<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="460" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UK-Funds-Africa-Transcribe-Image-820x460.png" alt="" class="wp-image-474553" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UK-Funds-Africa-Transcribe-Image-820x460.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UK-Funds-Africa-Transcribe-Image-300x168.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UK-Funds-Africa-Transcribe-Image-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UK-Funds-Africa-Transcribe-Image-768x431.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UK-Funds-Africa-Transcribe-Image.png 992w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



The United Kingdom is backing investment of more than $300 million in South Africa’s green energy transition as the country struggles to end power shortages that nearly tipped its economy into a recession last year.



The UK’s High Commissioner to South Africa Antony Phillipson said the funding through Globeleq, is part of the UK’s $1.8 billion commitment to finance South Africa’s renewables programme under the country’s Just Energy Transition Partnership. Globeleq is majority owned by British International Investment, the UK’s development finance arm.



&#8220;This is a significant investment in South Africa’s future,&#8221; Phillipson told CNBC Africa. &#8220;This will be the biggest standalone battery energy storage system anywhere in Africa and it will also make, as you say, a really significant contribution, I think, to South Africa&#8217;s Just Energy Transition.&#8221;



South Africa has suffered power shortages for the past three years, with the economy almost contracting last year. The government projects the shortages should ease later this year into 2025. The UK is part of a group of Western nations that have committed $8.5 billion to help South Africa’s transition from fossil fuelled power to renewables.



Globeleq says the Red Sand project, which is based in the Northern Cape, will be the largest standalone battery energy storage system in Africa. Globeleq already provides some 1,800 MW of energy in South Africa, Mozambique, Kenya, Tanzania, Cote d’Ivoire, Egypt and Cameroon.



The project is expected to take two years to complete.



&#8220;Electricity storage is going to be key not only in helping South Africa meet its considerable industrial and domestic demand for energy but also across Africa as more renewable energy projects benefit from the advances our industry has made with battery energy storage solution technology,&#8221; Mike Scholey, Globeleq CEO said in a statement.

UK-Funds-Africa-Transcribe-Image

UK Funds Africa’s largest battery storage system in South Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg" alt="" class="wp-image-460717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A MultiChoice logo is displayed outside the company&#8217;s building in Cape Town, South Africa February 2, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, April 8 (Reuters)&nbsp;&#8211;&nbsp;French media group Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal+ made an all-cash mandatory offer on Monday to buy all the shares of South African broadcaster MultiChoice&nbsp;MCGJ.J&nbsp;it does not already own for 35 billion rand ($1.9 billion), both companies said.



That offer at 125 rand per share follows an indicative offer of 105 rand made by Canal+ on Feb. 1, which MultiChoice rejected as significantly undervaluing the company.



The need to make a mandatory offer was triggered by Canal+, MultiChoice&#8217;s biggest shareholder, subsequently raising its holding in the firm above the 35% threshold. Its new offer values MultiChoice, in which it now owns a 36.6% stake, at about 55 billion rand, according to Reuters calculations.



By 0759 GMT, shares in MultiChoice were up 3.7% at 116 rand.



The deal would create a pan-African broadcasting powerhouse with about 31.5 million subscribers across over 50 countries, able to put African content to global audiences as well as compete on an international scale.



The French media company has broad reach in French-speaking African nations, while MultiChoice has a stronger presence in English-speaking countries, including South Africa, Nigeria and Kenya.



Canal+ said it believes the competitive landscape for Africa&#8217;s media and entertainment industry will undergo further profound changes as the continent rapidly adopts broadband and mobile internet. Smartphone adoption is also rising.



&#8220;A combined group would be better positioned to address key structural challenges and opportunities resulting from the progressive digitalisation and globalisation of the media and entertainment sector,&#8221; the companies said.



MultiChoice&#8217;s independent board constituted for the deal will now consider the bid.



Canal+ reserves the right to buy more MultiChoice shares in the market during the course of the offer. Should the French company buy these shares at more than 125 rand each, it is obliged to increase the offer price, according to the statement.



<h2 class="wp-block-heading" id="h-regulatory-hurdle">REGULATORY HURDLE</h2>



For the deal to be successful, the French broadcaster will need to navigate the country&#8217;s stringent Black economic ownership requirements and restrictions on foreign media ownership, which caps voting rights at 20%.



Maxime Saada, chairman and CEO of Canal+ Group, told Reuters there are workable solutions around that which &#8220;of course will require us to have local partners&#8221;.



Last month Bloomberg reported that billionaire Patrice Motsepe could join Canal+&#8217;s bid.



The companies said they intend to comply with all applicable laws and will provide further details in this regard.



($1 = 18.7119 rand)



(Reporting by Nqobile Dludla; Editing by Tom Hogue, Miral Fahmy and Jan Harvey)

FILE PHOTO: MultiChoice logo is displayed outside the company in Cape Town

Vivendi’s Canal+ makes mandatory buyout offer for South Africa’s MultiChoice

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-820x549.jpg" alt="" class="wp-image-473605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-1536x1029.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo</figcaption></figure>



April 4 (Reuters)&nbsp;&#8211;&nbsp;A South African antitrust agency is set to investigate Microsoft&nbsp;MSFT.O&nbsp;over its cloud computing licensing practices, a source with direct knowledge of the matter told Reuters on Thursday.



The South African case against Microsoft is likely to mirror the European Union antitrust case, according to the source.



Microsoft is not aware of any complaint filed by the South African competition authority, the company said in an emailed statement.



South Africa&#8217;s competition agency did not immediately respond to a Reuters request for comment.



The U.S. software giant faces a EU complaint by rivals over its cloud computing licensing practices in the region.



Industry group CISPE, which includes members such as Amazon.com&nbsp;AMZN.O&nbsp;and 26 small EU cloud providers, filed a complaint in late 2022 alleging Microsoft&#8217;s new contractual terms were harming Europe&#8217;s cloud computing ecosystem.



Microsoft amended its licensing terms in mid-2022 after rivals in Germany, Italy, Denmark and France took their grievances to the EU competition watchdog.



(Reporting by Foo Yun Chee and Nilutpal Timsina; Additional reporting by Yuvraj Malik, Priyanka.G Editing by Anil D&#8217;Silva)

FILE PHOTO: A Microsoft logo is seen in Issy-les-Moulineaux near Paris

South Africa to investigate Microsoft over cloud computing licensing practices, source says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="452" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/JSE-Foreign-Transcribe-Image-820x452.png" alt="" class="wp-image-473359" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/JSE-Foreign-Transcribe-Image-820x452.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/JSE-Foreign-Transcribe-Image-300x165.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/JSE-Foreign-Transcribe-Image-160x88.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/JSE-Foreign-Transcribe-Image-768x423.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/JSE-Foreign-Transcribe-Image.png 993w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



The Johannesburg Stock Exchange has seen a decline in foreign participation over the past five years as economic growth slowed and South Africa’s relations with western countries soured over perceived support for Russia and China.



The exchange’s Capital Markets Director Valdene Reddy told CNBC Africa in an interview that there is anecdotal evidence that foreign holdings of individual companies and the market in general has dropped in the past few years.



&#8220;We&#8217;ve seen it come down where you talk to the local companies, and they say their shareholder register of foreign ownership has decreased,&#8221; Reddy said. &#8220;It is different in terms of different names and counters, but it has, in general, decreased across the board.&#8221;



The JSE, Africa’s largest stock market, has seen its weighting dropping around 3 percent in emerging market indices as South Africa almost tipped into a recession in 2023 amid power shortages and a logistics crisis that curtailed export growth. So far this year, foreign investors have sold a net R36 billion of South African equities, 25 percent up compared with a year ago.



Growth is forecast to almost double to more than one percent this year as power supply improves and after the country’s general elections next month. Reddy said that should attract more investment in a market she says is undervalued. &#8220;In general, South Africa trades between a 20 to even 40 percent discount in intrinsic and your net asset value of the company in some of our mainline counters. So it actually holds quite a lot of value in terms of the discount not only to emerging market peers, but also to developed world majors,&#8221; she said.



She noted that foreign investor activity in the JSE has been concentrated in the top 40 to top 60 counters, rather than specific sectors with interest in exporters and dual-listed defensive stocks.



South African bonds have also attracted interest from global investors from a yield perspective, she said. JSE data shows foreign investors have bought a R29 billion rand of South African bonds so far this year versus net sales of R17 billion at the same time a year ago.

JSE-Foreign-Transcribe-Image

Foreigners Sell South African equities amid a political fallout, lower growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-820x553.jpg" alt="" class="wp-image-473324" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-1536x1036.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker collects trolleys at South African retailer Woolworths, in Johannesburg, South Africa, November 21, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 4 (Reuters)&nbsp;&#8211;&nbsp;Consumer spending growth in South Africa steadied in 2023 after the previous year&#8217;s post-pandemic surge, but expected interest rate cuts will encourage more purchases in 2024, executives from Visa&nbsp;V.N&nbsp;and Discovery Bank said on Thursday.



Recent retail results show that consumers are under financial pressure as high interest rates increase the cost of debt and inflation pushes food prices higher.



Releasing their latest SpendTrend24 report, Discovery&#8217;s&nbsp;DSYJ.J&nbsp;banking unit and Visa said that while consumer spending in South Africa outpaced inflation by 19 percentage points in 2022, the two measures were closely matched last year.



Spending on food, including groceries, takeout and dining out, increased in most South African cities, by an average of 8% in 2023 compared to a 16% increase the year before, the report said.



More broadly, in South Africa and four other emerging market countries that were part of the survey &#8211; Nigeria, Ghana, Brazil and Vietnam &#8211; a larger part of household budgets went on essentials like groceries and fuel, with less spent on non-essentials like travel.



The report also showed that spending is rising among affluent and high net worth consumers, with a slight decrease in the mass segment due to rising living costs.



&#8220;Our latest research highlights that throughout 2023, global economies navigated a complex path of post-pandemic revival, framed by persistent inflation and high interest rates,&#8221; Discovery Bank&#8217;s Chief Executive Officer Hylton Kallner said.



&#8220;These challenges pushed up the cost of living, prompting consumers to adjust their spending habits.&#8221;



South Africans are increasingly using their mobile phones to pay for goods instead of physical cards, according to the report, with adoption rates matching or surpassing those of international cities.



The country&#8217;s central bank paused its tightening cycle in July for the first time since November 2021 and economists expect rates to fall from the second half of this year.



Kallner said the expected interest rate reductions would result in higher disposable income for consumers, although they will continue to prioritise getting the most value for their money.



(Reporting by Nqobile Dludla and Sfundo Parakozov; Editing by Kirsten Donovan)

A worker collects trolleys at South African retailer Woolworths

Consumer spending growth in South Africa steadied in 2023, report shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="450" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ABSA-PMI-Trsanscribe-Image-820x450.png" alt="" class="wp-image-472613" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ABSA-PMI-Trsanscribe-Image-820x450.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ABSA-PMI-Trsanscribe-Image-300x164.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ABSA-PMI-Trsanscribe-Image-160x88.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ABSA-PMI-Trsanscribe-Image-768x421.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/ABSA-PMI-Trsanscribe-Image.png 994w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



The ABSA Purchasing Managers’ Index (PMI) fell to 49.2 points in March from 51.7 in February, crossing below the line that separates expansion from contraction, ABSA said in a release.&nbsp;<a href="https://www.cnbcafrica.com/2024/south-african-factory-activity-declines-in-march-absa-pmi/" target="_blank" rel="noreferrer noopener">Despite the fluctuation, ABSA says there was a positive note in the survey: respondents expressed the most optimism about expected business conditions since the start of 2023</a>.&nbsp;



&#8220;When you look closely, you&#8217;ll see that the main drivers were sluggish demand,’’ Sello Seleke, macro economist at ABSA told CNBC Africa’s Fifi Peters. But…&#8220;we also saw something quite interesting. So in terms of supply delivery times, we saw that shortening. So what this says, which is quite positive in recent context, is that it shows that, your supply chains are getting better.’’



&nbsp;South Africa’s economy is struggling to recover from record power shortages last year and an uncertain economic environment as the country heads to elections that some analysts are predicting may end the 30-year majority rule of the African National Congress. The vote will be held on May 29.



In March, the supplier deliveries index declined to 54.1 from 62, suggesting an improvement in congestion at local ports which have been crippled by crime and corruption. Another positive development was the improvement in the index tracking business conditions in six months’ time which rose to 62.1 points, the highest since the beginning of last year.&nbsp;

ABSA-PMI-Trsanscribe-Image

SA factory activity declines in March, ABSA says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-820x545.jpg" alt="" class="wp-image-472547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/CGWOJODAWNIHDC2VWWGJADC3XI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker loads wine bottles onto a conveyer belt at the Rostberg bottling plant near Cape Town, November 29, 2012. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, April 2 (Reuters) &#8211; South African manufacturing activity declined in March, a Purchasing Managers&#8217; Index (PMI) survey showed on Tuesday, with respondents suggesting that demand was sluggish.



The seasonally-adjusted PMI fell to 49.2 points in March from 51.7 in February, dropping below the 50-point mark that separates expansion from contraction.



&#8220;The PMI has been choppy in recent months, but the average for the first quarter of this year is equal to the final quarter of last year. In the fourth quarter, the gross value added by the sector managed to eke out a 0.2% quarter-on-quarter expansion,&#8221; Absa, which sponsors the PMI, said in a statement.



One positive survey finding was respondents were the most upbeat about expected business conditions since the start of 2023.



This is a developing story&#8230;



(Reporting by Alexander Winning)

A worker loads wine bottles onto a conveyer belt at the Rostberg bottling plant near Cape Town

South African factory activity declines in March – Absa PMI

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="450" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/JSE-Transcribe-Image-820x450.png" alt="" class="wp-image-470515" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/JSE-Transcribe-Image-820x450.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/JSE-Transcribe-Image-300x165.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/JSE-Transcribe-Image-160x88.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/JSE-Transcribe-Image-768x422.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/JSE-Transcribe-Image.png 991w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



South African fund managers expect the benchmark all share index to advance more than 10 percent to a record in the next year, outperforming cash as the economy recovers from record power shortages and lower interest rates amid lower inflation.



The JSE All Share Index is forecast to reach 81,000 points in 12 months, according to the Merrill Lynch survey titled Strong, patient, equity bulls. The survey found a net 80 percent of managers are overweight domestic stocks with banks and software companies as favourites. No one wants to increase their cash portions.



`&#8221;One of the most interesting things that have come out of the survey this time around is just how many more local investors have turned into equity bulls and how many more have also turned into cash bears,&#8221; John Morris, Merrill Lynch South Africa Strategist told CNBC Africa. &#8220;So that&#8217;s a sign of risk appetite. It&#8217;s a sign of confidence on other assets like your equities.&#8221;



South Africa’s economy almost tipped into a technical recession in 2023 amid the country’s worst power cuts in history, rising inflation and the highest interest rates in 15 years. Growth is expected to almost double this year after the government opened power generation to private investors and households.



The country’s central bank is expected to begin cutting interest rates from the second half of the year, reducing pressure on consumers, though fund managers in the survey picked weak earnings as one of the risks to keep an eye on in the next 12 months, alongside potential policy shifts to the left after May elections that may see the ruling African National Congress party lose its majority for the first time since 1994.



&#8220;While the rate cuts may be more shallow compared to historical trends, they still present opportunities for investors in the equity market,&#8221; Morris said.



Over the year, fund managers see equities’ total returns at 15 percent, with bonds expected to return 20 percent.



The survey revealed that around 87% of fund managers anticipate the first rate cut by the South African Reserve Bank to be implemented in the third quarter of the year, with a gradual cutting cycle expected.

JSE-Transcribe-Image

South African Fund Managers Prefer Stocks in the next year

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-1.jpg" alt="" class="wp-image-469811" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-1-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">FILE PHOTO: Shoppers queue to purchase televisions during Black Friday shopping, at a store in Canal Walk Mall in Cape Town, South Africa, November 25, 2022. REUTERS/Esa Alexander/File Photo</figcaption></figure>



March 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s first-quarter consumer confidence improved on the back of an uptick in the confidence levels of high-income households, suggesting retail sales volumes could gradually start to recover, according to a survey released on Monday.



The consumer confidence index (CCI), sponsored by the First National Bank (FNB) and compiled by the Bureau for Economic Research, improved to minus 15 points from minus 17 points in the fourth quarter of 2023 and minus 23 points in the first quarter of 2023.



A breakdown of the CCI per household income group showed that high-income confidence, inclusive of those earning more than 20,000 South African rand ($1,053.19) per month, rose from minus 19 to minus 14 points during the quarter, according to the survey.



&#8220;Significantly lower levels of load-shedding and a deceleration in inflation &#8211; particularly on the food price front &#8211; likely supported consumer confidence during the first quarter,&#8221; FNB Chief Economist Mamello Matikinca-Ngwenya said.



&#8220;However, job losses in the fourth quarter and renewed fuel price hikes in February and March probably countered some of these positive developments, particularly for low-income households. The tightening in fiscal policy announced in the February Budget Review probably also clipped consumer confidence.&#8221;



Consumers also remain wary about splurging on big-ticket items, suggesting that durable goods sales will underperform relative to the other consumption categories during the first half of 2024, the survey added.



($1 = 18.9900 rand)



(Reporting by Eva Mathews in Bengaluru; Editing by Janane Venkatraman )

FILE PHOTO: Shoppers buy items during Black Friday in Cape Town

S. Africa’s consumer confidence improves in the first quarter, survey says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="672" height="456" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IMG_4108.jpeg" alt="" class="wp-image-468993" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IMG_4108.jpeg 672w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IMG_4108-300x204.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IMG_4108-133x90.jpeg 133w" sizes="(max-width: 672px) 100vw, 672px" /><figcaption class="wp-element-caption">Steinhoff&#8217;s former Chief Executive Markus Jooste appears in parliament to face a panel investigating an accounting scandal that rocked the retailer in Cape Town, South Africa, September 5, 2018. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, March 21 (Reuters)&nbsp;&#8211;&nbsp;A 63-year-old man whom police in South Africa on Thursday said apparently died by suicide was identified by local media as former Steinhoff chief executive Markus Jooste.



Jooste, who was instrumental in transforming Steinhoff from a small Johannesburg furniture outfit into a multinational retailer, had been handed a hefty fine for accounting fraud on Wednesday.



Police said an inquest case docket had been registered following the death of a 63-year-old man. They did not name the deceased.



&#8220;It is alleged that the victim sustained a gunshot wound at around 1520 (local time) at Kwaaiwater and succumbed to death on his way to hospital,&#8221; Western Cape police spokesperson Colonel Andre Traut said in a statement, referring to a suburb of the coastal town of Hermanus near Cape Town.



Traut said police were investigating the circumstances, adding that no foul play was suspected.



Citing sources, South African broadcaster Newzroom Afrika said Jooste shot himself during an arrest. The Financial Times said Jooste had died of a gunshot wound, according to people with knowledge of the matter.



Reuters could not independently verify the reports.



South Africa&#8217;s Financial Sector Conduct Authority fined Jooste 475 million rand ($25.2 million) on Wednesday for publishing false and misleading Steinhoff annual financial statements and annual reports for the 2014 to 2016 years and the 2017 half-year.



Steinhoff revealed holes in its accounts in December 2017, the first sign of an accounting fraud that led to the near-collapse of the retail group, which is the majority owner of South African and European discount retailers Pepkor&nbsp;PPHJ.Jand Pepco&nbsp;PCOP.WA.



Steinhoff has suffered hefty losses and a stream of lawsuits since then.



Jooste told a South African parliamentary inquiry in 2018 that he was not aware of any accounting irregularities when he left the retailer in December 2017.



He had also been under fraud investigation by South African police.



($1 = 18.8497 rand)



(Additional reporting by Wendell Roelf in Cape Town; Editing by Olivia Kumwenda-Mtambo and Rosalba O&#8217;Brien)

IMG_4108

Former Steinhoff CEO Markus Jooste dies by suicide, reports say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="454" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/BofA-interview-820x454.png" alt="" class="wp-image-468371" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/BofA-interview-820x454.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/BofA-interview-300x166.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/BofA-interview-160x88.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/BofA-interview-768x425.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/BofA-interview.png 998w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



Bank of America says South Africa’s rand is likely to strengthen against the dollar this year as the United States’ Federal Reserve and other global central bank begin cutting interest rates. &#8220;You are getting to a time where central banks seem to have won the war on inflation and stopped hiking cycles and looking for a pivot towards cutting,&#8221;BofA Sub-Saharan economist Tatonga Rusike told CNBC Africa. &#8220;So a cutting cycle, particularly for the Fed, is positive for South Africa and particularly for the rand. So that could help the rand to strengthen and also attract non-residents coming into the local currency markets as well, both in bonds and stocks.&#8221;



The&nbsp;Federal Reserve&nbsp;is scheduled to announce its latest monetary policy stance later this evening with most economists expecting no change with the emphasis still on no hurry to cut rates. However some suggest it may update its economic projections as well as its unofficial forecast for the direction of interest rates over the next several years. South Africa’s currency is down more than 28 percent against the dollar in the past three years amid investor concern about lower growth and perceived closer ties with Russia and China. Foreign investors have dumped more than 100 billion of South African bonds and stocks in the past year, leaving the currency trading around R19 per dollar.&nbsp;



That has cut South Africa&#8217;s weighting in the MSCI world index to around 3 percent, Rusike said. Africa’s biggest economy narrowly avoided a recession last year, with fourth quarter growth at 0.1 percent, taking the year’s expansion to 0.6 percent. The government is forecasting growth at 1.1 percent this year as it deals with a power shortage and a logistics crisis.



Rusike said the attention being paid to fixing the nation’s rail network by allowing private sector use of the railway network by third parties will help export growth. &#8220;I think in the short term you are still dealing with the issues around tariffs to use that rail network. But we got to a place where private sector can now be involved in trying to unlock the rigidities that we see in the public sector, particularly with Transnet,&#8221; he said. &#8220;So I think we are seeing things improving in a positive way, but these things take time and probably a couple of years to try and solve them. But the direction and the signaling is probably in the right direction.&#8221;

BofA-interview

Bank of America says rand may strengthen as global rate cutting sets in

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LZJDLC7DLROENA6JMXYHS2EK2E-820x571.jpg" alt="" class="wp-image-468260" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LZJDLC7DLROENA6JMXYHS2EK2E-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LZJDLC7DLROENA6JMXYHS2EK2E-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LZJDLC7DLROENA6JMXYHS2EK2E-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LZJDLC7DLROENA6JMXYHS2EK2E-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LZJDLC7DLROENA6JMXYHS2EK2E-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/LZJDLC7DLROENA6JMXYHS2EK2E-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman uses a trolley as she shops at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, March 20 (Reuters) &#8211; South Africa&#8217;s consumer inflation rose for the second month in a row in February to 5.6% year on year from 5.3% in January, statistics agency data showed on Wednesday.



The South African Reserve Bank, which targets inflation of between 3% and 6%, will announce a monetary policy decision next week.



The central bank is expected to wait until the third quarter of this year before announcing any rate cuts, a February poll showed.



Core inflation, which excludes food and fuel prices, accelerated in February to 5.0% in annual terms from 4.6% in January. 



(Reporting by Anait Miridzhanian; Editing by Olivia Kumwenda-Mtambo)

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

South Africa consumer inflation rises in February

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/G6IQ2EEFO5PCHEPUVS6EXIGITA-820x573.jpg" alt="" class="wp-image-466544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/G6IQ2EEFO5PCHEPUVS6EXIGITA-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/G6IQ2EEFO5PCHEPUVS6EXIGITA-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/G6IQ2EEFO5PCHEPUVS6EXIGITA-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/G6IQ2EEFO5PCHEPUVS6EXIGITA-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/G6IQ2EEFO5PCHEPUVS6EXIGITA-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/G6IQ2EEFO5PCHEPUVS6EXIGITA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Governor of the South African Reserve Bank Lesetja Kganyago speaks at a press conference ahead of South Africa&#8217;s Finance Minister Enoch Godongwana 2024 budget speech in Cape Town, South Africa, February 21, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



OHANNESBURG, March 15 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa has extended the term of central bank governor Lesetja Kganyago for another five years from November and appointed Mampho Modise as a new deputy governor of the bank, the presidency said on Friday.



&#8220;The re-appointment of Governor Kganyago will ensure continuity and institutional stability at the reserve bank,&#8221; the presidency said in a statement.



Kganyago&#8217;s term was extended to 2029, which will make him one of the longest serving governors in democratic South Africa. He was first appointed in 2014.



Modise, who is currently a deputy director-general in the National Treasury, will start her role on April 1 for a term of five years, the statement said. She replaces former deputy governor Kuben Naidoo.



Minister of Finance Enoch Godongwana said in a statement that Modise was a competent leader who had a &#8220;keen appreciation of the challenging macroeconomic period the country is facing&#8221;.



According to the central bank, Modise will be responsible for financial stability and economic statistics and will be a member of the Monetary Policy Committee.



The MPC will announce its next interest rate decision on March 27.



(Reporting by Bhargav Acharya and Kopano Gumbi; Editing by Alexander Winning and Alison Williams)

Governor of the South African Reserve Bank Lesetja Kganyago speaks at a press conference ahead of 2024 budget speech, in Cape Town

South African president extends central bank governor’s term, appoints new deputy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-2025403522-820x547.jpg" alt="" class="wp-image-466465" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-2025403522-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-2025403522-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-2025403522-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-2025403522-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-2025403522-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-2025403522-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Wally Adeyemo, deputy US Treasury secretary, during a Bloomberg Television interview in New York, US, on Friday, Feb. 23, 2024. Adeyemo said that the US is exploring options to use $300 billion in Russian state assets frozen at the outbreak of its Ukraine invasion to help pay for the war-torn country&#8217;s reconstruction. Photographer: Christopher Goodney/Bloomberg via Getty Images</figcaption></figure>



MARIKANA, South Africa, March 14 (Reuters) &#8211; The United States is looking to Africa to help loosen a Chinese stranglehold on battery metals and reduce Russia&#8217;s influence over the market for other minerals, U.S. Deputy Treasury Secretary Wally Adeyemo said on Thursday.



Coronavirus pandemic fallout and Moscow&#8217;s war in Ukraine have sent Western governments scrambling to reduce their reliance on Chinese supply chains and disentangle their economies from Russia.



But as Washington plots a course for its energy transition it is lagging behind China, which has spent the past decade securing access to minerals needed for the production of products like electric vehicle batteries and solar panels.



&#8220;We don&#8217;t want to be overly reliant on any one country or any one company for global supply chains for critical minerals,&#8221; Adeyemo told Reuters during a visit to a platinum mine in Marikana, South Africa, owned by Sibanye-Stillwater.



While the U.S. government has launched a raft of measures to incentivise increased production of strategic and critical minerals at home, notably under the Inflation Reduction Act, Adeyemo acknowledged that overseas resources were also vital.



&#8220;Africa is going to play a huge role,&#8221; he said. &#8220;A lot of critical minerals are located here.&#8221;



Chinese assets in Africa already include massive copper and cobalt projects in Democratic Republic of Congo and Zambia as well as lithium in Zimbabwe, where companies are assisted by heavy Chinese state investment in accompanying infrastructure.



Adeyemo said the United States was working with G7 allies to close that infrastructure gap.



The U.S. International Development Finance Corporation is, meanwhile, aiming to de-risk private investment in Africa. And the deputy secretary said Washington was incentivising U.S. manufacturing to boost demand for those minerals and create favourable market conditions for miners.



But he added that the White House also stood ready to ensure a level playing field.



&#8220;We are talking to our European allies &#8230; about some of the actions we can take using trade tools to make sure that a country like China can&#8217;t flood the market with things like electric vehicles and solar panels,&#8221; he said.



<h2 class="wp-block-heading" id="h-hold-accountable">HOLD ACCOUNTABLE</h2>



Regarding Russia, Adeyemo said countries like South Africa also had a role to play.



In the wake of Moscow&#8217;s 2022 full-scale invasion of Ukraine, the U.S. government slapped sanctions on a number of Russian miners and mineral exports. But it left Russian platinum group metals (PGM) largely untouched.



The United States is a major consumer of palladium, a PGM used in catalytic converters, with 32% of its imports of the metal coming from Russia between 2019 and 2022, according to the U.S. Geological Survey.



&#8220;South Africa has a real opportunity to help supply the global economy,&#8221; Adeyemo said. &#8220;And it gives us the ability to take other actions to hold Russia accountable.&#8221;



South Africa is a major palladium producer, and Sibanye-Stillwater mines the metal both in Marikana and at a U.S. project in Montana.



&#8220;Between what comes out of South Africa and what&#8217;s produced in the U.S., the U.S. does not need to be dependent on sources from any other country,&#8221; CEO Neal Froneman told Reuters.



However, he said companies like his needed U.S. government support.



&#8220;You can provide loans or introduce tariffs or whatever it might be,&#8221; he said. &#8220;That is a role that they need to think very differently about and help companies that are trying to source and provide these critical metals into those ecosystems.&#8221; 



(Reporting by Joe Bavier; Editing by Mark Potter)

Deputy US Treasury Secretary Wally Adeyemo Interview

Africa to play ‘huge role’ in US critical mineral strategy, says Treasury’s No. 2

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-820x547.jpg" alt="" class="wp-image-405408" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Standard Bank, photo: via Flickr</figcaption></figure>



JOHANNESBURG, March 14 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s biggest lender by assets Standard Bank&nbsp;SBKJ.J&nbsp;said on Thursday its annual profit jumped by 27% as high interest rates helped offset rising bad loans.



The lender posted headline earnings of 42.9 billion rand ($2.31 billion) for the year ended Dec. 31, while total net income grew by 20% to 177.6 billion rand, driven by net interest income growth of 25% and non-interest revenue growth of 13%.



The top five private South African banks, including Standard Bank &#8211; among the continent&#8217;s biggest &#8211; are generally known to have well-capitalised balance sheets and conservative lending practices.



But inflationary pressures, high interest rates, regular power blackouts and logistical bottlenecks are taking a toll on their most sensitive retail and small business customers, leading to defaults.



Standard Bank said credit impairment charges increased by 22% to 16.3 billion rand, which pushed the lender&#8217;s credit loss ratio- a measure of bad loans as a percentage of total loans- up to 98 basis points (bps) from 83 bps and close to the upper range of its target of 100 bps.



As a result, total provisions increased by 15% to 64 billion rand.



The lender&#8217;s loans and advances grew by 7% to 1.7 trillion rand as strong growth in corporate and sovereign lending offset subdued retail lending growth together with a decline in business lending.



&#8220;Our clients are likely to remain constrained until interest rates start to decline,&#8221; the bank said. It said credit impairment charges were expected to peak in the first half of 2024, driven primarily by ongoing strain in personal and private banking.



Meanwhile the credit loss ratio is expected to remain within the target but near the top of its range.



($1 = 18.6104 rand)



(Reporting by Nqobile Dludla; Editing by Muralikumar Anantharaman and Tomasz Janowski)

Standard Bank, photo: via Flickr

South Africa’s Standard Bank posts 27% jump in annual profit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FVXMR5IP2RPR5GK36AFACMY2CM-1-820x531.jpg" alt="" class="wp-image-466137" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FVXMR5IP2RPR5GK36AFACMY2CM-1-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FVXMR5IP2RPR5GK36AFACMY2CM-1-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FVXMR5IP2RPR5GK36AFACMY2CM-1-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FVXMR5IP2RPR5GK36AFACMY2CM-1-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FVXMR5IP2RPR5GK36AFACMY2CM-1-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FVXMR5IP2RPR5GK36AFACMY2CM-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Supporters of the African National Congress (ANC) wait beneath posters of South African President Cyril Ramaphosa, with a fenced-off statue of Boer war leader Paul Kruger, a controversial figure in the history of South Africa, ahead of the launch of an election manifesto at the church square in Pretoria, South Africa, September 27, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, March 14 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s ruling African National Congress (ANC) party is betting on retaining its parliamentary majority in a May election and is not in talks with other parties on a possible coalition government, the party&#8217;s deputy secretary general said.



South Africans will go to polls on May 29 to elect a new National Assembly, which will then choose the next president.



&#8220;We will not go to war having accepted defeat. We are going to war to win,&#8221; ANC veteran Nomvula Mokonyane told Reuters in an interview, adding that the party was aware that &#8220;stakes are high because not everybody is comfortable with us in power.&#8221;



Surveys show that the ANC is likely to lose its parliamentary majority for the first time since Nelson Mandela led it to power at the fall of apartheid 30 years ago. This would open up the prospect of coalition rule.



&#8220;A coalition government won&#8217;t work for now,&#8221; said Mokonyane, pointing to failed power-sharing attempts at the local government level, where coalitions have largely proved unstable due to a lack of legislation to regulate the partnerships.



But the ANC is open to working with anyone as long as they agree on &#8220;the task at hand&#8221;, Mokonyane added.



The ANC&#8217;s image has been tarnished in the past decade by economic stagnation, rising unemployment and repeated corruption scandals involving its top officials.



Analysts say losing its majority might jolt the party to do better on service delivery, expand the economy and address other ills like crime and corruption. But coalitions could also end up being fractious and impeding already poor service delivery.



Potential coalition partners for the ANC could include the largest opposition party, the Democratic Alliance, and the far-left Economic Freedom Fighters party.



Mokonyane portrayed the ANC as having learned from its mistakes, such as extending the country&#8217;s electricity network to more people without boosting generation capacity or investing in renewables. Power cuts are now a part of daily life in South Africa.



Thirty years after the end of white minority rule, more than 30% of South Africans are unemployed, the murder rate is rising, and income inequality is among the highest in the world.



&#8220;We are quite certain that with our challenges and imperfections, those happened because we&#8217;re doing something that was never done,&#8221; said Mokonyane.



She criticized foreign ownership of land and mineral resources and said the ANC would do more to put national interests first, while emphasizing the progress it has made in areas such as social welfare and girls&#8217; education.



&#8220;The inequality that we see&#8230; it&#8217;s very stubborn,&#8221; she said. &#8220;We&#8217;ve tried to turn it around, and 30 years is not a (long) enough period to turn things around.&#8221;



(Reporting by Olivia Kumwenda-Mtambo and Nellie Peyton, Editing by William Maclean)

Supporters of the African National Congress (ANC) wait for the launch of an election manifesto in Pretoria

South Africa’s ANC wary of post-election coalition, says it ‘won’t work’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="443" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Transaction-Capital-820x443.png" alt="" class="wp-image-465876" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Transaction-Capital-820x443.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Transaction-Capital-300x162.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Transaction-Capital-160x87.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Transaction-Capital-768x415.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Transaction-Capital.png 993w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



South Africa&#8217;s largest vehicle reseller, WeBuyCars plans to its boost monthly car sales by more than three quarters in the next five years by expanding its sales footprint across the country.



The company&#8217;s&nbsp;Chief Financial Officer Chris Rein told CNBC Africa&#8217;s Zanele Morrison that through a combination of organic growth and leveraging of technologies, the company hoped to almost double its market share to 23 percent from the current 12 percent.



Webuycars will be listed on April 11, completing an unbundling process its owners Transaction Capital hope will unlock value for its shareholders. In its pre-listing statement to the stock exchange the company said four month sales to the end of January rose 17 percent compared with a year ago.



WeBuyCars was started 36 years ago by brothers Faan and Dirk van der Walt. The company was acquired by Transaction Capital in 2020. It primarily trades used vehicles through its e-commerce platform and dealerships, which also offer funding and insurance.&nbsp;



South African consumer spending has been hit by high interest rates and inflation, reducing demand for cars and white consumer goods. The country narrowly&nbsp;escaped a recession last year as transport bottlenecks and a severe shortage of power constrained economic activity, forcing the government to rope in the private sector to improve efficiencies at its ports and improve its rail network.

South Africa

UK Funds Africa’s largest battery storage system in South Africa

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South Africa to investigate Microsoft over cloud computing licensing practices, source says

Foreigners Sell South African equities amid a political fallout, lower growth

Consumer spending growth in South Africa steadied in 2023, report shows

SA factory activity declines in March, ABSA says

South African factory activity declines in March – Absa PMI

South African Fund Managers Prefer Stocks in the next year

S. Africa’s consumer confidence improves in the first quarter, survey says

Former Steinhoff CEO Markus Jooste dies by suicide, reports say

Bank of America says rand may strengthen as global rate cutting sets in

South Africa consumer inflation rises in February

South African president extends central bank governor’s term, appoints new deputy

Africa to play ‘huge role’ in US critical mineral strategy, says Treasury’s No. 2

South Africa’s Standard Bank posts 27% jump in annual profit

South Africa’s ANC wary of post-election coalition, says it ‘won’t work’

South Africa’s WeBuyCars poised for growth after unbundling

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South Africa

UK Funds Africa’s largest battery storage system in South Africa

Vivendi’s Canal+ makes mandatory buyout offer for South Africa’s MultiChoice

South Africa to investigate Microsoft over cloud computing licensing practices, source says

Foreigners Sell South African equities amid a political fallout, lower growth

Consumer spending growth in South Africa steadied in 2023, report shows

SA factory activity declines in March, ABSA says

South African factory activity declines in March – Absa PMI

South African Fund Managers Prefer Stocks in the next year

S. Africa’s consumer confidence improves in the first quarter, survey says

Former Steinhoff CEO Markus Jooste dies by suicide, reports say

Bank of America says rand may strengthen as global rate cutting sets in

South Africa consumer inflation rises in February

South African president extends central bank governor’s term, appoints new deputy

Africa to play ‘huge role’ in US critical mineral strategy, says Treasury’s No. 2

South Africa’s Standard Bank posts 27% jump in annual profit

South Africa’s ANC wary of post-election coalition, says it ‘won’t work’

South Africa’s WeBuyCars poised for growth after unbundling

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