South Africa's Mr Price posts 10.1% rise in annual profit
JOHANNESBURG, June 6 (Reuters) - South African fashion retailer Mr Price (MRPJ.J), opens new tab reported a 10.1% increase in full-year earnings on Friday on strong second-half performance as it gained market share.
Diluted headline earnings per share, a key profit measure in South Africa, rose to 13.79 rand in the 52 weeks ended March 29.
The retailer declared a final dividend of 593.50 cents.
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BBC News
5 hours ago
- BBC News
Botswana diamond giant Debswana slashes output as demand falls
Botswana's main diamond company has paused production at some of its mines, citing a prolonged downturn in global a joint venture between the government and global mining giant De Beers, saw its sales revenue drop by almost 50% last is the world's largest producer of diamonds by value. The industry accounts for a quarter of the country's total annual income (GDP), according to the International Monetary Friday, Debswana said production this year is being scaled back to 15 million carats - approximately a 40% decrease from its output in 2023. The company, which accounts for around 90% of Botswana's diamond sales expects this reduced output will lead to "significant cost savings" across areas like fuel and a statement, Debswana said it continued to "prudently navigate the challenging market conditions" citing low demand and "emerging pressures such as US-imposed tariffs".The global market for mined diamonds has been experiencing a decline since 2023, partly due to the availability of lab-grown response to this downturn, Debswana paused production at its flagship Jwaneng mine, as well as its Orapa mines, last month. Each mine will be closed for three months in southern African country has for decades been trying to shift its economy away from being dependent on diamond sales, to varying degrees of successive governments have boosted sectors such as tourism, finance and the mining of minerals such as copper, diamond sales still make up three-quarters of Botswana's foreign exchange income is likely to be hit by Debswana's decision to temporarily close its company has stressed that no involuntary job cuts are planned, although it continues to offer voluntary a result of the sustained downturn in the global diamond industry, Botswana will cut its 2025 economic growth forecast to almost zero, a senior finance official was quoted as saying by the Reuters news agency. You may also be interested in: World's second-largest diamond found in BotswanaHow friends became foes in Africa's diamond state'Proud to be young' - Beauty queen, lawyer and Botswana's youngest cabinet minister Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica
The Independent
6 hours ago
- The Independent
Global aid cuts are a massive wake-up call. It's time to give Africa a bigger voice
In less than a month, Seville will host the Fourth International Conference on Financing for Development in a climate of uncertainty following the abrupt decision by the US to dismantle its aid programmes. But Washington is not alone in this posture. The European Union agreed to reallocate €2 billion (£1.7bn) reallocation from development budgets in February 2024 —and many individual European countries have made cuts to their aid budget. It is a clear signal that the landscape of Overseas Development Assistance (ODA) is shifting. For Africa, this isn't just a reshuffle, it is a wake-up call for deep reflection and action: will we adapt, or will aid simply become a relic of the past? The timing is bad, the rationale questionable, and the ripple effects threaten to impact the lives and health of millions depending on aid programmes. Let's be honest: aid has had a mixed impact. The spectrum of aid's legacy in Africa, including my country, Guinea, runs from positive to disastrous. On the positive side, aid has contributed to infrastructure development – I'm thinking for instance about a project in northwest Guinea to replace an old ferry with a new road and bridge. During a visit, a cunning minister of public works convinced a skeptical partner to go on a very 'special' field trip via the old route, one that left a senior official so sore and tired that all doubters saw the project's true necessity. Once it was completed, traffic soared, proof that aid can work when it's aligned with real needs. But aid can fall flat. When I was serving as minister of finance, I led efforts to curb directly awarded contracts and boost transparency following an audit of public procurement procedures. The goal was to improve the quality and cost-effectiveness of public spending. But some donors were not willing to support this effort. I deplored one particular partner's failure to listen and, above all, a stubborn insistence on taking us backwards by ignoring our analysis. I said no to the help on offer. It was hard but necessary. Aid must serve the real priorities, not satisfy bureaucratic checkboxes. In a recent discussion with the director of an incubator to help small and medium-sized businesses grow – funded by a government donor – I was struck by the emergence of shortcomings I thought belonged to the past. These included a laziness to question one's own model for delivering results, despite warnings about the risks of inefficiency. We also see a narrow focus on so-called "easily accessible" geographic areas, such as capitals, and on disbursements. Aid, in many cases, has helped sustain corrupt elites or fostered unhealthy alliances with public administrations – perpetuating dependency rather than solving problems. When I look back on my own experience in development – a journey close to an out-of-body experience for an African – I realise we are at a critical juncture. It's the moment to question the very foundations of aid institutions inherited from the post-colonial era. Despite some positive reforms, such as untying aid, the core premise remains unequal. It is predominantly driven by the donors, with African countries still being passive recipients rather than active partners. How can this be changed? Change starts with listening. The 'receiving hand' is not dumb and has ideas. It knows its needs. Recipient countries, especially in Africa, must be at the centre of the discussions. Conversations largely driven by donors are a recipe for failure. Furthermore, African organisations and think-tanks must be active players. Decolonising aid must be more than just a buzzword. We are making progress, but it must be accelerated. We continue to see consultancies denied opportunities due to insufficient financial strength – despite their thorough knowledge of the field. It also means better coordination between donors. You would think this is obvious, and yet despite witnessing many innovative and pragmatic approaches, I still see some partners continue to burden governments' limited capacities by each imposing their own distinct systems and reporting requirements. This ends up being a distraction. Recipient governments are key and are the only ones who should replace any donor. I believe the cuts could be an opportunity to make fiscal compromises that (finally) prioritise the necessary and the productive over the superfluous and the personal gain of some actors. Aid must be used strategically and selectively. It should foster technical cooperation for Africa's economic transformation, its integration higher in global value chains. Aid should be a catalyst to reform the global financial architecture by leveraging innovation and the capital needed to finance our massive infrastructure programmes. It must be an instrument for the Africa Union's theme of the year: "Justice for Africans and People of African Descent Through Reparations'. It's time to make sure those people are at the table, and their voices are listened to.
The Independent
6 hours ago
- The Independent
Death, violence and endless delay: Inside Africa's most troubled energy project
Campaigners have demanded the UK government pull its funding for a natural gas mega project in Mozambique – alleging that it breaches Britain's human rights and environmental obligations. The project in question is a $20 billion (£15bn) liquified natural gas (LNG) development located in the Cabo Delgado region of Mozambique. The project, called Mozambique LNG, has been halted since 2021 after violence from an Isis-backed group led to 183 contractors being trapped in a hotel for two days, with 10 people killed when apparently trying to escape, including British national Philip Mawer. In all, the ongoing insurgency in the area has resulted in an estimated 6,000 deaths since the conflict began in 2017, with some 600,000 people displaced. In a letter seen by The Independent, campaign group Oil Change International (OCI) argues that the violence and other issues over the protection of the project makes a potential $1.15bn investment by UK Export Finance, a department of the UK government untenable. Continuing to finance the project is also not compatible with environmental commitments made in 2021 to no longer finance fossil fuels abroad, OCI argues. A tale of violence, delay and legal action was never meant to be the story of Mozambique's foray into natural gas, after some 180 trillion cubic feet of gas was discovered off the country's coast in 2010. In 2016, the International Monetary Fund (IMF) projected 34 per cent GDP growth for Mozambique by 2021. However, actual economic growth was around 2.5 per cent. TotalEnergies, the French energy firm, is currently in the process of trying to re-start the project by the middle of this year. 'The security situation has improved," CEO Patrick Pouyanne told Reuters on the sidelines of the World Gas conference earlier this month. Pouyanne's ambitions received a big boost in March when the US Export-Import Bank re-approved financial support worth $4.7bn for the project, boosting TotalEnergies' hopes of restarting the project. But the future of Mozambique LNG remains up in the air, with the British export credit agency still considering whether to recommit to its $1.15bn pledge – having joining with 33 countries, including the US, to sign a pledge to end public finance for fossil fuel projects abroad while hosting the COP26 climate summit in Glasgow in 2021. According to OCI campaigner Adam McGibbon, if the UK pulls out of the deal then the entire financial arrangement is expected to collapse. 'We know of at least one major bank involved in the deal that has said they will also pull out if the UK does,' he says. The legal letter sent by OCI argues that the funding of the LNG project in Mozambique goes against the UK's obligations under international law to promote human rights in business both domestically and abroad. The letter highlights the UN's Guiding Principles on Business and Human Rights, which state that companies and nations must ensure that human rights are respected in relation to business operations. A UK Export Finance spokesperson said: 'UK Export Finance is currently in talks with project sponsors and other lenders regarding the latest status of the LNG production project in Mozambique. 'We take reports of alleged human rights infringement extremely seriously and are looking further into the matters.' 'The Qatar of Africa' Observers at the time the gas was discovered off the coast of Mozambique suggested that the country – one of the world's poorest – could transform into the 'Qatar of Africa'. A number of massive projects aiming to ship the gas around the world in the form of LNG were soon proposed. TotalEnergies' Mozambique LNG project stands out for its sheer size, with the $20bn in financing a figure roughly the same size as Mozambique's entire GDP. The 65 trillion cubic feet of gas it was expected to deliver is the equivalent of six years of current EU gas demand. But in March 2021, the 'force majeure' declaration was made, which enables parties to renege on an agreement due to unforeseen external circumstances. It came after Islamist insurgents captured swathes of territory in the Cabo Delgado region, and at least 1,400 people were left killed or missing presumed dead. Earlier this year French authorities began investigating TotalEnergies over potential corporate manslaughter, after survivors and relatives of victims of the event accused the energy giant of failing to protect its workers. In a statement shared with The Independent, a spokesperson for TotalEnergies said that they will ' cooperate with this investigation', but that 'the company categorically rejects' the accusations. 'Mozambique LNG's teams provided emergency assistance and mobilised their resources to evacuate more than 2,500 people (civilians, employees, contractors, and subcontractors) from the site where the Mozambique LNG project is located at the time of the attacks,' the spokesperson said. But some say the need to resettle people so that the land can used for the project has aided recruitment for the insurgents. 'The local population is being deprived of jobs, in a scenario where pressure on land is increasing, where people are losing access to land, losing access to natural resources,' wrote local analyst Joao Feijo earlier this year. 'The discontent that is created here is very great and this kind of discontent is capitalised on by these violent groups. Many individuals joined this group because they had no other alternative,' he added. Signs of discontent can be found in villagers claiming that they have not been sufficiently compensated for giving up land that most rely on for subsistence farming, according to evidence collected by local NGO Justica Ambiental, after Mozambique LNG was given rights to 6,625 hectares of land to build its liquefaction terminal. 'We agreed that the company would take our areas, but when they took our areas – the forests and fields – and they didn't want to pay us, they denied it,' said Neto Agostino Paulo resident of Macala Village, in footage captured by Justica Ambiental in summer 2024. Fellow Macala villager Adija Momade Sumail Nkabwi said: 'The company came here to lie to us that they were going to compensate us for our property that they had occupied, leaving us with false expectations'. The spokesperson for TotalEnergies told The Independent that prior to the force majeure announcement, 89 per cent of compensation payments had been paid within six months of the signing of compensation agreements, and 66 per cent were paid within 90 days. 'The Force Majeure situation has prevented the full implementation of the relocation and compensation process and has slowed down the exercise,' they said. 'Drill baby, drill' For OCI's Adam McGibbon, the violence and displacement witnessed in Cabo Delgado is a 'classic example of the resource curse': The phenomenon where resource-rich countries with abundant natural resources ironically end up with a multitude of problems. Nigeria and Angola – both oil-rich countries plagued by corruption and inequality – are oft-cited examples of countries to have suffered this fate in Africa. At the same time, it has also been said that given the low living standards of countries like Mozambique, any opportunity to bring in billions of dollars of foreign investment is a good thing. Some, like former Irish President Mary Robinson, have argued that African nations should be allowed to extract natural gas to develop. But there are growing concerns that the economic benefits originally conceived in Mozambique LNG might not ever materialise, even if the project goes ahead as planned. For all the talk of ' Drill baby, drill ' coming from Donald Trump in the White House right now, the prospects of a major new LNG production terminal are much weaker than in 2020. Since Russia invaded Ukraine in 2022, and subsequently shut off pipeline gas flows to Europe, planned new LNG facilities in the US and Qatar have driven up projections of global LNG capacity. An increase of nearly 50 per cent is currently on the horizon, according to the International Energy Agency (IEA). This ' LNG glut ', as the IEA describes it, is exacerbated by renewables continually beating targets in Europe and Asia, as well as a global push for 'energy security' that did not exist in 2020, and which is making governments less inclined to rely on expensive liquefied gas imports for energy. 'If and when TotalEnergies' Mozambique LNG project gets off the ground, it will be adding further supply into a market characterised by oversupply and lacklustre demand,' says Simon Nicholas, from IEEFA, a think tank. 'This can hardly be a surprise: There is a long history in Sub-Saharan Africa of fossil fuel projects doing nothing to boost development in the host country.' If global gas markets are oversupplied, there is a risk that Mozambique LNG will become a 'stranded asset', which will plummet in value – or even become a liability for Mozambique. Even a 'moderate-paced transition' away from fossil fuels globally would lead to Mozambique seeing gas revenues of just 20 per cent of what they would be in a slow-paced transition, a report from the think tank Carbon Tracker has found. The authors described countries looking to exploit oil and gas assets for the first time as making a 'significant gamble'. 'Huge economic costs' TotalEnergies has also structured its LNG deals in a way that activists have warned is disadvantageous to Mozambique, with revenues Mozambique set to come in the mid-2030s and 2040s, think tank IISD has said. This means that if the project does not see out its lifespan, TotalEnergies and other partners will have seen an outsize share of profits so far, with Mozambique losing out. Mozambique also faces 'substantial economic risks' related to investor-state dispute settlements (ISDS), a separate report from Columbia University found last year. ISDS are lawsuits where foreign investors sue countries where they have invested if they believe the government has violated the terms of the agreement. Mozambique's international investment agreements allow foreign investors to bypass the national judicial system in such disputes, the report found, while 'stabilisation clauses' protect investments from unexpected regulatory changes or new fiscal rules, potentially preventing Mozambique enacting new legislation to transition away from fossil fuels. 'What they have basically done is said Mozambique cannot invest in climate action without paying huge economic costs,' says Daniel Ribeiro, a Mozambican activist with Justica Ambiental. Such an arrangement is likely to 'only amplify social tensions in Cabo Delgado,' if little money is seen to reach local people while a Western company makes large profits, warns Ribeiro. Given the insurgency, delays, and economic concerns, it might seem the simplest thing for Mozambique to do would be to try and pull out of the deal. However, the country has racked up government debts since gas was discovered, using expected future gas revenues as collateral for borrowing. But expectations have not matched reality. The year 2016 also saw a corruption scandal rock the country after it was found that members of the Mozambican Government had secretly taken out loans for themselves from London-based banks, using assurances of future LNG gas revenues to do so. A 2023 report from Debt Justice found that the Mozambican government has been paying back some of those loans. Mozambique's external national debt more than doubled between 2010 and 2018, according to CEICC data, while Friends of the Earth has warned that potential corruption arising from the 'mere promises of LNG development' may have already cost the country more than any actual profit the project could generate for the country over its lifetime. For Ribeiro, who lives in the Mozambican capital of Maputo, the priority for the country should be investing in renewables and climate change adaptation. 'My main message is that the cost of climate change is going to be far greater than any profits from Mozambique LNG, and that should be the priority,' he says. The country is considered one of the most climate-vulnerable on the continent, exposed to extreme weather concerns including cyclones, droughts and floods. Cyclone Kenneth, which hit Cabo Delgado in 2019, caused damage estimated at $300m. But the Trump administration has a different idea about what is good for the country. Weeks before confirming its $4.7bn loan for Mozambique LNG, the US government shut down the USAID-backed Power Africa programme's operations in the country – with an emphasis on renewable energy – which has been leading efforts to boost energy access, in a country where only 40 per cent of the country's population has access to electricity. 'Cycle of death' The push to resume the Mozambique LNG project also comes despite the fact that the Islamist insurgency very much remains a threat. While insurgents no longer control full towns and villages, they have become more agile, and have stepped up the number of road blocks in recent weeks, according to local media. 'There are still believed to be several insurgency units of hundred or so people, and they still have the ability to make attacks and destabilise the area,' says Ribeiro. 'And every time they suffer losses, they continue to be able to recruit. Why? Because we are still not dealing with the economic and social drivers of the problem,' he adds. The EU is currently funding Rwandan troops to help protect the region - but this arrangement is also under threat due to accusations Rwanda has been supporting rebels in the Democratic Republic of Congo, as well as allegations that the Mozambican government is using units trained by the EU for protest suppression. For Marisa Lourenço, an independent risk analyst in Southern Africa, the threat of violence is 'definitely still there' in Cabo Delgado. She believes that while TotalEnergies will be able to securely lock down its site on the coast, it remains unclear if doing so is worth the money. 'TotalEnergies can secure the site. But is the infrastructure cost worth it? Will it recoup its sunken costs? Probably not. TotalEnergies rushed into taking on this project, and I think it regrets it,' she believe. For Mozambique, meanwhile, it remains clear for Ribeiro that the best option is for the country to pull out of the project. 'Pulling out will cause a whole host of problems in the short term, but it will help us emerge from this cycle of death,' he says. So long as the project continues, the Western world can turn a blind eye to what is happening in Mozambique, by imagining that it is financially supporting the country, believes Ribeiro. But if the project fails, then the country can focus on other development pathways that actually benefit the people. 'It's like a chronic condition that keeps flaring up, for which there is no cure' he says. 'Sometimes you just need to take the bullet.'
