from the mining company said Thursday.

"This facility with Nedbank is a testament to the strength of Tharisa's balance sheet, our operational track record, and the confidence our financial partners place in the long-term value of this business,” said Tharisa chief financial officer Michael Jones in a statement.

Cementation Africa has been engaged as the mining contractor. On March 31, 2026, Tharisa initiated the first underground blast on the Apollo portal, marking the official start of the underground development.

Ramp-up was progressing as planned, with the first ore in the mill expected early in the second half of the current calendar year.

The asset finance facility was structured with Nedbank and reflects the continued appetite of institutional lenders to support well-governed, sustainable mining operations in South Africa, Jones said.

The facility is in addition to the $56.2m asset finance facilities currently available to Tharisa for funding its open-pit mining fleet.

“Securing full funding for our underground fleet is a critical enabler of our transition strategy, and we look forward to progressing this next chapter of Tharisa's growth with the certainty and conviction our shareholders expect," said Jones.

The fleet selection process incorporates equipment with improved energy efficiency, lower emissions profiles, and enhanced safety systems.

The new facility is also complementary to Tharisa’s existing banking facilities and is aligned with the group’s capital allocation programs.

To fund the capital works program for the underground mine transition, Tharisa last year concluded a $130m debt facility with Absa Bank through its Corporate & Investment division, and the Standard Bank of South Africa through its Corporate & Investment Banking division, comprising a term loan of $80m and a R900m revolving credit facility.

In March 2026, Tharisa negotiated improved unsecured, revolving trade finance facilities, with The Hongkong and Shanghai Banking Corporation Limited (HSBC) providing $30m and Absa Bank providing $15m, with an accordion of $15m. These facilities provide for both pre- and post-shipment commodity finance, the mining group said.

BUSINESS REPORT

Sirius, a leading owner and operator of branded business and industrial parks in Germany and the UK, said Thursday it has exchanged contracts to dispose of two sub-scale multi-use business parks in the Sheffield area in the north of the UK, for a combined £5.3 million (R115.8 million).

"The disposals, agreed at a premium to book value, demonstrate Sirius's focus on disciplined capital recycling, crystalising value from smaller, mature assets where we see limited scope for further income or valuation growth and redeploying the proceeds into opportunities with stronger returns potential,” said CEO Andrew Coombs in a statement Thursday.

The Sheffield assets are being sold to a single purchaser with whom Sirius has previously transacted. Both sites are stable and well occupied but offered limited scope to drive further income or valuation growth, Coombs said.The disposals represented a 3% premium to book value.

Meanwhile, building on Sirius's existing framework of self-storage offerings across Germany and the UK, as well as its recently announced development on its existing site at Berlin Gartenfeld, Sirius has exchanged contracts to acquire and develop three digitally automated self-storage opportunities, located in Leicestershire, Bedfordshire, and Merton (Greater London), all of which are subject to planning.

The site acquisition costs total about £12.6m, which will be funded from the recycling of the Sheffield assets and the remaining £7.3m from further disposals of non-core UK assets expected this year.

Sirius’ management stated all three sites benefit from good locations, characterised by market undersupply alongside strong business and residential fundamentals.

“The Leicestershire and Bedfordshire assets will open in spring 2027, with the Merton site expected to complete in 2028. Each of these self-storage development projects is forecast to generate double-digit IRRs (internal rate of return) in excess of our cost of capital,” the management said.

These transactions are in line with the group's strategy of recycling capital from mature, smaller assets into opportunities with stronger returns potential, said Coombs.

"The two self-storage conversion sites in Leicestershire and Bedfordshire are expected to open early in the next financial year, with all three acquisition opportunities representing an exciting further step in our self-storage strategy, as we expand on what is already an extensive, high-yielding and resilient part of our platform,” he said.

Sirius’ share price traded 1.39% higher to R21,90 on the JSE on Thursday afternoon. A year before, the share was trading at R23,56.

BUSINESS REPORT

African Bank, which has seen its profits decline every year since 2022, has blamed a R624 million loss for the six months to March 2026 on the impact of transformation costs, integration activities, higher impairments, and a challenging operating environment.

Explaining the loss on Thursday, interim group CEO Zweli Manyathi said the bank has just exited their “Accelerate 2025 strategy,” wherein it transitioned into a diversified retail and commercial banking platform, through several acquisitions, including Ubank, Grindrod Bank, and Sasfin’s Capital Equipment Finance (CEF) and Commercial Property Finance (CPF) businesses, and growth initiatives such as launching a business banking division.

In an interview with Business Report, Manyathi said they plan to arrest the interim loss, and despite the earnings pressure, the balance sheet remains solid, with a 25.8% capital adequacy ratio well above the minimum regulatory requirements, while liquidity reserves increased sharply to R6.6 billion from R3.7bn.

This was supported by a R700m issue in the debt capital markets.

He said while the acquisitions expanded their customer reach, strengthened the funding base, and added secured lending capabilities, they also came with their own technology that needed to be integrated, and staff that were not allowed to be retrenched in terms of the acquisition terms, which had resulted in some cases in duplicated roles and a top heavy management structure.

“The next phase of African Bank’s journey will see it shift from expansion to operational consolidation as it focuses on integrating capabilities and unlocking value from its diversified offering. There won’t be fancy strategies, just a back-to-basics approach to banking,” he said.

For instance, the bank aimed to reduce costs by R1.2bn by 2028, which meant reporting negative growth in costs over the next few years. A broad efficiency program focused on simplifying operations, improving productivity, and extracting integration benefits from the enlarged platform has been launched.

In the interim period, operating expenses were broadly unchanged at R2.3bn. Cost management initiatives contributed to reductions in several discretionary spending categories; but the lower revenue caused the cost-to-income ratio to rise to 70% from 62%.

Total net income from operations before impairments and costs came to R3.27bn, lower than R3.78bn previously. Interest income on advances of R3.7bn was driven by growth in the Business & Commercial advanced book.

Non-interest income contracted by 39% to R550m due mainly to a fair-value loss of R46m compared to a R65m profit in the comparable period and lower commissions earned on value-add products such as airtime prepaid vouchers, data, and utilities.

Although Personal Banking had higher transactional fees from increased customer activity and usage from strategic partnerships, higher surplus funds from term deposits not deployed to future projects were held at a higher cost.

Net insurance income increased by 11% to R342m, supported by lower claims and enhanced credit and insurance risk management practices.

Credit impairment charges increased to R1.8bn from R1.2bn, reflecting pressure from the current credit environment. The group continued to apply disciplined credit risk management, supported by portfolio optimisation strategies and proactive rehabilitation and recovery initiatives, said Manyathi.

These efforts were strengthened by investments in data and model enhancements, credit systems, and increased capacity across both the first and second lines of defence.

“We are entering a phase where implementation and delivery will be paramount to scale our business, preserve our capital, drive higher transactional activity, and continue prudently managing our costs. We will remain agile and responsive to changes in the external environment, ensuring that we can navigate uncertainty,” said Manyathi.

He said the 2026 period is expected to remain challenging as the bank effects changes and delivers on the consolidation plan that will create a sound platform for the future,

Meanwhile, the group has prioritised the filling of key leadership vacancies as it implements its strategic consolidation phase. Happy Ralinala, with extensive experience in banking and entrepreneurship development, has been appointed as Group CEO for Personal Banking, following regulatory approval.

Ralinala pointed out that Personal Banking sits at the heart of helping customers achieve theirfinancial goals and improving access to meaningful financial solutions.

"I look forward to working with colleagues across the Group to continue building a bank that serves customers with care, supports broader economic participation and contributes to growth," she said.

BUSINESS REPORT 

June is Youth Month in South Africa, a time to reflect on the potential of young people and the role adults play in helping them build secure, independent futures.

Education, opportunity, and resilience are often top of mind, but one life skill is sometimes overlooked: financial literacy and, just as importantly, a healthy relationship with money.

In financial planning, we often see how habits formed early in life shape later decisions. By the time many people start earning an income, their attitudes towards spending, saving and debt are already deeply established.

In many respects, financial planning starts long before the first salary. It starts at home.

Although Youth Month focuses on young people more broadly, this article primarily examines children and teenagers. Many of the lessons apply well beyond those years, and some can begin even earlier in simple, age-appropriate ways.

Parents, guardians, and role models have a powerful opportunity to equip children not only with money but with the wisdom to manage it well. It is a skill many adults continue to work on, which makes it even more valuable to teach the next generation early.

Pocket money is a practical starting point

Pocket money is less about the amount and more about the behaviour it develops.

Used intentionally, it can introduce three essential concepts:

• Budgeting, or managing limited resources
• Decision-making, including how to prioritise needs over wants
• Trade-offs, or understanding that every choice has a consequence

A structured approach tends to work best. This can include:

• A consistent base amount to encourage planning
• Opportunities to earn additional money through effort or responsibility

This mirrors the real-world relationship between income, effort, and lifestyle choices.

From a planning perspective, the goal is not simply to reward children. It is to give them a safe, controlled environment in which to make financial decisions and learn from them.

Start with behaviour, not complexity

Financial literacy is often seen as something technical, but in the early years, it is more about behaviour than detail. Children first need to learn how to make thoughtful choices with money before they learn more complex financial concepts.

Children do not need to understand investment products at first. They need to understand:

• The difference between wanting and needing
• The importance of waiting and saving
• That money is finite and must be allocated deliberately

In adulthood, most financial outcomes are driven less by knowledge and more by behaviour. That behaviour is often formed early.

Talk about money without creating anxiety

Parents often hesitate to involve children in money discussions because they do not want to cause stress. While the intention is understandable, complete silence can sometimes lead to misunderstanding or anxiety. The aim is not full financial disclosure. It is age-appropriate involvement. There are a few practical ways to do this.

Focus on decisions, not pressure. Frame conversations around choices.

For example, say: ‘We are choosing to prioritise certain expenses this month,’ rather than: ‘Money is tight.’

Involve them in small, controlled decisions that can build confidence rather than fear. These can include:

• Comparing prices
• Planning a family outing budget
• Deciding how to allocate their own money

Reinforce stability. Children should always come away with the message: ‘We have a plan, and we are in control.’ Financial awareness should empower children, not burden them.

Introduce long-term thinking early

One of the most valuable financial lessons a child can learn is that money can grow over time. Structured saving and investing, even in small amounts, can help make this lesson practical. A savings account can be a useful place for pocket money, but it is also worth helping children understand what they can do with money they do not spend immediately.

This is especially important in a world where children see fewer physical notes and coins. When money is held in an account or spent with a card, it can feel less tangible. Children and many adults may find it harder to understand that the amount available is still limited.

Tax-free savings accounts for children

When earning interest in a bank account is not sufficient anymore, the next solution for longer-term investing could be a tax-free savings account in your children’s names. The contribution limit is R46 000 per year.

A tax-free savings account can be an effective long-term vehicle because it offers:

• Tax-free growth, with no tax on returns
• A platform for long-term compounding that not only offers cash solutions     like a money market does
• A tangible introduction to investing concepts
• Smaller, flexible contributions
• A place to invest monetary gifts in a meaningful way

The real advantage is time. Even modest contributions made consistently can benefit from decades of compounding. This principle becomes far more powerful when it starts early.

From a planning perspective, the value is not only the investment itself, but the mindset it develops: money is not only for spending, but it can also help build future security and outcomes like university funding or the money to buy a first car.

Long-term financial success is seldom the result of a single decision. More often, it is the outcome of consistent, disciplined behaviour over time.

The same principle applies to raising financially capable children. Youth Month reminds us that we are not only raising children. We are raising future decision-makers. Investing in them goes beyond education and opportunity. It includes equipping them with the confidence and ability to navigate financial decisions throughout their lives.

Ultimately, one of the most valuable gifts we can give children is not money itself, but the ability to manage it wisely.

* Coetzer is a financial planner at Alexforbes.

PERSONAL FINANCE

Many young professionals think of insurance as something for later. Later, when they have children. Later, when they own a home. Later, when there is more room in the budget. The problem is that responsibility often arrives before the budget feels ready.

With National Insurance Awareness Day on June 28, Finchoice says it is worth rethinking why insurance is still seen as a grudge purchase, especially by consumers already managing rent, transport, groceries, debt repayments, and family responsibilities. Insurance can reduce the risk of an unexpected event becoming a financial crisis.

Insurance is often treated as money you spend on something you hope never happens. But the real issue is what would happen to your family, your monthly commitments, or your debt obligations if life changed suddenly. Protection starts to matter long before a crisis arrives.

Many people delay that decision because of a few familiar assumptions.

The first myth is that young people are too young for funeral or life cover. In reality, many South Africans start supporting parents, siblings, partners, or children while still in their twenties. The issue is not age. It is whether someone else would struggle financially if you were no longer able to contribute.

The second myth is that the family or community will contribute if something happens. Stokvels, burial societies, and relatives can provide important support, but they may not cover the full cost of a funeral, a medical emergency, lost income, transport, food, debt repayments, or the weeks that follow.

The third myth is that insurance is unaffordable or a waste of money. For many households, affordability is real. The point is not to overextend yourself. Start with cover that is sustainable, understand what is included and excluded, and review it as your responsibilities change.

A simple readiness check can help consumers decide whether they need to start looking at cover.

Start with these questions.

• Who depends on me financially, even partly?
• What monthly commitments would still need to be paid if something happened?
• Do I have savings that could cover an emergency?
• Which risk would create immediate financial pressure for my household?
• Have I compared basic cover options, not only on price but on what they include?
• Can I afford the monthly premium consistently?

Insurance is really about the people and commitments that sit behind your unique circumstances and income. If one difficult event leaves your household scrambling to cover costs, then it may be time to seek advice when it comes to adding protection to your financial plan.

Digital financial tools can also help consumers manage their protection more proactively by providing easier access to policy information, payment dates, and cover options as circumstances change.

Financial resilience is about giving your household room to recover from a shock. The right cover can help prevent one difficult moment from becoming a long-term financial setback.

* Whittaker is a chief operating officer at Finchoice.

PERSONAL FINANCE

While almost half (47%) of South Africa’s Generation Z (aged 19–27) have funeral cover, less than a third (31%) have car insurance and fewer than a quarter (23%) have insured their cell phones.

These findings from local market research agency KLA point to a considerable gap in short-term insurance coverage and knowledge among young South Africans.

For many young South Africans and first-time earners, there is a clear knowledge gap when it comes to short-term insurance. Too often, the value of short-term insurance only becomes apparent after something has gone wrong, whether that’s a car accident, a stolen phone or unexpected damage to personal belongings.

At its core, short-term insurance is designed to protect the things you use and rely on every day. Unlike long-term products such as funeral cover, which are often prioritised due to cultural or family expectations, short-term cover is about managing everyday risks that can have an immediate financial impact.

Your first salary often comes with competing priorities, from helping at home to covering your own expenses and lifestyle costs. Insurance may not always feel urgent in that mix, but it plays a critical role in protecting what you’ve worked hard to achieve.

For young drivers in particular, car insurance is one of the most important considerations. Beyond being a legal requirement in certain financing agreements, it protects against damage, theft, and third-party liability, which can otherwise result in high out-of-pocket costs.

Similarly, items like smartphones and laptops have become essential tools for work, study, and daily life. Losing or damaging these devices can be disruptive and expensive to replace without cover in place.

Understanding how insurance works is just as important as having it. It’s not only about having a policy, but about knowing what you’re covered for, what your excess is, and what is excluded. That understanding helps you make better decisions and avoid surprises when you need to claim.

Importantly, she notes that insurance does not need to be complex or inaccessible. Digital platforms and simplified products are making it easier for younger consumers to get cover that suits their needs and budgets.

The earlier you start engaging with insurance, the more confident and informed you become. It allows you to build good financial habits and approach risk in a more considered way.

As young South Africans enter the workforce or begin managing their own finances, I encourage them to see insurance not as an unnecessary expense but as a practical tool for financial resilience. Insurance is ultimately about protecting your progress - and when you understand this, you’re better equipped to make choices that safeguard both your present and your future.

*Nxumalo is an executive head for people and transformation at Miway.

PERSONAL FINANCE

For many South Africans, a will is still a once-off legal document, drafted, signed and stored away for “one day”, not to be thought of again, if at all.

Estate administration, the process of carrying out wishes contained in the will, is often thought of even less.

However, there is real value in paying attention to will-drafting and estate administration because both impact the lives of your loved ones when you pass away.

Making sure your loved ones are looked after

Deceased estate administration sits at the intersection of law, finance, property, technology, and deeply personal family moments.

In our South African social context, estate administration is becoming more complicated: We have many blended and extended families, our digital assets and online accounts are constantly increasing, we own properties, firearms, and small businesses – all of which make our deceased estate administration processes more complex. Whereas, next of kin understandably expect fast, transparent service after losing a loved one.

Add to this the alarming statistic that an estimated 70% of South Africans still die without valid wills, and it becomes clear how loved ones left behind can be faced with administrative delays, financial uncertainty, and unnecessary stress.

Beyond digital will-drafting: Everyone’s talking about wills!

In many industries, the most valuable innovation takes place in the background and cannot be seen. The wills industry is no different and has moved on in recent years to encompass a lot more than online will-drafting.

However, the real challenge begins after a death, when families are suddenly plunged into paperwork, property transfers, financial and legal jargon, while grieving.

For us, innovation has never been about adding technology for the sake of it. It’s about understanding what families actually go through after a death, and building systems, processes, and support that make that experience less overwhelming.

Historically, many of these processes happened in silos, with wills drafted by one provider, conveyancing outsourced to another, broken communication between stakeholders, and beneficiaries left with limited visibility of what’s going on.

This caused uncertainty, frustration, and delays.

Removing common pain points for families

Some of the most meaningful innovations in estate administration have been aimed at removing practical pain points families face after a death.

Transferring a property out of a deceased estate can be a complicated process and is one of the most common reasons for delays during estate administration. This can cause uncertainty for surviving spouses, children, and dependants at a time when they are already faced with huge adjustments and life changes.

By working with in-house conveyancing partners, this can help to be able to streamline this crucial part of the estate administration process.

Other innovations are focused on proactively reducing risk.

Internal quality-control systems, intelligent workflow allocation,and automated checks enable early identification of missing information, potential complications, and process gaps, reducing unnecessary delays throughout the estate journey. 

A big focus on regular, individualised (as opposed to automated) beneficiary communication also contributes to keeping families informed. Knowing what is happening and what comes next provides comfort and peace of mind.

The future of estate administration

The future of wills and estates will belong to businesses capable of combining:

• Technology
• Human expertise
• Operational excellence
• Genuine empathy

Innovation is never about replacing the human element. It is about using technology to strengthen the human experience during life’s most difficult moments. The responsible use of AI can support the future of estate administration by reducing delays, early identification of risks, and creating smoother, more transparent experiences for the bereaved.

AI and intelligent systems can help us, but empathy, trust, and human guidance will always be at the heart of what we do. It’s about combining technology with deeply human support.

When it comes to wills and deceased estates, the best innovations work quietly in the background to make the loss of a loved one just a little easier.

* Nadesan is a managing director of fiduciary services at Capital Legacy.

PERSONAL FINANCE

The Automotive Industry Development Centre Eastern Cape (AIDC-EC) has placed its CEO, Thabo Shenxane, on precautionary suspension pending investigations into alleged transgressions and concerns over the organisation’s internal culture.

In a statement on Thursday, the AIDC-EC board announced that Shenxane's suspension took effect immediately and said the decision followed investigations into alleged misconduct within the entity, as well as concerns that workplace culture had begun to negatively affect business operations.

“The board of AIDC-Eastern Cape has resolved to place the CEO, Mr Thabo Shenxane, on a precautionary suspension with effect from 25 June 2026,” the board said.

“This decision follows investigations on alleged transgressions within the AIDC-EC; and concerns regarding the internal culture that started to impact negatively on business operations.”

The board said it had appointed an acting CEO with immediate effect to ensure stability and business continuity while investigations continue.

“The board continues to treat all allegations and the ongoing internal investigations with the utmost seriousness, fairness and respect,” it said.

The board also requested space to resolve the matter within the confines of legal processes.

The AIDC-EC board has not disclosed the nature of the alleged transgressions under investigation, nor indicated when the process is expected to be concluded. Shenxane has not publicly commented on the suspension.

The suspension comes five months after the Democratic Alliance raised concerns about governance, workplace culture and internal controls at the agency, which plays a key role in supporting the Eastern Cape’s automotive industry.

In January, DA Shadow MEC for Economic Development, Environmental Affairs and Tourism, Dr Vicky Knoetze, said the party had seen internal documents submitted by anonymous staff members to the AIDC board raising concerns about governance and operational matters.

The allegations reportedly included claims directed at Shenxane, whose contract had recently been extended for another five years, as well as broader concerns regarding workplace culture and organisational management.

Knoetze also referred to allegations involving the East London office, including claims that its operational status may have been misrepresented to the board and that staffing and office arrangements may not have been aligned with organisational needs.

At the time, she said responses from the AIDC-EC board indicated that internal processes had been initiated to investigate concerns raised by staff and that internal audit reviews were under way.

However, she noted that there had been no publicly available findings or outcomes from those processes.

The developments are significant for the Eastern Cape economy, given the strategic role played by AIDC-EC in supporting one of South Africa’s most important automotive manufacturing hubs.

The province hosts major automotive manufacturers and component suppliers, with the sector supporting thousands of jobs and contributing significantly to exports and investment.

The agency has also been central to efforts to position the province for the transition to electric vehicles, including the development of an Electric Vehicle Strategy and Roadmap aimed at improving charging infrastructure and enhancing the province’s competitiveness in the evolving global automotive market.

Knoetze previously warned that allegations of governance weaknesses or internal dysfunction at a key development agency could undermine investor confidence and have wider economic consequences.

“At a time when the global automotive industry is transitioning from internal combustion engine vehicles to electric vehicles, the Eastern Cape must maintain policy certainty, institutional stability, and effective implementation to remain competitive,” she said.

BUSINESS REPORT

South Africa’s approach to attracting the investment required to mine strategic minerals necessary for the energy transition appears more diagnostic in nature, and well-meaning plans are not being implemented effectively, said PwC Africa energy, utilities and resources leader Andries Rossouw.

He spoke Thursday in a presentation at the release of PwC’s Global Mine Report 2026, which assessed industry trends among the top 40 global mining companies. The report shows that new mining investment in critical minerals such as copper and lithium is essential, and currently far from enough, given their requirements for the global energy transition and growth of data centres.

He said mining attracts relatively low investment globally. For instance, mining development capital stood at about $55 billion in 2025, a fraction of the $3.3 trillion invested in global energy systems annually. The global mining sector is also under mounting pressure from energy security concerns, fragmented geopolitics, and growing societal expectations. Often, many large mining groups are able to fund their own new developments, but in South Africa currently, other funders are often needed on new mine development projects. 

The future success of the sector will depend on extending beyond traditional geological advantages and addressing policy, capital, and productivity challenges, he said.

Rossouw stated that South Africa wants to attract new mining investment by, for instance, putting an exploration fund in place that is difficult to access, while the government is also trying to improve infrastructure and make mining easier through the introduction of the new digital mining cadastral system, which has only so far been implemented in the Western Cape.

In Brazil, to attract investment, incentives are in place for downstream conversion of critical minerals, with a focus on coordinating mining permit activities and creating a trustworthy environmental, social, and governance policy framework. Brazil also has a guarantee fund to reduce investment risks for sustainable mining.

Rossouw noted that Canada has so far attracted substantial new investment in critical minerals mining. The Canadian government has implemented incentives to make exploration “available to all,” alongside other targeted tax incentives and government-backed infrastructure development for mining, while research is also being funded into new mining techniques and mineral processing.

“The level of incentivisation in Canada is high,” said Rossouw.

In Australia, the focus is on providing fiscal and financial incentives to support mid-stream processing of critical minerals, with tax incentives, loans, and guarantees in place for the mining of critical minerals, as well as government-backed infrastructure development.

He said the top 40 global mining companies (by market capitalisation) had demonstrated significant resilience, with total revenues up 3,3% to $909bn in 2025, EBITDA (earnings before interest, taxes, depreciation, and amortisation) rising 23% to $248bn, and net profit gaining 23% to reach $120bn.

The performance across mined commodities however was uneven. Precious metals and copper drove profitability and led market gains, with copper recording strong earnings growth, while coal revenues declined despite improved margins.

Mergers and acquisitions remained active but selective, with deal values exceeding $70bn focused mainly on future-facing commodities such as lithium and copper.

He said productivity is emerging as a central strategic priority, with AI and digital technologies offering transformative potential. However, mining currently ranks lowest among sectors in AI readiness, limiting its ability to capture efficiency gains.

PwC’s analysis showed that companies leading in AI adoption could achieve performance benefits up to 7.2 times greater than peers.

“Governments must implement stable regulatory frameworks and investment incentives to ensure mining projects are viable and competitive. Policy clarity, permitting efficiency, and midstream processing capabilities will determine long-term value capture,” said Rossouw.

“To meet surging demand for critical minerals, companies must increase production while improving efficiency and resilience. Achieving sustainable growth will require coordinated action across governments, investors, and mining companies,” said PwC South African energy, utilities and resource assurance partner, Vuyiswa Khutlang.

BUSINESS REPORT

For many businesses, finance is still largely seen as a back-office accounting and bookkeeping function. But in today's economic climate, that view is becoming increasingly outdated. 

Finance teams must play a more strategic role to ensure a business runway and survival.

Businesses are no longer managing in stable, predictable environments. They need systems that help them make faster decisions, manage risk dynamically, and respond to rapidly changing economic conditions.

Cash flow remains the biggest business challenge

The pressure on South African businesses is mounting.

Businesses in today's economy cannot afford financial leakage on top of rapidly changing macroeconomic pressures.

According to Statistics South Africa, the formal business sector carried an estimated R9.8 trillion in debt in 2024. At the same time, Allianz Trade projects that approximately 1,540 businesses could face insolvency in 2026. 

Even businesses that can access funding are facing increased borrowing costs, while inflationary pressures continue to impact both consumers and organisations.

The reality is that many businesses can no longer pass rising costs directly onto customers. This can place even large enterprises in vulnerable financial positions.

In South Africa,  inefficient finance operations is a road to failure where companies are operating in a low growth and high pressure environments.

Against this backdrop, strong financial management is no longer simply about balancing the books, it's about maintaining visibility, protecting cash flow, managing risk, and ensuring long term business survival. 

This is where smart connected  accounting systems, like Duplo become paramount. The real question is not whether businesses can afford to adopt better tools, but whether they can afford not to.

Growth often breaks manual processes

Finance teams today are under increasing pressure to do two things: reduce absolute costs and increase budgeting efficiencies.

Growth doesn't just come from selling more. It comes from keeping more of what you earn. One of the biggest misconceptions is that automation is simply about saving time.

Many businesses are hesitant to adopt new technology because of the perceived costs, the time required for team adoption, and the challenge of embedding new systems into existing processes.

These concerns are understandable. Every new system requires investment, training, and adjustment.

As businesses grow, financial operations become more complex. Approvals multiply. Payment volumes increase.

Reporting requirements expand. Finance teams often find themselves managing critical processes across spreadsheets, emails, banking portals, messaging platforms, and disconnected systems.

Cost of operational inefficiencies

The biggest cost of manual reconciliation isn't the hours spent doing it, it's the financial risk created when businesses can't see the full picture. The challenge is not simply gathering data.

Most organisations already have access to large amounts of financial information. The challenge is creating a single source of truth that allows finance teams to understand what is happening across the business in real time. 

When teams are working across multiple spreadsheets, banking portals, emails, and disconnected systems, it becomes incredibly difficult to maintain a single source of truth.

Revenue leakage is a higher probability with manual and fragmented systems. Most businesses don't lose money through one big mistake. They lose it through hundreds of small inefficiencies that are overlooked.

The future of finance is connected

The future of finance transformation is gradual modernisation, along with embedded and connected financial ecosystems.

In today's economy, financial visibility is no longer about reporting on the past.

It's about responding to the present.

This is why Duplo brings expense management, approval workflows, accounting integrations, payments, and financial controls together under one roof.

Reducing fragmentation enables businesses to automate processes, improve oversight, and minimise the operational inefficiencies and revenue leakage that often occur when teams work across multiple disconnected systems.

Businesses can prevent leakage and often absorb some cost increases, but they need to identify them early enough.

Technology systems can add cost, but will always remain far more affordable than human error. 

Christine Buss, Head of Operations & Partnerships South Africa, Duplo.

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BUSINESS REPORT 

South Africa is currently engaged in an important national conversation about its future.

Across government, industry, academia and civil society, leaders are gathering to debate how we stimulate economic growth, create jobs, accelerate industrialisation and position our country for success in an increasingly digital and competitive global economy.

These conversations matter.

Policy shapes markets. Markets shape industries. Industries shape livelihoods.

However, it is important to ensure that key contributors are not missing from the table.

Too often, discussions about South Africa's economic future are dominated by established institutions, large corporations and traditional centres of influence. While these voices are important, the future will not be built by incumbents alone. It will also be built by entrepreneurs, startups, innovators, researchers and technology pioneers who are creating entirely new industries and solving problems that did not exist a decade ago.

This is why platforms such as the National Policy Dialogue 2026, hosted by the Gauteng Industrial Development Zone (GIDZ) in partnership with key stakeholders including the Department of Science, Technology and Innovation (DSTI), the Department of Trade, Industry and Competition (DTIC), and the National Advisory Council on Innovation, are so important.

The dialogue has brought together policymakers, researchers, industry leaders, entrepreneurs such as ourselves as Khoi Tech and development partners to explore how innovation can drive South Africa's re-industrialisation and inclusive growth.

A central theme emerging from these discussions is that industrial competitiveness in the twenty-first century will increasingly depend on science, technology and innovation.

What makes this moment significant is the growing recognition that innovation is no longer a supporting pillar of economic development, it is becoming its foundation.

South Africa faces a complex set of challenges: de-industrialisation, unemployment, inequality, global supply chain shifts, climate pressures and rapid technological disruption require a new development model.

Policymakers and industry leaders participating in recent national dialogues have repeatedly highlighted the need for digitalisation, diversification and innovation-led industrialisation as critical drivers of future growth. One thing should be noted though, innovation does not emerge from policy documents alone. It emerges from people.

It emerges from entrepreneurs working from small offices, township workshops, university laboratories, innovation hubs and startup ecosystems.

It emerges from young South Africans who look at a problem and choose not to wait for a solution but to build one. The reality is that many of the technologies shaping our future, from artificial intelligence and health technology to cybersecurity, advanced manufacturing, fintech and digital platforms, are increasingly being developed by agile startups rather than legacy institutions.

If South Africa is serious about becoming a globally competitive innovation economy, then startups cannot simply be beneficiaries of policy.

They must be contributors to policy.

They must have a voice in determining the frameworks that govern innovation, intellectual property, investment incentives, digital infrastructure, skills development and industrial strategy.

At Khoi Tech, we believe Africa must not merely consume technology. Africa must own it, create it, protect it and define it.

This is what technology sovereignty means. It is not about isolation or protectionism.

It is about ensuring that African countries develop the capabilities to design, manufacture and commercialise technologies that address our unique challenges while competing globally.

For too long, African economies have exported raw materials and imported finished products. The digital economy presents us with an opportunity to break this cycle. We have the talent. We have the ideas. We have the ambition. What we need is greater alignment between policy, investment and innovation and a critical part of this conversation is intellectual property.

Too often, African innovation generates value that ultimately accrues elsewhere.

When African innovators lose ownership of their intellectual property, we lose more than patents. We lose future industries, future jobs, future tax revenues and future economic influence. Intellectual property ownership should therefore be viewed not simply as a legal instrument but as a strategic economic asset. 

It is the bridge between innovation and industrialisation. It enables local companies to scale globally while retaining value domestically. It creates opportunities for licensing, manufacturing, exports and high-value employment. Most importantly, it ensures that African ingenuity translates into African prosperity.

The technologies that will define the coming decades should increasingly carry African fingerprints, African stories and African ownership.

This is particularly important as the world enters a new era shaped by artificial intelligence, quantum computing, advanced robotics, biotechnology and next-generation communications technologies. Nations that own the intellectual property underpinning these technologies will shape the future global economy.

Those that do not risk becoming perpetual consumers of innovation created elsewhere. South Africa has the opportunity to choose a different path.

The encouraging message emerging from policy dialogues across government and industry is that there is growing recognition of the importance of collaboration.

Stakeholders have emphasised the need for stronger partnerships between government, industry, academia, small businesses and innovation ecosystems to accelerate innovation-led development and economic transformation.

This collaborative approach must continue as government cannot build the future alone. Neither can industry nor academia. It has to be done collaboratively.

The next chapter of South Africa's economic story will not be written solely in boardrooms or government offices.

It will be written in research laboratories, startup incubators, manufacturing facilities, technology hubs and entrepreneurial ventures across our nation.

That is why innovators and entrepreneurs deserve more than a place in the audience. We deserve a seat at the table.

The future of South Africa should not be designed for startups and innovators.

It reshould be designed with them, and, if we get that right, we will achieve something far greater than economic growth.

We will build a nation that creates its own technologies, owns its own intellectual property, develops its own industries and defines its own future. Our participation at the National Policy Dialogue 2026 is a positive move in this direction.

Seati Moloi, CEO and Founder, Khoi Tech.

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BUSINESS REPORT 

The Cape Town Container Terminal (CTCT) has taken delivery of four new hybrid straddle carriers worth R96 million as part of a broader effort by Transnet Port Terminals (TPT) to improve efficiency and modernise operations at South Africa’s ports.

The investment comes just days after the World Bank’s Container Port Performance Index (CPPI) 2025 ranked the Port of Cape Town last among 400 container ports worldwide, underscoring the urgent need to address operational challenges and improve competitiveness.

CTCT announced on Wednesday that the specialised cargo-handling equipment arrived fully assembled and will become operational in July after the completion of operator training and installation of advanced in-cab computer systems.

The new hybrid straddle carriers are the first of their kind to be deployed in Southern Africa and form part of TPT’s comprehensive equipment replacement programme aimed at restoring terminal performance and enhancing productivity.

Straddle carriers are used to lift, transport and stack shipping containers within port terminals. The new units combine diesel and electric power, offering improved fuel efficiency and lower emissions while maintaining the operational capacity required in a busy container-handling environment.

CTCT added that the terminal is also completing its operator conversion training to ensure employees are able to maximise the capacity of the modern equipment, which operates using both diesel and electric power.

Earle Peters, managing executive at the Cape Terminals, said the technology represented a significant step forward for the terminal.

“This technology reduces fuel consumption, lowers emissions, and decreases noise levels, while maintaining the operational performance required in a busy container terminal environment.”

Peters added that the investment will provide more equipment to support daily operations across the terminal, which gives operational teams greater flexibility in managing container movements and supporting customer requirements.

CTCT is predominantly a rubber-tyred gantry crane (RTG) operation; the Terminal is transitioning into a hybrid operation that uses both straddles and RTGs to accommodate yard capacity and fulfil operational demand.

“The Cape Town Container Terminal has improved productivity and annual volumes as a result of the injection of new equipment.”

CTCT added that TPT has invested a total of R9 billion over the last three years on new cargo handling equipment across its 15 terminals nationally.

“Major capital investments in the current 2026/2027 financial year include straddle carriers and empty container handlers for the Cape Town and Port Elizabeth container terminals; rubber-tyred gantry cranes for the Durban Container Terminal Pier 1; reach stackers for multipurpose terminals; and haulers for the Richards Bay operations.”

CTCT said that despite wind, fog, and vessel ranging delays accounting for 74.15 days of weather disruption throughout the 12-month period ended in March 2026, the Cape Town Container Terminal has also improved on productivity and annual volumes as a result of the injection of new equipment.

BUSINESS REPORT

S&P Global Ratings has lowered South Africa’s economic growth forecast for 2026, warning that higher inflation, rising energy costs and the prospect of further interest rate increases will weigh on the economy over the next two years.

In its latest Economic Outlook for Emerging Markets, released on Thursday, S&P revised South Africa’s 2026 gross domestic product (GDP) growth forecast down by 0.2 percentage points to 1.3%, from 1.5% projected in March.

The ratings agency also cut its 2027 growth forecast by the same margin to 1.5%.

This is significantly lower than National Treasury's projection of 1.6% in 2026 and 1.8% over the medium term, reaching 2% by 2028, although the finance minister Enoch Godongwana has said they will review the country's economic growth forecast before October's mid-term budget.  

Last week, the World Bank also revised downwards by 0.4 percentage points South Africa's 2026 forecast to 1.0% from a previous projection of 1.4% in January amid slower growth amid rising global uncertainty, higher energy prices and weaker international demand.

Although economists are optimistic that GDP growth of around 1.3% looks attainable in 2026, S&P emerging markets chief economist Elijah Oliveros-Rosen said consumer price pressures are likely to accelerate in the second half of the year, driven by higher fuel and food costs.

“Our GDP forecasts for South Africa are now 20 bps lower for 2026 and 2027, at 1.3% and 1.5%, respectively. We raised our average inflation forecast to 4.3% from 3.5%,” Oliveros-Rosen said.

“We expect the central bank to hike interest rates at least one more time this year, since we expect inflation to exceed 5% in the second half of 2026.”

The downgrade comes as S&P expects inflationary pressures across emerging markets to persist following disruptions linked to the Middle East conflict and higher global energy and food prices.

“Compared with our March baseline, we have raised our inflation projections and lowered our growth forecasts for most EM economies in Europe, the Middle East, and Africa,” S&P said.

“Energy inflation has picked up broadly across the region, particularly in Nigeria and Turkiye, and we expect food inflation to increase over the coming months due to higher transportation and fertilizer costs.”

The report forms part of S&P’s broader assessment of emerging markets, where growth prospects have weakened as economies grapple with the fallout from elevated commodity prices and lingering uncertainty around the implementation of the recent US-Iran peace agreement.

Although crude oil prices have eased since the agreement was signed a week ago, S&P cautioned that refined fuel products are likely to remain expensive for longer because of logistical bottlenecks, damaged infrastructure and inventory rebuilding. These factors are expected to keep inflation elevated across many developing economies.

Food prices are also emerging as a significant concern. S&P noted that higher fertiliser costs and the onset of El Niño conditions could push food inflation higher over the coming months.

South Africa was identified as one of the emerging markets most exposed to the weather phenomenon, which has historically been associated with droughts and rising agricultural prices.

The agency observed that several emerging market central banks, including South Africa’s, have already tightened monetary policy since the Middle East conflict began. Higher interest rates, while necessary to contain inflation, are expected to restrain household spending and business investment.

S&P now forecasts South Africa’s benchmark policy rate, which is currently at 7% per annum, to end 2026 at 7.25%, before easing to 6.75% in 2027.

Despite the downgrade, South Africa’s growth outlook remains slightly stronger than the 1.1% expansion estimated for 2025. The economy delivered a stronger-than-expected performance in the first quarter of 2026, expanding by 0.5% and marking a sixth consecutive quarter of economic expansion.

However, it continues to lag many of its emerging-market peers. S&P expects countries such as India, Vietnam and Indonesia to post growth rates above 5% in 2026, supported by strong domestic demand and investment linked to the global artificial intelligence and technology supply chain.

For South Africa, the ratings agency expects economic growth to remain modest over the medium term, improving only gradually to 1.8% by 2028 and 2029. Unemployment is forecast to remain exceptionally high at 31.8% in 2026 before edging lower in subsequent years.

BUSINESS REPORT

South African businesses can no longer afford to manage foreign exchange risk as a short term financial function, with currency markets increasingly being driven by sudden geopolitical events, central bank decisions and rapid changes in investor sentiment.

Citadel Global Managing Director Bianca Botes said businesses need to move away from reactive currency decisions and adopt structured treasury strategies that protect performance through changing market conditions.

“FX and treasury management need to evolve into a structured, forward looking discipline that actively protects business performance and preserves value through uncertainty,” Botes said.

“Businesses and investors should rethink their approach to currency risk, moving from short term decision making to strategic positioning that is resilient across multiple market scenarios.”

Botes said the traditional pattern of gradual currency cycles followed by occasional shocks has changed, with markets now responding rapidly to global developments.

“FX risk is no longer cyclical in the classical sense. It is becoming structurally event driven,” she said.

“The pattern of long, gradual currency cycles punctuated by occasional shocks has given way to bursts of intense volatility triggered by geopolitical developments, central bank repricing or sudden shifts in global risk appetite.”

She said the biggest challenge for companies is not only the direction of currency movements, but the speed at which they occur.

“The risk businesses face is not simply that the rate moves against them, it is that the move arrives faster than their decision making process can respond. FX has shifted from a treasury input to a board level strategic concern,” Botes said.

Several factors are contributing to this new environment, including geopolitical tensions, changing monetary policy expectations and shifts in global market structure.

Botes highlighted ongoing Middle East tensions, US China trade challenges and sanctions disputes as examples of events creating frequent currency uncertainty.

“The result is currency pairs that can travel three to five percent on a single headline,” she said.

For businesses involved in international trade, these movements can have a direct impact on profitability.

“For importers, it manifests as margin compression, while exporters face revenue uncertainty that distorts pricing and reinvestment decisions,” Botes said.

“Even a two to three percent adverse move can absorb the operating margin on thin margin product lines, making the cumulative effect across the year far larger than the headline volatility suggests.”

Botes said many companies continue to make common mistakes when managing currency exposure, including waiting for certainty, relying too heavily on forecasts and failing to establish clear governance structures.

“Too many businesses still execute FX through a finance team without clearly defined risk appetite, cover ratios or escalation triggers, which means decisions get made under pressure rather than under structure,” she said.

“Waiting for certainty often results in missed opportunities or forced decisions at unfavourable levels.”

Rather than attempting to predict currency movements, Botes believes businesses should focus on consistency and preparation.

“The businesses that succeed at timing are not the ones predicting better; they are the ones who happen to be right once,” she said.

“A structured approach delivers a consistent average rate across the cycle and removes the emotional element from execution. The mathematics of consistency beats the mathematics of prediction over time.”

According to Botes, an effective forex strategy should include clear board level direction, defined risk limits, regular monitoring of exposure and layered execution rather than one off decisions.

“Volatility creates opportunity for businesses positioned to act,” she said.

“The key is to use a mix of forwards, options and structured products matched to the commercial cycle rather than to a market view.”

She added that planning ahead can help businesses replace uncertainty with discipline.

“Pre defined levels and scenario planning turn FX management from a reactive function into a prepared one. They replace urgency with discipline, which is the single biggest improvement most treasuries can make.”

Botes said businesses should begin improving their approach through three key areas: visibility, governance and execution.

For exporters, this could involve mapping future foreign currency income and gradually increasing protection as transactions approach. For importers, it could mean creating forward exposure schedules and setting predetermined points where hedging decisions are made.

“The principles are the same. The structures should fit the commercial reality,” Botes said.

She warned that the difference between a disciplined approach and trying to time the market can have a meaningful impact on profitability.

“Over a twelve month period, the difference between disciplined layering and discretionary timing is often the difference between a three percent improvement in average rate and a five percent deterioration,” she said.

Botes said business leaders need to change the way they think about currency management.

“Stop asking where the rate is going. Start asking what level protects the business and when to act,” she said.

“The first question has no reliable answer. The second has a process behind it. Once the conversation in the boardroom moves from forecast to framework, FX stops being a source of anxiety and starts being a source of certainty.”

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BUSINESS REPORT 

Tawanda Karombo

South Africa’s controversial Tobacco Products and Electronic Delivery Systems Control Bill moved a step closer to becoming law on Wednesday after Parliament’s Portfolio Committee on Health voted in favour of the bill’s desirability, setting the stage for detailed clause-by-clause deliberations that could reshape the country’s tobacco and nicotine regulatory framework.

About 10 members of the committee consented to the desirability of the bill while only one member was opposed to advancing with the draft legislation. The Tobacco Bill will now be analysed and considered on a clause-by-clause basis.

It is on this basis that members – made of parliamentarians from across South Africa’s major political parties – will seek to factor in changes and improvements.

Kefilwe Ndaba from the National Informal Traders Alliance of South Africa (Nitasa) said in an interview the Tobacco Bill in its final format should curb illicit trade in tobacco and nicotine products.

“I have noticed that most of the people agree with the bill due to health issues but as Nitasa we recognise that smoking is a health risk and recognises that tobacco and cigarettes are legal products. Nitasa is committed to balanced regulation that considers economic realities,” she said.

“Tobacco sales are vital for survival of informal traders and the main problem is the illicit tobacco industry in our country which needs to be curbed as it is a health hazard that affects a lot of people.”

The tobacco industry wants the final legislation to factor in smokeless products as a harm reduction portfolio, a view that was largely supported by members of the portfolio committee just before they voted on the desirability of the draft law.

Faith Muthambi, chairperson of the committee, noted that the need for differentiation of combustible and non combustible nicotine products had broadly been endorsed.

“I am pleased that the Department of Health, through its responses to public comments in March 2026, has also officially accepted differentiation as a guiding principle, and has subsequently made some concessions and proposed amendments to this effect,” said Muthambi.

In its current form, she explained, the Tobacco Bill regulates combustible and non-combustible products through the same approach.

“Differentiation does not soften our resolve on illicit trade, which remains catastrophic to every public-health goal in this Bill and which carries a particular danger in our own context,” she said.

South Africa’s Tobacco Bill was first introduced during the Sixth Parliament and revived in July 2024 after lapsing. It seeks to strengthen regulation of tobacco products and electronic nicotine delivery systems, including vaping products.

It aims to regulate smoking in public spaces, restrict advertising and promotion, introduce standardized packaging requirements, prohibit sales to minors and ban vending machine sales. It aims to strengthen controls over the manufacturing and distribution of tobacco and nicotine products in the promotion of public health interests.

“We reject the notion of harm is harm concept that dismisses the responsibility to reduce harm when it cannot be completely eliminated. We must be mindful of regulations that might promote the illicit market for tobacco,” said a member of the portfolio committee on health.

He added that it was important for the bill to make provision for policing, enforcement of tobacco control measures and collection of taxes. Other members said informal traders had to be protected by the final tobacco law as they are different from tobacco manufacturers.

Product differentiation hogged the limelight in deliberations before the vote on Wednesday. Committee members argued that the bill does not sufficiently distinguish between traditional combustible tobacco products, such as cigarettes, and alternative nicotine products, including electronic cigarettes, heated tobacco products and oral nicotine products.

Members said parliament should consider introducing provisions that recognize these differences. They emphasised though that provisions that mandate safeguards to prevent youth access have to be put in place.

With the motion of desirability receiving support, the Tobacco Bill will now move to the next phase of parliamentary scrutiny. Lawmakers will examine individual clauses and consider amendments proposed by political parties and other stakeholders.

Large tobacco companies such as British American Tobacco SA (Batsa) and Philip Morris International South Africa have been fighting illicit trade on the local market. Batsa has had to shut down its only manufacturing plant in South Africa due to the impact of the illicit cigarette sector, putting over 200 jobs on the line.

BUSINESS REPORT

Five municipalities failed to submit their annual financial statements for audit by the legislated deadline, highlighting persistent governance and capacity weaknesses in local government despite improvements in overall audit compliance.

Presenting the 2024/25 municipal audit outcomes to Parliament on Thursday, the Auditor-General Tsakani Maluleke said the late or non-submission of financial statements by municipalities in the Free State, Northern Cape and North West reflected capacity and system challenges that were not addressed timeously by municipal leadership.

The municipalities were among only five out of 257 municipalities that missed the statutory deadline, as local government achieved a record 98% on-time submission rate, up from 92% in 2021/22.

By the Auditor-General’s reporting cut-off date of 30 April 2026, the audits of Free State municipalities Nala and Maluti-a-Phofung had not been completed because of late submission and non-submission of financial statements respectively.

Nala’s audit was subsequently completed by the end of May, resulting in a qualified audit opinion.

While acknowledging improvements in some areas, Maluleke said the broader state of local government remained deeply concerning.

“In 2024-25, five municipalities did not submit their financial statements for auditing by the legislated date. The main reasons for the non-compliance by municipalities in the Free State, Northern Cape and North West are capacity and system challenges, which have not been appropriately and timeously dealt with by the accounting officer, mayor and council,” she said.

“Over the past four years, mayors and councils of the 6th administration have made limited progress to strengthen governance and improve service delivery, as residents and businesses continue to experience unreliable service delivery, environmental hazards and deteriorating infrastructure.”

She added that municipalities had also overseen worsening financial health in many parts of the country.

The AGSA’s consolidated report found that only 39 municipalities, representing 15% of the total audited municipalities, achieved clean audits during the 2024/25 financial year. Those municipalities collectively managed R52.6 billion, or just 8% of total local government expenditure.

At the same time, 38 municipalities regressed in their audit outcomes compared with 2020/21, including three metropolitan municipalities. 

Maluleke noted that significant gains had nevertheless been made in reducing the number of municipalities receiving disclaimer audit opinions, the worst possible audit outcome. The number of disclaimer opinions declined from 29 in 2020/21 to eight in 2024/25, while KwaZulu-Natal, Limpopo and Mpumalanga eliminated disclaimer opinions entirely.

Maluleke described the reduction as one of the most encouraging developments in recent years.

“We have moved since the beginning of this term of administration for local government from 29 disclaimers to now eight disclaimers,” Maluleke said.

“For the very first time, we’ve actually got a very low number of municipalities in this category. In fact, we went back to our records and we couldn’t find any year when we had this low number of disclaimers.”

She attributed the improvement to stronger oversight from national and provincial governments, parliamentary committees and the AGSA’s material irregularity process.

Despite these gains, financial reporting quality remains a major concern. According to the report, 195 municipalities, or 76%, submitted financial statements containing material misstatements, while 99 municipalities received modified audit opinions. Without corrections made during the audit process, only 24% of municipalities would have achieved unqualified opinions compared with the 61% that eventually did.

The AGSA also found that 62 municipalities were in severe financial distress, with 54 disclosing going-concern uncertainties and only 35% assessed as having good financial health. More than half of municipalities lacked sufficient current assets to meet their obligations, while 72% did not have enough cash to pay creditors. 

Maluleke warned that poor accountability and weak governance continued to undermine service delivery and financial sustainability.

“The poor responsiveness and disregard for accountability at municipal level have had tangible consequences,” she said, adding that leadership across all spheres of government must act decisively to strengthen institutional capability, enforce consequences for wrongdoing and improve service delivery outcomes.

With local government elections approaching, Maluleke urged incoming councils and mayors to use the audit findings as a roadmap for reform and to build municipalities characterised by accountability, transparency and sustainable performance. 

BUSINESS REPORT

Youth unemployment is usually discussed through an economic lens, lost income, fewer opportunities, and limited participation in the economy.

But beyond that, there is another consequence that receives far less attention: the impact unemployment has on healthcare access and long-term health outcomes.

South Africa's youth unemployment crisis remains one of the country's most pressing challenges.

According to Statistics South Africa's Quarterly Labour Force Survey for the first quarter of 2026, unemployment among young people aged 15 to 24 sits at 60.9%, while among those aged 25 to 34 it stands at 40.6%.

Young people make up nearly half (49.7%) of the working-age population yet continue to face the poorest labour market outcomes. In total, 4.7 million young South Africans are unemployed, while a further 10.6 million are outside the labour force altogether.

As South Africa reflects on Youth Month, it is worth asking whether we are paying enough attention to the health consequences of these figures. While the economic implications are widely discussed, the effect on healthcare access and long-term wellbeing is often overlooked.

For many young South Africans, employment provides more than a salary. It often provides access to healthcare through medical aid membership, workplace wellness programmes or simply the financial means to seek care when needed.

When employment opportunities disappear, those healthcare benefits often disappear too.

Medical aid becomes harder to afford, routine healthcare is delayed and preventative interventions are often deprioritised. Over time, many young people become disconnected from the screenings, check-ups and early interventions that help identify risks before they develop into more serious and costly health concerns.

The result is that healthcare becomes reactive rather than preventative.

When prevention becomes a luxury

Preventative healthcare plays a critical role in improving long-term health outcomes. Regular screenings, health assessments and early intervention help identify potential risks before they progress into more complex conditions.

Yet for many unemployed young South Africans, healthcare understandably competes with more immediate priorities such as food, transport and housing.

Even when public healthcare services are available, barriers such as transport costs, long waiting times and limited awareness of preventative services can make regular healthcare engagement difficult.

The impact extends beyond physical health. Prolonged unemployment is closely associated with increased stress, anxiety, depression and reduced self-esteem. The uncertainty that comes with long-term joblessness can weigh heavily on young adults who are trying to establish independence, build careers and create stability for themselves and their families.

Financial strain can also influence daily behaviours.

Disrupted sleep, reduced physical activity, poor nutrition and substance use can become coping mechanisms during periods of prolonged stress.

Over time, these patterns increase the risk of both physical and mental health challenges.

Healthcare professionals are also seeing lifestyle-related conditions such as obesity, hypertension and type 2 diabetes emerge earlier and more frequently among younger populations.

Without early detection and intervention, these conditions can quietly progress for years before being diagnosed, making treatment more complex and outcomes less favourable.

Prevention is an investment in South Africa's future

One of the persistent misconceptions about preventative healthcare is that it is an expense rather than an investment.

In reality, preventative care remains one of the most effective ways to improve population health while reducing the long-term cost of treatment. Identifying risks early creates opportunities for intervention before conditions require specialist care, hospitalisation or ongoing management.

For young people in particular, preventative healthcare offers something especially valuable: the opportunity to establish healthy behaviours early in life. Regular check-ups, routine screenings and informed lifestyle choices can shape health outcomes for decades to come.

From Profmed's perspective, preventative healthcare should be viewed as an essential component of youth development. If South Africa hopes to build a healthy, productive and resilient workforce, healthcare access cannot be treated as a separate issue from economic participation and opportunity.

Importantly, preventative care is not only about physical health. It also supports mental wellbeing, resilience and a young person's ability to participate fully in education, employment and society.

Healthcare access is part of the youth development conversation

If we want young South Africans to participate fully in the economy, we need to view healthcare access as part of the broader youth development agenda, not as a separate issue.

Good health underpins a young person's ability to learn, pursue opportunities and contribute meaningfully to society.

When physical or mental health challenges go untreated, the consequences often extend far beyond immediate wellbeing, affecting education outcomes, employability and long-term prospects.

This is why conversations about youth development cannot focus solely on education and employment.

Access to healthcare, particularly preventative healthcare, should form part of the broader discussion about creating sustainable opportunities for young people to thrive.

There are also important implications for the healthcare system itself.

When large numbers of young people are disconnected from routine healthcare services, opportunities for prevention and early intervention are missed. Conditions that could have been managed early often progress to more serious stages, requiring more intensive and costly treatment later.

In effect, the healthcare system shifts away from prevention and towards crisis management. That places additional pressure on already stretched public healthcare services while increasing long-term healthcare costs for society as a whole.

Preventative healthcare should not be viewed as a luxury reserved for those who are employed. Expanding awareness, accessibility and uptake of preventative health services among young South Africans must become part of the national conversation around youth development and economic inclusion.

Policymakers, employers and the healthcare sector all have a role to play, and that conversation needs to start now.

As South Africa continues to grapple with youth unemployment, it is important to recognise that the effects extend far beyond the labour market. They influence healthcare access, health outcomes and broader societal wellbeing.

Ensuring that young people can access healthcare before preventable conditions become more serious is not only a healthcare priority. It is an investment in the country's future and in the millions of young South Africans whose health and potential will help shape it.

Justine Lacy, Clinical Executive at Profmed. 

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BUSINESS REPORT 

The eThekwini Metropolitan Municipality has emerged as one of only two metropolitan municipalities to secure an unqualified audit opinion on its financial statements, standing out against a backdrop of deteriorating audit outcomes across the metros, according to the Auditor-General (AG) Tsakani Maluleke.

With a budget of R71 billion, the metro’s scale and economic significance mean that its governance and service delivery outcomes have a substantial impact on the province’s overall development trajectory.

Presenting the 2024-25 local government audit outcomes report, Maluleke on Thursday said the country’s metros continued to regress, despite their critical role in serving nearly 25 million people and managing more than half of local government expenditure.

“The audit outcomes of metros continued to regress in 2024-25, reflecting that these fundamentals are not in place,” Maluleke said in the report.

She noted that none of the eight metros achieved a clean audit, while the number of metros receiving qualified audit opinions increased from two to five during the current local government administration. 

However, eThekwini distinguished itself by being one of only two metros whose financial statements received an unqualified audit opinion.

“The financial statements of only City of Cape Town and eThekwini and the consolidated financial statements of only City of Johannesburg received unqualified audit opinions,” the report stated.

“The separate financial statements of the City of Johannesburg, without its municipal entities, regressed to a qualified audit opinion.”

The municipality also performed comparatively well on financial health indicators.

Malukele said the qualified audit opinions on the financial statements of the other five metros were due to weaknesses in their in-year and year-end reporting, poor record-keeping, weak internal review and reconciliation processes as well as over-reliance on the audit process to identify material misstatements.

According to the AG, “only City of Cape Town and eThekwini had good financial health indicators”, while the remaining metros displayed multiple signs of financial distress. 

The findings place eThekwini in a stronger position than several of its metropolitan counterparts, including the City of Ekurhuleni and Mangaung, which were identified as among the worst-performing metros from a financial health perspective.

Despite eThekwini’s relative strength, the AG warned that eThwkini was among most metros that continue to neglect information and communication technology (ICT) and cybersecurity controls.

The AG said weaknesses in ICT environments are contributing to broader governance and service delivery challenges.

The report showed that eThekwini's current ICT funding is misaligned with the complexity of metro operations and the digital transformation required, as 72% of total ICT spend was on system maintenance of existing legacy systems, software licences as well as payment of service providers.

The report said the continued reliance on manual processes also increases the risk of errors, data manipulation and weak accountability due to the lack of automated audit trails.

“ICT systems rely heavily on manual, spreadsheet-based processes with limited automation and no system integration, resulting in inefficiencies, inconsistent data and weak audit trails,” it said.

“This fragmented environment compromised the accuracy, timeliness and reliability of performance information, ultimately affecting decision-making and the quality of service delivery. The absence of integration across housing, water and sanitation, and electricity leads to duplicated work, higher operational costs and incomplete or inconsistent data, limiting management’s ability to make informed decisions.”

The AG also warned that broader weaknesses in local government continue to undermine service delivery and accountability.

Maluleke said the outgoing sixth local government administration had failed to achieve the turnaround many South Africans had hoped for.

“Over the past four years, mayors and councils of the 6th administration have made limited progress to strengthen governance and improve service delivery, as residents and businesses continue to experience unreliable service delivery, environmental hazards and deteriorating infrastructure,” she said.

The report found that only 39 municipalities, representing 15% of all municipalities, achieved clean audits during the 2024-25 financial year. These municipalities collectively administered just 8% of total local government expenditure.

At the same time, 38 municipalities regressed since 2020-21, including three metropolitan municipalities.

While local government remains under pressure, Maluleke highlighted several positive developments. These included a significant reduction in municipalities receiving disclaimed audit opinions and a marked improvement in the timely submission of financial statements.

“There is a significant increase in unqualified audit opinions to 61% in 2024-25, similar to a level last reached in the 2015-16 financial year. There is also a marked improvement in the timely submission of financial statements, which is at 98%, the highest level in our records,” she said.

Nevertheless, governance and compliance failures remain widespread.

The AG reported that all metros had material findings relating to compliance with legislation, while irregular expenditure at metros and their entities reached R73.87bn over the four years of the current administration, with R23.14bn incurred during 2024-25 alone. Most of this stemmed from procurement and contract management failures.

Maluleke cautioned that weak oversight, poor financial management and inadequate accountability mechanisms continue to threaten municipal sustainability and service delivery.

BUSINESS REPORT

Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer, has announced a series of interventions aimed at improving the efficiency of the Port of Cape Town after the facility was ranked the worst-performing container port in the world by the World Bank’s Container Port Performance Index (CPPI) 2025.

The Port of Cape Town was placed 400th out of 400 global container ports in the latest index, a ranking that has renewed concerns about South Africa’s logistics performance and its impact on exports, investment and economic growth.

Meyer described the ranking as a stark reminder of the urgent need for coordinated action to address operational inefficiencies and improve the competitiveness of one of the country’s most important trade gateways.

“The performance of the Port of Cape Town directly impacts exporters, particularly in the agriculture and perishables sectors,” Meyer said.

“While recent data shows encouraging improvements in vessel turnaround times, urgent and sustained interventions are required to address systemic inefficiencies.”

In response, the Western Cape Government has identified four priority areas aimed at improving port performance and restoring confidence among exporters, shipping lines and logistics operators.

The first intervention involves direct engagement with the World Bank to better understand the methodology used in compiling the CPPI rankings and to improve transparency around performance measurement.

According to Meyer, the provincial government will compare port call data used by the World Bank with information gathered through its Digital Logistics Planning Platform (DLPP), while also engaging on the administrative component of the index.

The province also intends collaborating with the World Bank on further developing the DLPP into a globally recognised port community system and inviting the institution to participate in future stakeholder engagements.

The second focus area centres on operational improvements in collaboration with Transnet National Ports Authority (TNPA), Transnet Port Terminals (TPT) and Transnet Freight Rail (TFR).

Key measures include reducing wind-related disruptions, improving vessel sequencing at berths, enhancing container stack management and easing congestion in landside logistics operations.

The Port of Cape Town has long been plagued by weather-related delays, equipment failures and congestion, particularly during peak agricultural export seasons when fruit exporters rely heavily on efficient cold-chain logistics.

The third intervention targets greater collaboration across the logistics value chain.

Meyer said the provincial government would work closely with exporters, importers and logistics operators to reduce bottlenecks and improve coordination, particularly during busy export periods.

This will include expanding night-shift operations where possible, increasing the use of inland terminals and off-port facilities, strengthening cold-chain logistics and encouraging greater private sector participation in terminal operations.

The fourth initiative will place port performance at the centre of the 2027 Port of Cape Town stakeholder dialogue, bringing together industry leaders, logistics operators and international experts to identify long-term solutions.

“The World Bank and key industry leaders will be invited to participate, ensuring alignment on global best practices and fostering collaborative solutions to improve performance outcomes,” he said.

Despite the disappointing global ranking, Meyer pointed to signs that recent interventions are beginning to deliver results.

According to data from the Western Cape Government’s Digital Logistics Planning Platform, vessel port call times have improved by 33% during 2026 compared with the same period last year.

“Our focus now is to sustain and accelerate these improvements through strong partnerships and data-driven decision-making,” Meyer said.

He reiterated the province’s support for greater private sector involvement in container terminal operations, similar to reforms already underway at the Port of Durban.

“Improving the Port of Cape Town’s efficiency is essential to unlocking export growth, safeguarding jobs, and strengthening the province’s position as a leading trade gateway,” he said.

“We are committed to working with all stakeholders to build a more efficient and globally competitive port system that supports economic growth and jobs in the Western Cape and South Africa as a whole.” 

BUSINESS REPORT

For more than fifteen years, South Africa has struggled to generate meaningful economic growth.

Since the global financial crisis, the economy has expanded at an average rate of less than 1% per year, far below the levels required to absorb new entrants into the labour market, attract investment and reduce unemployment.

During the same period, unemployment has risen to among the highest levels in the world, with more than 8 million South Africans actively seeking work.

Yet while much of the country has been focused on what is broken, something remarkable has been happening in unexpected places.

Far from the boardrooms of Sandton and the policy debates of Pretoria, a small town in the Northern Cape has quietly been building a world-class agricultural industry on the verge of becoming worth billions of rand.

The town is Prieska. Located in the heart of the Karoo, Prieska is hardly the place most South Africans would identify as an economic growth story. Yet its pistachio industry offers a powerful lesson about how South Africa can reignite growth and create jobs at scale.

The story begins with an insight that many overlooked.

The same harsh environmental conditions that make the Karoo appear inhospitable are precisely what pistachio trees require to flourish.

The region offers scorching summers, cold winters, low humidity and access to irrigation from the Orange River. In other words, it possesses many of the same climatic advantages that made parts of California and the Middle East global leaders in pistachio production.

But Prieska enjoys an additional competitive advantage: production costs estimated at roughly half those of many American producers.

What appears to be a disadvantage from the outside turned out to be a globally competitive asset.

The real story, however, is not about climate. It is about persistence.

The Industrial Development Corporation initially invested in pistachio production during the 1990s. When the project failed to meet expectations, the investment was eventually written off. By conventional standards, the experiment had failed.

Yet a group of determined local farmers refused to abandon the vision.

They spent years solving technical challenges that many outsiders would never appreciate. Pistachio production depends on precise pollination cycles. Male and female trees must flower simultaneously. Wind direction affects productivity. Orchard design matters. Timing matters. Every variable had to be tested and refined.

What followed was years of experimentation, learning, adaptation and perseverance before the industry finally became commercially viable.

Today, that persistence is paying off. Prieska's pistachios are ranked among the highest quality globally. Once mature, pistachio orchards can remain productive for more than fifty years. While the upfront investment is substantial, the long-term returns can be exceptional. 

Perhaps most importantly, the economics are resilient. When international pistachio prices decline, many producers in higher-cost regions struggle to remain profitable.

Producers in Prieska continue to generate healthy returns. That advantage allows farmers to invest confidently over decades rather than seasons.

This matters because sustainable economic growth is built on long-term investment horizons.

South Africa desperately needs more sectors where investors can commit capital with confidence for ten, twenty or even fifty years.

The timing could not be more favourable.

Global demand for pistachios continues to rise steadily. Industry analysts estimate that thousands of additional hectares must be planted globally each year simply to keep pace with consumption.

At the same time, production challenges in traditional supply regions are creating opportunities for new entrants.

Prieska is positioning itself to capture part of that growth. But the significance of this story extends far beyond pistachios.

The real lesson is that South Africa is full of hidden champions waiting to be discovered.

Every successful economy has sectors, regions and businesses that quietly outperform expectations.

Germany built much of its industrial strength on what economists call the Mittelstand — highly specialised, globally competitive companies located far from major cities. These hidden champions became engines of exports, innovation, employment and regional development.

South Africa has its own hidden champions.

They exist in agriculture, renewable energy, tourism, technology, business services, mining innovation, advanced manufacturing and the growing green economy. They are often found in places that rarely make headlines. They emerge when entrepreneurs identify unique competitive advantages and persist long enough to unlock them.

The country's globally competitive citrus industry, world-leading business process outsourcing sector, renewable energy developments in the Northern Cape, specialised manufacturing exporters and agricultural innovators all demonstrate the same pattern: world-class performance emerging from focused excellence rather than scale alone.

In fact, while writing my forthcoming book, South Africa's Hidden Champions, I have become increasingly convinced that the country's greatest economic opportunities are often hidden in plain sight.

The challenge is not a lack of potential. It is our failure to identify, celebrate and scale what is already working.

The challenge is that South Africa's economic narrative is often dominated by our failures rather than our possibilities.

We spend considerable time discussing what government should do differently, but comparatively little time identifying and replicating the success stories already creating jobs, attracting investment and generating growth.

If South Africa is serious about accelerating growth, the next phase of economic development will not come from a single mega-project, government intervention or policy announcement. It will come from identifying hundreds of Prieskas.

It will come from finding overlooked opportunities hidden in our geography, our climate, our natural resources, our people and our entrepreneurial communities.

It will come from supporting those who are willing to invest patiently, innovate relentlessly and build globally competitive businesses in unlikely places.

If we can identify these hidden champions, learn from them and scale their successes, we may discover that the blueprint for economic growth has been with us all along. South Africa does not need a miracle. It needs more Prieskas.

Dr Nik Eberl is the founder and executive chair: The Future of Jobs Summit™ (Official T20 Side Event). He is also the author of Nation of Champions: How South Africa won the World Cup of Destination Branding).

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BUSINESS REPORT 

Conversations about money do not often come easily. The topic can seem private and sensitive, and, in many families, it is almost taboo. The problem? By avoiding these discussions, people miss out on essential information and face the risks of crippling debt, inadequate future savings, and poor budgeting practices. 

It’s time to normalise money conversations and remove the stigma, ensuring South African children are at the heart of this change – cultivating a culture of open, frank, and educational conversations. 

Involving younger generations in conversations about how to spend their money is key to their development. When they’re encouraged to discuss money, parents set a standard for strong financial habits in their children’s futures. 

In South Africa, approximately 49% of adults are financially illiterate. That is roughly over 30 million people without a proper understanding of money and the methods available to protect them from financial complications. 

As the cost-of-living crisis persists, every Rand counts more than ever, and these conversations have never been more relevant,” she says. 

A common outcome of poor financial literacy is over-indebtedness. In 2024, approximately 12 million adults in South Africa were over-indebted. To safeguard children from the financial distress of debt, parents can start by highlighting the difference between a need and a want. This simple idea can enable their ability to prioritise what is key to their survival versus what is not. 

Lessons in budgeting and saving are also an important step in ensuring children create a healthy relationship with their finances. Introducing a savings jar into the home allows their young minds to visualise the money available to them, whilst recognising that it is not infinite. 

As a parent, contributing to the savings jar can be equally valuable to your child. Children are highly observant, and this can establish positive behaviour. 

Once the savings jar is ready, parents can set meaningful goals with their child to bring purpose to their efforts. Instead of purchasing every new toy or gadget they request, there is an opportunity for a lesson in independence. By saving and managing their money, kids are thrown into grasping the reality of money’s true value.  

Other simple and useful ways to jumpstart your child’s financial literacy: 

• Turn saving into a lifelong habit: Set them up with a savings account early. Not only is this a strong reminder to protect their money, but it’s also a practical introduction to how interest rates work and how savings can grow over time.  
• Teach the value behind each Rand: Emphasise that money is earned and not simply given. By offering compensation for household chores, your child can learn to understand the connection between work and reward. 
• Make money lessons fun: Introduce them to online resources, apps, and tools designed to make financial literacy lessons easy, accessible, and engaging.

A healthy financial future is not built overnight. It is through consistent habits and open conversations that younger generations can be guided towards their financial success. 

* Manyanya is a spokesperson at short-term credit provider Wonga.

PERSONAL FINANCE

In a day marked by fluctuating market sentiments, Wall Street experienced a mixed session yesterday, with the early week tech sell-off casting a long shadow.

However, the atmosphere shifted dramatically following the release of Micron Technology's remarkable quarterly results, which not only surpassed expectations but also lifted spirits across the tech and artificial intelligence (AI) sectors.

As a result, futures turned sharply positive, bolstering investor confidence.

Bianca Botes, Managing Director at Citadel Global, said, "The focus now turns to the upcoming US Personal Consumption Expenditures (PCE) data, a crucial indicator that will determine whether the market adheres to a hawkish Federal Reserve outlook, or if it can start to anticipate a potential reduction in interest rate hikes later this year."

Across Asia, the positive sentiment from Micron's results resonated, particularly in South Korea, where the KOSPI surged by an impressive 5% as trading commenced. This rally was largely fuelled by a surge in semiconductor and AI-related stocks, reinforcing the tech sector's resilience.

Meanwhile, oil prices are showing signs of stabilisation, reverting to levels last seen before the recent conflicts.

Brent crude is trading at $72 per barrel, and analysts are observing a normalisation of flows through the Strait of Hormuz, effectively pricing down geopolitical risks in the market.

In contrast, gold prices are facing pressure, trading at $3,972 per ounce, a significant drop below the psychological $4,000 mark for the first time since the beginning of the Iran conflict.

The prevailing rate outlook is placing additional strain on this precious metal.

In South Africa, the rand has managed to regain some ground after experiencing volatility earlier in the week.

The current trade rates are R16.56 to the dollar, R18.82 to the euro, and R21.82 to the pound.

Market observers are keenly watching for confirmations from US data which could sway the rand’s future performance.

Market updates: regional overview

On the JSE, the All Share Index witnessed a decline of 1.6%, closing at 109,828.90, according to Anchor Capital on Thursday morning. 

"The downward trend was predominantly led by substantial losses in the gold and platinum mining sectors, which saw declines ranging from 5% to 8%," Anchor Capital stated. 

Other retail and banking stocks also suffered, while real estate stocks like Hammerson and Shaftesbury Capital stood out as notable gainers.

• Notable declines:
• Impala Platinum: -8.4%
• Gold Fields: -5.7%
• Foschini: -3.6%
• Standard Bank: -3.0%
• Upside movers among real estate:
• Hammerson: +4.7%
• Shaftesbury Capital: +3.7%

In the UK, the FTSE 100 demonstrated a slight increase of 0.3%, buoyed by gains in the real estate sector following Segro's rejection of a takeover bid, which significantly boosted its shares.

In the United States, tech stocks struggled as the market took a hit; however, airline and homebuilder shares enjoyed robust gains driven by their unique catalysts.

Commodities and currencies under pressure

As the influence of global events unfolds, commodities are facing substantial fluctuations.

Brent crude prices have declined as expectations for smoother crude flows settle, while gold prices have dropped sharply due to the strengthening dollar.

With the rand wobbling against the dollar over recent days, the correlation with US economic data remains a concern for South African investors.

As markets react and consolidate following critical economic updates, investors brace themselves for the PCE data release, anticipating its potential to reshape economic outlooks both domestically and internationally.

The turmoil and triumphs across the markets underline just how interconnected global finance can be in this dynamic landscape.

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BUSINESS REPORT 

South African municipalities spent R1.61 billion on financial reporting consultants in the 2024/25 financial year despite widespread financial distress, unfunded budgets and deteriorating governance, Auditor-General Tsakani Maluleke has revealed.

The Auditor-General’s latest report on local government paints a troubling picture of municipalities increasingly relying on outside expertise while failing to achieve meaningful improvements in financial reporting and accountability.

According to the report, 225 municipalities across the country hired financial reporting consultants during the year under review, collectively spending R1.61bn. The figure represents a sharp increase from a decade ago, when 179 municipalities spent R590 million on consultants.

The spending comes at a time when municipal finances remain under severe strain. Only 35% of municipalities were assessed as having good financial health, while 40% were classified as financially concerning and 25% as unfavourable.

In addition, 62 municipalities were found to be in such poor financial condition that their ability to continue operating was in doubt.

Despite the heavy expenditure on consultants, Maluleke found that the investment was not yielding the expected results.

“Despite this increased reliance and cost, 61% of municipalities using consultants submitted financial statements with material misstatements in the areas for which consultants were appointed,” Maluleke said on Thursday.

The findings suggest that municipalities are not receiving adequate value for money from the consultants they employ, even as financial pressures mount.

The report shows that consultants were primarily hired to assist with financial statement preparation, asset management and tax-related matters.

More than half of municipalities cited a lack of skills as the reason for making the appointments, while 41% pointed to a combination of skills shortages and vacancies.

A further 6% attributed the appointments solely to vacant positions. Consultant contracts were often renewed repeatedly and increasingly concentrated among a small group of service providers. 

The reliance on consultants stands in stark contrast to the worsening financial condition of many municipalities.

The Auditor-General found that 116 municipalities adopted unfunded budgets during the year, committing themselves to R288.17bn in expenditure without having the resources to finance it.

Meanwhile, 123 municipalities did not have sufficient current assets to cover their liabilities, and 174 lacked enough cash to pay creditors.

Weak revenue collection and poor spending practices further undermined municipal finances.

Municipalities took an average of 129 days to collect money owed to them and wrote off R62.12bn in debt deemed unrecoverable. Water losses amounted to R14.73bn, while electricity losses reached R21.63bn.

The Auditor-General said the continued dependence on consultants reflected deeper institutional weaknesses.

In the report’s call to action, Maluleke identified “continued skills and capacity gaps, resulting in reliance on consultants and other service providers at a high cost for which value for money is not always received” as one of the major challenges confronting local government.

She also linked poor financial reporting to weak internal controls and inadequate institutional capacity.

“This discrepancy between the financial statements submitted for auditing and the information ultimately reported in the financial statements is not a technical matter, but rather reflects the absence of the daily and monthly controls necessary for credible financial reporting,” the report noted.

The findings form part of a broader assessment that the outgoing sixth local government administration failed to achieve the turnaround needed in governance and service delivery.

“Over the past four years, mayors and councils of the 6th administration have made limited progress to strengthen governance and improve service delivery, as residents and businesses continue to experience unreliable service delivery, environmental hazards and deteriorating infrastructure,” Maluleke said.

The report concludes that while there have been improvements in some areas, including a reduction in disclaimed audit opinions and better submission rates for financial statements, municipalities continue to struggle with skills shortages, weak controls, poor financial management and a persistent culture of limited accountability.

This has raised questions about whether continued spending on consultants is helping to address the root causes of local government failure.

The SA Human Rights Commission (SAHRC) said the use of financial consultants with no meaningful material change in the audit outcomes of municipalities remains a serious concern.

"The SAHRC calls for the skills and vacancy gap in municipalities to be closed. Further, where consultants are utilised, mechanisms to ensure that skills are transferred to municipal staff should be instilled," it said.

"The SAHRC is also concerned by the high levels of financial wastage in municipalities. The report records R6.36bn in fruitless and wasteful expenditure. The SAHRC reiterates that without proper financial management and the instilling of fiscal discipline and consequence management, wastage of financial resources will continue."

BUSINESS REPORT

Hyprop Investments, owner of many key South African shopping centers such as Canal Walk, Hyde Park Corner, and Rosebank Mall, is trading well and has brought a range of new store brands to its malls over the past year.

In South Africa, its retail store vacancies are low at an industry-beating 3.3%.

"We are encouraged by the resilience of our portfolios in South Africa and Eastern Europe, which is evident in our latest operational update. Our strategy to focus on high-quality retail centres, optimising our tenant mix, and disciplined capital management is delivering pleasing results," said CEO Morne Wilken.

Tenants’ turnover increased by 5.5% in the group’s SA retail portfolio, while trading density grew by 4.4%. Foot count increased by 2.1%, underscoring a growing appeal of these centres.

In the Western Cape, Canal Walk - the Western Cape’s only super-regional shopping centre - continued its growth trajectory, driven by strong leasing momentum and high-profile store openings. Recent openings include Anta, True Religion, and Liverpool FC’s first African store.

Somerset Mall opened the retail portion of its Phase 2 expansion project in November, and several new brands include Anta, Truworths, and Office London. The food and entertainment element of the Phase 2 project is progressing well.

CapeGate is enhancing its offering through upgrades and tenant relocations, including an Edgars redevelopment project that entails rightsizing the Edgars store, expanding Sportscene, and introducing JD Sports and Freedom Adventure Park.

Table Bay Mall, acquired in October 2023, continued its strong growth trajectory, attracting a dynamic mix of retailers such as Faithful to Nature, MiMi-Q, and Krumble, and has executed meaningful upgrades.

In Gauteng, Hyde Park Corner welcomed Bootlegger Coffee, Marc’s by Marc Jacobs Café, the first-ever permanent Marc Jacobs Café and the first designer café on the African continent, as well as UNIQ.

Rosebank Mall has reduced its vacancy rate from 2% to 1.3%. Recent store openings include FARO, Wellness Warehouse, Lupis, and Livo.

Clearwater Mall completed several projects, including a dedicated e-hailing zone, new upper-level parking systems and infrastructure, and new ClearVu fences around the centre’s boundary.

At Woodlands, the passage widening project and reconfiguration of the area around Pick n Pay are on track for completion in November 2026. With key upgrades including new tiling, lighting, and store facelifts, the project will unlock valuable new retail space, enhance the shopper experience, and drive increased foot traffic.

The Glen added an Ai-CHA kiosk (an international ice cream and beverage brand) and is relocating the Dial-a-Bed store to accommodate the Value Co expansion project.

Hyprop, which also owns a portfolio of shopping centres in Eastern Europe, says it remains on track to meet its robust guidance of 10% to 12% growth in distributable income per share for the year to June 30.

The liquidity position of the company remains strong, with R1.7 billion in cash and R2bn in available bank facilities as of May 31, 2026, and the loan-to-value ratio has been reduced to below 30% following the disposal of the 50% share of Woodlands Boulevard. Bond and loan facilities were recently refinanced at lower margins.

Hyprop also owns four retail centres in the capital cities of Bulgaria, North Macedonia, and Croatia in Eastern Europe, where the vacancy rate by the end of May 2026 was 0%, indicating very high tenant demand. Tenants’ turnover increased by 4.4%, while trading density rose by 4.2%. Foot count increased by 5%.

City Center one West in Croatia is strengthening its market position through tenant upgrades and space optimisation.

At City Center one East, a highlight was Sephora launching its first Croatian store in April, attracting a record number of shoppers.

Skopje City Mall in Macedonia started a 12-month redevelopment project for Inditex.

In May 2026, Hyprop announced the acquisition of Galleria Burgas in Bulgaria.

The group’s liquidity position remains strong, with R1.7bn in cash and R2bn in available bank facilities as of May 31. The loan-to-value ratio reduced to below 30% following the disposal of the 50% share of Woodlands Boulevard.

BUSINESS REPORT

South Africa’s local government sector has recorded some notable audit improvements over the past five years, but Auditor-General Tsakani Maluleke has warned that persistent financial mismanagement, weak accountability and deteriorating performance in major metros continue to pose significant risks to service delivery, economic growth and public confidence.

Presenting the latest local government audit outcomes for the 2024/25 financial year, Maluleke on Wednesday said the overall state of local government remains concerning despite progress in reducing the number of municipalities receiving the worst audit opinions.

“Based on the overall audit outcomes for 2024/25 and the insights from our audit work at metropolitan municipalities and the management of finances, infrastructure, procurement, contracts and consequences, we can only conclude that limited progress has been achieved and that the state of local government remains concerning,” Maluleke said.

The report shows that 57% of municipalities remained unchanged from their audit status in 2020/21, while 15% regressed, including municipalities that previously achieved clean audits and three metropolitan municipalities. These regressions account for 24% of total local government expenditure, highlighting the scale of the challenge.

Only 39 municipalities, representing 15% of the total, achieved clean audits in 2024/25. Together, they administered just R52.6 billion, or about 8% of the total local government expenditure budget of R622.56bn.

While the number of municipalities receiving disclaimed audit opinions has fallen significantly over the term of the sixth administration, Maluleke cautioned that this success should not obscure deeper governance weaknesses.

Maluleke said 23 municipalities improved from disclaimer status, a development she described as worthy of recognition. However, the most common audit outcome remains an unqualified audit opinion with findings, a category that now includes 117 municipalities.

“The most prevalent audit outcome in 2024-25 was an unqualified audit opinion with findings. Although this outcome is frequently perceived as favourable, the municipalities in this category continue to exhibit high levels of non-compliance, together with significant weaknesses in financial and performance management,” the report noted.

A major concern highlighted by the Auditor-General is the deterioration in metropolitan municipalities, which collectively manage R335.97bn, or 54% of the country’s municipal expenditure budget, and serve nearly 8.9 million households.

“The regression in audit outcomes among the metros is particularly concerning,” the report stated, warning that deficiencies in financial and performance management within these municipalities have the potential to negatively affect almost half of South Africa’s households.

The financial implications extend beyond audit outcomes. The Auditor-General found widespread weaknesses in consequence management, with municipalities often failing to investigate unauthorised, irregular and fruitless expenditure or identify officials responsible for financial losses.

Maluleke said accountability remained one of the biggest obstacles to sustainable improvement.

“During the past year, I issued the first-ever certificate of debt, compelling a municipal manager to reimburse the municipality for a financial loss suffered because of his failure to act and remedy the situation,” she said.

“This unprecedented measure underscores the seriousness of the prevailing accountability deficit and affirms that sustained inaction and non-responsiveness will not be tolerated.” 

She further warned that there is “insufficient commitment to action recoveries and enforce consequences, which perpetuates a culture characterised by a lack of responsiveness and accountability”.

The consequences are increasingly visible in infrastructure delivery and service provision. The audit identified weaknesses in more than half of the infrastructure projects reviewed, including delays in housing, roads, electricity, water and sanitation projects.

Poor project management and inadequate oversight continue to slow service delivery and undermine development objectives.

Despite these concerns, Maluleke acknowledged that there have been successes. Improvements in audit outcomes were driven by greater stability in key financial management positions, stronger financial reporting and better implementation of prior-year audit recommendations.

Municipalities that sustained clean audits demonstrated the value of stable leadership, effective oversight and strong internal controls.

She said meaningful reform will require all participants in the local government accountability ecosystem to perform their responsibilities diligently.

“Local government requires fundamental and far-reaching reform, driven by capable, collaborative and ethical leaders that are committed to building municipalities characterised by sustained institutional performance, accountable leadership and officials, transparent systems and processes as well as strong institutional integrity,” Maluleke said.

BUSINESS REPORT

South Africa has taken a significant step towards establishing a domestic rare earth processing industry after Steenkampskraal Monazite Mine (SMM) and Mintek successfully produced high-purity mixed rare earth products at laboratory scale.

This is a breakthrough that could position the country as a strategic supplier to rapidly growing global clean energy, technology and medical sectors currently dominated by China.

The achievement, announced on Wednesday, marks a key milestone in South Africa’s efforts to move beyond the export of raw minerals and develop local beneficiation capabilities in one of the world’s most sought-after critical mineral markets.

According to the partners, the successful production of high-purity mixed rare earth products was achieved through a long-standing collaboration between SMM and Mintek, with support from the South African Nuclear Energy Corporation (Necsa).

The development lays the foundation for commercial production of rare earth products in South Africa before the end of 2026 and could eventually support the beneficiation of rare earth elements and thorium as well as the production of medical isotopes.

The project centres on the Steenkampskraal mine in the Western Cape, which is regarded as the world's highest-grade rare earth element and thorium deposit.

SMM executive chairman and shareholder, Dr Enock Mathebula, described the breakthrough as a milestone not only for the project partners but for the country as a whole.

“This is not only a victory for Steenkampskraal and Mintek, but a victory for South Africa. It demonstrates the country’s ability to develop world-class technologies, create local beneficial opportunities and participate meaningfully in global critical mineral supply chains,” he said.

Mathebula said that this achievement represents a significant technological breakthrough and demonstrates what can be accomplished when South African institutions and industry work together toward a common vision.

Necsa is also expected to play a significant role in unlocking further value from the project through its expertise in nuclear technologies and the development of high-value rare earth and thorium applications.

“This will further unlock the value chain potential as South Africa advances its beneficiation capabilities,” Mathebula said.

“We are currently advancing discussions and development work aimed at establishing separation capabilities in South Africa. Together with Mintek, we are continuing to explore and develop local solutions that will support the future establishment of a world-class separation system.”

Rare earth elements are critical components in a wide range of technologies, including electric vehicles, wind turbines, smartphones, advanced electronics, defence systems and medical equipment.

As countries accelerate efforts to decarbonise their economies and secure supply chains for strategic minerals, demand for rare earth products is expected to rise significantly over the coming decades.

The successful production of mixed rare earth products also positions South Africa as the first African country to produce rare earth products through a partnership between a mining company and a national research institution.

Mintek CEO Dr Molefi Motuku said the achievement demonstrated the value of collaboration between research institutions and industry

“Mintek’s expertise, combined with Steenkampskraal’s world-class resource, has proven that South Africa possesses not only the minerals but also the scientific capability to compete globally in critical minerals processing,” he said.

The project has received support from the Industrial Development Corporation (IDC), which has provided full funding for the mine’s phase one metallurgical processing plant. Construction of the facility is currently under way, with commissioning scheduled for August 2026.

Steenkampskraal mine was formally brought out of care and maintenance in 2023, with approvals secured from both the National Nuclear Regulator (NNR) and the Department of Mineral and Petroleum Resources (DMPR).

Full funding for the phase 1 metallurgical processing plant has been secured through the IDC, and construction of the plant is currently underway, with commissioning scheduled for August 2026.

Mathebula said the long-term vision extends beyond mining and concentrate production.

“Construction of the processing plant is progressing well, with concentrate production expected to commence later this year and first shipments anticipated before the end of 2026,” he said.

“The mine continues to engage with several strategic investors currently conducting due diligence regarding potential participation in the project.”

BUSINESS REPORT

London-based Primary Health Properties (PHP) share price shot up nearly 5% on the JSE on Wednesday after confirming discussions with an investor over the potential contribution of its private hospital portfolio to "seed" a new joint venture.

The company, listed in London and with a secondary listing on the JSE since 2021, stated kin a statement that the talks remain ongoing and will be subject to all necessary approvals. There is no certainty at this stage that any transaction will be reached, and all options were being evaluated, PHP said.

On the JSE, the share price gained 4.78% to R20,82. PHP’s confirmation of talks followed speculation by Sky News that PHP was in discussions with an institutional investor to form a joint venture seeded with part of its private hospital portfolio.

Sky News described the potential investor as a large, credible institutional fund interested in healthcare real estate and the deal could involve hundreds of millions of pounds in assets, as an online search by Business Report showed.

PHP has previously stated that it has been exploring a range of strategies, including potential joint venture arrangements with “highly credible investors” to enhance the long-term value of its private hospital portfolio.

PHP invests in modern healthcare infrastructure with a £6 billion portfolio invested in critical social assets across the UK and Ireland. The portfolio benefits from resilient operating metrics in a sector with strong fundamental demographic characteristics, supported by a positive political backdrop and the need for greater investment in healthcare infrastructure to support the delivery of services in local communities.

In 2025, PHP combined with Assura to create the UK's largest listed healthcare REIT, placing the enlarged group in the top quartile of the London Stock Exchange FTSE 250 index with the additional benefits of significantly increased share liquidity, investor reach, and a lower cost of capital.

PHP's "portfolio, strong platform with a robust balance sheet, and a disciplined focus on rental growth and cost control supports our 30-year track record of paying an increased progressive dividend,” its director said in a statement.

BUSINESS REPORT

A trip to Mexico, a lockdown kitchen experiment and a passion for bold flavours have helped transform Cape Town based ARK Provisions into one of the newest success stories on Checkers shelves.

The women-owned confectionery brand has achieved average sales growth of 45% within eight weeks of launching across 11 Checkers stores in Cape Town, bringing Mexican inspired sweets with a unique South African twist to consumers.

For founder Claire Swanson, 46, the journey represented a remarkable transition from making products in her home kitchen to building a retail ready business.

The opportunity began unexpectedly when a Checkers employee discovered ARK’s products at a local sweet shop and shared them internally.

While the flavour combinations immediately attracted attention, the business still needed to meet the operational, food safety and technical requirements required to supply one of Africa’s largest retailers.

Rather than simply listing the product, Checkers worked with ARK through its supplier development and SMME support programme to help the business prepare for retail.

“One of the most encouraging aspects of the partnership has been Checkers’ commitment to nurturing small businesses rather than simply listing products,” Swanson said.

“The support, guidance and accessibility of the programme allowed us to enter retail in a manageable way while building confidence in our ability to scale.”

The idea behind ARK started in 2019 when Swanson and her partner, Jacqueline Cloete, 47, travelled to Mexico and discovered Dulces Enchilados, a popular style of confectionery combining sweet, spicy, sour and salty flavours.

The experience immediately connected with Swanson’s own food memories.

“The minute I tasted it, it was super familiar to me, like something I’d grown up eating. I remember thinking this could work in South Africa,” she said.

Back home, the concept remained in the back of her mind until the Covid 19 lockdown in 2020, when she discovered a viral TikTok trend showing Mexican sweets being coated in chamoy and tajín, a chilli, lime and salt seasoning.

Swanson began experimenting with similar flavours in her home kitchen while still working in product development and running a food pop up selling tacos and sweets.

“The response was immediate. It just went bonkers,” she said.

As demand increased, ARK evolved from a side project into a growing business. Orders expanded through social media and word of mouth, with family members and a small team helping with production and distribution.

ARK was officially established in 2022 after Swanson left her corporate career to focus on the business full time.

To prepare for retail growth, the company invested in food safety certifications, manufacturing systems and production capacity.

A major milestone came when ARK partnered with a female owned confectionery manufacturer in Maitland, allowing production to move into a certified commercial facility.

The partnership also created six additional jobs.

Today, ARK’s Mexican inspired range includes Mixed Mexican Candy, Watermelon Mexican Candy, Peach Hearts Mexican Candy and Strawberry Bites Mexican Candy, available at selected Checkers stores across the Western Cape.

Despite the brand’s growth, Swanson said ARK remains deeply connected to its family roots.

“My family is very much involved in ARK,” she said.

“ARK stands for Always Remain Kind, which is both our family mantra and a tribute to our son Noah, who inspired the brand name. It’s just as much their story as it is mine.”

Swanson leads the company alongside Cloete, while her 14-year-old son Noah has also played an important role in the journey.

The entrepreneur believes the brand’s success is not only about creating a new product category, but also about creating opportunities for others.

Looking ahead, ARK is developing new flavours and seasonal products as it continues expanding its retail footprint.

“Creating opportunities for others while introducing something new and unexpected to consumers continues to be a major source of motivation. It’s our superpower,” Swanson said.

From a kitchen experiment inspired by Mexico to a growing presence on retail shelves, ARK Provisions’ journey highlights how local entrepreneurs can turn unexpected ideas into sustainable businesses with the right support and determination.

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BUSINESS REPORT 

Chinese automotive brands are rapidly reshaping South Africa’s vehicle market, capturing nearly one in every five new passenger and light commercial vehicle sales and emerging as one of the most significant competitive forces in the country’s automotive sector.

While traditional manufacturers continue to hold a significant share of the market, the rapid expansion of Chinese brands signals a structural change in South Africa’s automotive landscape.

According to TransUnion’s Q1 2026 Mobility Insights Report released on Wednesday, Chinese vehicle sales surged by 75% year-on-year in the first quarter of 2026, dramatically outpacing the 12.7% growth recorded by the broader passenger and light commercial vehicle market and the 2% growth achieved by traditional original equipment manufacturers (OEMs).

The strong performance has lifted Chinese brands’ share of new passenger and light commercial vehicle sales to more than 19% nationally, underlining a profound shift in consumer preferences and market dynamics.

The report comes as South Africa’s passenger vehicle market maintained momentum despite mounting economic pressures. Passenger vehicle sales reached 114,517 units in the first quarter of 2026, slightly higher than the 114,246 units recorded in the final quarter of 2025.

Year-on-year growth moderated to 12.6%, but demand remained resilient despite rising fuel costs, higher borrowing costs and increasing affordability concerns.

TransUnion director of research and consulting, Ayesha Hatea, said Chinese manufacturers have evolved beyond their reputation as budget alternatives.

“Chinese brands have moved beyond the role of price disruptors. They are becoming structural industry players, influencing dealer networks, financing ecosystems, ownership perceptions, and the wider discussion around localisation and industrial competitiveness,” Hatea said.

As affordability, technology and value increasingly influence purchasing decisions, Chinese manufacturers appear well-positioned to strengthen their foothold and challenge established industry leaders in the years ahead.

The report found that the success of Chinese brands is no longer being driven solely by lower prices. Instead, consumers are increasingly attracted by advanced technology, extensive features, fuel efficiency, longer warranties and stronger value propositions.

Among the standout performers is Chery Group, which includes the Chery, Jetour, Omoda and Jaecoo brands. Together, the group recorded combined sales of 16,094 units during the first quarter, positioning it among South Africa’s top three automotive players.

The rapid rise of Chinese manufacturers comes at a time when affordability is becoming a central concern for vehicle buyers. TransUnion noted that consumers are paying closer attention to the total cost of ownership, including fuel, finance repayments, insurance, servicing and future resale values.

“Vehicle demand has not collapsed, but the market is moving into a more selective phase,” Hatea said.

“Consumers are still buying vehicles, but affordability is no longer only about the purchase price. Fuel costs, financing costs, insurance, servicing, and total cost of ownership are becoming central to the decision.”

The report highlights that residual values are becoming increasingly important as buyers take on longer finance terms, often extending beyond six years. Brands that retain their value more effectively are likely to gain a competitive edge as consumers seek to minimise the risk of negative equity when trading in or refinancing vehicles.

The growing popularity of Chinese brands has coincided with sustained strength in the new vehicle market. New vehicle registrations increased by 11.6% year-on-year in the first quarter, marking a sixth consecutive quarter of double-digit growth. By comparison, used vehicle registrations rose by only 2.6%.

The share of new vehicles in total registrations increased to 31%, up from 23% in the previous quarter, supported by favourable pricing dynamics. New vehicle inflation slowed to just 0.8%, while used vehicle prices remained in deflation territory at minus 1.3%.

Dealer confidence also remains robust. New vehicle dealer confidence climbed to 67 in the first quarter, the highest level recorded in 13 years, reflecting optimism about continued demand despite economic uncertainty.

BUSINESS REPORT

Anglo American and Codelco have completed the Los Bronces - Andina agreement, paving the way for 2.7 million tons of additional copper production - environmental permits are still outstanding.

Anglo American, through its 50.1%-owned subsidiary, Anglo American Sur S.A. (AAS), and Codelco announced on Wednesday they had completed an agreement to implement a joint mine plan for their respective Los Bronces and Andina copper mines in Chile. The country is the world’s top producer of copper, accounting for about 24% of global output.

Anglo American said implementation of the joint mine plan remains conditional on securing the relevant environmental permits, along with other customary conditions for final implementation, which is currently expected by 2030.

A month ago, uncertainty arose regarding one of the world’s biggest copper operations when the Chilean environmental court annulled a permit for a desalination plant on the $3.2 billion expansion of the Collahuasi copper mine, citing concerns over impacts on indigenous communities and the marine environment. Collahuasi is jointly owned by Anglo American and Glencore.

“The next important milestone for Los Bronces - Andina is the timely receipt of the permits, which will allow us to begin delivering the additional volume and value that we are targeting, for the benefit of all our stakeholders and for Chile,” said Anglo American’s CEO Duncan Wanblad on Wednesday in a statement.

"By integrating the Los Bronces and Andina mine plans, we are unlocking one of the most significant copper adjacency opportunities in the world. Our agreement with Codelco demonstrates what is possible when we work in partnership to unlock compelling industrial synergies—delivering significant value and more copper tons for both companies and for Chile,” said Wanblad.

The project has also received the required competition and regulatory approvals, along with the fulfilment of conditions precedent to the deal. The agreement was initially signed and announced by Anglo American and Codelco in September last year.

The joint mine plan is expected to unlock 2.7 million tons of additional copper over a 21-year period, delivering an average of 120,000 tons a year of additional low-cost copper production, to be shared equally, with minimal capital investment.

This was anticipated to create at least $5 billion pre-tax in shared additional value.

"Adjacencies such as these are rare, and they highlight the role that responsible, partnership-led development can play—in this case supporting Chile's ambition to lift national copper production to 6 million tons per year by 2030," said Wanblad.

Codelco chairman Bernardo Fontaine said that the agreement was a more efficient and responsible way to develop one of the world's leading copper districts.

“It allows us to make better use of existing infrastructure, capture greater benefits for Chile, and move forward with a long-term vision based on operational excellence, sustainability, and the responsible use of resources,” he said.

He added that the Andina–Los Bronces Joint Mine Plan reflected the principles that guide Codelco: safety; maximising returns to the State while ensuring operations remain profitable without increasing debt; putting the house in order with firm leadership and transparency; and strengthening sustainability.

In terms of the agreement Anglo American and Codelco will maintain the flexibility to develop their own standalone projects, including the advancement of their respective underground resources, during the term of the joint mine plan.

The companies have also established principles to guide the implementation of the joint mine plan, including sustainability principles that safeguard both social programs and adherence to existing environmental commitments.

The Baker Institute for Public Policy noted that, based on the social responsibility reports and annual reports of companies mining in Chile, persistent issues include water scarcity in the Atacama Desert, cultural heritage protection, environmental degradation, and concerns over long-term impacts on salt flats, distribution of economic benefits especially for remote communities, and legal disputes and appeals through environmental tribunals.

This made robust engagement and transparent governance essential for long-term project viability, the institute said.

BUSINESS REPORT

Trustees who have neglected dormant, inactive, or long-forgotten trusts are being urged to review their tax affairs as the South African Revenue Service (Sars) begins imposing administrative penalties for trust non-compliance.

Sars recently confirmed that the imposition of administrative non-compliance penalties for trusts, originally scheduled to commence earlier this year, was deferred until May 4, 2026, to give trustees additional time to regularise their affairs. With the grace period now over, the spotlight falls squarely on trusts that have outstanding tax returns, unresolved tax obligations, or incomplete deregistration processes.

This development comes against the backdrop of South Africa's extensive trust sector, where many trusts established for estate-planning, asset protection, or family succession purposes remain registered long after their original objectives have been met. In some cases, trusts cease operating altogether but continue to exist on official records, creating compliance risks for trustees who assume no further action is required.

One of the most common misconceptions is that an inactive trust no longer carries any compliance obligations.

Many trustees assume that once a trust stops holding assets or conducting transactions, its obligations simply fall away. In reality, a trust can remain active on Sars' records long after it has ceased operating in any meaningful sense.

Sars has made it clear that trusts that no longer serve a purpose must still follow a formal process before they can be removed from the tax system. This includes submitting all outstanding tax returns, settling any tax liabilities, and providing supporting documentation confirming the termination of the trust.

Trustees should not confuse inactivity with deregistration. A trust that has effectively become dormant may still have filing obligations and other compliance requirements until Sars formally recognises its deregistration.

Even though administrative penalties are imposed on the trust itself, trustees remain responsible for ensuring that the trust complies with all tax and regulatory obligations.

Trustees occupy a fiduciary position and are responsible for ensuring that a trust's affairs are properly administered," says Wallace. "Allowing a trust to drift into non-compliance can create unnecessary costs and complications that could have been avoided through timely action.

The issue is particularly relevant for older family trusts established for estate-planning purposes, as well as trusts created to hold specific assets that have since been sold, transferred, or distributed.

It is not uncommon for trustees to discover that a trust has accumulated several years of outstanding returns after assuming no further action was required.

Unfortunately, the passage of time does not remove the obligation to comply. In many cases, the longer a trust remains unattended, the more complicated and costly it becomes to rectify the position.

Sars has encouraged trustees and their representatives to use the additional time afforded by the deferral to resolve outstanding compliance matters and to submit deregistration requests where appropriate. The revenue authority has also warned that failure to submit returns or formally deregister trusts may result in continued compliance obligations and the enforcement of administrative penalties.

Trustees should conduct a review of all trusts under their administration to determine whether they remain active, confirm that all tax returns have been submitted, and ensure that Sars' records accurately reflect each trust's current status.

The first step is understanding exactly where the trust stands from a compliance perspective. Trustees who are uncertain about their obligations should address the matter sooner rather than later. Once penalties begin accumulating, the cost of inaction can quickly outweigh the cost of resolving the issue properly.

For trustees who have not reviewed a trust's tax affairs in several years, the commencement of Sars penalties serves as a timely reminder that dormant does not necessarily mean deregistered, and that ignoring an inactive trust can become an increasingly costly mistake.

* Wallace is a managing director at Hobbs Sinclair Legacy.

PERSONAL FINANCE

Gap cover is often seen as something to consider later in life, when health risks increase and medical needs become more frequent. However, medical expense shortfalls are not limited by age. Even younger, healthy individuals can face significant out-of-pocket costs when medical aid does not fully cover specialist fees, co-payments or certain procedures. Medical aid remains essential, but it does not always cover the full cost of treatment.

Specialists may charge several times the scheme rate, and co-payments and sub-limits are increasingly common. Gap cover plays an important role in addressing these shortfalls by covering the difference between what medical schemes pay and what treatment costs, helping to reduce the financial impact of unexpected medical events.

 Don’t overlook the advantages of gap cover

When you are young and healthy, gap cover can feel like something you only need later in life. Medical aid is already a significant monthly cost, and if you seldom claim, it is easy to see additional cover as unnecessary.

The reality, however, is that unexpected medical costs can arise at any time. A sports injury, a car accident, an unlucky fall, emergency surgery, a diagnostic scope, or a specialist procedure can happen at any age, and medical aid may not pay the full cost. Even younger members can face shortfalls linked to specialist fees, co-payments and sub-limits.

For someone who is still building up savings, these unexpected bills can place significant financial pressure on you. This is why gap cover should be seen as protection against the cost of the unexpected, rather than something that only becomes relevant when health risks increase.

Protect your financial wellbeing from the start

Gap cover is not designed to replace medical aid, but to work alongside it by covering the costs that schemes do not fully pay, including specialist fee shortfalls, co-payments, and certain sub-limits.

Putting this cover in place early means that these costs do not have to be funded out of pocket when they arise. It also helps avoid the risk of waiting periods or exclusions that may apply if cover is only taken out after a diagnosis or medical event. By reducing the impact of unexpected medical expense shortfalls, gap cover supports you in building a stable financial foundation for your future.

Supporting long-term financial resilience

While medical aid remains essential for private healthcare access in South Africa, it is no longer sufficient on its own to provide full cover for healthcare costs. Shortfalls are becoming a routine part of accessing private healthcare across all age groups, not just later in life.

Taking out gap cover earlier gives you a buffer against these financial pressures and supports long-term financial resilience by reducing the need to use savings or take on debt to cover medical expenses. It also protects you as healthcare needs evolve, from accidents and injuries in early adulthood to more complex conditions later on.

Speak to your broker or financial adviser about how your medical aid works, where shortfalls may occur, and how gap cover can be aligned to your needs.

* Singleton is the CEO at Turnberry Management Risk Solutions.

PERSONAL FINANCE

Global oil markets are entering a new phase as easing tensions between the United States and Iran push prices lower, shifting investor focus from supply shortages to the possibility of a future surplus.

After months of elevated geopolitical risk, market sentiment has moved sharply from concerns about disrupted supply to expectations of increased availability as the Strait of Hormuz gradually returns to normal operations.

Francis Osborne, Head of Oil Consulting at Argus Media, said the market has experienced a significant change in outlook.

“Looking ahead, as geopolitical risk fades, oil market sentiment has flipped sharply from war premium to paper surplus; from crisis tightness to a headline oversupply,” Osborne said.

Brent crude has moved closer to pre conflict levels, trading around $76 a barrel, after concerns around Middle East supply disruptions eased.

According to Anchor Capital’s latest market commentary, Brent declined further as easing US Iran tensions reduced supply concerns, while more than 1 200 cargo ships carrying an estimated $125 billion in goods remain affected by the disruption caused by the Strait of Hormuz closure.

The key issue for the oil market now centres on production quotas.

Argus forecasts indicate that global oil supply could exceed demand by around 4.5 million barrels per day in 2027 if no new OPEC+ quota agreement is reached after current arrangements expire at the end of the year.

Osborne said negotiations around a new framework are expected to be challenging.

“Negotiating a new agreement will be complex and politically fraught as OPEC cohesion is under strain,” he said.

However, Argus expects a new agreement to eventually be reached as major producers attempt to balance market stability with their own production interests.

While headline figures point towards a possible supply surplus, Osborne cautioned that the reality could be more complicated as countries rebuild inventories after months of disruption.

He said global oil stocks could require significant rebuilding following supply losses.

“Assuming trade starts to recover after the 60 day MoU between Iran and the USA expires, about 1.3 to 1.5 billion barrels of stock will have been drawn down,” Osborne said.

“If this is replaced over the course of 2027, this would mop up over 3.5 million barrels per day of the calculated surplus.”

The rebuilding of strategic reserves by governments and commercial inventories could therefore absorb much of the expected excess supply.

Despite improving supply conditions, analysts warn that geopolitical risks have not disappeared.

Osborne said tensions between Washington and Tehran remain unresolved, with ongoing disputes around sanctions, regional influence and nuclear issues continuing to create uncertainty.

“The Strait of Hormuz remains a pressure point and Iran has demonstrated leverage over maritime flows, reinforcing its ability to disrupt supply,” he said.

Any renewed restrictions on shipping through the key oil route could quickly reintroduce a risk premium into prices.

For consumers and businesses, the decline in oil prices provides some relief after months of elevated fuel costs, but the impact will take time to filter through economies.

South African markets have already reacted to the changing environment. The JSE All Share Index declined 1% as mining and resource stocks came under pressure, with gold producers among the decliners as safe haven demand eased.

Gold also retreated, falling below $4 100 an ounce as investors shifted focus away from geopolitical concerns and towards interest rate expectations.

Anchor Capital noted that gold declined as a stronger dollar weighed on safe haven demand, while Brent crude continued moving closer to pre conflict levels.

Osborne said current oil prices appear to reflect the competing forces shaping the market.

“Fundamentals are turning softer, further downside for oil prices is fragile, with structural oversupply counterbalanced by restocking demand and a high probability of recurring geopolitical shocks,” he said.

Argus expects Brent prices to remain within a relatively narrow range.

“The current futures price for Brent seems to have settled in the $75 to $80 per barrel range,” Osborne said.

“This seems to be fair value given the conflicting pressures at work, with probably more upside than downside risk.”

For global markets, the next challenge will be determining whether the peace framework delivers a lasting return to stable energy flows or whether renewed geopolitical tensions once again reshape the oil landscape.

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BUSINESS REPORT 

South African workers are facing growing financial strain as rising inflation, fuel costs and economic uncertainty continue to erode purchasing power, with real take-home pay falling to its lowest level in almost two years.

This is according to the latest PayInc Net Salary Index for May 2026, which showed that real salaries declined by 1.7% during the first five months of the year despite modest growth in nominal earnings.

The report found that the average nominal net salary increased marginally to R21,510 in May, up 0.2% from April and 0.9% higher than a year earlier. However, after adjusting for inflation, the average real net salary fell to R20,262, the lowest level recorded in approximately two years.

Shergeran Naidoo, head of stakeholder engagement at PayInc, said salary growth had failed to keep pace with rising living costs.

“For the first five months of 2026, nominal net salaries increased by just 1.7%, while real salaries have declined by 1.7%, signalling a challenging year for consumers after two years of relatively strong earnings growth,” Naidoo said.

The deterioration in household finances comes as inflation has accelerated sharply in recent months. Consumer inflation rose from a low of 3.0% in February to 4.5% in May following a spike in fuel and transport costs linked to geopolitical tensions in the Middle East and higher global oil prices.

Elize Kruger, independent economist said the data paints a concerning picture for households already battling rising costs.

“This is placing increasing strain on household budgets and is likely to weigh on consumer spending and broader economic growth during the remainder of the year.”

The impact is already visible in spending patterns. PayInc noted that real household final consumption expenditure grew by only 0.1% quarter-on-quarter in the first quarter of 2026, down sharply from growth of 1.2% in the final quarter of 2025.

Consumers are increasingly directing spending towards necessities such as transport, housing, electricity and utilities, while expenditure on discretionary items including restaurant meals, hotels and certain food categories has weakened.

The report warned that higher interest rates are compounding the pressure on consumers. The South African Reserve Bank raised rates by 25 basis points in May following the resurgence in inflationary pressures, increasing borrowing costs for households already facing tight budgets.

Kruger said the combination of higher living costs and uncertainty was likely to affect business confidence as well.

“Companies are likely to remain cautious in their investment and hiring decisions until there is greater clarity on the economic outlook.”

Economists said the weakness in household finances could have broader implications for economic growth.

Professor Waldo Krugell, an economist at North-West University warned that weaker consumer spending could ripple throughout the economy.

“Consumer spending was thought to be the main demand-side driver of growth this year, so if they cannot spend it will have an impact on everything - right back to the sustainability of government debt,” Krugell said.

Prof Raymond Parsons, a North West University Business School economist said the decline in take-home pay was another indication that South Africa’s economic recovery had lost momentum.

“It should be seen in conjunction with a recent Debt Rescue Survey that nearly half of South African consumers are experiencing financial pressures and will struggle to manage if the Sarb were to raise interest rates further after the 25 basis points rise last month.”

Parsons added that the cumulative impact of high frequency data in the second quarter of the year suggests that GDP growth in this quarter may well be negative, before recovering later in the year.

“The economic outlook for the rest of 2026 will hinge to a large degree on the speed with which the global headwinds from the Middle East conflict dissipate in coming months.”

BUSINESS REPORT

Minister of Trade, Industry and Competition Parks Tau has secured a new partnership with the African Export-Import Bank (Afreximbank), which could unlock billions of dollars in funding for South Africa’s industrialisation, export growth and regional trade ambitions.

Tau signed a Memorandum of Understanding (MoU) with Afreximbank following South Africa’s formal accession to the multilateral lender as a full sovereign Class A shareholder earlier this year.

The move gives South Africa access to a country programme valued at up to $14 billion (around R230bn) and marks a significant deepening of relations between Africa’s most industrialised economy and one of the continent’s leading development finance institutions.

The agreement was finalised between a South African delegation led by Tau and senior Afreximbank officials headed by the bank’s president, Dr George Elombi.

Tau described the partnership as a key instrument for advancing South Africa’s industrial policy objectives and strengthening the country’s competitiveness in regional and global markets.

“The proposed Country Programme is designed to support South Africa’s objectives linked to structural economic transformation, industrialisation, export development, and regional economic integration objectives,” Tau said.

He explained that the multi-year programme would combine financing, risk mitigation, advisory services and catalytic interventions focused on priority sectors including manufacturing, mineral beneficiation, energy, infrastructure, special economic zones and industrial parks.

The programme will also support South African companies seeking to expand into African markets through the African Continental Free Trade Area (AfCFTA), while providing funding to State-Owned Enterprises, financial institutions and businesses engaged in export-oriented activities.

Tau emphasised that the initiative extends beyond conventional project financing.

“It is a strategic trade and industrial partnership that will enable South Africa to achieve key economic transformation objectives such as positioning SA as a global leader in green hydrogen and critical minerals,” he said.

“It will also assist in efforts to redistribute economic power through inclusive industrialisation, strengthen African value chains and AfCFTA integration towards building lasting trade infrastructure.”

South Africa’s accession to Afreximbank also strengthens the country’s influence within the institution. By becoming a Class A sovereign shareholder, South Africa gains a greater role in the governance and strategic direction of the bank while gaining enhanced access to its trade finance and development programmes.

Afreximbank has committed an initial $8bn country package, equivalent to about R128bn, to support industrialisation, infrastructure investment and trade integration initiatives.

The country programme is expected to focus heavily on value-added industrial activity, particularly mineral beneficiation, automotive manufacturing and strategic infrastructure projects, including energy generation and transmission.

The partnership also supports government’s plans to establish a domestic export-import bank aimed at supporting exporters, industrial projects and regional value chains.

He said discussions with Afreximbank are continuing to refine the details of the programme and ensure that it aligns closely with South Africa’s industrial strategy and economic priorities.

“The idea is to have a programme linked directly to national industrial policy, our intent and our mission as a country, both on the continent and internationally, as we diversify our markets and identify strategic partners,” Tau said.

Government expects to finalise the details of the country programme in the coming weeks, with the objective of accelerating growth, supporting industrial expansion and deepening South Africa’s integration into African and global value chains.

BUSINESS REPORT

As Youth Month draws to a close, South Africans have once again heard familiar refrains: government will not create jobs, and young people must instead seize opportunities in entrepreneurship.

We have also grown accustomed to the equally familiar assertion that the youth are the future of the country. Even youth unemployment statistics, however alarming, no longer seem to provoke the level of urgency they should.

Yet the reality is that the economic exclusion facing young South Africans is neither new nor poorly understood.

Government, the private sector, development institutions, and entrepreneurship support organisations have all recognised the urgency of addressing youth unemployment.

A range of programmes and interventions have been introduced over the years.

Yet despite these efforts, many young South Africans continue to face significant barriers to economic participation, raising important questions about how existing support mechanisms can become more coordinated, accessible, and responsive to the realities on the ground.

In many policy discussions, Micro, Small and Medium Enterprises are positioned as a solution to South Africa's unemployment crisis.

There is merit in this view. Small businesses can and do create jobs, stimulate local economies, and expand pathways to ownership.

But it is unrealistic to expect MSMEs to rescue the country from stagnation while the foundation required for young entrepreneurs to start and grow sustainable businesses remains deeply compromised.

The problem is not a lack of resilience among young founders. The problem is that too many are being asked to build in conditions that are fundamentally hostile to enterprise.

Earlier this year, I met a woman from Khayelitsha who runs a pre-loved clothing business from a physical store.

She is resourceful, committed, and clearly entrepreneurial. Yet her business has almost no digital footprint, not because she lacks ambition, but because visibility can come at a cost.

In the area where she operates, drawing too much attention to a business can expose the owner to criminal threats.

She told me that she had stopped recording her sales, despite knowing that tracking revenue is a basic part of running any business, because when criminals find evidence of income, they often demand a share of it. In that environment, growth is not simply about strategy. It is also about survival.

That example illustrates a broader truth. We cannot speak meaningfully about entrepreneurship without also confronting the conditions in which entrepreneurs are expected to operate. In many townships and rural communities, the barriers facing MSMEs extend far beyond access to finance. They include crime, weak infrastructure, unreliable logistics, and limited market access.

Across the country, many small businesses are producing quality goods and services in underserved communities, yet their customer base often remains geographically constrained.

With the collapse of the Post Office, founders who secure customers outside their immediate area must rely on private courier services concentrated in urban centres and economic hubs.

The cost and effort required to access those services can significantly erode already thin margins. At the same time, an unreliable public transport system makes something as basic as meeting clients unnecessarily difficult, consuming both time and money, two resources most early-stage businesses cannot afford to waste.

Government may reasonably point to Development Finance Institutions as part of the support architecture available to entrepreneurs.

In principle, and increasingly in practice, these institutions exist to expand access to funding and help businesses grow.

Strengthening communication around application processes, timelines, and funding outcomes would go a long way in building confidence among young founders and ensuring that more of them are able to access and benefit from the support that exists.

Access to opportunity is also shaped by access to information, and in many parts of South Africa that access remains deeply unequal.

Information about programmes, support schemes, and economic opportunities does not always reach the young people who need it most.

This is especially true where affordable data remains out of reach and institutional communication channels fail to penetrate local communities.

It is therefore not enough for government to say that opportunities exist for young people. Opportunity is only meaningful when it is accessible.

If unemployed youth cannot reliably access the information, transport, safety, and support systems required to pursue those opportunities, then the promise remains largely theoretical.

A house built on a weak foundation will not withstand pressure.

The same is true of entrepreneurship.

MSMEs cannot be expected to carry the weight of economic renewal if the environment in which they operate remains unstable, exclusionary, and in some cases dangerous.

If South Africa is serious about youth entrepreneurship, government, the private sector, development finance institutions, and support organisations must continue working together to strengthen the foundations of economic access, not as a future aspiration, but as an immediate and shared priority.

Khwezi Jackson, Business & Partnerships Manager at 22 On Sloane. 

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BUSINESS REPORT 

Governance, global mobility and digital assets

Jersey Finance brought together private wealth professionals in South Africa for a roundtable focussed on the evolving landscape of wealth management for high-net-worth (HNW) families in the region.

Hosted by Dr Rufaro Nyakatawa, Director – Africa, at Jersey Finance, the event explored how global mobility, changing family dynamics, regulatory developments and new asset classes are reshaping the wealth planning landscape for international families.

The discussion highlighted that while perspectives vary across jurisdictions and disciplines, as wealth becomes more international, HNW families are navigating greater complexities, reinforcing the importance of robust governance, experienced advisers and the use of well-regulated international finance centres (IFCs).

Several key trends that participants are seeing across the South African private wealth landscape were explored:

Global families require global solutions 

One of the strongest themes to emerge was the increasingly international nature of South African wealth. 

Families today often have business interests, investments, beneficiaries and advisers spread across multiple jurisdictions. 

Children may be educated abroad, family members may relocate for business or lifestyle reasons, and investment portfolios tend to span several markets and asset classes. This growing mobility creates opportunities, but also raises new considerations around ownership, succession and governance.

The group noted that structuring decisions are no longer driven solely by tax considerations. Instead, families are seeking solutions that can accommodate cross-border ownership, succession planning, differing regulatory regimes and evolving family circumstances.

As a result, the strength of the jurisdiction, quality of the legal framework and depth of professional expertise are becoming important factors in structuring decisions.

Governance is moving to the forefront 

Many first-generation wealth creators have built successful businesses through entrepreneurial vision and direct control. However, participants have observed that transferring wealth across generations often introduces new challenges, particularly where family members are based in different countries and may have different priorities and expectations. 

As a result, practitioners are placing greater emphasis on governance frameworks, family constitutions, succession planning and mechanisms that help families establish clarity around decision-making and stewardship. 

Contributors agreed that preserving wealth is not simply about protecting assets. It is about ensuring continuity of purpose, decision-making and family alignment across generations.

The balance between control and continuity

A related theme to emerge was the desire among many family businesses to retain control while also preparing for future succession.

Contributors noted that families are looking for structures that provide flexibility without compromising governance. This can be particularly important in the context of international families, where trustees, advisers and beneficiaries may be operating across multiple jurisdictions and legal systems.

The discussion suggested that successful structures are often those that balance founder influence with the governance frameworks needed to support future generations.

For intermediaries, the challenge is in helping families move beyond succession planning as a legal exercise and towards governance as an ongoing process.

Regulatory expectations continue to evolve 

The roundtable also explored the growing impact of regulation on international wealth planning. 

From anti-money laundering requirements and beneficial ownership obligations to sanctions compliance and cross-border reporting standards, experts noted that regulatory expectations continue to increase globally. 

While these developments can increase administrative demands, attendees generally agreed that robust regulatory frameworks help underpin confidence, transparency and long-term stability.

For international families, this reinforces the importance of working with experienced professionals and jurisdictions that are equipped to navigate an increasingly sophisticated regulatory environment. 

The trustee value proposition under scrutiny

Focussing on the value proposition of professional trustees, experts around the room challenged whether trustees are doing enough to articulate the value they provide, particularly where clients are charged annual fees but have limited visibility of the work being undertaken behind the scenes.

Compliance monitoring, regulatory reporting, beneficial ownership requirements, sanctions screening, risk management and governance oversight all form part of the modern trustee role. 

Yet much of this work remains invisible unless issues arise, creating a growing tension between cost-conscious clients and the expanding responsibilities placed on trustees.

For many participants, the importance of education and communication is becoming a key component. Trustees are no longer simply administrators of structures; they are expected to help families navigate risk, governance and regulatory complexity in an environment that continues to evolve.

Governance is about trust, not just structures

The conversations highlighted that families do not simply choose structures; they choose people they trust. In many cases, resistance to fees is not about cost, but about whether families understand and value of the advice being provided.

Several contributors observed that enduring wealth structures are often built on trusted relationships between families, advisers and fiduciaries, rather than on documentation alone.

Digital assets and tokenisation 

Among the key trends identified, digital assets and the growing role of tokenisation became one of the most animated discussions.

Experts around the table highlighted that digital assets are moving beyond cryptocurrency speculation. Attention is shifting towards tokenisation, fractional ownership and the use of blockchain technology to improve liquidity, transparency and accessibility across a range of asset classes.

While questions remain around regulation, taxation, succession planning and fiduciary oversight, there was broad agreement that digital assets are becoming a more frequent part of family wealth conversations, particularly among younger generations and globally mobile families.

For practitioners, the question is no longer whether digital assets should form part of the conversation, but how existing fiduciary, succession and oversight frameworks can evolve to accommodate them responsibly.

As with any emerging asset class, innovation will need to be balanced with appropriate oversight, risk management and long-term planning.

Africa is not one market

While international wealth planning often focusses on jurisdictions, regulations and structures, participants emphasised that cultural considerations remain equally important.

Families across Africa may share common aspirations, but their attitudes towards wealth, succession, control and governance can differ significantly.

Experts recognise that effective structuring requires cultural understanding alongside technical expertise.

The discussions agreed on the importance of avoiding a one-size-fits-all approach. Understanding family dynamics, cultural expectations and local context is often just as important as understanding legal and regulatory frameworks.

For internationally mobile families, the strongest outcomes are often achieved when technical expertise is combined with a deep understanding of family dynamics, objectives and values.

Looking ahead

The roundtable reinforced that the future of wealth management is becoming interconnected.

Global mobility, changing family dynamics, evolving regulatory expectations and emerging technologies are all influencing how families structure, manage and transfer wealth.

For professionals supporting African HNW families, the challenge is no longer simply designing structures. It is helping families navigate complexity in a way that supports resilience, continuity and long-term success.

For international families, the future challenge is no longer creating wealth. It is ensuring that governance, relationships and structures are robust enough to preserve that wealth across generations.

As wealth becomes increasingly international, trusted professionals, strong governance frameworks and well-regulated international finance centres will continue to play an important role in supporting families through that journey.

Jersey and South Africa: A strategic partnership

Explore our latest report on how the Jersey–South Africa corridor is mobilising capital, strengthening governance and supporting sustainable investment across Africa. 

Drawing on insights from leading banks, legal advisers, fiduciary experts and fund managers, it highlights how this strategic partnership is mobilising capital, strengthening governance and unlocking sustainable investment opportunities across Africa.

This article was first published by Jersey Finance.

Construction of the R8 billion Phase 1 of the Cape Winelands Airport, being co-developed in a partnership with JSE-listed Growthpoint Properties, and which will become Cape Town’s second major international gateway, is expected to start this year.

Growthpoint said in an investor update on Wednesday that it has entered into a partnership with the Cape Winelands Airport to co-develop and manage a 450-hectare mixed-use aviation precinct, which is situated just some 13km northeast of Durbanville, in the Western Cape.

The airport is being developed by RSA Aero, which, an online search showed, is a privately-owned consortium of aviation industry veterans and private investors. It is led and co-founded by executive managing director Nick Ferguson, alongside South African entrepreneur and investor Rob Hersov.

Growthpoint will earn fees for overseeing Phase 1 of the airport development, while commissioning of the first phase of the airport is targeted for 2028.

“It is not envisaged that Growthpoint will be investing in the airport terminal and runway at this stage, with our focus on the ancillary land uses. This partnership aligns with our strategy of investing in high-quality precincts and advancing our sustainability objectives,” Growthpoint's directors said in the update.

They said the Cape Winelands Airport project has reached several milestones in recent months. Final Environmental Authorisation has been obtained, and considering all appeals lodged, this represented the most significant hurdle for the project and followed a process of almost five years.

The City of Cape Town Municipal Planning Tribunal had approved the rezoning, consisting of approximately 350,000 square metres of total bulk, subject to an appeal process.

Cape Winelands Airport has also been formally awarded Strategic Integrated Project (SIP) status by Infrastructure South Africa.

This designation, under the Infrastructure Development Act, requires all organs of state to prioritise the airport's approvals, licences, authorisations, and exemptions. Cape Winelands Airport and all its associated infrastructure now carry statutory national strategic status.

On the broader outlook Growthpoint's directors said their operating environment has become more challenging across all geographies, with interest rates forecasting higher than initially anticipated, elevated inflationary pressures, and continued pressure on consumers affecting tenant affordability.

Commenting on its earlier earnings guidance to investors, the directors said that currently, the indicative outcome remains aligned to prior guidance, although the group has adopted a more conservative outlook beyond the guidance period.

“Operational performance has improved across all three domestic portfolios, supported by a combination of targeted strategic initiatives aimed at enhancing portfolio quality and key operating metrics,” they said.

“Notwithstanding ongoing interest rate and exchange rate uncertainty, we expect distributable income per share (DIPS) for 2026 to grow by between 3% and 5% and dividend per share (DPS) growth of between 6% and 8%, based on a payout ratio of 87.5%. The full-year results to June 30 are expected to be released on September 9, 2026.

They said the V&A continues to deliver strong performance and remains a reliable cash generator. GIP (Growthpoint Investec Property Fund) was performing in line with expectations, with the integration of Auria and execution of the development pipeline remaining key focus areas.

GOZ in Australia remained stable, although it continued to operate in a higher interest rate environment, with certain strategic initiatives still under review. “Our broader international investments are progressing in line with guidance,” the directors said.

Growthpoint’s share price slipped 0.74% to R17,42 on Wednesday morning after the release of the investor update, but this is more than 31% higher than what it traded at a year ago.

BUSINESS REPORT

A business born from a passion for food and a willingness to reinvent has grown from a home kitchen operation into a proudly South African brand available on SPAR shelves.

Simply Deli founder Yolande Buckley’s entrepreneurial journey is a story of resilience, opportunity and the power of market access, highlighting how small businesses can scale when given the right support.

The company, which manufactures cook in sauces and marinades, is one of the small businesses benefiting from the SPAR Supplier Development Programme, an initiative designed to help emerging suppliers build capability, meet retail requirements and grow sustainable businesses.

Buckley’s journey began nearly five decades ago, but a defining moment came in 2003 when her previous employer gifted her the Thanda Bantu Catering business, giving her the opportunity to build on her culinary experience and develop her own entrepreneurial path.

“It was a moment of having to reinvent the wheel,” Buckley said.

“Drawing on nearly five decades of experience, I began developing my own recipes in 2020 by refining flavours, perfecting techniques and reimagining how my food could reach people beyond the catering table. A year later in 2021, Simply Deli was born.”

The transition from catering to retail, however, came with a familiar challenge for many small businesses: gaining access to larger markets.

For Buckley, the SPAR Supplier Development Programme provided the support needed to bridge that gap.

The programme assists entrepreneurs with practical tools and knowledge, including food safety compliance, certification, labelling and product testing. It also creates opportunities for small brands to access SPAR’s retail network, giving them exposure to a wider customer base.

“For a growing brand such as ours, being associated with a retailer like SPAR is incredibly valuable,” Buckley said.

“It’s been a turning point in my journey. It’s helped me align Simply Deli with retail requirements and not just product quality, but consistency, packaging and scalability.”

The journey reflects the broader role small businesses are expected to play in South Africa’s economy. With SMMEs projected to drive a significant share of future job creation, supporting entrepreneurs has become an important part of economic development.

SPAR said supplier development is about more than helping individual businesses grow. It is about strengthening communities and creating opportunities through local enterprise.

“Entrepreneurship has the power to shift the dial on many of South Africa’s socio economic challenges,” a SPAR spokesperson said.

“By equipping suppliers with the right tools and knowledge, we are helping them build sustainable businesses that can thrive within their communities.”

For Buckley, the partnership has changed the way she approaches business, moving from producing food products to building a scalable retail brand.

“Overall, it has changed how I approach my business from a retail perspective,” she said.

“It has positioned me to grow within the SPAR ecosystem and alongside other SPAR suppliers and retailers. The SPAR network is filled with the very best people doing some amazing things in their stores and their communities.”

The Simply Deli story also highlights the importance of consumers supporting locally produced products. For shoppers, every purchase represents an opportunity to support South African entrepreneurs creating jobs and building businesses.

As demand continues to grow for convenient meal solutions, Buckley said Simply Deli remains focused on delivering quality products that fit into everyday lifestyles.

“We are committed to delivering products that help people create delicious meals quickly and easily, whether at home, on holiday or sharing time with family and friends,” she said.

From a passion for cooking to a brand reaching households across the country, Simply Deli’s growth demonstrates how access, mentorship and determination can help small businesses move beyond survival and into sustainable success.

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BUSINESS REPORT 

While enthusiasm for AI across South Africa’s business landscape is running high, its ability to deliver meaningful returns is still up for debate.

A recent South African AI Adoption Report by AI Strategy Africa found that GenAI adoption among large enterprises was up to 67% in 2025, yet only 13% of companies report achieving significant financial returns. 

It’s safe to say that AI is not a silver bullet, but every week seems to bring a new platform, tool or success story, often accompanied by warnings that businesses that fail to adopt AI will be left behind.

For small and medium enterprises (SMEs), where budgets are tight and capacity is limited, separating genuine opportunity from hype can be especially difficult. 

The key is understanding where AI can genuinely add value, where the potential returns  outweigh the risks, and where human expertise remains irreplaceable.

When AI helps

For many SMEs, AI delivers the most value when it takes on repetitive, time-consuming tasks that drain limited resources.

Practical examples of this could include:

• Administrative work: Tasks such as drafting emails, summarising meetings, preparing reports, managing schedules and handling routine customer queries can be streamlined with AI tools, freeing up time for higher-value activities like sales, strategy and relationship-building.
• Marketing: Without dedicated teams, small businesses often struggle to produce consistent content, conduct research or manage multiple channels. AI can support idea generation, content drafting and performance analysis, reducing the effort required to execute campaigns.
• Data analysis: While many SMEs collect decent volumes of data through accounting systems, sales platforms and customer databases, they often lack the capacity to extract meaningful insights. AI tools can help identify trends, flag risks and support more informed decision-making.

When AI doesn't help

Technology can improve processes, but it cannot compensate for weak business fundamentals. This means that if a company lacks a clear strategy, struggles with poor customer service, has weak financial controls or suffers from operational inefficiencies, introducing AI is unlikely to change the outcome. 

AI outputs are also only as good as the information provided. Business owners who rely on AI-generated content, recommendations or analysis without reviewing and verifying the results therefore risk making poor decisions based on inaccurate or incomplete information.

A safe rule of thumb for small businesses is to view AI as an assistant rather than an authority. 

How to decide 

A good starting point when deciding where to incorporate AI into a business is to ask where time is being lost, which processes create bottlenecks and which tasks are repetitive but necessary.

It is also important to start small.

Rather than implementing multiple tools across the business, businesses should test one solution in a specific area and measure the results. Assess whether it improves productivity, reduces costs or enhances customer experience before expanding its use.

Most importantly, remember that technology should support business objectives, not drive them.

AI will undoubtedly play an increasingly important role in the future of business – both globally and in South Africa – and SMEs that learn to use it effectively may gain a competitive advantage.

However, successful adoption is not about using the most advanced technology available; it is about identifying practical applications that solve real business problems. 

Jeremy Lang, Managing Director at Business Partners Limited.

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BUSINESS REPORT 

South African airline LIFT has expanded its digital offering by introducing Apple Pay, Google Pay and cryptocurrency payments, giving travellers more flexibility when booking flights online.

The airline has become the first South African carrier to offer both Apple Pay and Google Pay directly through its website across mobile and desktop platforms, while also introducing cryptocurrency payments through Ozow.

The move forms part of LIFT’s broader strategy to simplify the travel experience by offering customers more choice in how they pay.

Cilliers Jordaan, Chief Commercial Officer at LIFT, said changing consumer payment habits were driving the expansion.

“Our research showed that South Africans are quickly adapting to various payment methods for their purchases, favouring speed and security when making payments, while embracing digital wallets,” Jordaan said.

“The strong adoption of our LIFT Wallet demonstrated early on that our customers value convenience, flexibility and control when booking their travel. Expanding our payment ecosystem was a natural next step for us.”

The airline’s updated payment ecosystem allows customers to choose from a range of options including debit and credit cards, Apple Pay, Google Pay, cryptocurrency through Ozow, payment plans through RCS and PayU, Mobicred financing, or 1Voucher.

The expansion comes as digital payment adoption continues to increase locally and globally, with consumers increasingly seeking faster and more secure ways to complete online transactions.

According to the Visa and Discovery Bank SpendTrend25 South African Consumer Survey, 45% of surveyed South Africans use virtual cards, highlighting growing interest in digital payment solutions.

Cryptocurrency adoption has also continued to grow in South Africa. The Financial Stability Report recorded that crypto users reached nearly 7.8 million in the country by July 2025.

LIFT said the introduction of cryptocurrency payments reflects the changing ways consumers interact with financial technology.

The airline previously introduced the LIFT Wallet, flexible bookings and simplified flight changes as part of its focus on improving customer convenience.

Jordaan said the latest payment expansion builds on those digital initiatives.

“This is just another way we continue to elevate the travel experience for our customers,” Jordaan said.

“First, we offered our LIFT Wallet, flexible bookings and easy flight changes, now we’re making the payment process that much easier.”

“Whether our travellers prefer cards, digital wallets, cryptocurrency or other payment solutions, we're committed to giving them the flexibility to choose how they want to pay for their flights,” he said.

The move reflects a wider shift in the travel industry, where airlines are increasingly investing in digital tools to improve booking journeys and respond to changing customer expectations.

For LIFT, expanding payment options represents another step towards creating a more flexible and technology driven travel experience for South African passengers.

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BUSINESS REPORT 

The City of Johannesburg is facing mounting financial, governance and service delivery challenges that threaten its ability to fulfil its role as South Africa’s economic powerhouse, Auditor-General Tsakani Maluleke has warned.

The warning comes in the Auditor-General’s latest report on local government audit outcomes on Wednesday, which paints a troubling picture of deteriorating financial management, weak accountability and declining institutional capacity within the country’s largest metropolitan municipality.

Johannesburg’s standalone audit regressed from an unqualified audit opinion to a qualified audit opinion in the 2024/25 financial year after the city failed to correct material errors identified during the audit process.

While the city’s consolidated audit outcome, which includes its municipal entities, remained unqualified with findings, the regression in the core administration raised concerns about the municipality’s financial governance.

Addressing Parliament on the audit outcomes, Maluleke said Johannesburg requires urgent intervention from both oversight structures and the executive.

“The city itself, outside of the entities, has got a qualified audit opinion this year. It had been unqualified for many years, and this time around they were unable to correct the errors we identified through the audit,” she said.

She noted that many of Johannesburg’s major municipal entities, including City Power, Johannesburg Water, Pikitup and the Johannesburg Roads Agency, have remained in the category of unqualified audits with findings for years.

“Most of those entities have got unqualified audit opinions with findings. Some of them for more than a decade, meaning that they can put the financial statements together for the audit process, but their financial governance is weak,” Maluleke said.

According to the Auditor-General’s report, the metro continues to struggle with procurement non-compliance, weak performance management and ineffective oversight, while investigations into unauthorised, irregular and fruitless expenditure have been delayed or left incomplete.

The report found that instability in both political and administrative leadership weakened accountability during the audit period.

Vacancies in key management positions, including within finance and internal audit functions, further undermined the city’s ability to implement corrective measures and strengthen controls.

Johannesburg’s financial health also remains under significant pressure.

The city has also committed R10.3 billion to the Politically Facilitated agreement (PFA) deal with representatives of its employees to address a long-running salary increase dispute after it was flagged by Finance Minister Enoch Godongwana.

The city's transport department on Tuesday also confirmed that Joburg Roads Agency vehicles cannot operate because refuelling services have been suspended due to insufficient funds, leaving critical service delivery in limbo.

The Auditor-General identified liquidity constraints, high debt levels and an inability to collect revenue efficiently as key concerns. The city incurred unauthorised expenditure of R2.38bn during the year, largely due to overspending.

Infrastructure challenges continue to compound these financial pressures. The report highlights ongoing electricity distribution losses through City Power Johannesburg and persistent water and sanitation challenges at Johannesburg Water.

Delays in infrastructure delivery, weak project management and inadequate maintenance have contributed to high water and electricity losses and negatively affected service delivery. The city’s performance against key service delivery targets was also poor.

The Auditor-General reported that Johannesburg achieved only 36% of its planned targets for infrastructure development and refurbishment. One example cited was the provision of electricity to households in informal settlements, where only 1,059 connections were achieved against a target of 2,000.

Maluleke warned that if governance weaknesses are not addressed, Johannesburg risks further financial deterioration and declining investor confidence.

“It’s crucial that the institutional arrangements within Johannesburg be attended to. If we don’t do that, we’re going to continue on this slide where financial health deteriorates, where service delivery continues to be compromised,” she said.

The Auditor-General has recommended that the city stabilise senior management by filling critical vacancies, implement agreed audit action plans and enforce consequence management.

The report also calls on the mayor to hold officials accountable for longstanding governance failures and ensure measurable progress in addressing financial and operational weaknesses.

Despite its challenges, the report notes that Johannesburg remains central to South Africa’s economy, serving approximately 2.25 million households and acting as a major hub for finance, commerce and manufacturing.

However, the Auditor-General cautioned that without stronger leadership, accountability and financial discipline, the city’s ability to drive economic growth and deliver reliable services will remain at risk.

BUSINESS REPORT

Nedbank Group earnings guidance for 2026 remains on track even though geopolitical tensions and trade disruptions have weighed on confidence and investment through the first five months of the year.

The bank said in an update Wednesday that the operating environment in South Africa was mixed in the 5 months - GDP growth surprised on the upside in the first quarter, expanding 0.5% quarter on quarter, but domestic demand contracted through the period due to inventory rundowns, a relapse in fixed investment and a “marked” slowdown in consumer spending.

The bank now expects 2026 GDP to grow by 1.3%, revised down from the 1.5% forecasted by the bank in February. Inflation would likely rise to around 4.6% in June, before easing to about 3.2% by year-end, as global oil prices have reduced in recent weeks after the US and Iran reached an agreement to end hostilities and reopen the Strait of Hormuz.

Industry-wide credit extension strengthened modestly, with private sector credit growth rising to around 9% year-on-year in April 2026. Corporate credit growth accelerated into double digits, driven by increased activity in general loans, although demand was sensitive to weak business confidence and subdued fixed investment.

Household credit growth has improved gradually but remains relatively weak below 5%, reflecting ongoing affordability constraints. Credit growth across both corporates and households is expected to remain positive in the second half, albeit at more moderate levels, as heightened uncertainty and cautious borrowing behaviour persists.

The bank said headline earnings (HE) for the 5 months was broadly in line with management expectations at the beginning of the year. Diluted headline earnings per share (DIPS) growth for 2026 was expected to remain slightly ahead of HE growth given the impact of the share buybacks concluded in 2025.

The 5-month performance reflected improving net interest income (NII) growth, strong non-interest revenue (NIR) growth and expenses that were well managed, resulting in pre-provisioning operating profit (PPOP) growth.

Excluding associate income, PPOP growth was in the upper single digits. This growth was offset by a higher impairment charge and no further recognition of associate income from Ecobank Transnational Incorporated (ETI) post the sale of the bank’s investment in 2025. Excluding ETI, headline earnings growth was upper single digits.

Corporate and Investment Banking (CIB) had a good performance, supported by healthy balance-sheet growth as strong growth in Investment Banking was partially offset by slow growth in Property Finance, a low impairment charge, strong fee and commission growth, and a solid trading performance.

Business and Commercial Banking's (BCB) performance was negatively impacted by a once-off single client impairment which masked good underlying core business fundamentals, evidenced in better loan growth and double-digit NIR growth, supported by increased transactional client activity.

Earnings in Personal and Private Banking (PPB) were impacted by lower endowment income and higher impairments, offsetting strong momentum in insurance, fee and commission income, and secured lending, while expenses were tightly controlled.

NII (net interest income) growth of low to mid-single digits was driven by average interest-earning banking asset growth of mid-to-upper single digits, offset by a lower net interest margin (NIM), driven primarily by the impact of interest rate cuts in 2025 on endowment income.

At the end of May 2026, the group's impairment charge and annualised credit loss ratio (CLR), which is cyclically higher at the start of the year, increased period on period, with the CLR moving into the upper half of the bank's through-the-cycle (TTC) target range of 60 bps to 100 bps.

NIR (non-interest revenue) growth was at upper-single digits, driven by double-digit growth in insurance income, a solid trading performance, and good growth in commission and fees that was underpinned by strong growth in CIB and BCB, as well as continued growth in maintenance fees, driven by client gains, and fees from value-added services in PPB.

NIR growth was expected to remain around upper-single digits for the year. Expense growth was well managed at below mid-single digits in the 5 months, benefiting from below mid-single digit growth across salaries and wages, computer processing, communication and travel, and accommodation costs.

BUSINESS REPORT

South African Reserve Bank (Sarb) Deputy Governor, Rashad Cassim, has highlighted the crucial role of financial markets and the government bond yield curve in shaping monetary policy.

Speaking at a London Stock Exchange Group Insight Series event on Wednesday, Cassim argued that South Africa’s recent progress on inflation and fiscal stability has already delivered significantly lower borrowing costs across the economy.

Cassim said the Sarb’s primary mandate remains protecting the value of the currency to support balanced and sustainable economic growth. However, he noted that financial markets are central to how monetary policy decisions affect households and businesses.

“What we want financial markets to do is arbitrage – in other words, to price everything else against this one safe overnight rate,” Cassim said, explaining how the Sarb’s policy rate influences borrowing costs across the economy, from government debt to mortgages.

Cassim outlined how South Africa’s monetary policy framework has evolved over time, with central banks globally moving away from a complex mix of policy tools toward a simpler system centred on a single interest rate.

He noted that the Sarb formally retired the term “repo rate” this year after implementing a new monetary policy framework in 2022. Under the current system, banks deposit excess liquidity with the central bank and earn the policy rate on those deposits.

Cassim devoted much of his address to explaining the importance of the government bond yield curve, which reflects borrowing costs across different maturities and serves as a key indicator of market sentiment about inflation, fiscal sustainability and economic risks.

According to Cassim, South Africa experienced one of the steepest yield curves on record during the COVID-19 pandemic. While the Sarb cut the policy rate to a record low of 3.5% to support the economy, long-term borrowing costs rose sharply as investors reacted to capital outflows, credit rating downgrades and a widening fiscal deficit.

“This was the steepest yield curve on record, with more than 5 percentage points between the front- and back-ends of the curve,” he said.

The situation remained challenging during the global inflation surge that followed the pandemic. Although the Sarb increased the policy rate to 8.25% to contain inflation, rising country risk and persistent electricity shortages also pushed long-term yields higher.

Cassim said policymakers viewed the steep yield curve during this period largely as a reflection of fiscal and country risks rather than monetary policy alone.

However, he argued that South Africa has since experienced a significant “macro reset”. Long- and short-term interest rates have declined substantially, and the steepness of the yield curve has returned closer to historical averages.

“With a new inflation target, a strong fiscal commitment to stabilising debt now rather than later, plus reduced bond issuance, markets have priced in markedly lower yields on government debt,” he said.

Cassim noted that this improvement has occurred despite the absence of a significant economic growth recovery.

Looking ahead, he said further gains remain possible if inflation expectations can be anchored closer to 3% and fiscal and structural reforms continue.

“Anchoring inflation expectations close to 3% will allow us to set lower short-term rates, probably closer to 6% than 7%,” he said.

The deputy governor also pointed to stronger performance across South African financial markets. The JSE All Share Index has risen nearly 60% since 2023, while the rand has strengthened from close to R20 to the US dollar in 2023 to around R16 more recently.

Cassim stressed that the Sarb does not target asset prices or the exchange rate directly. Instead, policymakers assess how developments in financial markets affect inflation, growth and overall financial conditions.

He said recent geopolitical tensions in the Middle East had tightened financial conditions and prompted markets to scale back expectations for interest rate cuts. This helped inform the Sarb’s cautious approach, which saw rates left unchanged in March before being increased by 25 basis points in May.

“To conclude, as policymakers we are in quite a fortunate position, given that we work with a relatively large and sophisticated financial system and we have efficient passthrough,” Cassim said.

He added that the Sarb remains confident it has the tools necessary to fulfil its constitutional mandate of protecting the value of the currency while supporting sustainable economic growth.

BUSINESS REPORT

Standard Bank Group has mobilised R3.45 billion in financing for climate-smart agriculture over the past year, strengthening support for sustainable food production, climate resilience and inclusive economic growth across South Africa's agricultural sector.

The investment comes at a time when farmers are facing growing challenges from climate change, including increasingly unpredictable weather patterns, water scarcity and rising input costs.

These pressures are driving the need for innovative farming practices and financing solutions that can improve long-term sustainability and profitability.

Louis Van Ravesteyn, Standard Bank Group head of agriculture, said farmers are already adapting to the realities of climate change, but wider adoption of climate-smart solutions requires access to appropriate funding.

“Farmers are already responding to the realities of climate change, but scaling these solutions requires access to the right kind of finance. What we are seeing is a shift towards more resilient, efficient farming models that combine sustainability with productivity,” he said.

Standard Bank's climate-smart agriculture financing supports initiatives such as water-efficient irrigation systems, renewable energy projects and regenerative farming practices.

The bank said these interventions are helping producers improve operational efficiency, manage costs and strengthen long-term profitability.

The adoption of technologies such as precision agriculture, solar-powered systems and data-driven crop management is also enabling farmers to optimise resources while increasing production and reducing vulnerability to climate-related shocks.

The financing forms part of Standard Bank's broader sustainable finance strategy, which focuses on investments that deliver measurable environmental and social benefits alongside financial returns.

Climate-smart agriculture has become a key area of focus due to its contribution to food security, rural economic development and job creation.

The bank said it is also working to improve access to funding for emerging and mid-sized farmers who often face challenges in securing traditional financing. By tailoring solutions to agricultural production cycles and climate-related risks, the bank aims to expand participation in sustainable farming systems.

Boitumelo Sethlatswe, Standard Bank head of sustainability, said directing capital towards climate-smart agriculture supports a transition that benefits both people and the environment.

“Sustainable finance is ultimately about enabling real economy outcomes,” she said.

“By directing capital towards climate‑smart agriculture, we are supporting a transition that benefits producers, communities and ecosystems alike, while helping to build a more resilient and sustainable agricultural sector, strengthening resilience across the entire value chain.”

BUSINESS REPORT

KwaZulu-Natal's tourism industry is anticipating a strong July school holiday season, with more than 920,000 visitors expected to travel to the province and spend close to R1.9 billion, according to the KZN Tourism and Film Authority

The authority said its Winter 2026 Tourism Forecast projects total arrivals of 920,320 visitors between June 26 and July 20, representing an increase from the 860,035 visitors recorded during the same period last year.

Domestic tourists are expected to account for the bulk of arrivals at 857,107 visitors, while international arrivals are forecast to reach 63,213.

Visitor spending is expected to rise from R1.8 billion in 2025 to R1.9 billion this year, providing a welcome boost to the provincial economy and tourism-related businesses.

KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Rev. Musa Zondi, said the forecast highlighted both the resilience of the tourism sector and the province's enduring appeal.

“The projected increase in visitor numbers and tourism spend is a strong indication that KwaZulu-Natal remains one of South Africa’s most attractive destinations," Zondi said.

He noted that despite ongoing economic pressures, travellers continue to prioritise experiences and that the province offers a unique mix of attractions.

“Few destinations can offer visitors the opportunity to enjoy major sporting and lifestyle events, world-class beaches, mountain escapes, cultural experiences, wildlife attractions and film and creative industry events within a single province. This diversity continues to make KwaZulu-Natal attractive to families, leisure travellers, adventure seekers and business visitors alike.”

Brett Tungay, national chairperson of Federated Hospitality Association of South Africa (FEDHASA), said accommodation establishments across the province are reporting encouraging booking trends.

“Accommodation establishments across KwaZulu-Natal are reporting encouraging booking trends, with strong demand from both the domestic leisure market and regional visitors,” Tungay said.

“Occupancy levels are tracking well across the province, particularly in key tourism nodes such as Durban, the North Coast, the Drakensberg and the Midlands.”

Dr Vusumuzi Sibiya, CEO of South Coast Tourism and Investment Enterprise, said a combination of the annual Sardine Run, school holidays and a packed events calendar was helping to drive demand.

“The combination of the annual Sardine Run, school holidays, and a packed calendar of sporting, cultural and community events is generating positive momentum for the destination," he said.

"Accommodation establishments and tourism operators are reporting increased enquiries and bookings as visitors plan their winter getaways.”

Sibiya added that the Sardine Run remains one of our biggest tourism drawcards and continues to attract visitors from around the world.

“This natural phenomenon creates exceptional opportunities for ocean-based experiences, including fishing, diving, ocean safaris and whale watching. Coupled with our beaches, nature reserves and winter events, these activities are expected to drive significant visitor demand.”

Sibiya also said that the winter tourism season plays an important role in supporting the local economy. 

“Increased visitor numbers benefit accommodation establishments, restaurants, tour operators, retail businesses and informal traders, while also creating employment opportunities and stimulating economic activity within communities across the South Coast.”

Umhlanga Tourism chairperson Naomi Crous said that the forecasted growth for the Winter 2026 season is wonderful news for KwaZulu-Natal and the tourism sector as a whole.

“Tourism remains a vital driver of economic opportunity and we are confident that this winter season will deliver meaningful benefits for local businesses and communities across our region," she said.

"As Umhlanga Tourism we are ready and excited to welcome both domestic and international visitors to Umhlanga and the North Coast, where warm hospitality, beautiful beaches, and unforgettable experiences await this winter.”

James Seymour, chairman of the Drakensberg Experience and the uThukela Drakensberg Cluster, said member tourism businesses are forecasting average occupancy levels of about 68% during the July school holiday period, with most establishments expecting occupancy above 60%.

“While tourism operators continue to cite fuel costs and road conditions as challenges, the overall outlook for the region remains positive.”

BUSINESS REPORT

About 62% of complaints lodged against credit providers with the National Financial Ombud Scheme South Africa (NFO) are upheld in favour of consumers, raising serious questions about whether some lenders are prioritising profits over fair treatment and legal compliance.

The figure, revealed in the NFO's latest Annual Report, paints a concerning picture of South Africa's consumer credit landscape. It suggests that in nearly two out of every three disputes brought before the Ombud, consumers have legitimate grounds for complaint and are entitled to redress.

According to Nerosha Maseti, lead ombud for banking and credit at the NFO, the statistics point to a deeper problem within parts of the credit industry.

“This is not a statistical quirk; it signals a troubling pattern. Too often, credit providers prioritise profit over fairness, and in doing so, some sidestep the due legal processes meant to protect borrowers.

“Consumers must also become more alert to the terms of credit and must be equally vigilant when lenders fail to follow the law. Awareness is the first line of defence against exploitation,” she says.

The number of consumers turning to the Ombud for assistance is also rising sharply. During 2025, the NFO registers 3,126 credit-related complaints, up from 1,979 in 2024, an increase of 58%.

Maseti says the Ombud's role is becoming increasingly important as financially stressed consumers navigate a complex credit environment.

“Over the past year, 62% of complaints were resolved in favour of consumers, meaning that in more than half of cases, we helped individuals obtain the redress they needed. This is particularly significant given that many credit consumers are debt-stressed and may not fully understand the implications of the credit they take on.

“Securing positive outcomes in the majority of cases highlights the Ombud’s important role in protecting consumers and promoting fair treatment across the financial sector,” she says.

The financial impact of these interventions is significant. According to the NFO's Annual Report, the Credit Division recovers R7.47 million for consumers in 2025, more than triple the R2.36 million recovered in 2024.

Store cards and retail credit accounts generate the highest number of complaints. Disputes range from unauthorised value-added services and billing errors to fraud, contested settlements, prescription disputes and poor customer service.

The Ombud's case studies reveal a recurring pattern: consumers often suffer financial harm when credit providers fail to follow the law or apply their own processes fairly.

Vehicle retained without legal authority

One case highlights how quickly matters can escalate when legal procedures are ignored.

A financed vehicle suffers mechanical failure and is parked at a dealership. As arrears accumulate, the credit provider refuses to release the vehicle unless outstanding payments are settled. However, no voluntary surrender and no court order is authorising the retention of the vehicle as required by the National Credit Act.

The Ombud finds that the vehicle is being held without legal authority, contributing to further arrears and worsening the consumer's financial position. The matter is ultimately resolved through a full write-off and the removal of adverse credit records.

Njabulo Bhembe, Senior Adjudicator in the Banking and Credit Division of the NFO, says:

“Repossession or retention of financed goods must follow the law, not convenience.”

Debt restructuring must be fair

Another dispute centres on a credit provider extending a consumer's repayment period by 24 months after arrears develop.

Although debt restructuring can assist struggling consumers, the Ombud finds the extension excessive because the arrears amount to only three missed instalments and the consumer continues making payments.

The dispute is resolved when the credit provider agrees to close the account and issue a paid-up letter.

The case demonstrates that debt-relief measures must remain proportionate and reasonable to the circumstances they are intended to address.

Fraud listings without evidence

Two separate complaints expose weaknesses in the way some lenders handle fraud allegations.

In one case, a consumer is labelled a fraud risk after allegedly submitting altered bank statements. However, the credit provider is unable to produce evidence or obtain confirmation from the bank. The fraud listing is subsequently removed.

In another case, a consumer is listed on the Southern African Fraud Prevention Service (SAFPS) database after a loan application is submitted in her name. Biometric records later show she is elsewhere at the time the application is made.

Based on the available evidence, the NFO concludes that the consumer neither submits the application nor provides fraudulent documentation. The listing is removed.

“Both cases highlight the gravity of fraud allegations and the need for rigorous evidence before consumers are flagged,” says Bhembe.

Billing continues after default

Another complaint involves a consumer who continues to be billed after defaulting and after the account is handed over for collections.

Additional charges continue accumulating, inflating the debt unnecessarily.

The Ombud finds no justification for ongoing billing beyond the collections threshold and orders the account to be recalculated. The consumer accepts responsibility for the revised balance.

“This case clearly shows how administrative lapses can compound consumer hardship, and why consistent, fair application of collections processes is essential,” says Bhembe.

A systemic problem?

Taken together, the cases suggest that some credit providers continue to test the boundaries of fairness and compliance. Whether through unlawful asset retention, excessive repayment extensions, unsupported fraud allegations or improper billing practices, consumers often bear the consequences when due process is overlooked.

While many disputes are ultimately resolved through the Ombud, the fact that 62% of complaints are upheld in favour of consumers suggests broader issues within parts of the credit industry.

For consumers, the message is clear: understand your rights, scrutinise your credit agreements and challenge decisions that appear unfair.

As Maseti says, “For consumers, the message is sobering but empowering: challenge irregularities, demand evidence, and know that the Ombud exists to enforce fairness.”

PERSONAL FINANCE

As global markets brace for a new trading day, investors are taking a moment to reassess following yesterday’s significant sell-off that left many stock indices deeply in the red.

Bianca Botes, Managing Director at Citadel Global said that the S&P 500 reported a decline of 1.4% while tech-heavy Nasdaq plummeted more than 3%, reflecting heightened caution in an already volatile climate, particularly due to a notable sell-off in semiconductor stocks.

Meanwhile, across the Pacific in Asia, a ray of optimism emerged as the KOSPI surged by an impressive 3.4% this morning.

The South Korean stock exchange had a tumultuous start to the week, with trading temporarily suspended amid a double whammy caused by both the global tech sell-off and the MSCI's recent decision to withhold a developed market classification from South Korea.

Botes said, "Analysts perceive the KOSPI’s turnaround as a much-needed breather for investors awaiting more stable ground."

In Japan, the backdrop is equally precarious as policymakers deliberate on accelerating interest rate hikes in response to economic pressures.

"Coupled with an ongoing discussion regarding potential currency intervention, traders are keeping a sharp eye on the yen, which has sunk to a concerning 40-year low against the dollar.  This has significant ramifications not only for Japan's economy but also for global markets impacted by the region's economic strategies," Botes added. 

Oil prices, conversely, appear to be on a downward trajectory, trading at $76 per barrel as a result of renewed peace talks between the United States and Iran – developments that could potentially shift the balance in the oil market.

Meanwhile, gold has also taken a hit, dropping 1% to settle at $4,067 an ounce, weighed down by expectations of further interest rate hikes.

In South Africa, the rand has begun to react to the dollar, which remains firm at a 13-month high.

Opening the day at R16.56/$, R18.83/€, and R21.86/£, the rand has shown a surprising resilience in light of these dollar pressures. However, the currency stands at critical technical levels against the dollar, raising concerns that it could weaken further if negative momentum continues.

"With key economic indicators and policy decisions looming on the horizon, both local and global investors are treading cautiously, seeking signs of stability in a climate that remains fraught with uncertainty," Botes said.

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BUSINESS REPORT 

The South African Reserve Bank (Sarb) is preparing to introduce a new regulatory framework for cross-border payment facilitators as online retail and digital commerce continue to expand, bringing previously unregulated participants under formal oversight for the first time.

The central bank on Tuesday said it had observed a significant increase in cross-border payment facilitator activities, prompting a coordinated response by its National Payment System Department (NPSD) and Financial Surveillance Department (FinSurv).

Cross-border payment facilitators operate by aggregating and acquiring payment transactions in South Africa on behalf of offshore merchants that sell goods and services to local consumers, including digital products. Although these entities are not acquirers themselves, they function through sponsorship arrangements with authorised domestic acquirers.

The Sarb noted that payment facilitators currently operate without direct regulation in South Africa.

“Through its NPSD and FinSurv, the Sarb is developing a coordinated regulatory approach to address these developments,” the bank said in a statement.

The regulatory overhaul is expected to provide greater transparency, strengthen consumer protections and enhance oversight of South Africa’s rapidly expanding cross-border digital payments ecosystem.

Under the proposed framework, payment facilitators will be required to comply with NPSD regulatory requirements arising from their sponsorship arrangements with domestic acquirers. They will also be expected to meet FinSurv’s operational, compliance and application requirements relating to foreign exchange and cross-border transactions.

The central bank said a unified approach was necessary to ensure consistent oversight and to prevent regulatory gaps.

“A coordinated approach is necessary to ensure that regulatory requirements are applied consistently and to reduce the risk of regulatory arbitrage,” the Sarb said. “This approach supports effective oversight of payment models that span both the domestic payment system and cross-border foreign exchange considerations.”

The proposed rules form part of a broader effort to modernise South Africa’s payment system as cross-border e-commerce transactions continue to grow in volume and complexity.

In December 2025, FinSurv published a draft circular for public consultation covering the responsibilities of Authorised Dealers and payment facilitators, as well as settlement and reporting requirements for cross-border retail transactions.

The NPSD has now published a separate draft directive, according to which domestic acquirers sponsoring cross-border payment facilitators will be required to enter into formal written agreements and remain fully accountable for regulatory compliance, acquiring, settlement and scheme obligations associated with transactions processed through these facilitators.

The draft rules also place significant emphasis on consumer protection.

Domestic acquirers will be required to ensure that payment facilitators implement measures addressing transparency around fees and charges, disclosure of exchange rates, complaint-handling procedures, dispute resolution processes and chargeback mechanisms to protect customers engaging in cross-border transactions.

Additional requirements focus on merchant onboarding and due diligence. Domestic acquirers must ensure that offshore merchants using payment facilitators are legitimate, properly registered and comply with applicable scheme rules and onboarding standards.

The draft directive also introduces strict safeguards for merchant funds.

Payment facilitators receiving settlement funds on behalf of offshore merchants will be required to segregate those funds from their own operational accounts, maintain them in separate South African bank accounts and refrain from investing or otherwise using the funds except where specifically permitted under merchant agreements.

To strengthen oversight, sponsoring acquirers will have to provide biannual reports to the SARB detailing the number of onboarded payment facilitators, associated offshore merchants, the nature of merchant businesses and aggregate transaction volumes and values processed.

The draft directive further grants the NPSD authority to regulate, supervise and inspect domestic acquirers and cross-border payment facilitators to ensure compliance with the National Payment System Act and related requirements.

Once finalised, the NPSD directive and the FinSurv circular will be published simultaneously. The Sarb said stakeholders should submit comments only on the NPSD directive, with the consultation period closing mid-17 July.

According to the draft directive, the new rules will become effective six months after publication to allow industry participants sufficient time to implement the necessary operational and compliance changes.

BUSINESS REPORT

Brent crude oil prices fell below $77 a barrel on Tuesday, extending losses and reaching their lowest level in almost three months, as markets reacted positively to signs of progress in peace negotiations between the United States and Iran.

The decline follows the signing of a Memorandum of Understanding (MoU) between Washington and Tehran, which has raised expectations of a gradual recovery in global oil supplies and a reopening of the strategically important Strait of Hormuz.

Under the agreement, the US granted Iran a 60-day licence to sell oil on international markets, a move that has fuelled expectations that supply disruptions caused by months of conflict could begin to ease.

Old Mutual Wealth investment strategist Izak Odendaal cautioned that the agreement does not guarantee lasting peace.

“An MoU does not, of course, guarantee peace. Flare-ups and incidents remain likely in the 60-day period while both sides negotiate the thorny issues related to Iran’s nuclear programme,” said Odendaal.

“Nonetheless, reaching an MoU strongly suggests both the US and Iran want to put the war behind them. At any rate, markets didn’t wait for the finer details - they rarely do - and immediately started positioning for a post-war world which includes a gradual reopening of the Strait of Hormuz.”

He noted that investors had already begun adjusting their positions weeks before the agreement was signed, highlighting the difficulty of timing market movements.

“The upshot is that crude oil tumbled to $80 for the first time since March on Friday. This move might be a bit overdone given the uncertainties, but few will complain since the price is now well below the late April peak,” he said.

Energy consultancy Wood Mackenzie has revised its outlook for oil prices in response to the changing geopolitical environment.

The firm now expects Brent crude to average $78 a barrel in 2027 and potentially decline to $70 a barrel by the fourth quarter of next year, assuming shipping flows through the Strait of Hormuz return to normal by August.

According to Wood Mackenzie, investor sentiment shifted rapidly after the agreement was signed. The firm noted that speculative positioning for higher Brent prices fell by about 80% from a five-year high during the four weeks to 16 June.

The consultancy estimates that the conflict removed more than 11 million barrels per day of crude supply from global markets. It expects around 70% of these shut-in volumes to return within three months of the Strait reopening and 90% within six months.

“A prolonged closure would have pushed Brent well above $150 a barrel,” said Alan Gelder, senior vice president for macro oils at Wood Mackenzie.

“The MoU changed that trajectory. But the full value chain, from wellhead through to Gulf Cooperation Council ports, will take the better part of a year to fully recover.”

He added that refining margins remain elevated despite recent improvements.

“Jet crack spreads running at almost double pre-war levels are the clearest signal that this market has not yet normalised. Getting the barrels back is a different challenge from reaching a deal.”

Brendon Verster, senior economist at Oxford Economics, said that despite the MoU between the US and Iran, a permanent deal is still far from agreed.

Vester said although the MoU signals that the worst of the crisis is likely over, agreeing on the finer details is when the real challenge of negotiations begins.

“We’ve lowered our full-year Brent crude oil price forecast to just shy of $90 per barrel, down about $8 per barrel from our prediction at the start of the month, but still notably higher than our pre-war forecast of $62.3 per barrel. In 2027, we project global oil prices to average $66.3 per barrel, $10 per barrel higher than our pre-conflict baseline,” he said.

“Given the contentious issues surrounding the war in Lebanon, Iran’s nuclear programme, and a deep mistrust between the parties, there isn’t necessarily a guarantee that a comprehensive and durable agreement can be reached. Much still needs to happen before the crisis can be declared entirely over, meaning the MoU between the US and Iran has not resulted in a marked shift in our outlook for Africa.”

BUSINESS REPORT

Master Power Technologies (MPT), a pan-African provider of data centre and critical power solutions, has unveiled its R50 million, hi-tech Customer Experience Centre, which will also be home to its new regional headquarters, in Midrand.

It marks a significant step in the company’s expansion and commitment to advance Africa’s data centre infrastructure.

Founded in 1999 by electrical engineer Menno Parsons, MPT has grown from an Uninterruptible Power Supply (UPS) provider into a diversified engineering firm that delivers end-to-end solutions for data centres across Africa and the Middle East.

Today, MPT designs, manufactures, and assembles a wide range of products under its flagship brands, SURE and AIVA, tailored to withstand Africa’s demanding operational environments.

The new Midrand facility spans 6,000 square metres and will serve as MPT’s African headquarters, housing some 200 employees. Located between Johannesburg and Pretoria, the site is positioned close to major data centre hubs, ensuring accessibility for clients and partners.

The Customer Experience Centre is designed to showcase MPT’s engineering capabilities and provide a hands-on environment for customers, partners, and trainees. The centre features advanced test facilities, including a 2 MVA UPS test platform and a 400-kW cooling system test centre, which is the most comprehensive test centre of its kind on the continent.

These facilities enable performance testing to European certification standards, offering clients confidence in the reliability and efficiency of MPT’s solutions, with the company having become the first African business to be officially certified as an Endorser of the European Code of Conduct for Energy Efficiency in Data Centres in 2025.

"The Experience Centre represents a new chapter for Master Power Technologies. It’s about creating a space where customers can engage with our technology, see it in action, and understand the depth of our capabilities,” said MD and Founder of MPT Menno Parsons.

“This centre will be the most impressive UPS and cooling training facility in Africa, allowing our clients to touch, feel, and work with real systems in a way that has never been possible before,” he said.

MPT assembles and engineers complete modular data centre and energy centre solutions within Africa. This approach reduces logistical risks, supports local industry, and ensures solutions are tailored to regional requirements.

Beyond technical demonstrations, the centre will serve as a hub for training and collaboration, equipping engineers and clients with practical knowledge to optimise data centre performance.

It also integrates MPT’s proprietary Advanced Infrastructure Visual Analytics (AIVA) monitoring platform, which manages and records metrics across more than 200 data centres in Africa, offering advanced analytics and operational insights.

“We engineer solutions for Africa, by Africa. This Experience Centre is a testament to that philosophy, which strengthens our ability to train, innovate, and deliver world-class infrastructure while remaining rooted in local expertise,” said Parsons.

BUSINESS REPORT

Sibanye-Stillwater’s three legacy gold mine assets have underpinned the growth of the mining group and despite high operational gearing, at current gold prices, these assets are still generating substantial value.

CEO Richard Stewart stated in a Capital Markets Day presentation on Tuesday that, after producing 12.2 million ounces (Moz) since 2013 and generating earnings of R19.5 billion, the three assets—Kloof, Beatrix, and Driefontein—still retain 3.3 Moz of reserves.

The DRDGOLD and Burnstone projects will transition the South African gold operations to a higher-margin, shallower gold mining business, he said. The group’s South African operations, which also include its platinum mining interests in the country, remain the core earnings and value driver.

Commenting on the outlook for the gold price, Kleantha Pillay, executive vice-president Sales & Marketing noted that gold had overtaken US treasury bonds as the largest central bank reserve asset in 2025, rising from 20% to 27% over the year ending June 2026.

However, net central bank gold purchases were expected to continue at a slower pace as the rise in gold prices had reduced its share of central bank reserves.

He mentioned that there had been a price correction after significantly overbought levels. Global ETF holdings were down to 3.6 Moz, a decrease of 3.5% since the February peak.

“Stability of the Iran-US ceasefire and how the economic after-effects will play out through inflation, interest rates, and global economic growth will determine gold’s medium-term price path,” he said.

The Driefontein mine holds reserves for a life-of-mine (LoM) of 11 years, Beatrix’s LoM is 6 years, and Kloof’s is 1 year. The 50.1% stake in DRDGOLD has a LoM of 22 years, while the Burnstone project has a LoM of 25 years. Cooke is a surface retreatment operation with a 25-year LoM, focused on processing historic Randfontein tailings.

Deep-level, hard rock mining expertise is a core competency of the group, but the current focus is on safe production and disciplined capital allocation rather than deep-level growth investment.

The group is transitioning to a shallower, higher-margin, and lower-risk South African gold business.

The 50.1% stake in DRDGOLD, acquired in 2018 for R1.1bn, is now valued at R16bn, with R2.1bn in cash dividends received to date. The Burnstone project is a low-cost, shallow brownfields project.

While the group’s South African gold operations mainly comprise deep-level underground mining to date, surface retreatment operations provide a lower-risk, longer-life base as legacy underground mines wind down, said the chief operations officer Richard Cox.

Dawie van Aswegen, executive vice president of Mining Operations, said that the South African gold operations are still generating substantial value at current gold prices, despite high operational gearing. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) has been strong since 2022.

There had been a sharp increase in AISC (all-in-sustaining costs) related to the high fixed cost of mature assets and lower volumes. AISC has risen from around R800,000 per kilogram in 2021 to close to R1.9 million per kilogram at the end of 2025.

He noted that Driefontein, with the longest life legacy operation, holds a strong medium-term profile with reducing capital expenditure.

The mature, conventional, deep to ultra-deep mining operation, at depths of 3,300 m below the surface, had produced consistent and stable performance over the past three years, he said.

At Kloof, which has been in production since the 1960s and has a LoM of 1 year, there was potential to extend mining beyond the one year in the current high gold price environment based on safety, cash generation, and funding its own capital requirements. The potential to extend the LoM to three years was dependent on safety and the gold price.

Beatrix, in operation since the late 1970s, is a conventional, shallow to intermediate mine at depths of 1,350 m below the surface.

Its LoM had been extended to 6 years through the inclusion of below-infrastructure mining at a reduced annual production rate. Steady, consistent delivery was foreseen to the end of life with no major planned capital expenditure for the Beatrix underground operation.

BUSINESS REPORT

South Africa’s citrus industry has revised its lemon export forecast sharply upward for the 2026 season, buoyed by favourable weather conditions, improved fruit development and stronger-than-expected production across key growing regions.

The Citrus Growers’ Association of Southern Africa (CGA) announced on Monday that it has increased its export estimate from an initial forecast of 45.8 million 15kg cartons to 49.4 million cartons, representing an increase of 3.6 million cartons.

The upward revision comes despite concerns earlier this month that severe flooding in parts of the Eastern and Western Cape could significantly reduce export volumes and damage critical farming infrastructure.

According to the CGA, the improved outlook reflects the dynamic nature of the current season and the positive impact of weather conditions experienced in major lemon-producing regions.

“Although the season started later than usual, three significant cold fronts accelerated fruit colour development, contributing to improved readiness for export,” said the CGA.

“Increased rainfall in many lemon-producing areas has resulted in a positive growth curve, supporting larger fruit sizes, ultimately resulting in higher carton volumes.”

The CGA said that strong coordination, effective communication, and logistical capacity across the value chain will assist in managing the increased volumes.

“These efforts aim to ensure a steady and stable supply of fruit to global markets, preventing under- and oversupply at any given time. Packing activity remains concentrated in key regions, with Senwes, Patensie, and the Boland currently accounting for the bulk of volumes still to be harvested,” it said.

The association added that regions that have recorded the most significant upward revisions in their projections include Letsitele in Limpopo and the Sunday's River Valley in the Eastern Cape. It said that despite higher overall volumes, the updated forecast indicates a shift in the seasonal profile.

“The lemon season is expected to conclude more abruptly than usual, with a noticeable drop in volume around mid-July, rather than a gradual tapering.”

The CGA concluded that fruit quality for the season remains excellent, reinforcing South Africa’s reputation as a reliable supplier of high-quality citrus to international markets.

Dawie Maree, head of FNB agriculture marketing and information, said that any increase in exports is positive news for the industry.

“This means better earnings of foreign exchange and overall performance of the industry,” he said.

Maree added that lemons make up approximately 20% of citrus exports, compared to 45% for oranges.

“However, for certain areas, like the Eastern Cape, it is a major export product and thus important.”

Maree concluded that when agriculture exports increase, it helps South Africa’s trade balance tremendously.

“That is good for the agric sector in SA. It also shows confidence in our farmers and their products and is good for business and investor sentiment.”

Earlier this month, Business Report reported on South Africa's citrus industry facing mounting losses after recent floods in the Eastern and Western Cape damaging orchards, disrupted harvesting operations, and forced growers to revise export expectations downward at a critical stage of the export season.

The CGA warned that initial assessments indicate export volumes from flood-affected areas could decline by at least 5%, although the full extent of the damage is still being determined.

Dr. Boitshoko Ntshabele, CEO of the CGA, said producers are grappling not only with immediate crop losses but also with longer-term damage to farm infrastructure and production capacity.

BUSINESS REPORT

South Africa’s construction sector is showing tentative signs of recovery, with the latest Afrimat Construction Index (ACI) recording a third consecutive quarter of positive growth despite continued challenges facing the industry.

The ACI, released on Tuesday, increased by 0.3% year-on-year during the first quarter of 2026, supported by stronger construction activity, higher building completions, rising employment and improved sales of building materials.

Compiled quarterly by economist Dr Roelof Botha on behalf of Afrimat, the index serves as a composite measure of activity levels across the building and construction sectors.

Although growth remains modest, Botha said the latest results point to increasing stability in a sector that has endured years of subdued activity. The ACI’s seasonally adjusted reading has increased for the third consecutive quarter, the first time this has occurred since the brief recession of 2020.

“The most impressive aspect of the latest ACI reading is the stability that has crept in for two key indicators – the value of non-residential buildings completed, and the value of construction works,” Botha said.

The index was boosted by year-on-year increases of more than 5% in both the value of construction works completed and the value of completed buildings. Employment levels and building material sales also recorded improvements during the quarter.

Five of the index’s ten indicators recorded positive year-on-year growth, while one remained unchanged. Of the four indicators that declined, three registered decreases of less than 2%, highlighting the relatively broad-based nature of the sector’s recovery.

One of the most encouraging developments was continued job creation in the industry.

According to Botha, employment in the construction sector increased by 74,000 jobs compared with the first quarter of 2025.

“Despite the combined value of construction works and buildings accounting for only 5.5% of the total value added in the economy, the construction sector was responsible for 11% of the new jobs created in the first quarter of 2026 year-on-year,” he said.

The sector has also benefited from lower borrowing costs over the past year, which have helped reduce the cost of capital for construction projects and property development.

Botha believes recent geopolitical developments could create room for further monetary policy easing later this year. He said lower interest rates have played an important role in lowering the cost of capital formation, and the peace accord between the US and Iran might lead to a resumption of the rate-cutting cycle during the second half of the year.

Botha added that it is encouraging that the total construction tender activity during February and March experienced two consecutive months of double-digit increases.

According to a report published by Industry Insights, overall construction tender activity in South Africa increased by 11.4% year-on-year in the first four months of 2026. KwaZulu-Natal, the Eastern Cape, and the North-West have shown notable increases thus far in 2026.

Botha said a reopening of the Strait of Hormuz and lower global oil prices could contribute to lower inflation and encourage the South African Reserve Bank to resume reducing interest rates.

“A lowering of the prime rate will go a long way to restoring profitability in the construction sector, which is sensitive to the cost of capital – especially in residential construction,” he said.

Meanwhile, Afrimat continues to strengthen its position in the construction materials market. The company recently completed the disposal of certain aggregate quarries and readymix concrete plants as part of its acquisition of Lafarge South Africa Holdings.

The transaction is valued at R215 million, comprising R160m in cash payable on 1 July 2026 and R55m deferred over three years, subject to certain conditions.

Afrimat CEO Andries van Heerden said the group remains focused on building a sustainable South African business anchored in construction materials and bulk commodities.

“Both of these involve open-pit mining, the core of Afrimat’s operations,” he said.

Van Heerden also welcomed the recent decision by the National Energy Regulator of South Africa to approve a reduced electricity tariff for the ferrochrome industry, saying it would support industrial activity and job preservation.

“It also means that our Nkomati Anthracite Mine is ramping up to full production over the next six months.”

BUSINESS REPORT

Jennifer Barkhuizen

South Africa is rewriting the rules of economic empowerment. The draft amendments to the B-BBEE codes, gazetted earlier this year, sharpen the focus on directing more procurement toward black-owned and, specifically, black-women-owned businesses. It is a meaningful shift, and for women entrepreneurs it could prove one of the most important in a decade. It also makes an old question newly urgent: when we say a business is women-owned, how confident are we that it is true?

Consider a case that came before the B-BBEE Commission. A woman employed as a receptionist discovered that she had been recorded as a shareholder in the company she worked for, holding a third of it on paper. She had bought nothing, decided nothing and received nothing. Her name had been placed on the ownership structure to improve the company’s empowerment credentials. It is an extreme example, but the practice it represents is far from rare, and it goes to the heart of whether this next chapter of reform will work.

Enterprise and Supplier Development is one of the most practical instruments we have for growing women-owned businesses. At its best it does three things at once. It provides access to capital that commercial lenders will not extend to an early-stage firm. It offers the mentorship, skills and systems that help a small business mature. And, most valuably, it creates a place in a corporate supply chain, which means recurring revenue rather than a once-off grant. Because the codes attach particular weight to black women’s ownership, a woman-owned supplier is not a compliance favour to a large company. She is a genuinely valuable partner, and that is real commercial leverage. 

This is also why the integrity of the system matters so much. Fronting accounts for approximately 84% of the complaints investigated by the B-BBEE Commission, making it one of the most common forms of abuse. In many cases a business is presented as black-owned or women-owned on paper, while the individuals named exercise no meaningful control and see no real benefit. The receptionist made a shareholder without her knowledge is an extreme example, but the underlying practice is widespread. The consequences extend well beyond compliance. Every fronted women-owned business that secures a contract, tender or supplier opportunity does so at the expense of a genuine entrepreneur. The woman who has invested her time, resources and expertise into building a sustainable business loses out to a façade designed to manipulate a scorecard. In the process, transformation is undermined, trust is eroded, and opportunities intended to empower women are diverted to those exploiting the system rather than contributing to meaningful change.

The temptation is to treat verification as an administrative hurdle, more friction for women who already face enough of it. I would argue the opposite. For the woman who is exactly who she says she is, rigorous verification is not an obstacle. It is what gives her claim meaning. It is what separates her from those trading on a borrowed identity, and it is what allows a corporate to back her with confidence. A women-owned designation that is never tested is a designation easily counterfeited, and the people who lose most when it is counterfeited are the very women the system exists to support. 

For women building real businesses, there is an opportunity in this. Credibility is not a box to be ticked at the end of a procurement process. It is an asset to be built deliberately from the start. The founder who can demonstrate clearly and quickly that she owns and runs her business, that her credentials are sound and her affairs are in order, is the founder who turns ESD access into a lasting supply relationship. In a market where trust has been abused often enough to make buyers cautious, being verifiably and demonstrably real is a competitive advantage.

There is a responsibility on the other side of the table too. As the new procurement targets take effect, the pressure to place spend with women-owned suppliers will rise, and with it the temptation to onboard quickly and verify later, or not at all. That would bea costly mistake. Rushed, unverified onboarding is precisely the gap that fronting exploits, and it quietly defeats the purpose of the reform. Doing the diligence properly is how a company ensures its transformation spend reaches the women it was intended for, rather than the intermediaries positioned to intercept it. 

The reforms now under way could mark a genuine turning point for women-owned businesses in this country. Whether they do will depend not only on how many doors we open, but on how carefully we make sure the right women walk through them. If we treat verification not as a barrier placed in front of women entrepreneurs, but as the protection built around them, Enterprise and Supplier Development can become exactly what it was designed to be: not a box to tick, but a real engine of growth for the women who have earned their place in the economy.

* Jennifer Barkhuizen is head of communications at Mettus and has spent more than 15 years in data, analytics and information services, with particular expertise in hiring risk, credential fraud and the South African labour market.

** The views expressed do not necessarily reflect the views of IOL or Independent Media.

BUSINESS REPORT

The World Bank Container Port Performance Index (CPPI) has reignited debate about the performance of South Africa’s ports, with logistics experts offering differing interpretations of the findings, particularly regarding the Port of Cape Town's continued operational challenges.

Released last week, the CPPI 2025 report highlighted a deterioration in Cape Town’s performance, citing weather-related disruptions and equipment reliability problems as key factors affecting vessel turnaround times.

According to the report, Cape Town's operational difficulties persisted despite fluctuations in broader global supply chain congestion.

“Persistent weather-related disruption, combined with equipment reliability issues, led to high variability in ship times in port despite periods of easing supply chain stress. This deterioration was accompanied by a decline in berth utilization, suggesting that vessels increasingly accumulated time outside productive berth operations,” the report noted.

The World Bank added that the deterioration was accompanied by a decline in berth utilisation, indicating that vessels were spending increasing amounts of time outside productive berth operations.

The report acknowledged that efforts are being made to address these challenges.

Measures introduced at the port include a predictive wind model developed in partnership with the Council for Scientific and Industrial Research (CSIR), a helicopter piloting service designed to improve vessel access during periods of heavy swell, and a digital cargo planning platform aimed at improving operational efficiency.

“The port’s CPPI trajectory underlines how structural exposure to external conditions can dominate performance outcomes, independent of global demand cycles.”

However, industry experts caution against relying solely on the CPPI rankings when assessing overall port performance.

Dr Jacob van Rensburg, head of research and development at the Southern African Association of Freight Forwarders (SAAFF), said the index provides only a partial view of port efficiency.

“The CPPI is a vessel-time-in-port indicator, adjusted for vessel and call size; it is not a whole-system measure of port or logistics performance and does not, on its own, measure port throughput, cost, cargo dwell time, landside evacuation, hinterland connectivity, service reliability, or cargo-owner outcomes,” he said.

“While Durban, Ngqura and Port Elizabeth recorded material year-on-year improvements in the latest index, South Africa’s real challenge is to move beyond isolated indicators and build an integrated, transparent view of the full port-logistics system.”

Van Rensburg said that the improvements posted by Durban, Ngqura and Port Elizabeth, alongside progress by Cape Town, have been achieved under challenging circumstances and deserve recognition.

Malcolm Hartwell, head of transport at Deneys and a master mariner, pointed out that South Africa’s major ports continue to rank among the worst-performing globally.

“The difference between these two ports is that Cape Town’s CPPI has declined since 2024 whereas Durban’s has improved over the same period,” he said.

“The regional average score for Southern Africa is -98, and Cape Town has declined from -281 to -303 in this period and has a ranking of 400. Durban has improved markedly from -721 to -242; it is still ranked 398.” 

Hartwell added that the only other South African ports ranked are Port Elizabeth, which has improved from its score from -169 to -24 and is ranked 314, and Coega, which has gone from -284 to -119 and is ranked 380.

“Our immediate neighbours, being Maputo and Walvis Bay, are ranked 273 and 372 respectively, which is also well below the regional average. There are only 8 ports in the Southern African region in the list, and the average of their scores is well below -98, which suggests an anomaly in the averaging used.”

Hartwell said that the latest CPPI data shows that regardless of the CPPI scores, Cape Town and Durban remain near the bottom of the list.

“Insofar as Durban is concerned, this does not seem to align with the positive data released by Transnet this year regarding the performance of their ports last year or the positive comments from people in the logistics industry in South Africa,” he said.

“The data, however, does show that our ports need to improve significantly to even get near the regional average. The many factors that affect waiting time will need to be analysed by the shipping lines and ports to see where the bottlenecks and delays are.”

Regarding Cape Town, Hartwell said the reasons behind the latest decline remain difficult to determine.

“The current score of -303 is, however, well above that of 2023 when it was -519. The analysis relates to 239 vessel calls, which is a relatively significant number compared to the other ports analysed. It may be that there were more significant weather delays last year, but it is not possible to extract the reasons for the decline from the scores in the report."

BUSINESS REPORT

South African households are becoming increasingly concerned about their financial prospects as soaring fuel costs, higher borrowing expenses and economic uncertainty weigh heavily on consumer sentiment.

This is according to the latest First National Bank (FNB) and Bureau for Economic Research (BER) Consumer Confidence Index (CCI) released on Tuesday.

Consumer confidence plunged by 12 index points during the second quarter of 2026, falling from -7 to -19, marking the lowest reading since the first quarter of 2025 when concerns over a proposed VAT increase rattled households and businesses.

The latest decline was largely driven by the economic fallout from the conflict involving Iran and the temporary closure of the Strait of Hormuz, which sent global oil prices soaring and triggered sharp increases in domestic fuel costs.

The deterioration in confidence was reflected across all three components of the survey, with households becoming more pessimistic about the economy, their own finances and the appropriateness of making major purchases.

Particularly concerning was the sharp decline in the household finances index, which dropped from 12 index points in the first quarter to zero in the second quarter. This indicates that the number of consumers expecting their financial position to improve over the next year is now equal to those anticipating a deterioration.

The survey suggests that higher transport costs have placed significant pressure on household budgets. Petrol prices increased by 29% quarter-on-quarter during the second quarter, equivalent to about R5.60 per litre, while diesel prices surged by 57%, or roughly R10 per litre.

The impact has been most severe among middle- and higher-income households, which typically spend more on private transport, travel and debt repayments.

Confidence among high-income households, defined as those earning more than R20 000 per month, collapsed from -4 to -28 index points during the quarter. The survey found that a net 53% of affluent consumers now expect South Africa’s economic performance to worsen over the next 12 months, compared with just 13% in the previous quarter.

High-income consumers also reversed their outlook on personal finances. While a net 14% previously expected their financial position to improve, a net 7% now anticipate a deterioration.

FNB chief economist Mamello Matikinca-Ngwenya said rising fuel costs and tighter financial conditions have disproportionately affected wealthier consumers.

“With a large portion of high-income households making use of privately owned vehicles for transport, the household budgets of affluent consumers have been hard hit by the massive petrol and diesel price increases during the second quarter,” she said.

“Furthermore, the hike in the prime interest rate, soaring air fares and decline in stock prices on the JSE are all developments that disproportionately affect affluent households.”

The JSE's All Share Index has fallen by approximately 12% since its February peak, further eroding wealth and confidence among higher-income consumers.

While low-income households have thus far been shielded from some of the immediate impacts because they rely more heavily on public transport and have benefited from slowing food inflation, economists warn that these pressures may soon spread.

“In contrast, low-income households mainly rely on public transport, where bus and taxi fares have so far increased far less,” said Matikinca-Ngwenya.

“However, the adverse implications for low-income households are expected to mount once the impacts of higher fuel and fertiliser prices filter through the agriculture value chain to food inflation, as poor households spend a large portion of their budgets on food.”

The weakening confidence outlook raises concerns about consumer spending, a key driver of economic growth. Although real consumer spending remained relatively strong at 3.4% year-on-year in the first quarter of 2026, quarterly growth slowed sharply to just 0.1%.

Matikinca-Ngwenya warned that spending could contract during the second quarter as households tighten their budgets.

“The alarming increase in transport costs and hike in the prime interest rate will seriously strain high- and middle-income households’ ability to spend, the income groups with the greatest purchasing power in the economy,” she said.

Investec chief economist Annabel Bishop concurred that the drop in sentiment reflects the squeeze in finances from both higher inflation and higher fuel prices and will weaken purchasing power. 

“Much will depend on the speed with which fuel prices decline in SA for both inflation and interest rates, as well as household consumption expenditure, GDP and consumer confidence in SA,” she said.

“GDP is expected to show a weak outturn in Q2.26, causing moderation in the growth outlook for the year, with lower demand anticipated and already suppressing industrial production.” 

BUSINESS REPORT 

The story of South Africa’s youth is often dominated by unemployment, financial hardship and uncertainty, but new research paints a more complex picture of a generation that is working, saving, investing in themselves and building towards a better future despite economic pressures.

The newly released 2026 BrandMapp Youth Report reveals that nearly six million economically active consumers under the age of 35 are contributing to the economy, shaping consumer trends and creating their own pathways to independence.

Based on one of South Africa’s largest surveys of consumer class adults, the report challenges the idea that young South Africans are simply struggling to survive, highlighting a generation that is ambitious, digitally fluent and financially intentional.

Brandon De Kock, BrandMapp’s Director of Storytelling, said the research provides a different perspective on young South Africans who are often overlooked in broader economic discussions.

“High rates of youth unemployment, poverty, educational frustrations and inequalities naturally dominate our national conversations about young people,” De Kock said.

“But at BrandMapp, we focus the lens on the segment of our youth who are lucky to be well educated, forging career paths. This is highly relevant because they are contributing significantly to building our economy and tax paying base.”

The report found that consumer class youth make up 40% of the 14 million adults living in households earning more than R10 000 per month, representing almost six million economically empowered young consumers.

“This segment makes up 40% of the 14 million adults living in households earning more than R10K per month, so that’s almost six million economically empowered young consumers who are leading us into the future,” De Kock said.

The research shows that nearly two thirds of consumer class young adults are already participating in the workforce through employment or entrepreneurship. A further 23% are students, while 11% are unemployed, although none of those unemployed respondents reported that they were not actively seeking work.

However, employment does not automatically translate into financial independence.

BrandMapp youth specialist Ashleigh Cumming said young South Africans are experiencing a different transition into adulthood compared with previous generations.

“The challenge is that they don’t yet have the financial security to easily deal with turbulent times, so while older generations are playing Monopoly with their cash, the younger ones are struggling to work out how to survive a game of snakes and ladders,” Cumming said.

More than half of young consumer class adults said they feel financially better off than they were two years ago, showing signs of progress despite economic pressures. However, almost half still rely partially or fully on financial support from parents, relatives or friends.

Cumming said rising living costs have changed the traditional path towards independence.

“The thing is, for younger people, progress is uneven, with everyday expenses absorbing much of the gain,” she said.

“Today, financial progress for young people is much less linear.”

The report also highlights the financial discipline among young consumers. While many are under pressure, their behaviour reflects a desire to build stability.

Cumming said many young people are making responsible financial decisions, even when their ability to save remains limited.

“The challenge isn’t simply income. It’s purchasing power. Relative salaries have not kept pace with the cost of housing, transport, education and everyday living expenses, reducing young people’s ability to convert earnings into financial freedom,” she said.

“They aren’t living hand to mouth but they certainly are living paycheck to paycheck. And the good news is that they have gotten pretty good at it.”

According to the report, the two dominant financial personas among youth are the Guardian at 28% and the Saver at 29%, showing that money management remains a priority.

However, financial pressures continue to limit their ability to build wealth.

“You can have a Guardian mindset and still be unable to save, if the economic system won’t cooperate,” Cumming said.

“What emerges is a generation that is financially intentional, but structurally constrained.”

Despite challenges, BrandMapp found that young consumers remain ambitious about their futures. The report showed that 46% are aiming for a new job this year, while 30% plan to start a business.

De Kock said this reflects a resilience story rather than one of hopelessness.

“Younger consumers are generally happier than older generations. They are more likely to feel unsure about South Africa’s future, but crucially, they're not more pessimistic than older generations,” he said.

The report also reveals how technology is shaping the way young South Africans live, work and consume.

Young consumers are increasingly using artificial intelligence in everyday learning, work, creativity and decision making. Social media platforms influence how they discover products, build identity and consume information, although traditional media remains important when it comes to trust.

De Kock said brands that want to connect with younger consumers will need to operate across both digital and traditional platforms.

“Younger consumers increasingly encounter news and brands through social platforms and peer networks, but when it comes to trust, traditional media still matters,” he said.

“They encounter stories and products through friends, feeds and algorithms, but they still look to established media to determine what is credible.”

The BrandMapp Youth Report suggests that while South Africa’s young consumers face a difficult economic landscape, they are not standing still.

They are adapting, building businesses, pursuing careers and finding new ways to participate in the economy.

For businesses and policymakers, understanding this generation could prove critical as these young consumers increasingly shape the future of South Africa’s economy.

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BUSINESS REPORT 

Anthony Joss

Many hospitality businesses are struggling with a long-standing challenge that the rapid adoption of AI and automation is compounding: finding and retaining the right people.

AI, automated booking systems, cloud-based management platforms, smart scheduling and inventory tools – and more – are reshaping hospitality operations. And, as technology takes care of the administrative burden that has traditionally consumed large portions of employees’ efforts, staff have more time to create genuine emotional connections and deliver the personalised service that guests remember.

But there is a disconnect. In a recent publication, the South African Hoteliers Report indicates that 77% of South African hoteliers are exploring new technologies, 76% do not yet have a formal AI strategy – often leading to a skills gap. Globally, 76% of hotels report staffing shortages, and 77% of South African hoteliers identify human capital as the biggest obstacle to long-term sustainability.

Demand is growing for employees who can deliver exceptional guest experiences and perform confidently in dynamic environments. Technology can enhance efficiency, but it cannot replace empathy, adaptability, and interpersonal connection. We see many organisations embracing technology, only to find that they struggle to source the right people to maximise its value.

Finding staff members who combine service excellence with strong interpersonal capabilities is becoming a critical competitive advantage in the industry. This highlights the importance of ensuring that workforce planning evolves alongside technological investment, and it is where strategic recruitment partnerships are becoming increasingly important.

Experienced, industry-specific recruiters understand that hospitality businesses require more than access to candidates. They recognise that hoteliers and event providers need solutions that align staffing requirements with operational realities.

This tech vs. talent imbalance is, in no small part, deepened by guests’ expectations. They are increasingly expecting convenient seamless digital experiences, but the moments that shape their overall perception of an event and venue remain deeply human.

A warm welcome, a staff member resolving an unexpected issue in real time, or a banquet team anticipating needs before they are voiced – these are all aspects that cannot be automated. As a result, the skills that hospitality employers prioritise are changing. Traditional administrative competencies remain important, but emotional intelligence, communication skills, customer-centric thinking, and problem solving abilities are becoming increasingly valuable.

Because demand can change significantly within short timeframes, the ability to scale staffing levels quickly without compromising service standards is particularly valuable in hospitality operations.

The right staffing partner brings a deep understanding of the industry’s unique pressures, including fluctuating occupancies, seasonal demand, and the need to maintain service quality during peak periods. And, because they build and retain talent pools, their clients can recruit, develop, and manage the right staff at short notice while being confident that these people have the skills to hit the ground running.

The need is particularly acute in South Africa, where the sector continues to contend with talent shortages, employee burnout, and retention challenges. The disruption caused by the pandemic accelerated the loss of experienced hospitality professionals, and concerns around career progression and work intensity continue to affect workforce stability.

The hospitality industry faces a deepening human capital challenge, but it is also entering an exciting new era.

Technology is creating opportunities for people to focus on the aspects of hospitality that matter most. Success will come from combining digital efficiency with exceptional interaction. Because premium experiences still depend on human connection, the right people remain the ultimate differentiator, and the right staffing partner is the ultimate enabler.

* Anthony Joss is the managing executive at Zest by Adcorp.

** The views expressed do not necessarily reflect the views of IOL or Independent Media.

BUSINESS REPORT

JSE-listed Attacq is involved in about R2.1 billion of property development at its flagship development in Midrand, Waterfall City.

Waterfall City, in the Midrand Corridor, has become an iconic smart city. In an operational update on Tuesday, Attacq said the 527,671 square metre development is currently valued at R14.3bn and has already created some 23,151 jobs while generating monthly income of R94.9 million.

Completed developments so far at Waterfall City through the 2026 financial year to June 2026 included Vantage Data Centre and the 13,386 square metre, Ellipse Waterfall, phase 3 apartment development.

Developments under construction include the 12,613 square metre Gateway East, with a development cost of R359,2m, which will include restaurants and collaboration hubs as tenants, and the 22,142 square metre LP3 (Logistics Park 3) warehouse. Gateway East is scheduled to be completed in the second quarter of the 2027 financial year.

The approved development pipeline also includes a client-led logistics warehouse, a hotel and conference facility, the Aspire residential development, and a City Lodge expansion. Significant infrastructure rollout is also planned.

Total development activity at Waterfall City currently spans 87,516 square metres of gross lettable area,  andrepresents about R2.1bn of capital investment.

At Aspire Waterfall City, the second tallest building in Waterfall City, 152 apartment sales have been concluded with a value of R384.9m, with practical completion expected in the third quarter of 2028.

The Galileo Tower Phase 3 involves 220 units in 13 storeys. Two hundred and fifteen units of bankable sales have been concluded, with a total value of R501.9m. The practical completion date of this project is in the second quarter of this financial year.

A hospitality and conferencing facility is being built at the south-eastern corner of Mall of Africa in a partnership, with a total development cost of R634.3m. The estimated practical completion date is in the second quarter of 2028.

The client-led warehouse development involves a joint venture facility over 16,072 square metres, with the client holding 50%, located near Waterfall City Junction, phase 1. It is being built at a cost of R277.7m, and the completion date is scheduled for 18 months.

The speculative LP3 (logisfics park 3) warehouse development covers 22,142 square metres in a joint venture with Sanlam. Located at Waterfall City Junction, phase 1, it has a development cost of R253.4m and is expected to be completed in the third quarter of 2027.

Attacq’s interest-bearing debt stood at R7.66bn by the end of April versus R6.78bn at the end of June 2025. Gearing at April-end stood at a comfortable 25.1 versus 25.3 at the end of June 2025.

Attacq said its overall net property income is trading on budget for the year to end June 30, while occupancy rates increased to 95.1% from 91.6% the previous year.

The client retention rate is also expected to improve to 93,7% from 84,4% the previous year, while collection rates stood at 100.3% from 100% the previous year.

BUSINESS REPORT

At a time when the impacts of the climate crisis are already being felt worldwide, we keep returning to one question: What makes collective action possible? 

This week, multiple role players in the climate discourse descended on London for Climate Action Week (LCAW) an open and inclusive platform for action and one of the world’s largest independent climate events, it brings together more than 75,000 people across more than 1,000 events. 

LCAW is a notable event in the climate calendar where climate action happens between COPs, where the UN Global Climate Action Agenda comes alive in cities and communities, and where the international climate community gathers to build the cooperation for progress and action.

It is precisely at this intersection that South Africa and Africa are at London Climate Action Week alongside partners, movements, community organizations, funders, and networks from the Global South. 

Our participation is about contributing to conversations about the power of collaboration. 

We will, with good intent, engage people and institutions that have been building the foundations of emerging international ecosystem at the intersection of climate policy, action, and finance — an agenda that is gaining momentum as the understanding that there will be no action without finance.

Our goal is to shift the financing conversation from funding isolated projects to investing in "Ecosystems of Change", where foundational institutional capacity building is recognized as the ultimate catalyst for long-term climate resilience.   

Our three takeaways from London will be (1) adaptation finance, (2) investment in energy and (3) cooperation and country platforms. 

Our investment drive for adaptation and just energy transition investments

We know and have empirical evidence that international funders favour mitigation and hard infrastructure. We want to formulate a specific, costed "ask" for donors at London Climate Action Week that proves the value of funding governance, modelling, and planning.

As global North donors often prioritize mitigation, closing the massive adaptation finance gap remains a challenge. If a major philanthropic donor at London Climate Action Week wants to make a systemic impact on South Africa's climate resilience, we are clear on what is needed. 

Scaling Finance through the Just Adaptation and Resilience Investment Plan (J-ARIP): The PCC is developing the Just Adaptation and Resilience Investment Plan (JARIP) to consolidate adaptation financing needs into a formal pipeline. However, moving a project from a "community need" to a "bankable business case" requires expensive pre-feasibility studies and engineering designs that municipalities cannot afford.

Building the resilience of grid infrastructure is often overlooked within just energy transition planning.

We require additional funding to safeguard South Africa’s Just Energy Transition by embedding climate resilience into the country’s critical grid expansion planning.

By co-developing a "Climate-Resilient Grid Expansion Framework" and engaging key stakeholders, the PCC seeks to generate evidence-based recommendations that integrate adaptation measures into financing, procurement, and spatial planning, ensuring that the massive infrastructure build-out required for decarbonization remains operational and financially viable in a changing climate.

Country platforms and regional cooperation

In London, we want to position South Africa as an investable environment and a peer leader on the continent without a big brother, know-it-all attitude.

The ICCN African Regional Hub, currently facilitated by South Africa, is not a prescriptive centre of instruction, but more of a peer learning and peer review platform.

We recognise that climate councils across the continent face a shared set of structural challenges: securing legal independence without political isolation, and operationalizing ambitious mandates with limited resources. 

Through this Hub, we are creating a 'horizontal' platform to exchange the practical realities of establishment including issues such as advising on the drafting legislation to negotiating donor contracts, so that we can all build stronger, more durable institutions together, as well as amplify collective positions on regional and global issues affecting our domestic climate governance landscapes.

In the same context country platforms have emerged as one of the most promising approaches for mobilizing investment in clean energy, industry, and infrastructure," and to allow a broad range of stakeholders to draw on proven approaches and adapt them to their own national contexts.

South Africa also supported the launch the   New Country Platform Knowledge Portal which provides practical tools, guidance, and lessons from existing platforms to mobilize investment at scale.  

We are once again a pacesetter as  this portal   draws on the experience of established platforms, including the Brazil Climate and Ecological Transformation Investment Platform, and the South Africa, Vietnam and Indonesia Just Energy Transition Partnership, incorporating insights from governments, financial institutions  will serve as an important resource for countries looking to design country platforms of their own. 

In London, we want to position South Africa as an investable environment and a peer leader on the continent without a big brother, know it all attitude.

Blessing Manale, Executive Manager, Consensus Building, Communications and Outreach.

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BUSINESS REPORT 

The African continent must accelerate efforts to diversify its economies, deepen regional integration and invest in critical infrastructure if it is to unlock its full trade and investment potential, according to a new report released by the African Export-Import Bank (Afreximbank).

In the latest edition of its Trade and Development Finance Brief, Afreximbank examines the structural challenges shaping the continent’s trade performance and investment outlook amid growing global economic uncertainty.

The report finds that Africa’s trade profile remains heavily dependent on exports of raw materials, including agricultural commodities, oil, gas and minerals, while imports continue to be dominated by manufactured goods, machinery and other value-added products.

According to the report, this trade structure leaves many African economies vulnerable to external shocks, including commodity price fluctuations, geopolitical tensions and disruptions to global supply chains.

Afreximbank argues that addressing these vulnerabilities will require a deliberate shift towards industrialisation, value addition and stronger regional trade linkages.

Central to this transformation is the implementation of the African Continental Free Trade Area (AfCFTA), which the report identifies as a key mechanism for diversifying trade, strengthening regional value chains and expanding intra-African commerce.

The report notes that the AfCFTA, together with the African Union’s Agenda 2063 development framework, provides a practical roadmap for integrating fragmented markets across the continent and promoting industrial development.

The findings reinforce the importance of accelerating regional integration, expanding trade finance and investing in productive infrastructure if Africa is to build a more diversified, competitive and investment-ready economy in the years ahead.

As implementation progresses, intra-African exports are projected to increase by more than 20% over the next decade, creating new opportunities for businesses and improving economic resilience.

The report also highlights the urgent need for increased investment in trade-enabling infrastructure. Key priorities include expanding energy generation and transmission networks, improving transport systems, upgrading ports and logistics facilities, and strengthening communications infrastructure.

According to the publication, targeted infrastructure investments can significantly reduce the cost of doing business, improve cross-border trade efficiency and support industrialisation efforts across the continent.

In addition to infrastructure development, the report identifies several other priorities necessary to strengthen Africa’s trade and investment ecosystem. These include improving regulatory coherence, strengthening institutions, promoting economic diversification, expanding access to finance for small and medium-sized enterprises (SMEs) and accelerating the adoption of digital financial technologies.

The report notes that both domestic and foreign investment are increasing across many African economies, although foreign capital continues to dominate investment flows.

It also points out that investment remains unevenly distributed, with Eastern and Southern Africa attracting a larger share of foreign direct investment than Western and Central Africa.

Afreximbank believes these trends underscore the need for coordinated action among governments, development finance institutions and private-sector stakeholders to create a more balanced and resilient investment landscape.

Dr. Yemi Kale, group chief economist and managing director of research at Afreximbank, said regional development finance institutions have an increasingly important role to play in supporting trade and investment across the continent.

“Regional development finance institutions, including the African Export-Import Bank, are playing an increasing role in supporting intra-African trade through trade finance and related initiatives,” said Kale.

She noted that the report highlights several Afreximbank-led initiatives designed to strengthen Africa’s trade ecosystem, including the Intra-African Trade Fair, the Pan-African Payment and Settlement System (PAPSS), the AfCFTA Adjustment Fund, the Border Markets Initiative and the Collaborative Transit Guarantee Scheme.

These initiatives aim to address longstanding barriers to trade by improving access to finance, reducing transaction costs and facilitating cross-border business activities. While acknowledging the progress made in recent years, the report concludes that substantial challenges remain.

“Addressing these gaps will be essential to increasing financing, strengthening competitiveness and unlocking Africa’s full trade and investment potential,” Kale said.

BUSINESS REPORT

Kristalina Georgieva

More than three months into the war in the Middle East, the global economy appears to be holding up. Commodity prices, inflation and expectations for it, and financial conditions have all been impacted—but not yet in ways that signal a global slowdown. And we have seen strong economic momentum in the world’s biggest economies, the United States and China.

But an overall resilient global picture masks significant disparities. Even among advanced economies, some countries and communities have been harder hit. And in Africa, the negative impacts are more conspicuous. Meanwhile, with the prolonged closure of the Strait of Hormuz and infrastructure in the Middle East damaged by the fighting, uncertainty and risks remain high.

We will provide an updated analysis of this global picture on July 8, in our next World Economic Outlook Update.

Drivers of global resilience so far

At the conflict’s outset, our immediate concern was the impact on energy prices and knock-on effects on inflation. And they have been considerable. Oil prices are 30% higher than pre-war levels. Yet that is lower than was seen earlier in the conflict, despite the straits’ prolonged closure.

Some countries, such as China, have been able—for now—to cushion the disruption by tapping deep oil reserves. This has also helped with demand pressures in otherwise hard-hit Asia. Increased production and refinery utilization outside the Gulf, although not sufficient to offset the shock, have also contained the increase in oil prices. In addition, actions to dampen demand or limit the price passthrough have mitigated the impact so far. But, here too, there are limits to how long countries can manage the higher budgetary costs and higher external financing requirements.

In many economies, higher oil prices are nonetheless contributing to a pickup in headline inflation. That is concerning—but not the full story. It is also important to consider whether people and businesses expect a more persistent erosion of their purchasing power. And these medium-term expectations generally remain well anchored. That’s an encouraging sign of confidence in central banks’ commitment to price stability.

Financial markets have also proven resilient. Government bond yields have climbed significantly since the war began, but risk assets have rallied on strong earnings, and we see little evidence of a broader flight to safety. By historical standards, financial conditions remain accommodative.

Technology is another bright spot. Strong technology-related investment—particularly in artificial intelligence and data centers—has been a driving force in the countries where economic momentum is holding up. The United States is benefiting from this global technology cycle, as are economies in Asia that have seen stronger technology exports. Most countries, however, are yet to feel the productivity and growth impact of technology, leading to concerns about further economic divergence.

To sum up, the combination of economic resilience and technological advancements have helped to cushion the impact of the energy supply shock on growth at the global level and there have been bright spots within regions. But there are countries that are harder hit, largely depending on geography, degree of energy dependence, and available policy space.

Hardest hit

For war impacts, proximity matters. Oil exporters around the Gulf that are directly affected by the war face steep downward revisions to growth this year, with five out of eight countries seeing outright contractions.

For Europe, which is heavily dependent on imported oil and gas, higher energy prices are weighing on growth and putting upward pressure on inflation, with the ECB recently raising interest rates.

Emerging market economies in Asia are also bearing the brunt—with the relatively higher oil and gas intensity of the economies in the region. They face retail gasoline prices that have increased 40 percent since the war began, while rising government bond yields and currency depreciation and capital outflow pressures have amplified the costs of the shock.

Yet, it is the countries that combine heavy reliance on energy imports with limited policy space that are especially hard-hit.

The strain is especially visible in Africa, where many of these factors are at play. For countries in the region that rely heavily on imports, rising costs are worsening external balances and increasing budgetary pressures—and financing needs.

Several African countries have been managing fuel shortages—including Ethiopia, Malawi, and Zambia—and most are feeling the pain of sharp fuel price increases. In countries such as Lesotho, Rwanda, and Tanzania, gasoline prices have increased by about half since the onset of the war.

Higher energy prices have also driven up fertilizer and food costs, increasing the risk of food insecurity. If disruptions persist, farmers in many low-income countries may struggle. That in turn may further fuel inflation for months to come.

Needed: policy discipline and agility

As we have said before, much depends on the duration and intensity of the energy supply shock. The sooner it is resolved, the better—especially as supply will take time to recover given the significant infrastructure damage—and Sunday’s ceasefire announcement is welcome. But should the conflict or disruptions intensify, this is a clear risk to global growth.

This continued high uncertainty underscores the need for all policymakers to be agile and disciplined. Maintaining price stability is essential. Already, some central banks have begun to tighten to keep inflation expectations anchored.

With borrowing costs rising, fiscal discipline is equally important. Price caps, subsidies and similar interventions may be popular, but they are costly. Fiscal responses should be targeted, temporary, preserve price signals, and well-sequenced to protect the vulnerable without undermining public finances.

This is even more important given the need to make room for the fiscal costs of ensuring that AI-driven growth translates into shared prosperity. That includes both the fiscal costs to address new vulnerabilities, as well as investing in technology and people to ensure that emerging and developing economies are not left behind.

Supporting affected members

While there is much our members can do to cushion the impact of the war, they shouldn’t have to go it alone. The Fund remains as committed as ever to helping our member countries navigate this period of heightened uncertainty. Just as the effects vary across countries and regions, our support is tailored to meet the differentiated needs of our members.

For now, most member countries are asking for clear, candid policy guidance rather than financial support. And we have duly responded—providing tailored policy advice and capacity development. While the risks have not yet receded, embracing the right policies will help provide some relief.

For those countries that need financial support, we are stepping up. We are working with several countries and will soon present to our Executive Board proposals to adjust existing programs in response to the shock. The Gambia has requested an augmentation and program extension. Burkina Faso has reached staff-level agreement on a funding increase to address higher external financing needs. In Ethiopia, we aim to bring forward financing to this year, while we have initiated discussions on a new program with Malawi. Bangladesh also has requested a new program.

That the global economy is so far weathering the shock is cause for reassurance—but not complacency. The IMF remains on high alert. We are also deeply mindful of the economic damage some of our members are already suffering. We will work with them to manage the shock and limit its negative impacts, especially on the vulnerable. Our commitment to our membership is unwavering. 

* Kristalina Georgieva is the managing director of the International Monetary Fund.

** The views expressed do not necessarily reflect the views of IOL or Independent Media.

BUSINESS REPORT

JSE-listed York Timber Holdings, the largest solid wood processor in South Africa, has reached a 10-year power purchase agreement (PPA) with Discovery Green, a renewable energy platform.

Under the agreement, Discovery Green will convert 90% of York Timber’s Jessievale sawmill’s energy usage into renewable energy, reducing its carbon emissions by thousands of tons of carbon dioxide each year. This will ultimately deliver better energy economics for the next 10 years.

The Jessievale Sawmill, located in Warburton, Mpumalanga, is one of York Timbers' primary processing facilities. It processes approximately 225,000 cubic metres of timber a year.

York Timbers joins more than 50 companies that have selected Discovery Green’s energy wheeling platform to meet their renewable energy objectives. Discovery Green already has more than 740MW in generation under development for these customers.

In March, Discovery Green also announced an offtake agreement with Anthem, a South African renewable energy investment holding business, which had reached financial close of its 1,500,000 MWh Notsi solar photovoltaic (PV) project, in the Free State, currently the largest project in South Africa of its ind, and which is expected to finish construction in 26 months.

Discovery Green, started by Discovery South Africa in September 2023, helps businesses transition to clean, affordable, and reliable power sourced from large-scale wind and solar plants.

The PPA supports greater cost efficiencies in York Timbers' operations and marks a big step in the company's ongoing journey to embed sustainability into its business while maximising environmental value, a statement said.

“It is heartening to see a listed forestry company take the lead in reshaping the commercial and sustainability landscape of the forestry sector,” said Discovery Green’s head, Andre Nepgen.

Schalk Barnard, interim CEO of York Timbers, said Discovery Green “worked closely with us to develop a solution that suited our needs.” Cost was a central driver in their decision.

“The solution provides long-term cost certainty at a time when energy costs remain a significant driver of our production costs and overall profitability,” said Barnard. The PPA will also have a positive impact on York Timbers’ regulatory compliance.

“As an integrated forestry company, we are committed to meeting internationally recognised standards, including Forest Stewardship Council (FSC) certification requirements and the International Finance Corporation's (IFC) Performance Standards on Environmental and Social Sustainability,” said Barnard.

“These standards help us maintain access to key markets, strengthen stakeholder confidence, and support our sustainability objectives. Clean energy is an important component of that commitment.”

He said the impact of cost-effective production from renewable energy would translate into a meaningful return for our shareholders, while the resulting embedded sustainable practices would generate positive returns for the environment.

“This PPA is an example of how enterprise-scale agricultural and forestry players can modernise their energy procurement for commercial impact,” said Nepgen.

BUSINESS REPORT

The El Niño-linked drought that parched Southern Africa in 2024 emptied one of the most important pieces of energy infrastructure on the continent.

Lake Kariba, which stretches across the border between Zambia and Zimbabwe, dropped towards some of its lowest usable levels in years as rainfall across the Zambezi basin dwindled.

In Zambia, the consequences were felt through a power system closely tied to copper production and mining expansion, while in Zimbabwe the pressure exposed the limitations of an already strained and aging generation fleet.

The same event can carry profoundly different implications between African countries, and why risk across African energy projects similarly cannot be approached through a single lens.

There is little doubt that Africa’s energy sector has become one of the world’s most significant long-term investment opportunities, but this premise is often discussed in ways that imply a degree of uniformity that does not actually exist. Investors may speak about “Africa” collectively, yet projects ultimately move through individual jurisdictions with very different realities.

In South Africa, for example, a renewable-energy investor is often less concerned with whether private generation is politically acceptable than whether a project can physically connect to the grid at all, particularly in the country’s strongest wind and solar corridors where Eskom’s own transmission assessments show much of the available grid capacity has already been depleted.

In Nigeria, the same investor encounters a very different problem: tariff politics, foreign-exchange volatility, and weak distribution-company collections that have been shown to destabilise project economics.

These differences become even more pronounced where projects depend on regional infrastructure and cross-border electricity trade.

Power interconnectors may link multiple markets, but their implementation is often shaped by regulatory and operational conditions that differ from one jurisdiction to the next.

For investors, this means risk cannot be assessed solely at either a country or continental level; it requires both a local understanding of individual markets and a regional perspective on how those markets interact.

That is why when advising investors now, particularly those coming into African energy markets from outside the continent, the term that comes up more and more is jurisdiction-specific risk management. 

Technically, this means structuring projects around the regulatory, financial, political, and operational conditions of the individual market in which they are being developed, rather than applying a standardised risk approach across multiple African countries.

That can influence everything from project financing structures and currency hedging to offtake arrangements, tariff assumptions, political-risk cover, transmission planning, and the way investors engage with the wider institutional environment over the life of the asset. 

For many investors, that level of localisation has not always been a given. But perhaps one recurring theme changing that perception now is financial-market risk.

For example, it is easy to treat foreign-exchange (FX) risk as a single, universal challenge, but it plays out very differently across markets.

It depends on the depth of currency liquidity, access to local currency funding, and the rules around convertibility and dollarisation. In stronger systems, investors can manage exposure with some predictability, while in others, thin markets and restricted convertibility make hedging difficult or, at times, impractical.

Interest-rate risk presents a different challenge: the maturity of local benchmark rates. Where credible, long-dated benchmarks exist, investors can price and structure long-term projects with greater confidence, but where they do not, the absence of reliable reference rates limits the ability to manage financing costs effectively, adding another layer of uncertainty to project viability.

Hedging has become one of the most important tools for managing foreign-exchange exposure, particularly in markets where currency risk can undermine a project long after construction has been completed.

Yet many of the conventional hedging instruments commonly used in more developed markets are not always practical or affordable in the African context.

There are areas where currency convertibility constraints and thin derivatives markets make long-term protection against depreciation difficult to secure, while local currency financing is often limited or unavailable at the scale and tenor large infrastructure projects require. That creates a difficult mismatch for projects earning revenue in local currency while carrying debt exposure tied to dollars or euros.

What has emerged instead is a much more adaptive approach to managing currency exposure.

In some markets, convertibility mechanisms are facilitated directly by central banks or structured through commercial banks with central bank backing, offering protection in jurisdictions where local capital markets are limited.

In others, developers are relying more heavily on contractual structures that align pricing, payment terms, and currency exposure in ways that reduce vulnerability over the life of the asset.

As renewable investment scales across the continent, conventional risk tools will need to be complemented by market-responsive strategies that reflect the institutional and financial realities of each context.

One of the biggest mistakes that can be made here though is treating risk management as something largely resolved once a project reaches financial close.

Energy projects can operate for decades, while market conditions around them may change several times over during that period. That is why active management is becoming such an important part of how investors approach these projects today. 

The further renewable investment scales across the continent, the harder it may become for investors to rely on broad continental assumptions in place of a deep understanding of how individual markets actually function over time.

Vuyo Mafrika, Head, Global Markets, Client Solutions –  Africa Regional Offices; Chewe Chumanya, Bank  Manager, Absa Zambia; and Opy Ramaremisa, Head, Client Solutions, Absa CIB.

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BUSINESS REPORT 

For Commercial and Industrial (C&I) energy users who want to secure cheaper, cleaner, and more resilient power, embedded generation, solar PV and battery storage installed on-site, is the strongest foundation. 

Lately though, a misconception is taking hold. 

Wheeling, the process of buying electricity from a remote renewable plant via the national grid, is being actively marketed and is increasingly pitched to C&I users as the ultimate route to lower costs and decarbonisation.

It is a valuable part of the energy mix but presenting it as the first move has created real uncertainty about which renewable solution to start with. 

The answer is a sequencing question.

On almost every important measure, embedded is the superior product, so it should come first.

Wheeling works best as an addition to embedded, not a substitute for it.

Build the foundation behind the meter, maximise those savings, and then layer in wheeled power where the numbers make commercial sense. 

The financial reality of retail versus wholesale

The most important factor in any electricity strategy is the tariff you already pay.

With embedded generation, every kilowatt-hour (kWh) produced replaces electricity bought at the full Eskom or municipal time-of-use tariff.

This is the highest rate on an electricity bill, and it continues to rise above inflation.

Wheeling operates on a different principle.

The credit on an electricity bill for wheeled energy is the Eskom Wholesale Energy Purchase Structure (WEPS), a rate that is materially lower than retail costs.

So, for every unit generated, an embedded system delivers higher savings than a wheeled project. Embedded solar could save around R1.50 per kWh against roughly R0.72 for wheeling, as illustrated below.

Installing operational resilience

Embedded generation does more than cut immediate costs.

With a battery system installed it reduces peak demand, lowering what is drawn from the grid when usage is highest.

Staying under your nominated maximum demand can save a great deal.

The same battery can also arbitrage the time-of-use tariff, charging cheaply during off-peak periods and discharging during expensive peak windows. 

Wheeling cannot reduce these charges because it does not change a site’s grid demand profile.

Wheeled power remains dependent on the grid, so when the grid goes down, supply is interrupted.

A battery system acts as a power buffer, providing essential backup during load shedding while filtering the harmful voltage fluctuations and harmonics that now frequently plague the local grid. Insulating the site from grid instability protects a business against downtime and equipment damage.

Embedded generation functions at the point of consumption. This eliminates the 5–10% physical line losses inherent in wheeled energy and ensures that every electron produced is utilised on-site.

The timing gap: electrons today, not 2027

Timing matters too.

Embedded systems can be designed, permitted, and commissioned within a few months, cutting bills immediately. Many wheeling projects currently being marketed are still in the construction or funding phase, with commercial operation dates set for late 2026 or beyond.

Getting the sequence right

Wheeling is an excellent way to increase renewable penetration once a site is optimised.

Before signing a wheeling PPA, the foundation should be built at home and behind-the-meter savings maximised first.

Then, if the numbers still make commercial sense, wheeling can be layered in to take the next step in a sustainability journey.

Start with the solution that offers the best return, the most resilience, and the fastest path to energy independence.

Paul Mansour, Chief Executive Officer at Sustainable Power Solutions (SPS).

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BUSINESS REPORT 

For many high-net-worth South African families, investing offshore has evolved from a tax-planning exercise into a far broader conversation about governance, succession, and growing and protecting wealth across generations. But as regulators place greater emphasis on transparency and substance, the effectiveness of these structures increasingly depends on how they are managed.

The global environment has changed significantly. Authorities are no longer scrutinising whether offshore structures exist – they are looking for genuine independent governance and commercial rationale.

Transparency is key

South Africa’s participation in the Common Reporting Standard has significantly altered the cross-border investment landscape for taxpayers. The framework enables the automatic exchange of financial account information between participating jurisdictions, giving tax authorities far greater visibility into a structure’s assets and financial interests.

As a result, offshore planning today operates in a far more transparent environment, and compliant structures are built on full disclosure and defensible governance. Arrangements that lack proper administration, commercial substance, or independent oversight may expose individuals to tax challenges, reputational risks, or unintended estate-planning consequences.

Governance matters

Tax residency is an often-misunderstood aspect. Mannie explains that registering a trust in another jurisdiction does not automatically make it non-resident for South African tax purposes.

Authorities will look at where strategic decisions are made, where trustee meetings occur, who exercises effective control, and whether trustees are acting independently. If effective management is still taking place in South Africa, the South African Revenue Service may regard the structure as a South African tax resident regardless of where it was established.

Countries with regulatory frameworks, political stability, and professional fiduciary environments, like Guernsey and the Isle of Man, are often viewed favourably from a governance perspective.

Independent trustees also play a central role in maintaining the integrity of offshore trusts. They are required to exercise genuine fiduciary discretion and act in the interests of beneficiaries rather than simply carrying out the settlors' wishes behind the scenes.

The role of the settlor is equally critical: if they control trust decisions informally, the credibility of a structure can become vulnerable under scrutiny.

Mobility and generational wealth

The conversation around offshore structuring is also becoming increasingly relevant for South Africans relocating abroad, returning to South Africa after accumulating international wealth, or consolidating assets across multiple jurisdictions.

South African tax residents are taxed on worldwide assets, which makes the timing of residency changes and asset structuring particularly important. Proactive planning before a change in tax residency can often improve long-term tax efficiency, succession planning outcomes, and asset protection.

South African families are increasingly focused on continuity and protecting wealth against future uncertainty rather than short-term outcomes. Effective offshore implementation is ultimately about creating arrangements that are sustainable, compliant, and resilient over time.

This is precisely why offshore planning should never be approached as a standardised exercise: Every family’s circumstances, residency position, and long-term objectives are different. Before making any offshore decisions, it is essential to work with experienced tax and legal professionals who understand both the South African and international regulatory landscapes.

* Mannie is a consultant at Sovereign Trust (SA).

PERSONAL FINANCE

The South African Revenue Service (Sars) has officially launched its 2026 Filing Season, with millions of taxpayers set to receive auto-assessments from next month as the tax authority continues its drive towards a more digital and streamlined tax administration system.

This year's filing season will begin with an Auto Assessment period from July 1 to 12 2026, followed by the main filing season for individual taxpayers from July 13 to 23 October 2026. Provisional taxpayers will have until January 22, 2027 to submit their returns.

Sars expects to issue approximately six million auto-assessments this year, relying on information received from employers, financial institutions, medical schemes, retirement funds and other third-party data providers to pre-populate taxpayer returns.

The tax authority says the phased approach is designed to reduce pressure on its service channels, improve efficiency and provide greater certainty about when taxpayers are required to act.

"While today's launch marks the continuation of the Filing Season communication campaign, Filing Season does not open to everyone at the same time," said Sars commissioner Johnstone Makhubu.

The commissioner described the auto-assessment process as a major innovation that allows Sars to automatically calculate tax obligations for taxpayers whose affairs are relatively straightforward and whose information has already been submitted by third parties.

For taxpayers selected for auto-assessment, Sars says no action is required if the information reflected is accurate and complete. Where a refund is due and all banking and personal details are in order, refunds are expected to be processed within 72 hours.

"Our point of departure this year is our recognition that behind every tax number is a person trying to get it right while managing the pressures of daily life," said Makhubu.

"With that in mind, Sars encourages taxpayers to do a pre–Filing Season health check by confirming that their personal details, banking particulars, contact information, and tax affairs are up to date. A closed bank account, missing third-party data submission, or an outstanding return from a previous year can all delay an otherwise smooth outcome."

Sars has urged taxpayers not to rush to branch offices during the auto-assessment period and instead make use of digital channels, including eFiling, the Sars MobiApp, WhatsApp support services and the Sars Online Query System.

The revenue service has also introduced additional system capacity and a virtual waiting room to manage periods of high demand on its online platforms.

Understanding who must file

The launch of filing season comes shortly after Sars published its updated Guide on Income Tax and the Individual (2025/26), a document aimed at helping taxpayers better understand their obligations and the consequences of non-compliance.

According to Jashwin Baijoo, partner and head of strategic engagement and compliance at Tax Consulting SA, the guide provides important clarity on when taxpayers are required to submit returns and highlights the increasingly serious consequences of getting tax matters wrong.

"Although not an 'official publication' as defined in section 1 of the Tax Administration Act, 28 of 2011, the guide serves to clearly inform taxpayers of both their income tax commitments, and the hefty consequences of failing to meet those obligations, including Understatement Penalties of up to 200% and criminal sanctions."

One area that continues to cause confusion is determining who qualifies for auto-assessment and who remains responsible for submitting a return.

The guide outlines several situations where taxpayers are required to file returns, including where they receive income from multiple employers, earn income for services rendered outside South Africa, realise capital gains exceeding R40,000, receive taxable travel or vehicle allowances, or where Sars specifically instructs them to submit a return.

Importantly, taxpayers cannot assume that receiving an auto-assessment means they no longer have responsibilities. Any incorrect information must be corrected promptly through SARS's digital platforms.

The growing cost of non-compliance

While Sars continues to simplify filing, the tax authority is simultaneously intensifying its enforcement efforts against non-compliant taxpayers.

Baijoo says many taxpayers underestimate the seriousness of administrative and criminal penalties that can arise from failures to comply with tax legislation.

"Taking it from the ground up, there are some basics you need to know to stay on the right side in Sars' War on Non-Compliance and the guide clearly illustrates some examples of 'criminal behaviour', as contained in section 234 of the Tax Administration Act."

These offences extend beyond deliberate tax evasion and may include failures to submit required returns, neglecting to update taxpayer information, retaining inadequate records or providing incorrect information to Sars.

According to the Tax Administration Act, certain offences can result in fines or prison sentences of up to two years upon conviction.

More serious offences involving tax evasion carry even harsher consequences.

"With the punishment fitting the crime, criminal offences relating to 'tax evasion', as contained section 235 of the Tax Administration Act, carry a liability, upon conviction, of a fine, or a maximum prison sentence of 5 years – this includes making false statements on a tax return with the intention of evading tax or obtaining an undue refund," says Baijoo.

Penalties can escalate rapidly

Beyond criminal sanctions, taxpayers who miss filing deadlines face recurring administrative penalties that can accumulate quickly.

Sars may impose monthly administrative penalties for outstanding tax returns, with penalties reaching as much as R16,000 per month depending on a taxpayer's taxable income and compliance history.

Interest charges are also levied on outstanding tax debts and underpayments, causing liabilities to grow significantly over time.

According to Baijoo, taxpayers often underestimate how quickly penalties, interest and additional assessments can compound.

"The nail in the coffin is always the Understatement Penalties, capping at a bank-breaking 200% of the capital taxes due!"

He cautioned that once Sars begins raising estimated assessments, issuing final demands or identifying discrepancies in submitted information, taxpayers may find themselves facing substantial financial exposure.

Refund delays not always a cause for concern

One of the most common concerns during filing season remains delayed tax refunds.

Sars says taxpayers should not automatically assume that delays indicate a problem. Verification procedures may be triggered for a variety of legitimate reasons, including mismatched banking details, recent account changes, outstanding tax obligations from previous years or updated information submitted by third-party providers after an initial assessment has been issued.

The tax authority stressed that these verification processes are necessary to ensure the accuracy and integrity of the tax system.

Makhubu said filing season is ultimately about making compliance easier while ensuring taxpayers meet their legal obligations.

"Tax compliance is both a legal obligation and a civic duty; it enables the building of a capable state that funds public services and infrastructure that we all rely on. We understand that Filing Season involves more than just deadlines and forms; it is about creating certainty, reducing unnecessary effort, and assisting taxpayers in complying in a manner that is easier, faster, and more seamless. Sars last year paid more than R35 billion during Filing Season. If there is a refund, it will be paid within 72 hours if all is in order. I wish to urge taxpayers to be truthful in their declaration," he said.

PERSONAL FINANCE

South Africa’s fight against the ongoing outbreak of Foot and Mouth Disease (FMD) received a major boost this weekend with the arrival of two million Dollvet vaccine doses, while local vaccine production is also beginning to gain momentum.

Minister of Agriculture John Steenhuisen announced on Sunday that the latest shipment of Dollvet vaccines had arrived in the country, strengthening efforts to contain the disease and protect the livestock industry.

The development was welcomed by the Red Meat Industry Services (RMIS), which said a steady supply of vaccines remains critical to the success of the national vaccination campaign.

Steenhuisen said the Agricultural Research Council (ARC) was making encouraging progress in rebuilding local vaccine production capacity, bottling 20,000 vaccines with the process commencing for the bottling of another 20,000 before the end of June.

“This will bring our local production to 40,000 for the month. It remains imperative that we continue with the provision of a consistent supply of vaccine provision,” he said.

Steenhuisen said the latest figures show that provinces have heeded the call to vaccinate the cattle population at a faster pace.

“The department has reported that the total number of cattle vaccinated to date is 5 486 860.”

KwaZulu-Natal has administered the highest number of vaccinations at 1,163,193, followed by the Free State with 1,015,020 and the Eastern Cape with 891,924.

Other provincial figures include North West with 753,522 vaccinations, Mpumalanga with 531,096, Limpopo with 357,045, Gauteng with 351,945, the Western Cape with 309,044 and the Northern Cape with 114,071.

Steenhuisen singled out the Free State for its progress, praising the provincial government for exceeding one million vaccinations.

He said government would continue working closely with provincial authorities and feedlots to ensure vaccination efforts maintain momentum.

“It is also important that the feedlots utilise their allocations in order to keep the economic value chain going,” he said.

“I have also engaged with my department and requested them to expedite the Section 9 Report which should reach my Office within the next day or two in order to bring additional reprieve to our farmers.”

Steenhuisen also thanked veterinarians and private-sector partners supporting the vaccination programme.

“The goal must remain: to work together to vaccinate as many cattle as possible as quickly as possible in order to end the current outbreak and place us on the path to ensuring that this is the last major outbreak of FMD in South Africa.”

Dewald Olivier, the CEO of RMIS said the arrival of the additional vaccine doses was a significant step forward in the country’s disease-control efforts.

“A steady and reliable flow of vaccine is absolutely critical if South Africa is to maintain momentum in the national vaccination campaign,” he said.

“It is important, however, to correct one point: the latest update is not that 20 million doses are being bottled by the ARC, but rather that 20,000 doses were bottled on 12 June, with a further 20,000 expected before the end of June.”

Olivier added that it is still meaningful progress, because it shows local production capacity is steadily coming back on stream.

“Overall, we are progressing in the right direction, particularly in terms of vaccine availability. Public updates indicate that more than five million vaccinations have already been completed nationally,” Olivier said.

“Our key concern now is to make sure the vaccine is distributed effectively and gets into animals with the necessary speed and accuracy across the provinces. In the next phase, success will depend not only on supply, but on execution on the ground.”

BUSINESS REPORT

A private credit fund focused on technology and digital infrastructure has deployed a structured funding facility to support the expansion of fibre and wireless broadband networks in underserved South African communities.

Tech Credit Fund (TCF), a private credit platform under Solcon Capital, announced that it has provided funding to Accelerit Technologies to accelerate the rollout of connectivity infrastructure across parts of Mpumalanga, Gauteng and the Northern Cape.

The funding will enable Accelerit to expand its Fibre-to-the-Home (FTTH), Wireless-to-the-Home (WTTH) and Fibre-to-the-Business (FTTB) networks in six communities, including Ermelo, Phomolong, Etwatwa and Carletonville, where the company has been extending internet access to townships, peri-urban areas and rural communities that have historically lacked reliable connectivity.

TCF CEO, Pramod Venkatesh, said the investment aligns with the fund’s objective of supporting businesses that have already demonstrated operational success but require growth capital to scale.

“Accelerit is exactly the kind of business TCF was built to support — operationally proven, already serving real communities, and held back only by access to the kind of structured, growth-aligned capital that traditional funders haven’t been able to offer businesses at this stage. We’re proud to back their continued expansion into underserved markets,” said Venkatesh.

Founded in 2011, Accelerit has adopted a multi-technology deployment model aimed at reaching households, small businesses and public institutions in areas where larger fibre network operators have limited presence. The company operates an open-access infrastructure model, allowing other internet service providers and fibre network operators to deliver services using its network.

According to the company, the approach helps broaden access to affordable internet services and extends connectivity to communities that may otherwise be overlooked by traditional telecommunications providers.

Accelerit founder and CEO, Mandla Ngcobo, described the funding as a significant step in the company’s growth plans.

“This funding represents an important milestone for Accelerit as we continue expanding our network footprint and increasing access to affordable, reliable internet services across South Africa,” he said.

“The support from Tech Credit Fund strengthens our ability to scale operations, accelerate infrastructure deployment, and continue connecting communities that remain underserved by traditional connectivity providers.”

Beyond connectivity, the investment is also expected to support job creation and economic activity in the communities served by the network.

Accelerit currently employs more than 80 people directly through its permanent workforce and field installation teams. The company estimates that a further 185 jobs are supported indirectly through civil works contractors, infrastructure suppliers, equipment vendors, resellers and community-based support services.

This brings the company’s total employment footprint to more than 265 jobs, the majority of which are held by Black South Africans.

The expanded network is expected to benefit residential households, small enterprises such as spaza shops and filling stations, as well as public institutions including schools and clinics.

TCF said its funding model is designed to provide structured, growth-oriented capital to revenue-generating businesses operating in the technology, telecommunications and infrastructure sectors. The fund is a subsidiary of Solcon Capital and operates with support from the Small Enterprise Development and Finance Agency.

The latest transaction highlights growing interest in financing digital infrastructure projects aimed at bridging South Africa’s connectivity gap, particularly in underserved communities where access to affordable high-speed internet remains limited.

BUSINESS REPORT

Jaco Ferreira

South Africa’s fruit export industry has long been recognised as one of the country’s most sophisticated agricultural sectors, but a new wave of artificial intelligence (AI) technology could soon redefine how growers, exporters and supply chains operate.

The next major competitive advantage in agriculture will not only come from better farming techniques or expanded export markets, but from how effectively the industry uses data and AI-driven intelligence to make faster and smarter decisions.

South Africa is already in a strong position globally, but AI can significantly improve forecasting, planning and collaboration across the entire fruit export value chain. We already have a world-class fruit industry. The question now is how technology and AI can help us operate even smarter and more efficiently.

One of the biggest opportunities lies in predictive intelligence. By combining exporter data, farm-level information and market intelligence, AI systems can help growers better forecast crop quality, export volumes and expected market outcomes. This could allow farmers to plan input costs more accurately, improve cash flow forecasting and make better operational decisions throughout the season.

A citrus grower in the Western Cape, for example, could potentially use AI to combine weather forecasts, satellite imagery, historical yield data and export market pricing information to predict both harvest volumes and potential revenue outcomes months in advance.

This would allow producers to make more informed decisions about irrigation, labour planning, fertiliser applications and export commitments. Exporters could also benefit from more accurate supply forecasting and improved communication with international clients.

It becomes a supply chain collaboration tool. The better the information flow between growers, exporters and markets, the better everyone can plan and deliver.

Another major opportunity lies in AI-powered market intelligence. New AI systems are increasingly capable of scanning global news sources, regulatory developments, commodity trends and market signals in real time. This means exporters could potentially identify changing market conditions, new regulations or shifts in demand far earlier than before.

Technology is advancing rapidly. AI can now help monitor environmental factors, market conditions, regulations and pricing movements across global markets. That type of intelligence was traditionally expensive and slow to gather, but it is becoming far more accessible.

For an industry that depends heavily on export markets, this capability could prove particularly valuable. Whether it is changing phytosanitary requirements in Europe, shifting consumer demand in Asia or emerging trade opportunities in new markets, faster access to relevant information can help businesses respond more effectively and reduce risk.

AI could also play an important role in logistics planning. By analysing port congestion, vessel schedules, weather patterns, transport routes and historical shipping performance, AI systems could help exporters optimise shipment timing and reduce delays.

This is particularly relevant in South Africa, where logistics efficiency remains a key challenge for many export industries. In a sector where freshness directly impacts profitability and product quality, even small improvements in logistics planning can deliver significant commercial benefits.

The fruit industry operates within a highly interconnected ecosystem. The more visibility and predictability we can create across that ecosystem, the better positioned everyone is to make informed decisions.

Quality control represents another area where AI could have a meaningful impact. Computer vision technologies are increasingly being used internationally to assess fruit quality, identify defects and improve grading accuracy. These systems use cameras and AI algorithms to inspect produce at speeds and levels of consistency that are difficult to achieve manually.

As these technologies become more accessible, South African growers and exporters may be able to improve quality assurance processes, reduce waste and ensure greater consistency across export shipments. One of the most practical applications may eventually be the simplification of how users interact with complex agricultural data.

Instead of navigating multiple dashboards and reports, growers and exporters may soon simply engage with their data conversationally through mobile devices or messaging platforms.

The farmer is on the farm all day. Exporters are constantly mobile. AI can make it much easier for people to engage with their information in real time. Rather than spending hours analysing reports, users could ask questions directly and receive immediate insights, forecasts or recommendations.

A grower could ask how expected weather conditions might affect harvest timing, while an exporter could request an update on projected shipment volumes, market demand or logistics risks. The technology has the potential to place sophisticated decision-support tools directly into the hands of operational teams.

South Africa’s agricultural sector is particularly well positioned to benefit from this shift because of its strong export orientation, sophisticated farming practices and established global market presence. If we can combine our agricultural expertise with smarter technology adoption, South Africa has an opportunity to build an even stronger competitive position globally.

The fruit industry has always been driven by science, innovation and precision. AI represents the next evolution of that journey. The businesses that learn how to combine human expertise with intelligent technology will be best positioned to compete in increasingly complex global markets.

As AI continues to evolve, the future of agriculture may increasingly depend not only on what farmers grow, but on how intelligently they use the growing amount of data available to them.

* Jaco Ferreira is the managing executive for technology solutions at MOYO.

** The views expressed do not necessarily reflect the views of IOL or Independent Media.

BUSINESS REPORT

Gold Fields' discussions with the Ghana government are currently focused on the terms of the Tarkwa mining lease, despite calls from within the country to suspend the lease renewal due to attacks on Ghanaians in South Africa.

Ghana's government is facing pressure to act against South African firms following a wave of xenophobic protests in Africa’s biggest economy. More than 2,700 people from Ghana, Nigeria, Mozambique, and Malawi have already been assisted in returning home from South Africa amid fears that anti-immigrant demonstrations could escalate.

A few weeks ago, the Ghana First Alliance movement, which held public protests, appealed to the Ghana government not to renew the Tarkwa mining lease in 2027 when it expires, as reported by the Ghanaian Times. Their petition was a direct response to the unprovoked xenophobic attacks on Ghanaians based in South Africa.

The Institute of Economic Affairs in Ghana has also called for the leases not to be renewed. Earlier this year, the Ghana government decided not to renew Gold Fields’ Damang mine lease. Tarkwa is a major asset for Gold Fields, accounting for about a fifth of its global gold production.

Gold Fields stated on Monday that Gold Fields Ghana (GFGL), a 90% held subsidiary of Gold Fields and the holding company for the Tarkwa mine, had submitted an early application for the five Tarkwa mining leases that are due for renewal in April 2027, consistent with the agreement reached with the Government of Ghana in April 2025.

Following this submission in November 2025, Gold Fields has held several engagements with the Ghana government, with discussions now focusing on the terms of the mining lease renewals.

“The outcome, timing, and terms of the lease renewals remain the subject of these ongoing engagements with the government of Ghana,” the group said.

Gold Fields said it remains committed to both the Tarkwa mine and its continued operation in Ghana.

"Given the company's experience in delivering safe and responsible mining operations, employment creation, and partnerships in Ghana, along with its global technical expertise and investment capacity, Gold Fields believes it is well positioned to continue operating and growing the Tarkwa mine beyond the current life of the mine, creating shared value for both Ghana and Gold Fields," it said.

Ghana, Africa’s biggest gold producer, has steadily been moving to increase its share of mining revenue, raising royalties, once last year and again in May, on bullion to as much as 12% from 5%, and restricting bids for a former Gold Fields mine to local companies.

The Ghana Chamber of Mines warned on its website that lease revocations and renewal uncertainty risk creating the impression that "security of tenure in Ghana is not guaranteed," potentially hurting investment. It pointed out that the three mining operations at Tarkwa, of which Gold Fields is one, alone contribute 7.3% of the country’s tax income.

It was responding to the lease revocations of the Acangu, Salman and Nkroluf mining leases in April that were held by Adamus Resources, apparently due to breaches of mining laws and environmental regulation.

Gold Fields’ share price notched up 2.91% to R571.97 on Monday, while a year ago it was trading at R447.04.

BUSINESS REPORT

South Africa’s anticipated record maize harvest is beginning to reshape export markets, with major buyers in Asia returning to source grain from the country after largely staying away during the previous marketing season.

The Agricultural Business Chamber of South Africa (Agbiz) has welcomed renewed demand from South Korea and Vietnam, saying the development bodes well for the country’s ambitious maize export targets for the 2026-27 marketing year.

According to Agbiz chief economist Wandile Sihlobo, the return of buyers from the Far East signals stronger international demand for South African maize at a time when the country is expecting a record harvest of 17.1 million tons.

“Vietnam and South Korea are among the main buyers so far in the 2026-27 marketing year, which started in May 2026. In the previous marketing year, the 2025-26 marketing year, which ended in April, we did not see much demand from countries in the Far East.”

South Africa’s traditional export markets have historically been neighbouring countries, particularly Zimbabwe and other regional importers. However, stronger demand from Asia could help the country achieve a significantly higher export target this season.

“Amongst other things, the plentiful supplies in the world market were the main reason we didn’t see much demand from typical maize buyers in the Far East. They sourced affordable maize from other parts of the world,” he said.

Sihlobo said South Africa exported only 2 million tons of maize during the 2025-26 marketing year, falling short of the initial forecast of 2.4 million tons. However, the outlook for the current season is considerably more optimistic, with exports projected to reach 3 million tons.

The strong export outlook is underpinned by the country's bumper crop. With domestic maize consumption estimated at about 12 million tons annually, the expected harvest leaves a substantial surplus available for export markets.

“The maize harvest is forecast at 17.1 million tons, a record level,” Sihlobo said. “Bearing in mind that South Africa’s maize consumption is only 12.0 million tons a year, there are ample supplies for the exports. But the question in people’s minds has been whether we could see a stronger demand this year than last.”

While the harvest is running behind last year’s pace due to late-season rainfall, agricultural organisations say there is little reason for concern.

Francois Rossouw, CEO of Southern African Agri Initiative (Saai), said the slower harvest progress should be monitored but is not expected to affect overall production significantly.

“If the harvest is slower because of late summer rain, it can delay field work and may create some quality risks, but it does not automatically mean the crop is smaller,” he said. “A crop of 17.1 million tons is a strong positive for the sector and shows that production potential is still looking good.”

Dawie Maree, head of FNB agriculture marketing and information, said recent wet weather had delayed harvesting activities, but farmers were expected to catch up quickly.

“Farmers will catch up quickly with the drier, sunnier (generally) weather the country recently had,” he said.

Maree added that a record harvest does not necessarily mean good news for the grain farmer.

“This means downward pressure on prices and thus less income. For the livestock farmers, feedlots, dairy, pork, and poultry industries, it is good news because their major input (feed) is cheaper than last year,” Maree said.

“For the consumer, it is also good news because it should result in lower food inflation of basic staple foods.”

BUSINESS REPORT

Exxaro Resources has marked higher coal production in its first half amid higher prices, this year's R5.5 billion manganese acquisition Tshipi Borwa Mine is operating well, but the group continues to face rail transport challenges.

The company’s financial director, Riaan Koppeschaar, shared these insights during an update to shareholders, highlighting both achievements and ongoing challenges.

Koppeschaar reported they anticipate a 10% increase in total coal production and a 6% rise in sales volumes for the six months to June 30, 2026.

The average benchmark API4 Richards Bay Coal Terminal (RBCT) export price also showed a rise, expected to average $105 per ton, an increase from $92 per ton in the first half of 2025. This reflects a responsiveness to the global market’s shifts, despite continuing logistical challenges.

Koppeschaar elaborated on the performance of Transnet Freight Rail (TFR), stating that it moved 25.25 million tons of coal to the Richards Bay Coal Terminal between January and May. This marked a 7% annual improvement, showcasing an enhanced rail system.

He acknowledged, however, that the Grootegeluk direct rail flow faced execution challenges, averaging only 3 to 4 trains per week against the contractual target of 11 trains.

To counter these logistical hurdles, Exxaro has engaged in multimodal logistics solutions, seeking partnerships with TFR. Exxaro is also turning its focus towards improving logistics for its Tshipi manganese mine, which it acquired earlier this year for about R5.5bn, including a 19.99% stake in Jupiter Mines.

With this acquisition, Exxaro now claims significant stakes in several manganese assets, establishing itself as the fourth-largest global producer, said Johan Meyer, executive head of the group’s Metals division. He spoke at a Capital Markets Day for investors on Monday.

Operational sustainability at Tshipi is a priority, with plans aimed at increasing production efficiency from its current capacity of 3.5 million tons per year.

Meyer said they hope to bring logistical and marketing benefits to he mine, which has a robust life-of-mine estimate of at least 25 years.

These, and the fact that most other global producers are underground miners versus Tshipi's long term sustainable, and lower cost, open pit operations. would help to secure Exxaro's competitive edge in a market where 80% of global manganese is redirected towards steel production, primarily in China. India demand was also growing well, also for coal, providing some long-term demand diversification, 

South Africa boasts about 80% of the world's manganese reserves but produces only about 42% of annual global production.

Some 80% of global manganese production is being used in steel and stainless-steel production. Manganese was also increasingly being used in battery manufacture for renewable energy applications.

The broader economic landscape adds a layer of complexity to Exxaro's operations. Koppeschaar said commodity markets had responded to geopolitical tensions, particularly the ongoing Iran-US conflict, influencing global supply and demand dynamics. He forecasted a slowdown in global real GDP growth to 2.2% in 2026, down from 2.9% in 2025, with implications for the coal and manganese markets.

Exxaro's coal operations are showing resilience. Improved production figures, particularly from Grootegeluk, have been driven by favourable weather and power station demand, while metallurgical coal production anticipates a marked increase of 41% due to export demand. Capital expenditure in the coal segment is poised for a 69% rise as Exxaro invests in sustaining and improving its operations.

The renewable energy arm of Exxaro, Cennergi generated 329GWh of electricity in the first half of 2026. Their new Lephalale Solar Project has also commenced operations, reinforcing the group's commitment to diversifying its energy portfolio amidst ongoing commodity price volatility.

As Exxaro enters the second half of 2026, maintaining productive engagements with Transnet and strategically navigating logistical and market challenges will be pivotal in unlocking further capacity and achieving sustainable volume growth. Despite facing a volatile global energy landscape,

Exxaro is well-positioned to adapt and thrive in the coming months, shoring up its operational strategies for future resilience and growth.

BUSINESS REPORT

The International Trade Administration Commission of South Africa (ITAC) has recommended a significant increase in anti-dumping duties on imports of polyethylene terephthalate (PET) from China, concluding that the expiry of existing measures would likely result in continued dumping and further harm to the domestic industry.

In its final determination, ITAC found that imports of PET originating in or imported from the People’s Republic of China (PRC) continue to pose a threat to South African producers and recommended that anti-dumping duties be increased to 43.77% ad valorem on affected imports.

With the Commission concluding that dumping and injury are likely to continue if existing protections lapse, the recommended increase in duties signals a firm stance in favour of safeguarding local industry from unfairly priced imports.

PET is a widely used thermoplastic polymer found in plastic beverage bottles, food packaging, cosmetic containers, films and other packaging applications. It is one of the most commonly used plastics globally due to its strength, durability and moisture-resistant properties.

The investigation formed part of a sunset review process to determine whether the removal of anti-dumping duties would likely result in the continuation or recurrence of dumping and material injury to the local industry.

After reviewing submissions and market conditions, ITAC concluded that existing duties should not only be retained but strengthened.

“Taking into account all comments received and noting that no responses were received from any foreign producer or exporter, the Commission made a final determination that the expiry of the anti-dumping duty on the subject product originating in or imported from the PRC would likely lead to the continuation of dumping and the continuation of material injury,” the Commission stated.

The Commission subsequently recommended to the Minister of Trade, Industry and Competition that anti-dumping duties on PET imported from China be increased to 43.77%.

The proposed measure applies to PET classifiable under tariff heading 3907.6 and excludes products manufactured by several Chinese producers that are specifically identified in the determination.

According to the report, PET is produced using mono ethylene glycol and purified terephthalic acid. The material is widely used in the packaging industry because of its excellent mechanical strength, chemical resistance and ability to act as an effective barrier against moisture.

“Plastic bottles made from PET are widely used for mineral water and carbonated soft drinks,” the report noted. “Its high mechanical strength makes PET films ideal for use in tape applications.”

The review process attracted participation from domestic industry representatives and importers. However, ITAC noted that no responses were received from foreign producers or exporters from China during the investigation.

One of the importers that participated in the process was Coca-Cola Beverages South Africa (CCBSA), which submitted comments and responses during the investigation. The Commission considered submissions from both the applicant and interested parties before reaching its final determination.

The findings underscore South Africa’s continued use of trade remedies to shield domestic manufacturers from unfair international competition and to maintain industrial capacity within strategic sectors.

Anti-dumping duties are imposed when imported products are sold into a market at prices below their normal value, often creating pressure on local producers and potentially leading to lost sales, reduced profitability and job losses.

ITAC’s recommendation now awaits consideration by the Minister of Trade, Industry and Competition. Should the recommendation be approved, the higher duty will provide additional protection to local PET producers against lower-priced imports from China.

The decision comes amid broader efforts by government to support domestic manufacturing and encourage local production in key industrial value chains, including in the steel industry.

The PET industry is regarded as an important component of South Africa’s plastics and packaging sector, supplying materials used extensively by beverage, food and consumer goods manufacturers.

BUSINESS REPORT

State-owned freight and logistics company Transnet has reached a major milestone in South Africa’s rail reform programme with the issuance of a Request for Proposals (RFP) for a new rolling stock leasing company aimed at expanding access to locomotives and wagons for rail operators.

The RFP follows the successful completion of a Request for Qualification (RFQ) process launched in April 2025, which attracted 14 submissions from interested parties. Following the evaluation process, Transnet shortlisted two preferred bidders that will now participate in the next phase of the procurement process.

The proposed leasing company, known as LeaseCo, is expected to play a central role in revitalising South Africa’s freight rail sector by acquiring, managing and leasing rolling stock to domestic and regional customers.

Transnet on Monday said the initiative addresses one of the most significant constraints facing the rail industry – limited access to reliable rolling stock.

“The establishment of LeaseCo is a cornerstone of South Africa’s rail reform agenda. It is designed to modernise freight rail operations, attract private sector investment, and create opportunities for broader participation in rail operations,” Transnet said.

“By improving asset utilisation and expanding access to rolling stock, LeaseCo will support both established and emerging Train Operating Companies (TOCs), helping to unlock economic growth and strengthen supply chains across the region,”added Transnet.

The leasing company will operate as an independently governed and commercially viable entity.

Under the proposed structure, Transnet will contribute a ring-fenced fleet of rolling stock assets as equity and provide original equipment manufacturer capabilities through its engineering division, Transnet Engineering.

The private sector majority shareholder will be responsible for injecting capital and bringing technical expertise and operational capabilities needed to rehabilitate, manage and expand the fleet.

Transnet Group CEO, Michelle Phillips said strong demand for freight rail services made the project an attractive investment opportunity.

“Significant unmet freight demand, driven by a shortage of available rolling stock, presents a compelling opportunity for a dedicated leasing entity,” Phillips said.

“LeaseCo represents a transformative initiative primed to modernise Africa’s rail system, mobilise private capital, and enhance the reliability of freight logistics. With the significant demand from TOCs, LeaseCo is well positioned as an appealing investment opportunity.”

Transnet said it has already engaged newly licensed train operators to assess market demand and has secured five TOCs interested in LeaseCo’s services.

“Initial engagements point to a strong market appetite, which is expected to grow as the Transnet Rail Infrastructure Manager (TRIM) allocates additional network slots to operators.”

According to Transnet, the issuance of the RFP marks another important step towards building a more competitive, inclusive, and efficient rail ecosystem that supports economic growth, improves logistics performance, and positions rail as a catalyst for South Africa’s competitiveness and regional development.

The announcement comes shortly after TRIM launched another private-sector participation initiative through a Request for Proposals for Phase One of its Station Leasing Programme in the Western Cape.

The programme covers the Dal Josafat, Huguenot and Bitterfontein station facilities and invites investors to lease, develop, operate and maintain station precinct assets for a minimum period of 10 years.

TRIM CEO, Moshe Motlohi, said that the programme demonstrates their continued commitment to transparent, market-based access to strategic rail assets.

“Through private sector participation, we aim to strengthen partnerships, improve our service delivery and unlock long-term economic value across the South African rail network,” he said.

BUSINESS REPORT

Nqobani Mzizi

The word “governance” is now found almost everywhere. It appears in board packs, policy documents, annual reports, risk registers, sustainability disclosures, digital transformation plans, committee charters and public sector reform conversations. It is used when speaking about ethics, compliance, ESG, artificial intelligence, procurement, risk, performance, remuneration and institutional culture. 

This wide use is understandable. Governance does touch many of these areas. The difficulty begins when everything that relates to governance is treated as governance itself. When this happens, the word becomes so broad that it risks losing its meaning. That is why a return to first principles matters. 

Corporate governance extends beyond the existence of a board, the holding of meetings, the approval of policies, the presence of committees or the production of reports. These may be instruments of governance, but they are not the substance of governance.

At its core, governance is the disciplined exercise of power in pursuit of purpose, with accountability for decisions, conduct and outcomes. It is about how an organisation is directed, how authority is exercised, how decisions are made, how performance is monitored, how risks are understood, how stakeholders are considered and how those entrusted with power are held to account. Governance gives institutional power direction, restraint and consequence. 

This is why governance should not be confused with management. Management runs the organisation. Governance directs, oversees and holds management accountable. The board does not exist to manage every operational detail, but to ensure that the organisation is being led within the boundaries of purpose, strategy, risk appetite, ethical conduct and long-term value creation. When boards drift into management, oversight weakens. When boards become too distant, accountability weakens.

A board must be close enough to understand the organisation and independent enough to challenge it. Trust in management must be balanced with verification, support for strategy with interrogation of assumptions, and the pursuit of performance with vigilance against conduct that creates value today while destroying trust tomorrow. 

Frameworks help us to navigate this complexity. King V, ISO 37000, the G20/OECD Principles of Corporate Governance and sector-specific codes all provide useful language, principles and expectations. They remind organisations that governance is not an accidental activity, and that it requires structure, discipline and conscious design.

King V remains important in the South African context because it reinforces ethical and effective leadership, integrated thinking, accountability and legitimacy. It does not reduce governance to a mechanical checklist. It invites governing bodies to apply principles meaningfully and explain how governance is being practised in context. 

ISO 37000 also offers a valuable global lens. It frames governance around purpose, values, stakeholder engagement, oversight, accountability, risk governance, social responsibility and viability over time. Its importance lies in reminding us that governance applies beyond listed companies. All organisations, whether public, private, non-profit or professional, need to be governed in ways that enable purpose, trust and responsible performance. 

The G20/OECD Principles similarly emphasise the relationships between management, the board, shareholders and stakeholders. They speak to the structures through which objectives are set, performance is monitored and accountability is maintained. These frameworks are useful because they help organisations name what good governance requires.

Yet frameworks do not govern. People do. This is where the real test begins. 

A board can adopt a respected code and still fail in substance. An organisation can have committees, charters, policies and reports while avoiding difficult decisions. Minutes can be clean, declarations can be filed, dashboards can be green and governance statements can be carefully drafted, while the organisation slowly loses ethical direction. The performance of governance should never be confused with the practice of governance. 

Governance is proven through the quality of judgement, the courage of oversight and the reality of accountability. It becomes visible when directors ask uncomfortable questions before approving matters they do not understand, when conflicts of interest are properly managed rather than declared as a formality, when risk is not softened to preserve comfort and when the board refuses to accept assurance that has not been tested.

This is why substance must sit at the centre of any serious understanding of governance. Much of what is often described as governance is form: structures, policies, committees, charters, reports, disclosures and compliance processes. These are necessary because they create order, assign responsibility and provide a framework for accountability. Yet form is only the architecture. Substance is found in how those structures influence conduct, how decisions are tested, how power is restrained, how accountability is enforced and how ethical judgement is exercised when the convenient option is available. 

Good governance is not simply about having the right architecture. It is about how that architecture works when pressure arrives: the board’s independence when the dominant voice pushes for speed, the audit and risk committee’s courage to challenge weak assurance, the social and ethics committee’s willingness to confront conduct that contradicts stated values, the remuneration committee’s alignment of reward with performance, fairness and long-term trust, and the board’s response when organisational culture begins to reward silence over truth.

Good governance is not simply about having the right architecture. It is about how that architecture works when pressure arrives: the board’s independence when the dominant voice pushes for speed, the audit and risk committee’s courage to challenge weak assurance, the social and ethics committee’s willingness to confront conduct that contradicts stated values, the remuneration committee’s alignment of reward with performance, fairness and long-term trust, and the board’s response when organisational culture begins to reward silence over truth. 

Systems, processes and compliance provide necessary discipline. Conscience and sound judgement give that discipline substance. Without character, governance risks becoming choreography, where people know where to sit, what to approve and what to report, while the deeper discipline of accountability is absent. Governance is structural, but it is finally practised by people.

Returning to first principles helps avoid this confusion. Governance begins with purpose and gives that purpose direction through strategy, oversight and accountability. It ensures that power is exercised within boundaries and that those entrusted with authority cannot stand above consequence. 

Governance matters beyond the boardroom because institutional decisions affect employees, customers, shareholders, communities and future generations. It is the discipline through which organisations earn trust by exercising power responsibly, making decisions transparently and accounting for the consequences of their choices. 

The same applies in public institutions. Governance is about whether authority is exercised lawfully, ethically and effectively. It is about the protection of public resources, transparency of decisions, the reality of accountability and the extent to which institutions serve the people whose trust they carry.

The reset, then, is simple but demanding. Governance gives direction to what matters in institutional life. It is the discipline behind the policy, the quality of judgement in the room and the accountability that gives reports their meaning. 

If everything becomes governance, governance becomes nothing. That is why clarity matters. Corporate governance is the discipline of directing power, testing decisions, protecting purpose and ensuring accountability. Frameworks can guide it, structures can support it and reports can describe it. But in the end, those entrusted with power must give it substance. 

Governance begins when power is given direction, responsibility is made visible and accountability is no longer optional. 

* Nqobani Mzizi is a Professional Accountant (SA), Cert.Dir (IoDSA) and an Academic.

** The views expressed do not necessarily reflect the views of IOL or Independent Media.

BUSINESS REPORT

Global green technology company Envision Energy has officially opened its South African office in Cape Town, reinforcing its commitment to supporting the country’s energy transition and expanding renewable energy development across the African continent.

The move forms part of Envision Energy’s broader African growth strategy, which focuses on supporting utility-scale renewable energy and energy storage projects that promote energy access, grid reliability and decarbonisation across the continent.

Envision Energy senior vice president, Kane Xu, said the company views South Africa as a strategic market in the global shift towards cleaner energy systems.

“The opening of our South Africa office represents an important milestone in Envision Energy’s journey across Africa,” he said. “South Africa is a key market in the global energy transition, and we are committed to being a long-term partner in supporting the country’s renewable energy and energy storage ambitions.”

He added that the company’s local presence would enable it to build stronger partnerships while delivering advanced technologies that contribute to a more sustainable energy future.

“Through local presence, local partnerships, and world-class technology, we look forward to contributing to a more resilient, sustainable, and affordable energy future,” Xu said.

The new Cape Town office will serve as Envision Energy’s regional hub for Southern Africa and support the company’s expanding portfolio in wind energy, battery energy storage systems (BESS) and integrated renewable energy solutions.

The inauguration marks a significant milestone for the company as it deepens its presence in one of Africa’s most important energy markets. The opening ceremony was attended by government officials, industry leaders, customers, business partners and stakeholders from across the energy sector.

Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, welcomed the investment, describing it as a vote of confidence in South Africa’s energy sector and economic prospects.

“The establishment of Envision Energy’s Cape Town office demonstrates confidence in South Africa’s energy future,” he said. “We look forward to continued collaboration in strengthening energy security and creating long-term opportunities for sustainable growth.”

The office opening comes as South Africa continues efforts to diversify its energy mix, increase renewable energy generation and improve grid stability. Energy storage technologies are increasingly being viewed as a critical component in supporting the integration of renewable energy into the national power system.

Envision Energy said it plans to use its Cape Town base to support customers and partners across South Africa and the wider African continent. The company also aims to contribute to local skills development, knowledge transfer and industry growth as it expands its operations in the region.

BUSINESS REPORT

South Africa’s trade authorities have moved to impose provisional anti-dumping duties on imports of certain steel pipes from Mozambique after finding evidence that the products were being dumped into the Southern African Customs Union (SACU) market, causing material injury to local manufacturers.

In a preliminary determination, the International Trade Administration Commission of South Africa (ITAC) concluded that imports of large-diameter welded steel tubes and pipes from Mozambique were being sold in the SACU market at dumped prices, “causing material injury and a threat of material injury to the SACU industry.”

The Commission has recommended that the Commissioner for the South African Revenue Service (Sars) impose provisional anti-dumping duties of 28.86% on imports of the affected products from Mozambican producer ETG Steel Solutions Limitada, as well as all other producers and exporters from Mozambique, for a period of six months.

The investigation covers steel tubes and pipes with an external diameter exceeding 406.4 millimetres, commonly known as Electric Resistance Welded (ERW) pipes and Spiral Welded Pipes or Submerged Arc Welded (SAW) pipes. The products are classified under tariff subheading 7305.19.

The application was lodged by Hall Longmore, which ITAC identified as the major producer of the products in the SACU region, accounting for more than 50% of production volumes. The Commission found that the application met the requirements to be regarded as being submitted on behalf of the SACU industry.

According to the Commission, imports from Mozambique have increased dramatically in recent years. Import volumes rose from 1.48 million kilograms in 2023 to 3.35 million kilograms in 2024 and then surged to more than 12.2 million kilograms in 2025. By 2025, Mozambican imports accounted for 98% of all imports of the products into the SACU market.

ITAC found that the increase in imports coincided with a loss of market share by the domestic producer. The Commission noted that dumped imports from Mozambique expanded significantly while Hall Longmore’s market share declined over the investigation period. It also found that imports from Mozambique increased by 729% between 2024 and 2025.

The investigation further revealed evidence of price undercutting and price suppression. ITAC found that the landed price of the imported products was lower than domestic selling prices throughout the period under review and that price undercutting worsened between 2024 and 2025.

The Commission also concluded that the domestic industry was unable to recover rising production costs through higher selling prices. Gross profit declined while production costs increased, indicating growing pressure on local manufacturers.

As part of the investigation, ITAC examined objections from ETG Steel Solutions and Capital Star Steel SA, which challenged aspects of the dumping calculations and the evidence used during the initiation phase. The exporters argued that certain import statistics and price calculations were inaccurate and questioned the confidentiality of some information submitted by the applicant.

However, the Commission said that after verification it relied on information obtained from exporters, customs Bills of Entry and Sars records as the most reliable information available.

ITAC ultimately calculated a dumping margin of 28.86% for ETG Steel Solutions and applied the same margin to all other Mozambican exporters.

The Commission also rejected arguments that anti-dumping measures would undermine regional integration objectives within the Southern African Development Community (SADC).

While acknowledging that SADC promotes duty-free trade among member states, ITAC noted that the SADC Trade Protocol expressly allows anti-dumping measures where there is evidence of dumping and injury in line with World Trade Organization rules.

Based on its findings, the Commission made a preliminary determination that dumping of the products originating in or imported from Mozambique is taking place and that provisional measures are justified while the investigation continues.

BUSINESS REPORT

Standard Bank Group, Africa's largest bank by assets, foresees a potential rebound in confidence and momentum among its clients as positive developments materialize following "temporary" uncertainty and rising inflation pressures caused by the confllct in the Middle East.

On Monday, the banking giant's share price dipped by 1.94% to R328.78 during morning trade on the Johannesburg Stock Exchange (JSE). Yet, this minor setback does not overshadow the impressive 46.5% increase from R224.35 a year ago, indicating significant long-term growth.

The bank has maintained its guidance for the financial year to December 31, 2026, initially provided in March, although this will be revisited during the interim results set for release on August 13.

Over the five months leading to May 31, the group's operating environment became increasingly complex as geopolitical tensions, elevated energy prices, and trade policy uncertainties weighed on global economic growth and inflation expectations.

In South Africa, however, macroeconomic indicators present a more optimistic narrative, the bank said. The domestic backdrop has benefitted from structural reforms, improved fiscal policies, and resilient trade terms, which have caught the attention of credit rating agencies.

This constructive environment has helped Standard Bank Group maintain a solid performance over the past five months, fueled by its expansive scale and diversification strategies.

Key drivers of earnings growth in this period include substantial balance sheet growth, propelled by strong investment banking origination and increased lending in the Business and Commercial Banking sectors.

The Personal and Private Banking division experienced moderate growth, with a slow but steady upturn in the home loans portfolio. Strong growth in current accounts and term deposits also reflects the bank's strong transactional client base.

Despite challenges such as lower average interest rates and competitive pressures within the home loan market, income growth has largely been supported by the burgeoning client activity and increased transactional volumes.

Elevated market volatility in the first quarter provided opportunities for significant trading revenue growth, allowing the bank to manoeuvre effectively in tumultuous conditions.

The institution has maintained rigorous cost discipline in the face of rising operational expenses, reiterating its commitment to enhancing client services while optimising efficiency.

Notably, lower credit impairment charges have been recorded, even in light of a deteriorating macroeconomic outlook that necessitated increased forward-looking provisions. This positive trend contributed to a healthier credit loss ratio.

Standard Bank’s Insurance & Asset Management division has also reported robust earnings growth, buoyed by favourable life risk experiences and incremental asset accumulation in South Africa and Nigeria.

Although overall earnings growth moderated from 12% in the first quarter, the diverse performance across African regions ensured the group remained well-capitalised and liquid, holding a Common Equity Tier 1 (CET1) ratio of 13.2% as of March 31, 2026.

As the second half of the year unfolds, Standard Bank Group appears poised for a potential resurgence in confidence amid challenging economic waters, offering hope that sustainable recovery and expansion can be achieved across its various operations

BUSINESS REPORT

Harmony Gold has confirmed the death of an employee following a seismicity-related fall-of-ground incident at its Moab Khotsong mine near Orkney in the North West province.

The tragic incident occurred on the morning of Friday, and has once again highlighted the safety risks associated with deep-level mining operations in South Africa.

Last month, two employees died in a tragic shaft engineering‑related incident at Harmony's Mponeng mine near Carletonville. In March, another worker was killed in underground incident involving rock breaking equipment at Harmony's Target 1 mine in the Free State, near Odendaalsrus.

In a statement on Monday, Harmony expressed its condolences to the family, friends and colleagues of the deceased employee and said support was being provided to those affected by the tragedy.

The company has not released the identity of the deceased employee, pending notification of family members and the completion of necessary procedures.

“We extend our deepest condolences to his family, friends and colleagues,” the company said. “Management is providing support to the family and affected employees during this difficult time.”

Moab Khotsong is one of Harmony’s deep-level gold mining operations and, like many underground mines in South Africa, is exposed to seismic activity that can trigger rockfalls and ground instability.

The company said all relevant stakeholders had been informed of the incident and that an investigation was underway to determine the circumstances that led to the fatality.

The investigation is being led by the Department of Mineral and Petroleum Resources (DMPR), which is responsible for overseeing mine safety and ensuring compliance with mining regulations.

Harmony CEO, Beyers Nel, said the company was deeply saddened by the loss and would work closely with authorities to understand what had happened.

“We are deeply saddened by the loss of our colleague. Our heartfelt condolences are with his family, friends and colleagues during this very difficult time,” Nel said.

“Safety is our foremost priority, and we will work closely with the DMPR to understand the circumstances of this incident and ensure that the necessary lessons are applied across our operations.”

The fatality comes as the mining industry continues to focus on improving safety standards and reducing workplace accidents, particularly in deep-level underground operations where geological conditions can present significant challenges.

Mining companies have increasingly invested in technology, monitoring systems and enhanced safety procedures to mitigate risks associated with seismic events and fall-of-ground incidents.

However, industry stakeholders acknowledge that such incidents remain among the most serious hazards facing underground miners.

Harmony said it would cooperate fully with the DMPR-led investigation and implement any recommendations arising from the inquiry to help prevent similar incidents in future.

BUSINESS REPORT

Deputy President Paul Mashatile has positioned South Africa as a reliable supply base for critical inputs, industrial beneficiation and co-production opportunities, as the country seeks to strengthen its role in global supply chains and deepen economic cooperation with China.

Addressing delegates at the China International Supply Chain Expo (CISCE) in Beijing on Monday, Mashatile said South Africa was determined to leverage its mineral wealth, industrial capacity and strategic location to become a key player in evolving global supply networks.

Mashatile said the world was experiencing significant changes in trade and production patterns driven by geopolitical developments, technological advances and climate-related imperatives.

“We meet at a defining moment in the global economy. Geopolitical shifts, technological advancements, climate imperatives, and changing patterns of production are reshaping the architecture of global commerce,” Mashatile said.

He noted that businesses and countries were increasingly seeking “greater resilience, diversification, decarbonisation and sustainability within global supply chains,” creating new opportunities for countries such as South Africa.

Mashatile said South Africa offered a compelling value proposition to investors and manufacturers looking to diversify supply chains.

“South Africa is an attractive investment destination, supported by sophisticated industrial capabilities, a world-class financial sector, and well-established logistics infrastructure,” he said.

He added that government reforms aimed at improving the ease of doing business, accelerating infrastructure development and strengthening industrial competitiveness would further enhance the country’s attractiveness as a production and sourcing destination.

Central to South Africa’s pitch was its ability to supply critical raw materials and products needed by modern industries and the global energy transition.

“South Africa is a reliable source of high-value products and critical inputs required for modern industries and the global energy transition,” Mashatile said.

He highlighted the country’s extensive reserves of platinum group metals, manganese and chromium, as well as its agricultural production capabilities, advanced manufacturing sector and growing services and digital trade industries.

“A key objective of our engagement in Beijing is to expand the range and value of South African exports entering the Chinese market and to shift our trade relationship increasingly towards value-added manufactured goods,” he said.

Mashatile also emphasised South Africa’s strategic role as a gateway to Africa through the African Continental Free Trade Area (AfCFTA), which provides access to a market of more than 1.3 billion people.

“Through the African Continental Free Trade Area, investors located in South Africa gain access to a market of more than 1.3 billion people. This presents significant opportunities for regional value chain development and industrial expansion across Africa,” he said.

He encouraged Chinese and international businesses to view Africa as more than just a consumer market.

“We invite Chinese and international partners to work with us in positioning Africa not merely as a consumer market, but as a competitive production base, a sourcing destination, and an important node within global supply chains,” Mashatile said.

This comes as South Africa's the trade deficit with China has escalated dramatically from less than $1 billion in the period between 1988 and 2000 to an alarming $9.71bn by 2023.

Mashatile said the recently signed Framework Agreement on Economic Partnership for Shared Prosperity, known as CADEPA, together with China’s new zero-tariff preference scheme for qualifying South African exports, would further strengthen trade ties between the two countries.

“South Africa is therefore positioning itself as a reliable supply base for critical inputs, a destination for industrial beneficiation and an ideal partner for co-production,” he said.

Mashatile identified agriculture, critical minerals and advanced manufacturing as key sectors for future cooperation.

In agriculture, he said South African citrus, avocados, stone fruits, wines and macadamia nuts now benefited from duty-free access to the Chinese market under the new arrangements.

In the mining and green economy sectors, he highlighted opportunities for joint ventures and downstream processing of strategic minerals used in renewable energy technologies, fuel cells and energy storage systems.

“South Africa possesses substantial reserves of platinum group metals and other strategic minerals required for fuel cells, renewable energy technologies, and energy storage solutions,” Mashatile said.

He also pointed to opportunities in advanced manufacturing, logistics and automotive value chains, saying South Africa’s industrial base was well-positioned to support export-oriented production serving both local and broader African markets.

Concluding his address, Mashatile reaffirmed South Africa’s commitment to deeper economic cooperation with China and to building resilient and inclusive supply chains.

“We are determined to position our country as both a preferred destination for investment and a reliable source of value within global supply chains,” he said.

Mashatile expressed confidence that the expo would help usher in “a new phase of practical cooperation, deeper industrial integration, and shared prosperity for all people.”

BUSINESS REPORT

A fraud charge against Cape Town attorney, businessman, and property developer Henk van Aswegen has been withdrawn by the State, bringing to an end a five-year legal battle that he says caused significant reputational, financial, and personal harm.

The matter was withdrawn last week in the Specialised Commercial Crimes Court in Pretoria after the office of the Director of Public Prosecutions in Gauteng concluded that there was no reasonable prospect of a successful prosecution.

Van Aswegen, 59, from Melkbosstrand, was arrested in 2021 on allegations linked to a long-running commercial dispute involving the Bendor Meadows residential development in Polokwane. The charge centred on claims that an invoice valued at approximately R1.2 million, which formed part of arbitration proceedings, was fraudulent.

The allegations were later amended to fraud, with the complainant claiming that the invoice relied upon in the arbitration process was never due or payable.

For Van Aswegen, the withdrawal marks the end of a legal ordeal that began as a commercial dispute but evolved into criminal proceedings.

“This has been five years of damage that cannot simply be undone by the withdrawal of a charge,” Van Aswegen said. “No court has found me guilty of fraud. The South African Revenue Services Sars, in direct contrast with previous media publications, has made no finding of fraud against me. The civil case by the complainant alleging fraud, based on the exact same allegations as the criminal matter, unanimously failed in the High Court, the appeal court, and the Supreme Court of Appeal, with costs and punitive costs ordered against the complainant.

“Yet, in stark contrast to the civil finding, I was arrested, detained, publicly accused, and forced to live under the weight of a criminal case that should never have reached that point,” he said.

The dispute originated from a cooperation agreement between Jacobs & Van Aswegen Property Developers CC and GP Smith Letting (Pty) Ltd relating to the Bendor Meadows development. After disagreements arose between the parties, the matter proceeded to arbitration and later to litigation.

According to the original charge sheet, Van Aswegen allegedly submitted a false invoice for R1,211,724.76 during arbitration proceedings against GP Smith Letting. He consistently denied the allegations.

In August 2021, the High Court dismissed GP Smith Lettings’ damages claim, which was based on allegations that the invoice was fraudulent. The court found that the company had failed to prove fraudulent misrepresentation and dismissed the claim with costs.

Despite the judgment, the criminal investigation continued.

Van Aswegen claims that shortly after the High Court ruling, he received an anonymous WhatsApp message stating: “Settle the civil matter and the Hawks will fly away.”

Days later, he was arrested by an investigating officer from Polokwane.

According to Van Aswegen, he had previously been informed that the investigation was incomplete and that he would be given an opportunity to provide a statement. He says this opportunity was never afforded to him before his arrest.

Following his arrest, Van Aswegen spent seven days in custody in Polokwane before being granted bail of R5,000 after an urgent High Court application brought by his wife, attorney Susan van Aswegen.

He further alleges that he was placed on an Interpol red list and that bail was opposed on the basis that he was considered a flight risk.

“To sit in police cells with convicted murderers and house breakers for a week as an attorney, a husband and a well-known businessman, knowing that the allegations against you are patently false, is something I would not wish on anyone.

“The trauma does not end when you walk out. It follows you into your business, your family, your name, and your future,” he said.

The criminal case was provisionally withdrawn in the Specialised Commercial Crimes Sars had made any adverse findings against Van Aswegen.

The matter was subsequently transferred to Pretoria after Van Aswegen’s legal team argued that it no longer fell within the jurisdiction of the Polokwane court.

Meanwhile, the civil litigation continued through the courts.

Three appeal judges unanimously upheld the High Court’s dismissal of GP Smith Letting’s case, finding that there was no basis to conclude that fraudulent misrepresentation had occurred.

The company later sought leave to appeal to the Supreme Court of Appeal, which refused the application on April 30, 2025. A further reconsideration application to the President of the Supreme Court of Appeal was dismissed with costs in December 2025. A subsequent application to the Constitutional Court was later withdrawn.

Sars had also investigated the invoice in question. According to court records, the revenue service finalised its audit in April 2015 without making any adverse finding of fraud or wrongdoing. A subsequent Sars affidavit confirmed that the invoice did not form part of a VAT input claim and that the audit had been completed without issue.

Susan van Aswegen of VA Attorneys and Conveyancers, who represented her husband, said the allegations had been subjected to extensive judicial scrutiny over several years and that he had consistently been vindicated.

While welcoming the withdrawal of the criminal charge, Van Aswegen said the consequences of the case would not disappear overnight.

“Being cleared is one thing. Rebuilding after years of public suspicion, emotional strain, and business damage is another. When criminal allegations are made without proper basis, the punishment starts long before any court has made a finding. It is human nature," he said.

Van Aswegen confirmed that he intends to institute civil proceedings against the complainant, the investigating officer, and others involved in the matter.

“This cannot simply be treated as an administrative mistake. There must be accountability when people are dragged through the criminal justice system, where no decent investigation occurred other than building a case at the behest of a complainant on allegations that courts and authorities ultimately do not support,” Van Aswegen said.

The case has renewed debate around the use of criminal complaints in commercial disputes and concerns that criminal processes can be used as leverage in civil matters.

Legal commentators and business leaders have increasingly warned that the misuse of criminal proceedings may undermine confidence in the justice system while creating uncertainty for entrepreneurs and investors.

For Van Aswegen, the matter extends beyond his personal experience.

“I have had to fight for my good name and for that of my wife and family, and importantly for my future. Many people do not have the resources, support, or legal knowledge to survive this kind of ordeal, or just give up. This is why this conversation matters, and that is why I have to institute civil claims. It will benefit others as well in the future,” he said.

PERSONAL FINANCE

The best advice you could get as a young person is to lose that either/or mentality. It’s about doing both, buying the things you need today, while making a contribution – however small – to long-term goals like investment and insurance, says Farzana Botha, Communications Manager at Sanlam Risk & Savings.

She says for many young South Africans, receiving a first salary is a significant milestone. After years of studying, internships, side hustles, or job hunting, earning a regular income brings a new level of independence. It also comes with financial responsibilities that many young adults are often unprepared to manage.

From budgeting and saving to managing credit and planning for retirement, first-time earners are expected to make important financial decisions from the outset of their careers. Yet financial literacy remains a challenge for many, she says.

Industry experts say that while much of the conversation around personal finance focuses on spending, saving, and investing, one of the most overlooked aspects of financial well-being is protecting future earning potential.

Recent research by Asisa found that South Africans under the age of 30 have only 32% of the disability cover they need and just 12% of the critical illness cover required to adequately protect themselves financially.

Financial experts say developing sound money habits from a young age can help build long-term financial resilience, regardless of income level.

Future planning starts early

According to Botha, one of the biggest obstacles to financial planning is the tendency to prioritise immediate needs and wants over long-term goals.

“It’s difficult to imagine our future selves, so we tend to take care of our present selves instead,” says Botha.

She says neuroscientists refer to this phenomenon as the “Stranger Effect”, where people view their future selves in much the same way they would view a stranger. This can make long-term planning more difficult and increase the appeal of immediate rewards.

However, Botha argues that financial planning should not be framed as a choice between enjoying life today and preparing for the future. “The best advice you could get as a young person is to lose that either/or mentality, it’s about doing both, buying the things you need today, while making a contribution – however small – to long-term goals like investment and insurance,” she says.

Small steps can make a difference

Affordability remains one of the main reasons young people delay investing or taking out insurance cover.

Botha believes the solution lies in making smaller contributions across multiple financial goals rather than focusing on a single priority.

“Do 10 small things, rather than doing one big thing and neglecting the other nine. Break your salary down into small chunks, and work towards each of your financial goals. Make small contributions towards savings, investment, short-term insurance, life cover, and so on. Even if your contributions are small to start with, you’ll still be putting yourself in a better position in the long run. And the good news is, as a young person, you can often get great deals on insurance cover,” she says.

Social media fuels spending pressure

The rise of social media has intensified pressure on young consumers to project success through lifestyle spending.

“This creates a subtle but powerful pressure to ‘keep up’,” warns Afua Darko, Business head at Sanlam Credit Solutions. “And it drives your spending decisions, which are sometimes supported by easy access to credit. The result is a focus on matching external expectations, rather than building long-term financial security.”

According to Darko, this pressure can encourage young earners to prioritise consumption over financial stability, often with long-term consequences.

Credit is a tool, not an income source

While credit can help finance major purchases such as a vehicle or a home, experts caution that it should be used strategically.

“Credit itself is neither good nor bad. When used responsibly, it can be a powerful enabler,” says Darko.

She encourages first-time earners to obtain a free credit report from a reputable provider and review it regularly.

“Your credit report gives you visibility into your credit score and helps you track how you’re managing debt over time. It’s also one of the easiest ways to spot early warning signs before they have a bigger impact on your financial future,” she says.

Problems arise when consumers begin treating credit as an extension of their income rather than a financial tool.

“Many young earners fall into the trap of using credit to sustain lifestyles they cannot yet afford. Ultimately, the goal is to shift the mindset from using credit for consumption to using it with intention. Credit should support building a stable financial future, not compromise it. That starts with a critical foundation: protecting your income and your financial base first. Without that safety net, even well-intentioned credit decisions can quickly become financial risks,” says Darko.

Closing the financial education gap

Experts argue that South Africa’s protection gap is closely linked to a broader financial education gap.

“Many young people simply haven’t been taught how to think about risk, protection, or long-term financial planning. These are not concepts that are consistently taught in schools, and in many cases, they’re also not modelled at home – not out of neglect, but because previous generations may not have had access to the same knowledge or tools,” says Darko.

Botha says many young people leave school without adequate financial knowledge and leave tertiary institutions carrying debt.

“A lot of young people are coming out of school without financial education, and coming out of varsity with debt. If you don’t know what to do, that pressure can lead you to make bad financial decisions. But if you know what the consequences of your decisions will be, then you’ll be able to operate with clarity and confidence – taking care of your present, building towards your future, and protecting yourself against the things you can’t see coming,” she says.

Seeking professional guidance

According to Sanlam’s 2025 Financial Confidence Index, 45% of young South Africans already receive financial planning support through a bank or financial adviser.

While online financial content and social media influencers have increased access to information, experts say personalised advice remains critical.

A financial adviser can help individuals understand their financial needs, identify appropriate products, and create realistic plans based on their income and goals.“The opportunity now is to make financial protection just as aspirational as lifestyle spending. It’s not a grudge purchase; it’s a smart, empowering choice,” says Darko.

* Botha is the communications manager at Sanlam Risk & Savings.

PERSONAL FINANCE

For much of the past decade, the dominant narrative surrounding South African emigration has been one characterised by a steady outflow of skilled professionals seeking stronger economic opportunities and improved safety in destinations such as Australia, the United Kingdom, and the United States.

However, property professionals, wealth managers, and recruitment firms are increasingly reporting renewed interest from South Africans abroad looking to purchase property locally. While there is currently no definitive data quantifying the number of returning expats, anecdotal evidence suggests that a growing number are either returning permanently or reinvesting in the local property market.

This shift is being driven by a combination of lifestyle considerations, changing work patterns, and the relative value offered by South African property.

For some, it’s about retiring or raising a family in a lower cost-of-living environment; for others, it’s simply about reinvesting in a market they still understand and believe in.

Remote work is reshaping the return-home equation

One of the most significant drivers behind this trend is the rise of remote and hybrid work.

Many South Africans are now able to return home while continuing to work for overseas employers or earn income in foreign currency. This allows them to benefit from South Africa's comparatively lower cost of living without sacrificing international career opportunities.

The traditional emigration model was built around relocating in search of opportunity. Today, many professionals are able to earn a competitive international salary while choosing to live where their quality of life is highest.

This is also a key reason why returning expats are buying property decisively once they re-enter the market. While homes in areas such as Clifton and Camps Bay command premium prices locally, they remain comparatively affordable when measured against equivalent properties in global cities such as London or Sydney.

As a result, the Western Cape continues to attract significant interest from returning South Africans seeking a combination of lifestyle and investment value.

Education remains a powerful drawcard

For families, education is emerging as one of the strongest influences on expat purchasing decisions.

South Africa continues to offer access to highly regarded public and private schools at a fraction of the cost of equivalent international education abroad - a major drawcard for families returning from countries where schooling and childcare costs have become prohibitively expensive.

Many returning families are evaluating far more than property prices. They're looking at the overall cost of raising a family and the quality of life available to their children.

Beyond affordability, many parents are attracted by the opportunity to raise children in environments that prioritise outdoor living, sport, recreation, and access to extended family support networks.

This has contributed to sustained demand in established family-oriented suburbs such as Cape Town's Southern Suburbs, as well as Johannesburg nodes including Bryanston and Houghton, where buyers can access strong schools, established infrastructure, and proximity to major business centres.

Security and convenience remain non-negotiable

Security continues to be a key consideration for many returning expats. Years spent living abroad often heighten awareness of safety concerns, leading many buyers to prioritise properties that offer enhanced security measures and lower management requirements.

This has fuelled demand for security estates and sectional title developments that provide controlled access, monitored security, and dedicated patrol services.

In addition to the peace of mind offered by enhanced security measures, these kinds of properties offer a lock-and-go convenience that freehold homes may struggle to match, particularly for buyers who split their time between countries or travel frequently.

This trend is especially evident along KwaZulu-Natal's North Coast, where areas such as Umhlanga, Ballito, and Zimbali Estate continue attracting strong interest from returning South Africans seeking a coastal lifestyle without compromising on security.

What expats are really buying

The growing interest from returning expats reflects a broader evolution in how property values are assessed.

The reality is that South Africa still offers something many global cities increasingly struggle to provide: a high quality of life at a relatively accessible price point, particularly for those earning foreign currency or returning with offshore capital.

For these buyers, reinvesting in the local property market is no longer simply about ‘coming home.’ It’s about finding the right balance between lifestyle, security, convenience, and long-term value.

Importantly, these priorities are not unique to returning expats. They increasingly mirror the considerations influencing the broader South African property market, offering valuable insight into where future demand is likely to be concentrated.

* Smee is the CEO of Only Realty Property Group, t

PERSONAL FINANCE

While giving your kids financial support to settle into adulthood makes sense in today’s economy, it can also stand in the way of their independence.

“I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing,” said American billionaire Warren Buffett.

While most of us don’t have billions to give our kids, we can all relate to the challenge of wanting to give them a leg up without spoiling them. Of course, you want life to be easier for your kids than it was for you – isn’t that the point? And getting started in life is so much tougher than a generation ago. Everything is more expensive, from groceries to a first home to a tank of petrol.

But the Bank of Mom and Dad paving the way with easy money can quickly do more harm than good.

The problem for many parents is that adulthood looks very different to what it did a generation ago. We may have left university with a degree tucked under the arm and a guaranteed job on the horizon, with a single income that was enough to sustain a family. But those days are gone. A tertiary qualification doesn’t ensure a job and even a small flat in the city costs many more zeroes than a young adult can afford.

Many parents would rather provide support while they are alive and able to see the impact than wait for their children to benefit from an inheritance one day. In principle, there is nothing wrong with this. The challenge is ensuring that support creates opportunity, rather than dependency.

Perhaps you continue paying your kids’ monthly cellphone bill or keep their car on your insurance, instead of forcing them to take out their own. Looking after some of their monthly expenses frees up money for them to save, right? More often than not, this isn’t the reality. You might think that R1,000 you’re “saving” them by paying the medical aid debit order is going straight into a retirement plan, but let’s be honest – if they don’t know how to budget, that extra money is just funding their lifestyle.

The real danger is that financial support can shield children from some of life’s most important lessons. Nobody enjoys struggling with money. That end-of-the-month Salticrax is dry as bone. Yet that is how people learn how to make better decisions. When Mom and Dad are always there to step in, children don’t get the chance to figure things out for themselves. They start seeing financial help as normal. And crucially, they don’t learn that they are resilient and smart and can do things on their own. If they don’t develop those skills with their budget, how will they cope when life throws something really hard their way?

The answer is not to cut kids off cold turkey. There is an important difference between helping a child move forward and rescuing them from the consequences of poor financial decisions. Assisting with studies, a first property deposit or a temporary setback can be constructive. Continually paying off debt, covering overspending or repeatedly bailing them out of financial trouble is far less likely to build long-term financial capability.

Parents need to help them in a way that builds independence, rather than fostering reliance. We need to understand that financial know-how is built over time and that our children should learn to think through decisions that have financial implications.

You can start by swapping free-flowing support with clear boundaries. If you’re paying their medical aid because they are still a dependent on your plan, you could say that you’ll cover it for another six months, after which they have to take out their own. If you want to help with a deposit for a property, work out an affordable payment plan.

Most importantly, help them understand their expenses and work out a budget. Many young adults don’t have a clue how much things cost and what they need to include in their budget. Point out to them that toilet paper doesn’t magically appear in the bathroom – they have to pay for it. That car they want comes with insurance and maintenance costs. Those weekly takeaway orders quickly add up. The earlier you have these conversations with your kids, the better prepared they’ll be.

Parents can also use financial support to encourage good financial habits. Youngsters in their first job don’t always think about retirement, but you could offer to match their contributions for a year, thereby showing them the power of discipline and early planning. You can also turn birthdays or accomplishments into opportunities for saving, by adding to an investment account. 

Of course, every child responds differently. Some view financial assistance as a stepping stone and quickly take responsibility for their own finances. Others begin to see support as an entitlement. The same help can produce very different outcomes, which is why parents need to pay close attention to whether their assistance is encouraging independence or simply prolonging reliance.

The job of a parent is to raise an adult. That means giving your children enough support to get started, while allowing them to build the skills they need to soar on their own. The most successful Bank of Mom and Dad is the one that’s no longer needed and can close its doors for good.

* Johnson is the franchise principal and financial adviser at Consult by Momentum.

PERSONAL FINANCE

The Congress of South African Trade Unions (Cosatu) has been encouraged by two key developments for the stabilisation and turnaround of the South African Post Office (SAPO) have recently taken place.  

First was the appointment of a new Board. 

Second was the lodging of an application at the Gauteng North High Court for SAPO to exit business rescue.  These important steps send a positive signal that SAPO is preparing to turn the corner after years of freefall.

SAPO’s decline, like many other state-owned companies, was allowed to take place and even facilitated over the decade of state capture and corruption. 

These inflicted a heavy toll upon the fiscus expected to spend billions on bail outs, workers’ wage and pensions left unpaid, and communities dependent upon SAPO and the Postbank, denied access to their services.

SAPO’s management over many years dismally failed to ensure that it kept pace with deep structural shifts taking place in the postal business, e.g customers moving from posting letters to sending emails.  This led to SAPO losing customers, unable to pay bills or salaries and ultimately being placed under business rescue after a court application by service providers owed monies.

Some free-market fundamentalists have demanded, wrongly, that government simply close or sell SAPO.  They miss the point that SAPO and the Postbank service millions of township and rural residents as well as social grant recipients often neglected by commercial banks or unable to access or afford private courier services.

The appointment of the Business Rescue Practitioners (BRPs) initially gave hope that SAPO would be turned around.  However, whilst their tenure saw the settling of much of its debt and slashing annual losses, it came at a painful and heavy price of closing more than 300 branches and retrenching 4 000 staff.

2026 marked a low point in SAPO's history with the BRPs threatening to apply for liquidation of SAPO unless they received a cash injection from the fiscus which wasn’t forthcoming. 

The 6th Parliament amended the Post Office Act enabling SAPO to enter the highly lucrative courier space and to become a one stop shop where members of the public can apply for a variety of government services, from IDs to social grants, NSFAS funding or Unemployment Insurance and other benefits.  Yet no movement has been made to do this by the BRPs. 

The Postbank Act was also amended by the 6th Parliament to enable the Postbank to become a fully licensed bank.  This is important for SAPO given their symbiotic relationship and even shared premises.

The Board appointed recently comprises people of integrity, capacity and experience, including representatives from labour and postal workers.

The insight of the latter is key to ensuring the lived experiences of postal workers are heard by the Board and addressed and that SAPO’s staff are able to input into its turnaround plan and ultimately have a sense of collective ownership for its implementation and success.  No company can succeed without the buy in of its employees.

It is key the new Board hit the ground running and put in place a turnaround plan building upon work already done over the past few years.  Key to this is appointing competent management.  The organisation’s turnaround plan won’t succeed without a management team that understands the sector, is able to engage staff and government, and roll out a bold vision for this once thriving public entity.

Management will need to ensure that frontline vacancies are filled and critical skills are recruited.  SAPO is not going to recover without warm bodies and the right skills.

Reaffirming the rights of its employees is key, including assuring them that their jobs are safe and their salaries and third-party payments will be honoured.  Workers have families they need to support and are entitled to expect their labour rights to be respected at all times.

Individuals involved in criminal activities, including corruption and theft, must be held accountable according to the law.  Customers will not return to SAPO if they fear their parcels will be tempered with.  Government departments, e.g. Home Affairs or SASSA, will not extend their networks to SAPO if they are not assured their systems will be respected.

Treasury needs to be engaged and come to the party to provide SAPO necessary financial support to enable the implementation of a turnaround plan.  Yes it cannot be a blank cheque or yet another bail out without conditions, but SAPO needs to be rebuilt, its systems modernised and secured, and its physical capacity made fit to compete in the highly competitive and lucrative courier sector.  Similarly utilising SAPO’s nearly 800 branches for other government institutions to roll out their services, requires a fit for purpose infrastructure.

Other government institutions are under severe pressure to ensure the public is able to access their high in demand services. 

The long queues at Home Affairs and the Labour Centres, of which there are approximately 70 each across the country, is evidence of the game-changing potential that enlisting SAPO’s nearly 800 branches can play in ensuring that members of the public are able to access government services where they live.

This requires SAPO’s new Board to ensure that agreements are put in place with the Departments of Home Affairs, Employment and Labour as well as Social Development, Higher Education and Training and Small Business Development for a process to roll out their services through SAPO Branches.

This will take time and it may be wise to start with one department at a time, perhaps starting with Home Affairs, which has already begun similar partnerships with the banking sector.

The real progress in stabilising and rebuilding other once embattled state-owned entities, from Eskom to Transnet, Metro Rail and SAA, shows that these once thriving institutions can be fixed and once again be enablers of economic growth.

SAPO too can be fixed and play an important role in connecting often marginalised communities to their families, government services and the economy.  The new Board provides the opportunity to do exactly that.

Solly Phetoe is the General Secretary of Cosatu.

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BUSINESS REPORT 

Despite consumer inflation increasing to 4.5% in May its highest level in 22 months on Wednesday, food inflation continues to decline, dropping 1.6% in May 2026. Civil society groups have welcomed the drop in food inflation.

According to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), the decline in food inflation reflects improved supply conditions both locally and internationally.

“There was a broad deceleration across the various food products. At the core of moderating consumer food price inflation are lower prices for grains and oilseeds, fruit, and vegetables, driven by ample domestic and global supplies.”

Sihlobo added that they continue to believe that meat poses minimal risks to inflation, and meat price inflation has slowed in recent months.

“Base effects on meat prices, along with continued cattle slaughter, have helped ease price inflation. Poultry production conditions are also favourable.”

Sihlobo said that  cereal products' price inflation indicates they are in yet another better grain production year.

“South Africa’s summer grains and oilseeds production is forecast at a record 21.1 million tonnes, up 2% from the 2024-25 season. This figure comprises maize, sunflower seed, soybean, groundnuts, sorghum, and dry beans. This ample harvest adds to already large stocks from the past season, keeping grain prices under pressure.”

Sihlobo added that global grain prices are also under pressure from large harvests, adding to the downward pressure from domestic factors.

“The expected El Niño will only affect the 2026-27 crop, which comes to market in mid-2027.”

Sihlobo said that in fruits, while the recent floods are destructive in parts of the Eastern and Western Cape, the country’s fruit harvest is ample.

“We are even seeing strong exports of citrus, table grapes, and stone fruits, among others, due to a large domestic harvest.”

Sihlobo added that regarding meat, the pace of cattle slaughter has declined somewhat, though not notably.

“Another fact worth keeping in mind is that during foot-and-mouth disease outbreaks, the country is typically temporarily closed to some export markets, leading to increased domestic supplies, even if slaughter has declined somewhat.”

Evashnee Naidu, KwaZulu-Natal regional manager of Black Sash, said the organisation welcomed the decline in food inflation but stressed that many essential goods and services continue to become more expensive.

“Despite this, certain essential goods have been impacted and have shown a marked increase. Household food baskets will fluctuate based on the type of goods that each household is able to afford and can reasonably be able to afford.”

Naidu added that public and private transport costs have increased significantly, and whilst there is hope for a fuel price reduction in July, with the reinstatement of the fuel levy, this decrease will not materially support households and individuals with much savings.

Siyanda Baduza, a basic income researcher at the Institute for Economic Justice (IEJ), echoed these concerns, noting that lower-income households often experience inflation differently from wealthier consumers.

“Though, of course, the basket for an average household and a poor household differs, the basket commonly consumed by lower-income households has risen in price over the past few months. One must also consider that while the cost of food may be lower, the rest of the CPI has not followed suit, and interest rates have increased.”

Meanwhile, Mervyn Abrahams, director of the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD), said food inflation figures should be viewed alongside broader economic realities.

“If there is no indication that incomes for workers have increased significantly over the past months, coupled with other rising costs such as water, electricity, and transport, then any talk of food inflation does not make that much of a difference to consumers.”

Abrahams added that food prices are affected by a number of factors including input costs such as diesel during planting and harvesting times, as well as processing and transporting from points of production to consumption points.

“We have seen over the past weeks and months how the Middle East conflict has pushed diesel prices up, resulting in an increase in some food items.” 

Abrahams concluded that they remain cautiously optimistic that peace talks will yield the desired outcome in the form of lasting peace because that would stabilise fuel prices and possibly see food prices moving towards what we witnessed at the beginning of the year.

BUSINESS REPORT

Cde Stan Greetings, ordinary member of the African National Congress. 

Ward 27, Vuyani Mabaxa Branch, Zone 10, Greater Johannesburg Region. 

Over the week Cde Stan Itshekhetseng, writing entirely in his personal capacity and I had a deep banter with a bounty of expletives that crystallised the arguments to squeeze out a more formidable position that we can work with towards a resolution.

The debate left the fainthearted with mouths dry.

We continued to exchange up to Sunday morning and both of us are satisfied with the analytical framework and its content. 

In this column allow me the space to narrate what my counter was to Cde Stan.

His argument was I have amnesia of the apartheid era and accused me of language that was “uncoothed” - my own words, Stan steps more carefully on words - I do not. 

My argument was disgusted reflection about the current and by no means apologising for apartheid. 

Cde Stan’s position is apt because it resonates with the current discussions that go far back to slavery and President Motley on Wednesday 17th delivered a message to the collective of colonial powers when she said  Barbados is owed US$4.9 trillion (BDS$9.8 trillion) in reparatory damages by slave-owning countries, and she called for global conversation on payment of debt for colonial slavery.

“We’re not expecting that the reparatory damages will be paid in a year, or two, or five because the extraction of wealth and the damages took place over centuries. But we are demanding that we be seen and that we are heard,” she said during a lecture at the London School of Economics.” 

So Cde Stan’s attempt to scalp my cranial features was useful in that during the course of the discourse, it provided us with the space to use these new instruments of power I have deployed to shine on apartheid and hold its structures to account.

And these instruments have also  farreaching applications as Out-In instruments of accountability.

The value of the exchange scrathed where it hurts.

My response to Stan was “I hold your lived memory in the highest regard. Some Cdes shared your post without naming the author, I know your pen without seeing the words. This is how intimately I have followed your sharp ink.

You have not shunned unleashing the most deserving critique and for that I respect you.

That cristalises contradictions and advances social progress.”  

Marie-Curie argues correctly that we should learn more so tha we should fear less. 

Knowledge flushes out poitical ghosts marauding as revolution.

You may argue that my language is revulsive and performative, and comrade that is where you get it wrong and I would not encourage you to look into the dictionary because you are smarter than that and it will be letting you free too lightly, so let me re-enter the ring, because you deserve a good fight because that banter of friends cannot be left to decay, it will be a disservice to a nation. 

If I was arguing with a fool, I would leave it at that, but I will not allow you to do the bidding for fools, because you are not one of them, and without softing your blow and seeking a merciful rejoinder, I am hardening my fist and armoury to get the best out of you and not camoufladged arguments. 

We deserve better and whilst your arguments are clear, they however lower the bar for accountability and diminsh the value of not memry, but steal from memory the motif force for its progress. In fact your arguments posper neo liberalism which blossom in distinguishing rigour in evidence and language of delivery. So, having been privileged by this government in sharpening my rigour of evidence and language of delivery, I will not restrain myself in using this asset.

So let us stop hiding behind the comfortable shield of academic politeness. 

Your critique, while beautifully written, commits a fundamental error: it mistakes my sharp use of language for performative theatre, and in doing so, completely misses the point of my capacity to crunch numbers and my duty to argue them in the public square. 

When the Lehohla Ledger speaks, it does not do so from a "high horse" or from a distance; it speaks from the unassailable fortress of a dense census mesh spanning 1996, 2001, 2011, and 2022. My competence to enter the political fray is not an abandonment of statistical science—it is the ultimate fulfillment of it.

Here is where your argument falls short:

1. The weaponization of bureaucratic circumlocution

You argue that a former Statistician-General should deliver a "neutral statistical truth" using sterile, administrative vocabulary. But what you call "neutrality," I call complicity. For over two decades, our populace has been drowned in "administrative dust"—a language of backlogs, sliding timelines, and process improvements that deliberately hides a looming crisis.

When a policy ignores raw empirical evidence, and when planning shifts from forensic reality to compliance-driven "thumb-sucking euphoria," it is not merely an "administrative delay".

It is an offense against logic and human dignity.

To describe a policy that leaves a community without water or gridlocks an economy as "stupid" or "foolish" is not an insult; it is a precise diagnostic label. It identifies the active, driving force behind the failure of those to whom public trust was placed.

2. The interface of cold facts and political gerrymandering

Combining rigorous evidence with uncompromising language is not performance—it is a forensic tool used to flush out bureaucratic circumlocution.

We are witnessing a dangerous game where cold, hard facts are intentionally twisted for political gerrymandering and selfish ends.

Policymakers use soft, evasive language to normalize structural failure, asking the poor to eat slogans and survive on press statements. 

I refuse to allow the state to hide its self-inflicted wounds behind a veil of polite administrative jargon.

When specialised state capacities are disrupted, or when syndicates infiltrate the very structures meant to protect our people, calling it "foolish policy" is the only honest posture. It forces an uncomfortable, direct interface between the mathematics of the census mesh and the politicians who try to dodge its conclusions.

3. Statistics with soul, not censorship

You ask for statistics with memory, and I have given you exactly that, backed by 2,752 rigorous analytical instruments designed for absolute metadata transparency.

But memory without accountability is just nostalgia. I cannot stand a posture of passive observation while the architecture of a national comeback is sabotaged by incompetence.

The slave ration was indeed accompanied by the chain, and we must never confuse the hardship of freedom with the comfort of slavery.

But freedom demands a state capable of implementation, led by evidence and ethical leadership. When that state fails its people due to a reckless disregard for data, an intellectual's duty is to call it out loudly, clearly, and in a vocabulary that the populace can instantly understand. 

So, my friend and comrade who correctly more than a decade ago started conversations about the direction South Africa is going, let us not soften the truth with meaningless language, pass the salt, review the mesh data for Diepkloof and Daveyton, and tell me: should we coddle the bureaucrats with polite language while the numbers show the house is on fire?

Dr. Pali Lehohla is the former Statistician-General of South Africa, Director of the Pan African Institute for Evidence (PIE), and the founder of the Lehohla Ledger. He is a Professor of Practice at the University of Johannesburg and a Research Associate at Oxford University.

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BUSINESS REPORT 

The term "currency war" was last in wide circulation around 2010, when Brazil's then-Finance Minister, Guido Mantega, used it to describe what major economies were doing to their exchange rates through quantitative easing and competitive devaluation.

The label faded but deployment of these practices did not.

What is happening in currency markets in 2026 is not broadly coordinated, declared, or acknowledged by any of the parties involved, it is, however, systematic.

Japan, China, India and several smaller emerging market economies are all managing their exchange rates more actively than their public communications suggest, through a combination of direct intervention, capital flow restrictions and monetary policy, calibrated as much for exchange rate stability as for domestic inflation targets. 

The cumulative effect is a global currency environment where market price discovery (the continuous process of determining an asset’s price through interactions of buyers and sellers) is quietly being overridden and where the countries that are not intervening – South Africa (SA) included – are absorbing the consequences.

 Japan offers the clearest case.

 The yen has been a managed currency for years but the mechanics have shifted. 

The Bank of Japan (BoJ) spent the better part of 2024 defending the ¥160/$ level through direct intervention, burning through foreign exchange reserves at a pace that drew attention from the International Monetary Fund (IMF). 

The underlying problem has not been resolved. Japanese monetary policy remains the loosest among developed market central banks on a real-rate basis, which means the yen carry trade – borrowing in yen at near-zero rates to invest in higher-yielding assets elsewhere – remains structurally attractive. 

Every time that trade unwinds, as it did violently in August 2024, it sends shockwaves through asset markets that have nothing obvious to do with Japan.

China's management of the yuan is more deliberate and less apologetic. The People's Bank of China (PBoC) sets a daily fixing rate for the currency and allows it to trade within a narrow band around that fix. The fixing itself is a managed number. 

When the yuan faces depreciation pressure – from capital outflows, tariff-related trade deterioration, or dollar strength – the PBoC adjusts the fix to slow the move, intervenes through state banks in the offshore market and occasionally tightens restrictions on capital leaving the country.

None of this is covert – China has never pretended to have a freely floating exchange rate.

The effect on trading partners is the same regardless of how it is publicly positioned. A managed yuan that absorbs dollar strength more slowly than it otherwise would, exports deflationary pressure to everyone competing with Chinese goods.

India's situation has been complicated by the Iran conflict, when the rupee hit record lows earlier this year as the oil import bill expanded and foreign exchange reserves came under pressure.

The Reserve Bank of India responded with a combination of direct dollar sales, restrictions on banks' open foreign exchange positions and pressure on exporters to repatriate dollar earnings immediately. 

Indian Prime Minister, Narendra Modi's public appeal to citizens to stop buying gold was, in part, a demand management tool for foreign exchange. India is not devaluing its currency, it is defending it. But the intervention dynamic is the same – the market price is not being allowed to clear.

The countries sitting outside this system are the ones absorbing the adjustment.

When the yen is kept from weakening as fast as fundamentals suggest it should and when the yuan is managed to limit depreciation, the currencies that float freely take a larger share of the impact from the dollar's movement.

The rand is one of those currencies. 

SA does not intervene in the currency market in any meaningful way.

The South African Reserve Bank (Sarb) does not have the reserves to do so sustainably and the country's open capital account means the rand reflects global risk sentiment, commodity prices and dollar dynamics in real time.

When major economies are quietly capping their own currency weakness, freely floating emerging market currencies tend to overshoot on the downside during risk-off episodes.

As such, the rand's volatility is partly a function of what other countries' central banks are doing, not just what is happening domestically.

The broader consequence of this quiet intervention regime is that currency signals are being suppressed as economic information. Exchange rates are supposed to reflect relative economic conditions and adjust to absorb external shocks. 

When they are managed, the adjustment has to happen somewhere else – in growth, inflation, or asset prices. The countries doing the managing avoid short-term pain but delay the adjustment and the countries absorbing the spillover get more volatility than they generate.

On Thursday, the US 10-year Treasury yield eased to 4.44%, partly reversing the previous session’s move higher, while the two-year yield rose to 4.20%.

Although the US Federal Reserve (Fed) kept rates unchanged, the meeting was not interpreted as dovish. The Fed’s inflation projections were revised up, around half of officials still expect a 2026 hike and new Fed Chair, Kevin Warsh, reiterated the focus on price stability. Markets have therefore shifted closer to pricing an interest rate hike by October.

United Kingdom (UK) gilts weakened as the 10-year yield rose to 4.78%, moving away from recent two-month lows.

The Bank of England (BoE) left rates at 3.75% in a seven-to-two vote, on Thursday, but the message remained cautious rather than relaxed.

Policymakers flagged lingering inflation risk from the Middle East energy shock, and BoE Governor, Andrew Bailey, warned that price pressure has not fully faded. The expected 2026 fourth quarter inflation peak was lowered to 3.25% from 3.6%.

Germany’s 10-year bund yields edged up to 2.93% but remained near mid-March lows.

Lower oil prices reduced some inflation concern after reports that the US and Iran had agreed to reopen the Strait of Hormuz. That helped sentiment but did not remove pressure from the rates backdrop. The European Central Bank (ECB) has already raised rates recently and markets still expect at least one more increase before year-end.

SA bonds softened on Thursday, with the 10-year yield up about four basis points to 8.44%.

The broader trend, however, remains constructive. Yields are still roughly 50 basis points lower over the month and about 1.7% below levels a year ago.

Local fixed income continues to benefit from firmer demand, a resilient rand, improved global risk appetite and relief from lower oil prices.

US equities finished stronger, with technology providing most of the lift. The S&P 500 gained 1%, the Nasdaq 100 added 2.4% and the Dow rose 21 points. Technology giant, Intel, led the advance, up 10.6%, after US President, Donald Trump, said the company would produce chips for Apple in the US. 

The news also supported semiconductor companies, Nvidia and Micron. Airlines were firmer, including a 3.3% gain in American Airlines. Wall Street is closed on Friday for the US’s Juneteenth holiday.

The UK’s FTSE 100 fell more than 1%, dragged lower by commodity-linked shares and a cautious rates backdrop. Energy and mining counters were under pressure as Shell, BP, Rio Tinto, Glencore and Anglo American all declined. Grocery retailer, Tesco, also weakened after first-quarter sales growth missed expectations. Real estate companies, Persimmon and Land Securities and private equity firm, 3i Group, traded ex-dividend, adding to the softer tone.

The local FTSE/JSE All Share Index slipped 0.74% to 115,168.58, suggesting profit-taking after a strong recent run.

The underlying trend remains positive and the index is still up about 1.2% over one month and more than 21% over the past year.

Lower oil prices reduced geopolitical tension and a firmer global risk tone continued to support local equities.

Brent traded near $79/barrel on Thursday and was heading for a weekly decline of just over 10%. 

The risk premium built into crude faded as the US-Iran MOU improved conditions around the Strait of Hormuz.

US Central Command lifted restrictions near Iranian waters, allowing delayed tankers to move, while Kuwait signalled higher output. Prices are close to giving back the gains made since the conflict began in late February.

This may hang in the balance, given Friday’s breaking news that the US and Iran have pulled back from negotiations.

Gold fell below $4,200/ounce as rate expectations became the dominant driver. 

A more hawkish Fed message reduced demand for non-yielding assets, even as lower oil prices eased some inflation pressure.

The dollar’s strength remains anchored in US rate expectations, with the US Dollar Index hovering around 100.8 and close to its strongest level since May 2025.

The Fed’s interest rate hold was not viewed as dovish, given higher inflation forecasts and continued support among policymakers for a possible rate hike later in 2026.

Markets are now leaning toward an October move. Lower oil prices and reduced geopolitical risk helped sentiment, but the hawkish Fed policy signal remained the key driver.

The euro came under renewed pressure, slipping below $1.15/€ as the Fed’s projections reinforced expectations of tighter US policy.

While recent rate increases by the ECB and BoJ show that other major central banks remain alert to inflation, the market focus has shifted back to relative US rate support.

Lower oil prices have eased some inflation concern, but geopolitical risks have not fully disappeared, limiting the euro’s ability to recover.

Bianca Botes, Managing Director at Citadel Global.

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BUSINESS REPORT 

When Dineo Glomane first enrolled to pursue a career in engineering, she had no idea that a twist of fate would ultimately lead her into the automotive industry and lay the foundation for a thriving business.

Today, Glomane is the founder and director of Womech Mechanical Works Specialists, a Mpumalanga based workshop that services everything from passenger vehicles and commercial fleets to heavy earth moving equipment. The business has built a reputation for technical excellence, customer trust and a commitment to developing the next generation of artisans.

Yet the journey began with an unexpected change in direction.

Growing up, Glomane dreamed of becoming an engineer and initially studied Electrical Engineering, specialising in light current systems, radio and television.

After completing her N6 qualification, she secured a bursary that she believed would further her studies in electrical engineering. Instead, she discovered she had been enrolled in an Auto Electrical Engineering programme.

"At first, my sister, who also enrolled with me, and I knew very little about the field and even considered leaving, but circumstances encouraged us to stay," Glomane said.

"We made a conscious decision to embrace the opportunity, and it turned out to be one of the best decisions of our lives. Through our training and apprenticeships, we developed a genuine passion for the automotive industry and never looked back."

That passion would eventually shape a career spanning some of South Africa's leading organisations before she ventured into entrepreneurship.

Working in a sector traditionally dominated by men came with its own challenges.

"The biggest challenge was overcoming the perception that women could not perform at the same level as men," she said.

"We often faced intimidation and had to work twice as hard to prove ourselves. However, those challenges strengthened our determination and pushed us to develop the skills, confidence and resilience that have contributed to our success today."

Throughout her career, Glomane learned one lesson that would become central to her entrepreneurial mindset.

"The greatest lesson I learned is to believe in yourself," she said.

"Working in a male dominated environment often made us question our own abilities, but over time I realised that confidence is critical to success."

The vision for Womech emerged from the complementary skills she and her sister had developed over the years. While Glomane qualified as an Auto Electrician, her sister became a Diesel Mechanic.

"Our different technical backgrounds became one of our greatest strengths," she said.

"Together, we possessed the skills needed to offer a comprehensive service to customers, which later became the foundation of Womech's integrated business model."

The sisters launched Womech Mechanical Works Specialists in 2017 after identifying a gap in the market while working in Secunda.

"There were very few black owned workshops in the area despite the town being strategically located near major mines and power stations," Glomane explained.

"We saw an opportunity to provide high quality mechanical and auto electrical services while creating a business that represented transformation within the industry."

Starting the business required determination and sacrifice.

Both sisters remained employed while using their salaries to fund the workshop's operations, pay rent and cover employee salaries.

"Every aspect of the business was self funded," Glomane said.

"It was challenging, but our commitment and belief in our vision kept us going. Today, we are proud of how far we have come and the fact that we own our facility."

Rather than relying heavily on advertising, Womech built its reputation through quality workmanship and customer satisfaction.

"At Womech, we believe that failure is not an option," she said.

"We take immense pride in our work and strive to deliver the highest level of service to every customer."

That approach has helped the business expand its capabilities from servicing passenger vehicles to handling complex repairs on trucks, buses and heavy equipment.

The company's integrated model, which combines mechanical and auto electrical services under one roof, has become one of its key differentiators.

"Many vehicle issues involve both mechanical and electrical components," Glomane said.

"By offering both services under one roof, customers avoid the inconvenience of moving their vehicles between different workshops. It saves time, improves efficiency and allows us to provide a complete solution."

Among the company's proudest achievements is its ability to weather difficult economic conditions and continue growing.

"One of our biggest milestones has been surviving and continuing to grow despite challenging economic conditions, including the Covid-19 pandemic," she said.

"Another major achievement has been acquiring our own premises."

Beyond business growth, Glomane remains deeply committed to skills development.

A qualified training officer herself, she has made mentorship and artisan development a central part of Womech's mission.

"Skills development allows us to give back to our community and support the next generation of artisans," she said.

"It is particularly important for young women entering the industry because we want to help them avoid some of the challenges we experienced and ensure they receive quality training and mentorship."

Each year, the company supports between 10 and 15 learners and apprentices through workplace exposure and experiential learning programmes.

Looking ahead, Glomane has ambitious plans for expansion.

"Our goal is to expand beyond Mpumalanga and establish a presence in provinces such as Gauteng and the Free State," she said.

The company is also targeting opportunities within the mining sector, which she believes offers significant growth potential given Womech's expertise and geographic location.

While the business continues to evolve, Glomane's long term vision extends beyond commercial success.

"The legacy I want to leave is simple: women can succeed in any industry they choose. I want Womech to inspire women to dream bigger, believe in themselves and never allow society's limitations to define their potential," she said.

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BUSINESS REPORT