<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DH7NZXD3XFM3HPROUJLXVPKCEI-820x547.jpg" alt="" class="wp-image-434077" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DH7NZXD3XFM3HPROUJLXVPKCEI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DH7NZXD3XFM3HPROUJLXVPKCEI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DH7NZXD3XFM3HPROUJLXVPKCEI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DH7NZXD3XFM3HPROUJLXVPKCEI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DH7NZXD3XFM3HPROUJLXVPKCEI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DH7NZXD3XFM3HPROUJLXVPKCEI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Haul trucks are seen at Kumba Iron Ore, the world&#8217;s largest iron ore mines in Khathu, Northern Cape Province November 15, 2011. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



Dec 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Kumba Iron Ore&nbsp;KIOJ.J, a unit of global mining giant Anglo American Plc&nbsp;AAL.L, on Friday said it was cutting production over the next three years to align output to constrained capacity to transport minerals via rail to port.



Transnet, South Africa&#8217;s state-owned freight rail and port operator, is struggling to haul minerals and other commodities to export markets due to locomotive shortages, cable theft and vandalism of its infrastructure. This has cost exporters billions of rand in potential revenue.



Kumba, whose iron ore stockpiles had grown to 9 million tons by September due to the rail bottlenecks, said it expects to end 2023 with production of between 35-36 million tons, from the previous forecast between 35–37 million tons.



Kumba has also lowered its production outlook for the next three years to 35–37 million tons per year, from previous targets of 37–39 million tons in 2024 and 39–41 million



tons in 2025, it said in a production update.



&#8220;There is no escaping the fact that ongoing logistics constraints have continued to place significant pressure on our value chain, resulting in stock levels at the mines increasing to unsustainable levels. We have therefore slowed down production,&#8221; Kumba CEO Mpumi Zikhalala said.



The persistent logistics problems have resulted in a 15% decrease in iron ore railed to port since 2019, Kumba said.



Anglo American CEO Duncan Wanblad told an investor call on Friday that the group had decided to slow down production at Kumba and move stockpiles until Transnet&#8217;s logistics problems were resolved.



&#8220;As soon as we get the transport capacity, we would be able to ramp the production back up,&#8221; Wanblad said.



The global mining giant was preparing to freeze spending on growth and widen job cuts in South Africa, including mothballing some higher-cost platinum mines, sources familiar with the matter told Reuters on Thursday.



At Kumba, the restructuring had already seen a 30% reduction in head office staff in September, Zikhalala said during an investor call. The company was also reviewing its use of contractors, she added.



On Friday, Anglo American said it aims to cut capital expenditure by $1.8 billion by 2026, as it grapples with a fall in demand for most of the metals it mines and a huge writedown for its British fertiliser project.



Kumba is targeting up to 3 billion rand ($159 million) in 2023 cost savings, having reduced its capital expenditure the year by about $105 million to between $475 million and $530 million earlier in the year.



($1 = 18.9120 rand)



(Reporting by Nelson Banya; Editing by Elaine Hardcastle and David Evans)

FILE PHOTO: Kumba Iron Ore, the world’s largest iron ore mines in Khathu

Anglo’s South African iron ore unit cuts production as rail woes persist

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/GettyImages-1241914844-820x547.jpg" alt="" class="wp-image-423805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/GettyImages-1241914844-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/GettyImages-1241914844-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/GettyImages-1241914844-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/GettyImages-1241914844-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/GettyImages-1241914844.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A customer browses meat in a refrigerated aisle inside a Spar Group Ltd. supermarket in the Die Wilgers suburb of Pretoria, South Africa, on Thursday, July 14, 2022. A quarterly index measuring sentiment about the nations expected economic performance fell to -39 in the second quarter, according to data released Wednesday by FirstRand Ltd.s First National Bank, the lowest level since 1985. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



Dec 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s fourth-quarter consumer confidence fell to the lowest in two decades for the festive season, according to a survey released on Thursday, as the country struggles&nbsp;with higher interest rates and a cost-of-living crisis.



The consumer confidence index, sponsored by the First National Bank (FNB) and compiled by the Bureau for Economic Research, fell to minus 17 points, from minus 16 points in the third quarter of 2023.



&#8220;Consumers will keep tight control over their purse strings during the holiday shopping season, which should worry retailers of expensive luxury goods in particular,&#8221; the survey added.



The overall trends showed consumers were still&nbsp;wary of big-ticket purchases, especially interest-rate sensitive goods, which are expected to underperform previous holiday seasons.



&#8220;High interest rates and a marked deterioration in South Africa&#8217;s fiscal position are likely worrying high- and middle-income consumers,&#8221; FNB Chief Economist Mamello Matikinca-Ngwenya said.



South African inflation quickened more than expected in October to 5.9%, according to latest inflation data, driven by steep rises in food, transport and health costs.



(Reporting by Prerna Bedi in Bengaluru; Editing by Krishna Chandra Eluri)

Spar Group Ltd. Supermarket as South African Consumer Confidence Hits Historic Low

South Africa’s consumer confidence drops in fourth quarter – survey

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-820x519.jpg" alt="" class="wp-image-433031" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/DUFCFSKNIRJZDEEYXNXJIRBYTY-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Electricity lights up the central business district of Cape Town, South Africa, June 18, 2019. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



PRETORIA, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;The South African economy recorded a minor contraction in the third quarter of this year as output fell in the agriculture, mining and construction industries, statistics agency data showed on Tuesday.



The 0.2% contraction in quarter-on-quarter seasonally adjusted terms&nbsp;ZAGDPN=ECI&nbsp;was slightly larger than the 0.1% predicted by analysts polled by Reuters and followed two consecutive quarters of growth.



The latest figures mean Africa&#8217;s most industrialised economy grew just 0.3% in the first nine months of the year.



Joe de Beer, head of economic statistics at Statistics South Africa, said that almost all sectors of the economy were neither growing nor declining very much.



&#8220;The economy has moved sideways, &#8230; the numbers are just oscillating around zero,&#8221; he said at a briefing in the capital Pretoria.



In unadjusted year-on-year terms Q3 GDP contracted 0.7%&nbsp;ZAGDPY=ECI, also worse than analysts&#8217; prediction for a fall of 0.2%.



Previously growth in expenditure was driven by private investment in renewable energy as businesses look to compensate for the state utility Eskom implementing the worst power cuts on record. However this has slowed.



&#8220;In the second quarter there was a huge surge in imports of green energy-related products and that wasn&#8217;t sustained in the third quarter,&#8221; said de Beer.



Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said the big picture was that South Africa&#8217;s economic recovery from the COVID-19 pandemic had been among the worst in emerging markets.



He predicted a modest pick-up in growth in 2024.



&#8220;The drag from power cuts should start to ease as efforts to improve supply bear fruit. And, with the election looming, fiscal policy will probably be less restrictive,&#8221; he said, referring to upcoming national elections expected to take place in the first half of 2024.



(Additional reporting by Tannur Anders in Johannesburg; Editing by Alexander Winning and Frances Kerry)

DUFCFSKNIRJZDEEYXNXJIRBYTY-1

South African economy contracts marginally in third quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-820x547.jpg" alt="" class="wp-image-432767" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/GettyImages-1251771740-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ebrahim Patel, South Africa&#8217;s trade minister, speaks during the South Africa Investment Conference in Johannesburg, South Africa, on Thursday, April 13, 2023. Today&#8217;s conference starts as data this week showed that the South African economy has probably entered a technical recession. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Dec 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s automotive industry will likely produce its first electric vehicle (EV) in 2026, the trade minister said on Monday, as he outlined plans for the country&#8217;s green&nbsp;transport&nbsp;transition.



The electrification of transport is one of the key pillars underpinning South Africa&#8217;s Just Energy Transition (JET) plan for a low-carbon and climate-resilient economy.



The JET plan estimates that an investment of 128.1 billion rand ($6.84 billion) would be needed from 2023–2027 for the transport sector to contribute meaningfully to South Africa&#8217;s decarbonisation commitments.



South Africa is the largest automotive manufacturing hub on the African continent, hosting global brands such as Toyota, Isuzu, Volkswagen and Mercedes, among others.



It is also highly integrated into the global supply chain, drawing components from across the world and exporting the final consumer product to more than 150 countries worldwide.



&#8220;We&#8217;re already producing hybrids but we anticipate that the first electric vehicles are likely to be produced already by 2026,&#8221; Minister of Trade, Industry and Competition, Ebrahim Patel told journalists.



Based on discussions his department was having with the automakers, the first batch of EVs will be limited. Growth should then accelerate between 2026 and 2030, with only one manufacturer anticipating moving into battery electric vehicle production after 2030, he added without naming any brands.



In a 68-page EV plan, the government outlined steps to support the transition, such as government incentives, a temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market, and the commercialisation of green hydrogen production as a source of sustainable fuel.



It will also reform network industries, including freight rail and ports and implement energy reforms.



The country&#8217;s power crisis poses one of the risks as the country&#8217;s state-power utility Eskom struggles to keep the lights on.



The effective bans on CO2-emitting vehicles from 2035 in key markets like the European Union and UK will be profound, as they absorb nearly half of South African auto production, the plan read.



($1 = 18.7387 rand)



(Reporting by Nqobile Dludla; Editing by Sharon Singleton)

Key Speakers at the South Africa Investment Conference

South Africa likely to produce first EV in 2026: Minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/XITIO74YJBM5XNTYYV6EQSSGSY-1-820x548.jpg" alt="" class="wp-image-430986" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/XITIO74YJBM5XNTYYV6EQSSGSY-1-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/XITIO74YJBM5XNTYYV6EQSSGSY-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/XITIO74YJBM5XNTYYV6EQSSGSY-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/XITIO74YJBM5XNTYYV6EQSSGSY-1-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/XITIO74YJBM5XNTYYV6EQSSGSY-1-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/XITIO74YJBM5XNTYYV6EQSSGSY-1.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Nov 29 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank has warned that systemic risk to the country&#8217;s financial stability has remained elevated, notably due to the government&#8217;s increasing debt levels and debt-servicing costs, as well as the impact of being put on a &#8220;grey list&#8221;.



The South African Reserve Bank (SARB) said in its biannual health check on Wednesday that the risk has remained elevated since the release of the May report.



Earlier this month, the finance minister&#8217;s mid-term budget showed debt peaking at a higher level than in February when the main budget was tabled, with gross debt expected to rise to 6.52 trillion rand ($352.40 billion) in 2026/27 from 5.24 trillion rand in 2023/24.



&#8220;As government debt has increased, so has the domestic financial sector&#8217;s exposure to it,&#8221; the SARB report said.



This is because foreign investor participation in the government bond market has declined steadily since 2018, with an acceleration following South Africa&#8217;s exclusion from the World Government Bond Index in April 2020.



&#8220;The increasing concentration of (government bonds) held by domestic investors, coupled with the high levels of government debt, presents a risk to the financial sector,&#8221; it added.



The country was also put on a &#8220;grey list&#8221; in February by the Financial Action Task Force (FATF), a&nbsp;global&nbsp;financial crime watchdog, to force it to implement standards to prevent money laundering and terrorism financing.



While the immediate impact is higher processing, monitoring and reporting costs, the long-term consequence will be the reduction of the country&#8217;s attractiveness as an investment destination, the report said.



Risks that have eased somewhat include that of secondary sanctions on South&nbsp;Africa if its neutrality stance on Russia and Ukraine is not clear and that of electricity supply constraints following a marked increase in new power generation projects, the report said.



&#8220;Concerns over further spillovers from the global banking stress in March 2023 also reduced notably,&#8221; it added, referring to the collapse of Switzerland&#8217;s Credit Suisse bank.



($1 = 18.5018 rand)



(Reporting by Nqobile Dludla; Editing by Alexandra Hudson)

XITIO74YJBM5XNTYYV6EQSSGSY-1

South Africa’s central bank says systemic risk to country’s financial stability remains elevated

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="826" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Installation-shot-A-World-In-Common-at-Tate-Modern-2023-Tate-Lucy-Green.jpg" alt="" class="wp-image-430929" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Installation-shot-A-World-In-Common-at-Tate-Modern-2023-Tate-Lucy-Green.jpg 826w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Installation-shot-A-World-In-Common-at-Tate-Modern-2023-Tate-Lucy-Green-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Installation-shot-A-World-In-Common-at-Tate-Modern-2023-Tate-Lucy-Green-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Installation-shot-A-World-In-Common-at-Tate-Modern-2023-Tate-Lucy-Green-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Installation-shot-A-World-In-Common-at-Tate-Modern-2023-Tate-Lucy-Green-768x512.jpg 768w" sizes="(max-width: 826px) 100vw, 826px" /><figcaption class="wp-element-caption">Installation shot, A World In Common at Tate Modern 2023, Tate (Lucy Green)</figcaption></figure>



“It has to be a mark of something out there in the world,” the South Africa artist William Kentridge once remarked of the first line on a virgin canvas. Like a robust and long overdue visual interjection in the middle of a colonialized global creative economy, the African art market is now making an irresistible and indelible mark of its own. According to research firm ArtTactic, work by African artists exceeds a combined annual auction worth of $72 million (more than double its 2016 value).



“This surge in interest is a result of the convergence of different factors that have led to a thriving and dynamic African art scene, one that resonates with a global audience and challenges conventional notions,” says Elana Brundyn, Founding CEO of the Norval Foundation, and Founding Director of the Zeitz Museum of Contemporary Art Africa in Cape Town. “It’s a consistent and steadily growing interest and support for African and diasporic artists. It is not merely an art movement; it&#8217;s a cultural transformation that celebrates diversity, innovation, and identity, and a powerful force reshaping the way the world experiences all contemporary art.”



Brundyn says the exceptional body of work produced by these artists, “fearlessly delving into various aspects of identity, societal issues, and the dynamic essence of contemporary culture,” is now supported by a resilient infrastructure of African institutions and exhibition spaces, giving creators a reliable domestic platform from which to attract and expand international interest. “These institutions empower Africans to shape the narrative of Africa’s identity,” she says. “Artists are proud to exhibit their work on local soil.”



Global curiosity has also evolved into what Brundyn calls a “flourishing landscape” of art fairs dedicated to African art: 1-54 (London, New York and Marrakech), the Also Known As Africa exhibition (Paris), and the Investec Cape Town Art Fair feed a thriving network of secondary art markets, such as Sotheby’s Modern &amp; Contemporary African Art Auction.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/gettyimages-1514558940-612x612-1.jpg" alt="" class="wp-image-430901" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/gettyimages-1514558940-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/gettyimages-1514558940-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/gettyimages-1514558940-612x612-1-135x90.jpg 135w" sizes="(max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">A vistor at an exhibition focusing on contemprorary African visual artists, including photography, video and audio works at Tate Modern London. (Photo by Judith Burrows/Getty Images)</figcaption></figure>



This demand is stimulated at ground level by viral excitement generated by social media, to the point where the traditional hierarchy of commodification is starting to dissolve. Awareness now drives audience appetite, rather than just accessibility. Africa-born artists are consistently featured or their works permanently exhibited in some of the world’s most influential galleries: one third of the 62 international exhibitors at this year’s 1-54 Contemporary African Art Fair at Somerset House in London were from the African continent. The White Cube gallery houses a collection by South African figurative painter Cinga Samson; the work of Nigerian photo-tapestry powerhouse Njideka Akunyili Crosby can be enjoyed in many of the most important galleries on both sides of the Atlantic, including the Metropolitan Museum of Art in New York and the Tate Modern in London.



Osei Bonsu, a curator at the Tate Modern and author of African Art Now: Fifty Pioneers Defining African Art for the Twenty-First Century,says his museum has embraced the demand for greater equitability and inclusivity. “Tate Modern is uniquely positioned in a growing landscape of institutions seeking to highlight art from Africa and its global diaspora,” he says. “The Africa Acquisitions Committee was founded in 2011 specifically to broaden the representation of such artists. The recent success of exhibitions such as El Anatsui’s Turbine Hall commission, and A World in Common: Contemporary African Photography, suggests that public interest is growing, as museums are seeking to address a broader and more inclusive vision of art history and contemporary culture.”



He points out that these are positive first steps; the global art market is worth close to $68 billion, dwarfing an African component with a long journey ahead before it reaches numbers that more equitably voice the ideas and creativity of a fifth of the world’s population. “We still need to see more sustained representation of African art through dedicated publications and monographic exhibitions,” he says. “But I’m hopeful museums like Tate will continue to play a leading role in connecting African art with local and international audiences.”



Dr Tenley Bick, Assistant Professor of Global Modern and Contemporary Art at Florida State University, says that global audience interest in these artworks is fuelled by a deep desire for recognition and discussion of the socio-political issues that inspire their creation.



“Those attuned to African arts and the global art world may have noticed two events in recent weeks: Art X, the fair of contemporary African art in Lagos, and Africa &amp; Byzantium at the Metropolitan Museum of Art in New York, an exhibition that also includes works by contemporary African artists,” Bick says. “Major museums, commercial galleries, and biennials in the US and Europe – where the ‘global’ art market is often dictated – are reckoning with systemic racism, resulting in changes in programming, acquisitions, and rosters, often with increased attention to the arts of Africa and its diasporas.”



She notes that these incremental but significant gains are the result of the cultural work invested over several decades. “They are long-fought and hard-won – by artist-activists like the Black Emergency Cultural Coalition in the US of the 1970s and the British Black Arts movement in the 1980s. And by important curators from the continent such as Salah Hassan (editor of the Nka Journal of Contemporary African Art), Smithsonian Institute senior fellow Olu Oguibe, and the late art critics and curators Okwui Enwezor and Bisi Silva.”



Brundyn believes that a buoyant global network, and an overlap of interest, demand and education, are creating a burgeoning market with the tenacity to outlast its relative novelty.



“The growing diversification of collections is increasingly evident as more individuals and institutions incorporate African artworks alongside other genres,” she says. “Academic and research institutions are dedicating more resources to studying and documenting art from Africa. This has led to a deeper understanding of the cultural, historical, and artistic significance of these artworks, and a renaissance that has facilitated greater cultural exchange between Africa and the rest of the world.”

gettyimages-851475350-612×612

The African Art Renaissance: Surge In Interest And Impact On Global Market

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="501" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LSSIDQPHZ5O3DAPY2A2HE3A7OE-820x501.jpg" alt="" class="wp-image-430894" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LSSIDQPHZ5O3DAPY2A2HE3A7OE-820x501.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LSSIDQPHZ5O3DAPY2A2HE3A7OE-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LSSIDQPHZ5O3DAPY2A2HE3A7OE-147x90.jpg 147w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LSSIDQPHZ5O3DAPY2A2HE3A7OE-768x469.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LSSIDQPHZ5O3DAPY2A2HE3A7OE-1536x938.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LSSIDQPHZ5O3DAPY2A2HE3A7OE-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Clouds pass over the pit head at Sibanye Gold&#8217;s Masimthembe shaft in Westonaria, South Africa, file. REUTERS/Mike Hutchings</figcaption></figure>



Nov 29 (Reuters)&nbsp;&#8211;&nbsp;Diversified miner Sibanye Stillwater&nbsp;SSWJ.J&nbsp;said on Wednesday it would cut 287 jobs at its U.S platinum group metals (PGM) operations to reduce costs as metal prices decline, adding the move would not significantly affect production.



The price of PGMs, mostly used by automakers to curb emissions, have declined significantly over the past year amid concerns over global economic growth. The palladium price has plunged nearly 40% so far this year, particularly hit by weak demand in China, while primary metal platinum is down 14%.



The Johannesburg-based miner last year announced the restructuring of its palladium-dominated U.S operations in anticipation of a fall in palladium prices and because of the impact of inflation on costs.



The restructuring is expected to affect approximately 100 Sibanye-Stillwater employees and 187 contractors, Sibanye said in a statement.



&#8220;We have taken decisive action to address costs at the U.S PGM operations, to ensure the sustainability of these long-life operations during a challenging period of lower than anticipated PGM prices,&#8221; Sibanye CEO Neal Froneman said in the statement.



The restructuring is not expected to significantly impact current mine production or recycling operations, but will result in significantly lower costs and capital, the company said.



Last month, Sibanye announced plans to restructure its South African PGM operations, targeting four loss-making shafts in a move that could potentially result in the loss of 4,095 jobs.



Sibanye&#8217;s rival Impala PlatinumIMPJ.J has also started offering voluntary job cuts to workers in South Africa in a bid to cut costs amid the PGM price rout.



(Reporting by Nelson Banya; Editing by Mark Potter)

Clouds pass over the pit head at Sibanye Gold’s Masimthembe shaft in Westonaria

Sibanye to cut nearly 300 jobs at US ops after palladium price fall

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LYW554QLQNJ4RACN24N6DUUM3E-820x547.jpg" alt="" class="wp-image-430732" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LYW554QLQNJ4RACN24N6DUUM3E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LYW554QLQNJ4RACN24N6DUUM3E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LYW554QLQNJ4RACN24N6DUUM3E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LYW554QLQNJ4RACN24N6DUUM3E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LYW554QLQNJ4RACN24N6DUUM3E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LYW554QLQNJ4RACN24N6DUUM3E-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of Shaft 11 at Impala Platinum Mine, in Rustenburg, South Africa, November 28, 2023. REUTERS/Sumaya Hisham</figcaption></figure>



JOHANNESBURG, Nov 28 (Reuters)&nbsp;&#8211;&nbsp;Impala Platinum&nbsp;IMPJ.J&nbsp;on Tuesday temporarily halted operations at its Rustenburg mining complex in South Africa after 11 workers died and 75 were injured in what the CEO said was &#8220;the darkest day&#8221; in the company&#8217;s history.



The Johannesburg-based platinum miner said in a statement that 86 workers were involved in the incident at its No. 11 shaft. All the injured had been admitted to four hospitals in the area. The company spokesperson said medical physicians classified 14 workers in the hospital as&nbsp;&#8220;high priority&#8221;.



&#8220;Today is the darkest day in the history of Impala and our hearts are heavy for the lives lost and the individuals affected by this devastating incident,&#8221; CEO Nico Muller said in a statement.



Impala said workers were being brought to the surface at the end of their shift on Monday, when the conveyance system, which carries workers up and down an underground shaft 1,000 meters (3,280.84 ft) deep, started a rapid descent.



All mining operations at the Rustenburg complex in South Africa&#8217;s North West province were suspended on Tuesday. The halt could be extended to Wednesday to allow the company to &#8220;mourn and heal emotionally&#8221;, Johan Theron, Impala&#8217;s spokesperson said.



He also said investigations into the cause of the accident had begun.



Impala&#8217;s shares in Johannesburg declined 6.74% at 0847 GMT.



South Africa has some of the world&#8217;s deepest, oldest and most costly platinum and gold mining shafts.



The deaths at Rustenberg add to the 41 fatalities that had been recorded in South Africa&#8217;s mining industry this year so far. Last year, 49 workers died in South Africa&#8217;s mines, which was the lowest number of fatalities to date, Minerals Council South Africa, the industry lobby group, said.



Spokesman Theron said he could not be precise about the impact of the stoppage on Impala&#8217;s metals output.



&#8220;It&#8217;s impossible to quantify the impact on production save to say (the) shaft on its own is a very large complex and contributes roughly 15% of Impala Rustenburg&#8217;s production,&#8221; Theron said.



&#8220;To the extent that it&#8217;s stopped for any length of time, it will have a corresponding impact on the entire company.&#8221;



(Reporting by Felix Njini and Nelson Banya; Editing by Kim Coghill, Jamie Freed, Louise Heavens and Barbara Lewis)

A general view of Shaft 11 at Impala Platinum Mine, in Rustenburg

Impala Platinum halts some South African mines after 11 workers died

Fish and food processing company Oceana Group has reported a significant surge in revenue, with a 28.9% increase in headline earnings for the fiscal year ending September 30, 2023. The company, which operates in 31 geographies around the world, has seen growth in various sectors, including its flagship brand Lucky Star.



Neville Brink, the CEO of Oceana Group, highlighted the challenges faced by the company in an interview with CNBC Africa. He acknowledged the constrained consumer market in South Africa, which has been affected by inflation, high interest rates, and unemployment rates. However, Lucky Star has achieved a remarkable volume growth of over 9% by managing selling prices and working closely with trade partners to minimize costs.



In addition to the South African market, Oceana has also experienced growth in the United States. The company&#8217;s fishing operations in the US supply fish oil, an ingredient in the pet food and aquaculture industries. With the surge in pet ownership during the COVID-19 pandemic, the pet food market has seen astronomical growth, providing a positive environment for Oceana&#8217;s US business.



Oceana&#8217;s wild-caught seafood sector, which supplies hake, horse mackerel, and kinkler to West Africa and Western Europe, has faced challenges due to constrained catching rates. However, strong demand for healthy seafood has compensated for these challenges, resulting in a mixed bag of results but an overall successful year for the company.



Looking ahead, Oceana Group plans to focus on maintaining affordability for consumers through its Lucky Star brand. The company has invested heavily in stock, ensuring healthy volumes of Lucky Star cans already available. With the decline of the chicken industry, Oceana aims to maintain competitive prices and capitalize on the continued demand for Lucky Star products.



In the salmon farming sector, there is a continuous demand for fish oil, and Oceana is well-positioned as a producer. The company plans to leverage its healthy fish oil stocks to meet next year&#8217;s sales demand. Additionally, Oceana expects improved catching rates in the wild-caught sector due to changing environmental conditions, enhancing the supply of healthy seafood to European and South African markets.



To support future growth, Oceana Group intends to invest significantly in capital expenditure. The company plans to spend approximately 1.2 billion Rand over the next three years, primarily focusing on its West Coast factories for fish meal and fish oil production, as well as the cannery. Oceana has recently opened a new corn meat factory, the first of its kind on the West Coast of South Africa in many years, demonstrating the company&#8217;s confidence in its investment prospects.

ovens-blur

Oceana Group Reports Strong Revenue Growth and Plans for Future Expansion

In a recent interview with CNBC Africa, Wayne McCurrie, Portfolio Manager at FNB, <a href="https://www.cnbcafrica.com/media/6341842682112/cyber-monday-biggest-online-shopping-day/">discussed the role of South African online retailers on Cyber Monday</a>. McCurrie highlighted the limited opportunities for local players and the potential impact of international giants like Amazon.



Cyber Monday, known for its online deals and discounts, is not as popular in South Africa compared to other countries. McCurrie noted that while the concept is well-known, local online retailers have limited opportunities to participate in the event. Currently, Naspers&#8217; takealot.com is the biggest online retailer in South Africa, but it is just a small part of the company&#8217;s overall operations.



Brick-and-mortar retailers in South Africa have an online presence, but online activities still make up a relatively small percentage of their overall turnover. McCurrie pointed out that while some retailers, such as Checkers 60-60, have seen a 40% increase in online activity, it is still less than 10% of their total turnover. As a result, a day like Cyber Monday is unlikely to significantly impact their financial results.



Looking at the international perspective, McCurrie highlighted companies like Amazon as major players in the Cyber Monday phenomenon. While Cyber Monday is more popular in Asia, Amazon&#8217;s entry into the South African market poses a potential threat to local online retailers like takealot.com. McCurrie believes that Amazon could potentially overshadow takealot.com, and it is crucial for the local retailer to have plans in place to counteract this competition.



The profitability aspect of online retail was also discussed during the interview. McCurrie acknowledged that online retailers often offer discounted delivery and operate on small margins. However, he emphasized the importance of eventually charging the appropriate price for delivery to ensure profitability. Despite the challenges, McCurrie noted that online shopping has become increasingly convenient, thanks to smartphones and affordable data, allowing a wide audience to participate in online retail.



When discussing the potential benefits for payment service providers during Cyber Monday, McCurrie stated that while there could be some marginal benefit, the industry is intensely competitive. Every bank and cell phone company in South Africa has an online payments portal, but profitability has yet to be achieved as appropriate pricing has not been implemented.



Finally, McCurrie touched on the role of food retailers during Cyber Monday. He noted that while food retailers like Checkers 60-60 did benefit from the event, Cyber Monday is still way smaller in South Africa compared to Black Friday. Black Friday, which has expanded to Black Friday week and month in South Africa, remains the more significant shopping event, with food retailers leading the way in offering competitive prices.



South African online retailers face limited opportunities on Cyber Monday, with local players like takealot.com having a small presence compared to international giants like Amazon. While online activities are growing, they still make up a relatively small percentage of overall turnover for brick-and-mortar retailers. The entry of Amazon into the South African market could further impact the local online retail landscape.

A woman uses a trolley as she shops at a Pick n Pay store

South African Online Retailers Face Limited Opportunities on Cyber Monday, says Portfolio Manager at FNB

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-820x547.jpg" alt="" class="wp-image-411521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1026624864-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Signage stands on the exterior of the Johannesburg Stock Exchange (JSE) in the Sandton district of Johannesburg, South Africa, on Monday, Sept. 3, 2018. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



The Johannesburg Stock Exchange (JSE) has been experiencing a decline in the number of listed companies, a trend that is being observed globally due to the growth of private equity and venture capital. However, the JSE is not resting on its laurels and is actively seeking partnerships and making changes to its listings requirements to encourage more companies to list and remain on the platform.



One of the measures the JSE has taken is the introduction of new products such as dual class voting shares that have been popular in the US and other countries for tech companies. These shares give founders and executives more voting power, allowing them to retain control even if they own a smaller stake in the company. The JSE has also introduced infrastructure real estate investment trusts (REITs) as a new product.



In addition to introducing new products, the JSE has made changes to its listings requirements to make it easier for companies to list and remain listed without compromising investor protection. The JSE has reviewed its rule book to identify rules that can be simplified and has embarked on a cutting red tape project to reduce unnecessary burdens on listed companies.



Furthermore, the JSE has been actively seeking partnerships and exploring opportunities for new listings globally. It has been in countries such as the UK, Poland, Germany, Luxembourg, and the United States to attract new listings. The JSE has also announced inward listing frameworks for Singapore and Hong Kong.



These efforts have already started to bear fruit with companies like Primary Health Properties (PHP) inward listing from the UK earlier this year with a market capitalisation of 30 billion rand. Additionally, companies like Premier, which split from the break group, and Copper 360 have listed on the JSE.


		
		
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While the number of delistings on the JSE may not be historically high, the challenges lie in attracting new listings. The JSE is focusing on encouraging small-cap companies to list and is working with asset managers to revive retail investment. The JSE has seen an increase in retail activity on its market since the COVID-19 pandemic.



At the same time, the JSE is actively seeking inward listings from larger companies as many of the large companies in South Africa are already listed on the JSE. The JSE aims to attract inward listings from companies with market capitalisations of tens of billions of rand.



Looking ahead to 2024, the JSE expects to see more companies coming to the market for new listings in the second half of the year, once the uncertainty of the elections has passed. The JSE is also focusing on Asia, particularly Hong Kong and Singapore, for inward listings, although these efforts will take time to build relationships and bear fruit.



The JSE has been proactive in addressing the decline in the number of listed companies by introducing new products, making changes to its listings requirements, and seeking partnerships and new listings globally. These efforts are aimed at encouraging more companies to list and remain on the platform, ultimately boosting the overall market.

The Johannesburg Stock Exchange As Battered Rand Plunges

JSE Looks for Strategic Partnerships as Trading Volumes Decline

On the day after Thanksgiving, known as Black Friday, retailers in South Africa are hoping to recover earlier losses and boost sales during the Christmas season. CNBC Africa <a href="https://www.cnbcafrica.com/media/6341716180112/black-friday-whos-winning/">spoke with Grant Nader, Portfolio Manager at Benguela Global Fund Managers</a>, to discuss which listed companies are best positioned to capitalize on this shopping extravaganza.



NASPERS, the conglomerate behind Takealot, is expected to see positive outcomes on Black Friday. As an e-commerce platform, Takealot has the ability to move significant volumes of inventory, making it an ideal channel for retailers looking to recoup lost sales and clear out overstocked items. While NASPERS&#8217; overall economic impact is relatively small, Takealot&#8217;s dominance in the South African market makes it a crucial player for local sellers and distributors.



The Foschini Group, which includes various brands such as Foschini, Sportsscene, and @home, is well positioned for success on Black Friday. With its extensive range of products, the company utilizes data analytics and strategic pricing to attract customers and increase sales. Additionally, Foschini&#8217;s inventory and promotional environment make it an ideal candidate for shoppers seeking bargains.



Woolworths, known for its focus on food retail, also participates in Black Friday. However, the company is careful to maintain its margins and does not heavily discount its products. While demand is still expected, Woolworths is not likely to undercut its margin gains in the fashion, beauty, and homeware sectors. The company&#8217;s approach reflects its commitment to maintaining profitability while meeting customer expectations during the shopping event.



Other retailers, such as Truworths and Mr. Price Group, have their own strategies for Black Friday. Truworths relies heavily on credit-based sales, while Mr. Price Group has recently acquired Studio 88 to expand its offerings. Both retailers are well positioned to attract customers and increase sales during the shopping season.



In terms of overall winners on Black Friday, Grant Nader suggests that Shoprite may come out on top in the grocery sector due to its focus on discounting and gaining market share. For clothing brands, Foschini Group and Mr. Price Group are likely to see success, thanks to their broad range of products and competitive pricing.



As Black Friday kicks off the Christmas shopping season, South African retailers are hoping to make the most of this opportunity to boost sales and recover from the challenges of the past year. While each company has its own approach and target market, they are all vying for the attention of bargain-hunting consumers in a highly promotional environment. Only time will tell which retailers will emerge as the true winners of this annual shopping frenzy.

Illustration shows smartphone with Naspers’ logo

Black Friday Sales in South Africa: Which Retailers Are Poised to Win?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-545175688-820x547.jpg" alt="" class="wp-image-429762" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-545175688-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-545175688-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-545175688-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-545175688-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-545175688.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">PRETORIA, SOUTH AFRICA &#8211; JULY 6: Olympic athlete Oscar Pistorius holds the hand of a relative after sentencing at the High Court on July 6, 2016 at the High Court in Pretoria, South Africa. Pistorius was sentenced to six years in prison for the murder of girlfriend Reeva Steenkamp at their home in 2013. (Photo by Marco Longari &#8211; Pool/Getty Images)</figcaption></figure>



<a href="https://www.nbcnews.com/news/world/oscar-pistorius-murdered-girlfriend-reeva-steenkamp-father-parole-rcna36449" target="_blank" rel="noreferrer noopener">Oscar Pistorius</a>, the disgraced South African Paralympian who&nbsp;<a href="https://www.nbcnews.com/news/world/blade-runner-oscar-pistorius-charged-murder-flna1c8371215" target="_blank" rel="noreferrer noopener">murdered his girlfriend</a>&nbsp;on Valentine’s Day 10 years ago, was granted parole at a hearing on Friday and will be released.



A double amputee sprinter known as the “Blade Runner” for his prosthetic legs, Pistorius, 37, was convicted of fatally shooting his girlfriend Reeva Steenkamp&nbsp;<a href="https://www.nbcnews.com/storyline/pistorius-trial/pistorius-i-knew-it-id-fired-four-shots-door-n74446" target="_blank" rel="noreferrer noopener">four times through a locked bathroom door</a>&nbsp;at his home in Pretoria in 2013.



Pistorius was told at a hearing in Pretoria, the administrative capital where he has been held, that he will be released on Jan. 5, 2024.



A model and law graduate, Steenkamp was 29. Tania Koen, a lawyer who has represented the Steenkamps throughout the parole process and Pistorius’ appeals, confirmed to NBC News that parole was granted.



Pistorius was <a href="https://www.nbcnews.com/news/world/oscar-pistorius-denied-parole-murder-reeva-steenkamp-rcna77550" target="_blank" rel="noreferrer noopener">denied parole at a hearing in March</a> after a judge ruled that, despite expectations that it would be granted, he had not served the minimum time needed to qualify for parole. The judge in that hearing said he wouldn’t be considered for parole until August 2024.



The 2014 trial attracted global attention as the&nbsp;<a href="https://www.nbcnews.com/storyline/pistorius-trial/pistorius-vomits-court-graphic-images-steenkamps-body-n51591" target="_blank" rel="noreferrer noopener">details of Steenkamp’s death</a>&nbsp;were beamed around the world. It immediately ended the career of Pistorius, then perhaps the world’s most high-profile disabled athlete, who made history by competing in an able-bodied field at the Olympics.&nbsp;&nbsp;



Pistorius claimed<a href="https://www.nbcnews.com/storyline/pistorius-trial/oscar-pistorius-my-car-was-shot-dad-was-hijacked-twice-n73506" target="_blank" rel="noreferrer noopener">&nbsp;he mistook Steenkamp for a burglar</a>&nbsp;and shot her in error. As a condition of the parole process,&nbsp;<a href="https://www.nbcnews.com/news/world/oscar-pistorius-murdered-girlfriend-reeva-steenkamp-father-parole-rcna36449" target="_blank" rel="noreferrer noopener">Pistorius met with Steenkamp’s father</a>, Barry, in June 2022. Her family opposed his release because they reject Pistorius’ account of their daughter’s killing.



As Pistorius has not yet served his full sentence of 13 years and five months, he will likely be forced to wear an electronic security tag and be banned from leaving Gauteng Province, which includes Johannesburg and Pretoria.



Originally, Pistorius was sentenced to six years in jail for murder, but prosecutors then appealed what they called a “<a href="https://www.nbcnews.com/storyline/pistorius-trial/oscar-pistorius-prosecutors-seek-longer-murder-sentence-n817166" target="_blank" rel="noreferrer noopener">shockingly lenient</a>” punishment and the sentence was increased.



Born with a congenital condition that led to both his legs being amputated below the knee when he was 11 months old, Pistorius became a successful athlete, leading out the South African team at the 2012 London Olympics opening ceremony. Days later he would become the first double amputee to compete at the Olympics.



The 2014 trial&nbsp;<a href="https://www.nbcnews.com/storyline/pistorius-trial/oscar-pistorius-kept-gun-him-all-time-ex-girlfriend-n46746" target="_blank" rel="noreferrer noopener">heard&nbsp;</a>that Pistorius had a gun with him “all the time,” including on his bedside table while he slept. He told the court that he lived in fear of a home invasion and said he had been&nbsp;<a href="https://www.nbcnews.com/storyline/pistorius-trial/oscar-pistorius-my-car-was-shot-dad-was-hijacked-twice-n73506" target="_blank" rel="noreferrer noopener">followed, shot at and hi-jacked</a>. When he shot Steenkamp he had assumed it was a burglar, he said.&nbsp;

Oscar Pistorius Is Sentenced In The Trial Over The Murder Of Reeva Steenkamp

Oscar Pistorius granted parole, to be released from prison nearly 11 years after murdering girlfriend Reeva Steenkamp

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Nov 24 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was stronger in early trade on Friday, extending its Thursday gains after the central bank kept its main interest rate unchanged.



At 0644 GMT, the rand traded at 18.7700 against the dollar&nbsp;ZAR=D3, 0.3% stronger than its previous close.



The dollar&nbsp;=USD&nbsp;last traded around 0.03% weaker against a basket of global currencies.



South Africa&#8217;s central bank stuck to its previous hawkish tone on Thursday as it kept its main lending rate unchanged for the third meeting in a row, boosting the rand, despite inflation quickening in October.



Next week investors will turn their attention to supply-side inflation when producer price index data is released.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was marginally stronger in early deals, with the yield down 0.5 basis point at 10.120%.



(Reporting by Tannur Anders; Editing by Jacqueline Wong)

Illustration photo of South African rand

South African rand extends gains after key rate left unchanged

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMZVR4AVEFLRFCSVUSQPSAY2HU-820x573.jpg" alt="" class="wp-image-429528" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMZVR4AVEFLRFCSVUSQPSAY2HU-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMZVR4AVEFLRFCSVUSQPSAY2HU-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMZVR4AVEFLRFCSVUSQPSAY2HU-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMZVR4AVEFLRFCSVUSQPSAY2HU-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMZVR4AVEFLRFCSVUSQPSAY2HU-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/OMZVR4AVEFLRFCSVUSQPSAY2HU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The South African Reserve Bank (SARB) governor Lesetja Kganyago is seen during the SARB Biennial Conference in the Cape Town International Convention Centre, in Cape Town, South Africa, August 31, 2023. REUTERS/Esa Alexander</figcaption></figure>



PRETORIA, Nov 23 (Reuters) &#8211; South Africa&#8217;s central bank kept its main lending rate unchanged at 8.25% in a unanimous decision by its monetary policy committee (MPC) announced on Thursday.



It was the third meeting in a row that the bank has left its repo rate on hold. All economists polled by Reuters had forecast that the rate would be left unchanged.



Inflation rose sharply to 5.9% year-on-year in October from 5.4% in September, approaching the upper end of the central bank&#8217;s target range of 3%-6%.



&#8220;The uptick in inflation is unwelcome,&#8221; central bank Governor Lesetja Kganyago told a news conference, referring to October&#8217;s data. He also said &#8220;serious upside risks&#8221; to the inflation outlook remained.



Analysts expect the central bank to cut interest rates in early 2024, but some have warned it might delay its easing cycle until later over high inflation.



The South African Reserve Bank&#8217;s MPC has said it wants to see inflation sustainably around the midpoint of its target range before considering rate cuts.



(Reporting by Kopano Gumbi, Anait Miridzhanian and Tannur Anders; Writing by Bhargav Acharya Editing by Alexander Winning)

South African Reserve Bank’s Biennial Conference in Cape Town

South African central bank holds main rate but warns on inflation risks

As the 28th Conference of the Parties (COP28) approaches, <a href="https://www.cnbcafrica.com/media/6341616411112/managing-climate-risks-ahead-of-cop28/">South African banks are being put to the test to see how effectively they manage climate risks</a>. A recent report by Just Share, an NGO focused on climate change, reveals the progress made by the country&#8217;s big five banks in addressing climate risks but also highlights the need for further action.



Just Share has been analyzing and engaging with South African banks for the past five years, examining their commitment to fighting climate change. The goal of the report was to provide customers with the tools to assess the banks&#8217; actions in relation to climate change.



The report assessed the banks across 20 indicators and established a rigorous methodology for the analysis. While the overall findings showed some progress, with none of the banks doing enough, the highest scoring bank received a score of only 60 percent.



One key finding of the report was the impact of governance on climate risk management. Banks with better climate competence on their boards tended to perform better across all indicators. This highlights the importance of having relevant expertise and minimizing climate conflicts within the boardroom.



Emma Schuster, Senior Climate Risk Analyst at Just Share, stated, &#8220;The overall thing is that the banks are making some progress, but they have a long way to go to properly align their climate integration with their commitments and with the goals of the Paris Agreement.&#8221;



The report also pointed out the banks&#8217; lack of progress in recognizing and acting on climate risks related to fossil gas. Schuster argued against the argument that increased investment in fossil fuels would benefit development outcomes in South Africa. She emphasized that South Africa has a high emissions profile and a high rate of inequality, and investing in fossil fuels is not the solution to these issues.



Schuster also highlighted the opportunity for South Africa to transition to cleaner and more inclusive energy systems. The falling costs of renewable energy and the global transition away from fossil fuel-based economies present a huge opportunity for the country to reimagine and revitalize its energy sector.



While acknowledging the exposure of South African banks to fossil fuels due to the structure of the country&#8217;s economy, the report emphasized the importance of an orderly and just transition away from fossil fuels. It called on banks to plan and prepare for the future, taking into account the needs of workers and communities dependent on fossil fuel systems.



The findings of the report provide valuable insights for customers looking to assess the climate risk management of South African banks. With COP28 just around the corner, the report serves as a reminder of the importance of addressing climate risks and aligning actions with global goals. It is a call to action for banks to prioritize climate risk management and contribute to a sustainable and just future.

FILE PHOTO: Bonn Climate Change Conference in Germany

South African Banks Making Progress in Climate Risk Management but Still Have a Long Way to Go, Says Just Share Report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="514" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/CIWWXST6P5OXHKLQUY2JZE7B4U-820x514.jpg" alt="" class="wp-image-429207" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/CIWWXST6P5OXHKLQUY2JZE7B4U-820x514.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/CIWWXST6P5OXHKLQUY2JZE7B4U-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/CIWWXST6P5OXHKLQUY2JZE7B4U-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/CIWWXST6P5OXHKLQUY2JZE7B4U-768x481.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/CIWWXST6P5OXHKLQUY2JZE7B4U-1536x962.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/CIWWXST6P5OXHKLQUY2JZE7B4U-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Supporters of South Africa&#8217;s ruling African National Congress (ANC) and various political parties including civil society groups gather in solidarity with the Palestinian people outside the Israeli embassy in Pretoria, South Africa, October 20, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



CAPE TOWN, Nov 21 (Reuters) &#8211; South African lawmakers voted on Tuesday in favour of closing down the Israeli embassy in Pretoria and suspending all diplomatic relations until a ceasefire is agreed in its war with Palestinian Islamist group Hamas in Gaza.



The resolution is largely symbolic as it will be up to President Cyril Ramaphosa&#8217;s government whether to implement it; a presidency spokesperson said Ramaphosa &#8220;notes and appreciates&#8221; parliament&#8217;s guidance on South Africa&#8217;s diplomatic relations with Israel, particularly on the status of the embassy.



&#8220;The president and cabinet are engaged over the matter, which remains the responsibility of the national executive,&#8221; Vincent Magwenya said.



Ramaphosa and senior foreign ministry officials have been vocally critical of Israel&#8217;s leadership during its devastating military campaign against Hamas in the densely populated Gaza Strip, calling on the International Criminal Court to investigate them for potential war crimes.



The Israeli embassy did not immediately respond to a request for comment.



On Monday, the Israeli ambassador in Pretoria was recalled to Tel Aviv for consultations ahead of the vote, which on Tuesday was resoundingly adopted by a 248-91 margin.



The parliamentary resolution was brought by the opposition Economic Freedom Fighters (EFF) party last week when the governing African National Congress pledged to support what has been a central diplomatic stance for South Africa since Nelson Mandela became the country&#8217;s first democratically elected president in 1994.



The chief whip of the ANC, Pemmy Majodina, amended the last point of the EFF draft resolution calling for the embassy&#8217;s closure and diplomatic suspension, to include the words: &#8220;&#8230; until a ceasefire is agreed to by Israel and Israel commits to binding United Nations-facilitated negotiations whose outcome must be a just, sustainable and lasting peace.&#8221;



South Africa has backed the Palestinian cause for statehood in Israeli-occupied territories for decades, likening the plight of Palestinians to those of the Black majority during the repressive apartheid-era, a comparison Israel vehemently denies.



The EFF proposed the motion on Thursday in solidarity with the Palestinian people over the Israeli bombardment and invasion of Hamas-ruled Gaza, prompted by a deadly incursion by Hamas militants into Israel on Oct. 7.



(Reporting by Wendell Roelf; editing by Mark Heinrich and Jonathan Oatis)

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