Browsing: South Africa

South African billionaire Michiel Le Roux.
Michiel Le Roux is a South African entrepreneur and founder of Capitec Bank in which he owns about 11 percent stake.

Founded in 2001 the bank is listed and trades on the Johannesburg Stock Exchange. Capitec bank targets South Africa’s emerging middle class and is thus far one of Africa’s most successful banks.
Le Roux has served as the bank’s board chairman from 2007 to 2016 and now continues to be a board member and is renowned to be one of SA’s billionaires.
He is a seasoned banker and financial enthusiast having previously run the Boland Bank, a regional bank in Cape Town.

The Bank is now one of the most notable financial institutions in the country and according to the Solidarity Research Institute report of 2015, Capitec Bank is described as the cheapest bank in South Africa.
A good description of a targeted …

South Africa’s declining GDP is expected to set back efforts to address unemployment, poverty and inequality according to a new United Nations Development Programme study on the socio-economic impact of COVID-19 in South Africa by at least five years.

The gross domestic product (GDP) of South Africa is expected to  5.1 per cent and 7.9 per cent in 2020 and recover slowly for at least the next four years.

The study was launched by  Dr Nkosazana Dlamini-Zuma South Africa’s Minister of Cooperative Governance and Traditional Affairs.

The study focused on how COVID-19 will drive temporary and long-term changes in poverty levels in the country. According to the study, the number of households below the poverty line will increase as households fall from the lower middle class.

As South Africa’s  6-month stimulus packages come to an end, 54 per cent of households that have been pushed out of the permanent job …

The International Monetary Fund (IMF) executive board approved $4.3 billion requests for emergency financial from South Africa to address the challenging health situation and severe economic impact of the COVID-19 shock.

The funds are under the Rapid Financing Instrument (RFI) which aims at meeting the urgent balance of payment (BOP) needs stemming from COVID-19 pandemic outbreak, limit regional spillovers and catalyze additional financing from other international financial institutions.

The outbreak of the pandemic has led to a sharp economic contraction and significant financing need in South Africa.

Over the last decade, economic activity in the country has weakened despite government spending, this has resulted in increased poverty, unemployment and income inequality.

“South Africa’s economy has been severely hit by the COVID-19 crisis, reporting the highest number of cases in sub-Saharan Africa. A deep economic recession is unfolding as the decline in domestic activity and disruptions in the global supply chain …

A webinar organised by The Power & Electricity World Africa, entitled “Achieving Energy Security: Encouraging Healthy Competition And Regulation For IPPs”, took place on the morning of July 14th, 2020.

Also Read: Angola’s exceptional measures in force during sanitary enclosure

The attending virtual panel consisted of:

• Dr. Clinton Carter-Brown, Energy Centre Head, CSIR, South Africa – Moderator
• Vitor Marquez da Cruz, Managing Director, MC&A Advogados
• Eng. Julius Riungu, CEO, Tsavo Power, Kenya

The topic of African Energy security and the challenges ahead was debated in a little over an hour, with very insightful contributions from all parties involved being brought to the forefront.

The imbalance of supply and demand for electricity in Africa curbs its potential for economic development. IPPs (Independent Power Producers), though, align very well with the national energy security agenda and are a definite solution to meeting Africa’s growing electricity needs.

Africa currently accounts for …

The coronavirus (COVID-19) has hurt the South African business confidence, making it to drop to the lowest level in almost 45 years.

Among the factors sited for the drop include the resources spent in virus prevention measures—particularly the strict lockdown.

What the index says

According to information from Bloomberg News, the second-largest economy in Africa readings started in 1975 showcased, the deep fall, whereas both—Rand Merchant Bank (RMB)unit and Stellenbosch University affirmed that, a quarterly gauge measuring business confidence fell to 5 in the second quarter from 18 in the previous three months.

However, a reading of 5 means “just about every respondent in the second quarter was unsatisfied with the prevailing business conditions,” RMB said. The survey was based on the responses of 1,800 business executives between May 13 and June 1.

Further, as the nation moves away from the harsh-lockdown total of around 1 800 executives surveyed across …

Africa’s second-largest economy, South Africa—is planning to introduce projects worth of $29.5 billion in sectors such as water, energy, and transport—to fuel an economic recovery from coronavirus (COVID-19) pandemic, according to information from Reuters.

The infrastructure projects are expected to be approved by the South African President Cyril Ramaphosa’s cabinet, following discussions with the private sector and multilateral development banks, Paul Mashatile, ANC’s treasurer-general said during a video conference organized by a London based think-tank—Chatham House.

According to statistics from the South African government on COVID-19 trend, until May 27, 634,996 tests were conducted, 25,937 cases identified, 13,451 people recovered, 552 people succumbed to the virus and more than 1,600 cases emerged.

As South Africa swims in a second-recession, the economic-recovery projects would focus on areas such as railways, ports, energy, information technology, water and sanitation and housing.

“It is clear that given the scale of the damage to …

Africa second-largest economy, South Africa—is anticipating to reopen its economy by easing its nationwide lockdown.

According to information from Bloomberg, South Africa’s government announced the plans for the reopening on Wednesday.

South Africa—which had the most strict lockdown perhaps in the entire region, has taken the imitative due to business leaders constant pressure on South African President Cyril Ramaphosa, to take back the economy to its normal life, arguing that the lockdown does more harm and could do more harm to the economy over time.

The South African government rolled in a 21-day lockdown on March 27 to fight the virus spread, but then added two more weeks.

The lockdown has been used as the preparing base to levitate the health system, as nearly 25,000 beds were added for quarantine, personal protective equipment and other supplies, according to information from Bloomberg.

Speaking to his countrymen via a televised address, …

Investment banking fees in Sub-Saharan Africa reached an estimated US$128.2 million during the first quarter of 2020, a decline of 15 per cent from last year’s strong start.

Advisory fees earned from completed mergers and acquisitions (M&A) transactions generated US$33.5 million, down 38 per cent year-on-year, while syndicated lending fees declined 47 per cent to US$35.7 million.

The authors of the report, Refinitiv, note that Equity capital markets underwriting fees more than tripled to reach US$36.7 million, a first quarter total only exceeded twice since the company’s records began in 2000.

China’s Belt and Road Initiative, AfCFTA to anchor Africa’s economy

Bond underwriting fees increased 20 per cent to US$22.3 million, again the third-highest first quarter fee total since our records began.

Almost one-quarter of fees in the region during the first quarter of 2020 were earned from government and agency deals.  Almost two-thirds of all fees were generated in …

South Africa, Africa’s second-largest economy could be in deep trouble, as the nation’s currency—rand eased against the dollar early on Wednesday, whereby the currency kept on sustaining losses a day after the central bank surprisingly cut lending rates, according to information from Reuters.

The nation’s finance minister Tito Mboweni also gave a warning on the possible trail towards a deep recession this year. In a different occasion, the finance minister highlighted that a recession could hit due to the global coronavirus (COVID-19) pandemic, that has put the world economy at risk.

However, South Africa’s diversified economy was already in recession before the COVID-19 pandemic took a large toll on its economy.

READ:Recession could hit Sub-Saharan Africa, World Bank says

At 0625 GMT, the rand traded at 18.4770 per dollar, 0.9 per cent weaker than its previous close, according to data presented by Reuters.

However, according to the South African …

There is need for Tanzania to involve the private sector to help it fight against illegal fishing if the country is to curb the devastating economic sabotage.

The country is now grappling with illegal fishing, but with the ever depleting amount fish in Lake Victoria and other inland water masses as well, it seems to be a losing battle this far.

The already trouble sector, contributing an average of 2.2 per cent to the Gross Domestic Product (GDP) is taking more hits from illegal fishing.

So bad is the crisis that last month, while addressing the nation from the Lake City of Mwanza, the country’s President John Magufuli made a public appeal in to end the detrimental practice.

The president described illegal fishing as economic sabotage and warned that the nation is losing a vital natural resource, a key economic activity that provides daily livelihood for many and is a …