SALDANHA SHUTDOWN

ArcelorMittal South Africa announced this month that it would be placing the Saldhana Steel mill on care and maintenance. The decision was attributed to a steady erosion of the input cost... 

TIME FOR KICK-OFF

During 2019, South Africans arguably came to terms with the damage caused by State capture to the country’s economic playing field, as well as its key players. It became clear that repairing the... 

WATER WORRIES

Following an extremely dry start to the rainy season in the north-eastern parts of the country and with ongoing drought conditions in other regions, concerns over water security are increasing.... 

INCONVENIENT TRUTH

The fact that South Africa has not procured any new electricity capacity from independent power producers since 2014 is biting. Despite absolutely no demand growth for a decade, the country is... 

WRESTLING OVER REVENUE

For years, Eskom has been unhappy with the way the Energy Regulator has been applying the methodology used for calculating the State-owned utility’s allowable revenue. This calculation is highly... 

ON THE MENU

Finance Minister Tito Mboweni will not have his staple Lucky Star pilchards available to add some much-needed flavour to what is likely to be a relatively foul-tasting Medium-Term Budget Policy... 

BACK TO THE FUTURE

After a short-lived profit reprieve in 2018, South Africa’s upstream steel industry is under severe financial pressure yet again. In fact, it’s looking more and more like “déjà vu all over again”,... 

SINKING FEELING

For several years, the South African economy has been dragged down by politics and politicians. During the Jacob Zuma Presidency, corruption and State capture tore into the economy much like the... 

PULLING THE RUG

With little or no prospect of cash-strapped Eskom being able to close the country’s emerging supply gap, South Africa’s reliance on independent power producers (IPPs) is undoubtedly going to rise... 

GROWTH PUZZLE

Finance Minister Tito Mboweni has come in for some heavy criticism following the release, for public comment, of an economic strategy document. The howls of disapproval have also not been confined... 

KNIFE EDGE

Slowly but surely the severity of South Africa’s fiscal situation is starting to sink in. The country is simply not expanding at a pace that is supportive of securing the revenue growth required to... 

MIND THE GAP

South Africa’s fiscal balance has entered dangerous territory, owing to a combination of years of low growth, under collection of revenue by an institutionally weakened South African Revenue... 

RAND RUCTIONS

South Africans have become somewhat accustomed to the fact that their currency is among the most volatile globally. For that reason, many citizens keep close tabs on the dollar/rand exchange rate,... 

HEALTH WARNING

There is no question that South Africa’s current health system is failing to meet the needs of its citizens, especially those who do not have the means to access private healthcare. There is also... 

TIME & MONEY

Government’s commitment to transfer a further R59-billion to Eskom during the 2019/20 and 2020/21 financial years has bought the State-owned utility some time. By its own estimation, the transfers... 

TIGHT SPOT

In a note explaining its revision of South Africa’s credit outlook from stable to negative, Fitch Ratings said the decision reflected a marked widening in the Budget deficit as a result of lower... 

WRECKING BALL

The Constitutional Court’s scathing judgment when upholding a North Gauteng High Court ruling that Public Protector Busisiwe Mkhwebane’s pay 15% of the South African Reserve Bank’s legal fees in... 

TRUMP CARDS

Compared with his ‘Stalingrad Defence’ of old, the legal strategy adopted by former President Jacob Zuma during his recent appearance before the Commission of Inquiry into State Capture was far... 

DIRTY DEEDS

The credibility of the Office of the Public Protector rose dramatically during Thuli Madonsela’s tenure. Sadly, it is being severely undermined by her successor, Busisiwe Mkhwebane. Already several... 

INTENSIVE CARE

Conditions in South Africa’s manufacturing sector remain more than challenging. The seasonally adjusted Purchasing Managers’ Index (PMI) increased marginally in June to 46.2 points, but the average... 

STUMPED

With South Africans still were licking their wounds after a dismal Proteas batting performance at the Cricket World Cup, Eskom financial problems rose again like a hostile bouncer from England’s... 

TIME TO FALL

The unsavoury and depressing revelations at the Commission of Inquiry into State Capture continue to flow. All the large State-owned companies – Eskom, Transnet and South African Airways – have... 

POLICY TUG OF WAR

The battle, within the African National Congress, for control over the direction of economic policy has always been a highly contested one. In recent years, however, it has escalated to the status... 

LEADERSHIP SHEDDING

The resignations, in quick succession, of Phakamani Hadebe and Vuyani Jarana point to the likelihood that the crises at Eskom and South African Airways respectively are even deeper than initially... 

ROCK & HARD PLACE

News of Phakamani Hadebe’s resignation as Eskom CEO was treated with precisely that: resignation. South Africans have come to terms with the fact that leading the State-owned utility in its current... 

IN THE TRENCHES

The rhetoric associated with the unfolding trade war between the US and China has definitely ratcheted up a level in recent weeks. The hardening of positions is also starting to cause shockwaves,... 

SUPER EFFORT

Eyebrows were definitely raised when the 2019 Presidential inauguration ceremony was moved from the majestic Union Buildings to the grittier Loftus Versfeld stadium, just down the road. Hopefully... 

ROLLING UP SLEEVES

Despite the initial optimism associated with the political changes that took place in early 2018, the business community has been reticent to take decisive investment decisions in South Africa... 

DATA DISPUTE

For several years many South Africans have expressed – often under the social media banner #DataMustFall – unhappiness with prices being charged for data by the country’s mobile operators. Now the... 

CLIFF EDGE

News that Eskom was forced to lean on the National Treasury in April to avert an imminent liquidity crisis, arising from a delay in a loan disbursement from the China Development Bank, had served... 

CULTIVATING CONFIDENCE

The South African economy has been on a downward spiral for a number of years, undermining many of the dividends that initially flowed from the country’s transition to democracy. This poor... 

ENERGY RELEASE

The return to a protracted period of load-shedding in March provided an unhappy reminder of South Africa’s energy deficit. It also served to confirm that new generation is needed, and needed... 

DOUBLE SHOCK

All South Africans have been feeling the fuel-price pinch ever since the big surge in pump prices took place on Wednesday last week. By contrast, the 13.8% electricity tariff hike introduced on... 

WORRYING DEVELOPMENTS

All South Africans were understandably frustrated and angry when Eskom resumed load-shedding in mid-March. Rotational power cuts have a devastating impact on the psychology of the nation and on... 

ROAD TO RUIN

Iconic South African construction company Group Five filed for business rescue earlier this month and also applied for its shares to be suspended from trade on the JSE, after 45 years of trading.... 

DEATH SPIRAL

The combination of higher electricity tariffs and the fall in solar photovoltaic costs is making it increasingly feasible for companies and high-income households to invest in self-generation to... 

ROAD TO HELL

The road to South Africa’s construction industry hell in has been paved by the proverbial good intentions. Prior to the global financial crisis there was much optimism about the role infrastructure... 

HAZARDOUS & FAKE

The argument that ‘expensive’ independent power producers (IPPs) pose a financial risk to Eskom may be untrue and misleading. It has, nevertheless, gained significant traction and prominence on... 

PLAYER AND REFEREE

African Rainbow Energy & Power (AREP) chairperson Patrice Motsepe has acknowledged that his company has a serious perception problem – one that will persist for as long as his brothers-in-law,... 

POWER SHOWDOWN

Government has promised to consult meaningfully with labour over a plan to split Eskom into three independent businesses of generation, transmission and distribution. The unbundling is important...