Business

5 important things happening in South Africa today

Staff Writer

 ·27 Jul 2023

Here’s what is happening in and affecting South Africa today:

• Steinhoff to delist: Steinhoff’s shareholders have voted to dissolve the company and delist it from the Johannesburg and Frankfurt stock exchanges. 99% of shareholders that registered to attend the company’s extraordinary general meeting in Amsterdam backed the debt-ridden retailer’s proposal to delist on Wednesday (26 July). [News24]

• Sasol moves to hike gas price: NERSA has published Sasol Gas’s Amendment Maximum Gas Price (MGP) Application for the FY2023/24. Sasol currently charges R68.39/GJ for piped gas and has applied for R120/GJ – a 75% increase. Sasol said this is appropriate given its operational cost increases and the risk associated with extensive investments to extend supply and the incentives to develop new resources. [Daily Maverick]

• Alarm bells for the JSE: Karl Leinberger, chief investment officer of Coronation, said the delisting trend on the local bourse was cause for concern in the industry. More than 20 companies delisted from the JSE in 2022 for various reasons, and others have followed suit in 2023. Over five years, the JSE has lost almost R10 billion, and this is making it harder for asset managers and investors to diversify their portfolios. [Business Day]

• Blue light bullies lay blame: Deputy President Paul Mashatile’s protectors, who are in court for assault, have blamed the media and civil society for their arrests. They said the state’s case is weak, and they are only facing charges due to the public outrage caused by the video’s release, which put pressure on the police watchdog, the IPID. [EWN]

• Markets: The South African rand slumped on Wednesday (26 July) as analysts said the outcome of a U.S. Federal Reserve policy meeting later in the day could leave it open to losses after strong gains this month. “There is quite a lot of caution in the market because of the Fed rate decision tonight,” said Greg Davies, head of wealth at asset manager Cratos Capital. On Thursday (27 July), the rand was trading at R17.61/$, R19.54/€, and R22.81/£. Brent crude is trading at $83.56 a barrel. [Reuters]