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The Star
6 days ago
- Business
- The Star
Ramokgopa defends Eskom's R5 billion diesel spend to prevent load shedding
Mthobisi Nozulela | Published 7 hours ago Minister of Electricity and Energy Kgosientsho Ramokgopa has defended Eskom's heavy use of diesel this winter, saying it was necessary to avoid load shedding during peak demand. Speaking at a press briefing on Wednesday morning, Ramokgopa gave an update on the state of the electricity grid and admitted that Eskom faced significant challenges at the start of the financial year. "It's not a secret that we experienced significant challenges at the beginning of the financial year in April, and we relied more and more on diesel to be able to support us," Ramokgopa said. Ramokgopa explained that diesel use is part of Eskom's emergency response plan for periods of high risk, especially in winter. "This diesel was able to support us because it is meant to support us during those periods of difficulty. Of course, the budget for the diesel is about R12 billion or so. "We have spent about R5 billion of that, and the next question you might ask is why, at the beginning of the financial year, you have spent over 40% of your annual allocation". He further added that the increased diesel use is a strategic response to the heightened risk during winter months, when electricity demand peaks and the ageing power infrastructure is more vulnerable to breakdowns. "It's because it's during winter when the intensity of the demand reaches its peak, and then when we're likely to experience challenges if some units fail because we don't have the headroom to be able to absorb those failures of the units." "So what do we do? We then call on our ace card, which is the pickers to come and help us. Just to give you context for the period of 1 April to 31 August in 2023, just that period, we used about R14.8 billion [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
6 days ago
- Business
- IOL News
Ramokgopa defends Eskom's R5 billion diesel spend to prevent load shedding
Minister of Electricity and Energy Kgosientsho Ramokgopa defended Eskom's heavy use of diesel this winter, saying it was necessary to avoid load shedding during peak demand Image: Supplied Minister of Electricity and Energy Kgosientsho Ramokgopa has defended Eskom's heavy use of diesel this winter, saying it was necessary to avoid load shedding during peak demand. Speaking at a press briefing on Wednesday morning, Ramokgopa gave an update on the state of the electricity grid and admitted that Eskom faced significant challenges at the start of the financial year. "It's not a secret that we experienced significant challenges at the beginning of the financial year in April, and we relied more and more on diesel to be able to support us," Ramokgopa said. Ramokgopa explained that diesel use is part of Eskom's emergency response plan for periods of high risk, especially in winter. "This diesel was able to support us because it is meant to support us during those periods of difficulty. Of course, the budget for the diesel is about R12 billion or so. "We have spent about R5 billion of that, and the next question you might ask is why, at the beginning of the financial year, you have spent over 40% of your annual allocation". He further added that the increased diesel use is a strategic response to the heightened risk during winter months, when electricity demand peaks and the ageing power infrastructure is more vulnerable to breakdowns. "It's because it's during winter when the intensity of the demand reaches its peak, and then when we're likely to experience challenges if some units fail because we don't have the headroom to be able to absorb those failures of the units." "So what do we do? We then call on our ace card, which is the pickers to come and help us. Just to give you context for the period of 1 April to 31 August in 2023, just that period, we used about R14.8 billion [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
08-08-2025
- Business
- IOL News
South Africa's richest woman Magda Wierzycka considers returning due to UK tax changes
South African billionaire and Sygnia CEO Magda Wierzycka says she may be forced to return to South Africa Image: X / Magda Wierzycka South African billionaire and Sygnia CEO Magda Wierzycka says she may be forced to return to South Africa because of tax changes proposed by the UK government. Magda Wierzycka left South Africa several years ago, citing safety concerns linked to her outspoken fight against corruption. At the time, she claimed she would never return to the country.. Wierzycka is estimated to be worth $250 million, making her one of South Africa's richest women. While her publicly traded shares in Sygnia are said to be valued at around USD 114 million (R 2 billion), her total wealth includes private assets and investments. However, the UK's recent tax changes targeting non-domiciled residents, including the introduction of inheritance tax on overseas assets, have put her future in London in doubt. Wierzycka has said that these policies could force her to relocate back to South Africa. 'In my situation, let's assume I die right now, my estate and the assets that I have in my trust would be subject to inheritance tax here immediately,' she said in an interview with SKY News. She added that South Africa's foreign exchange controls complicate matters further. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'South Africa has these kinds of restrictions on the free movement of cash out of the country. So, you know, it's a situation where my estate might, my children might not be able to settle the bill in the UK. 'I was in the midst of raising a fourth fund to invest solely into the UK... The message to my investors is we'll be deploying the capital around the world. We are not coming to the UK". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
06-08-2025
- Business
- IOL News
New Spotify subscription prices in South Africa: Are you ready for the increase?
South African music lovers will have to fork out more money to listen to music on Spotify Image: File picture South African music lovers will have to fork out more money to listen to music on Spotify after the streaming giant announced that it will be increasing its Premium subscription prices in the coming weeks. The price hike forms part of a global update affecting multiple regions, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific. In a statement issued to the media earlier this week, the Swedish music streaming company said the increase is necessary to support continued innovation and to enhance its personalised, world-class listening experience. example of an email Spotify users will receive, confirming the price hike. Image: Spotify "At Spotify, we're committed to delivering a world-class, personalised experience for every user," the company said. "To continue to innovate on our product offerings and features and bring users the best experience, we occasionally update our prices." The company added that premium users will receive formal communication over the next month informing them what the new changes mean for their subscription. "Over the next month, Premium subscribers in multiple markets across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region will receive an email explaining what this update means for their subscriptions," The Spotify Premium prices in South Africa are different depending on which Premium plan you choose. According to the company, the prices will be hiked by €1 (R20.69). New Spotify Premium Prices in South Africa: Premium Individual : R69.99/month Premium Duo : R94.99/month Premium Family : R119.99/month Premium Student : R37.99/month IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
31-07-2025
- Business
- IOL News
Understanding the economic consequences of Trump's tariffs for South Africa
US President Donald Trump's tariffs could slash South Africa's economic growth to 0.3% for the year. Image: The White House A complete halt in trade from South Africa to the US would have devastating consequences for hundreds of thousands of people whose jobs depend on that trade, while stripping almost $2.9 billion (R52bn) in value from the economy. While it is unlikely that exports of South African goods to the US will stop entirely from tomorrow, when US President Donald Trump's 30% trade tariff is highly likely to come into effect, the economic impact will be significant. The effects are already visible. The rand has weakened, with Andre Cilliers, currency strategist at TreasuryONE, saying on Thursday morning that the currency is under pressure from both a stronger dollar and the looming 30% tariffs on South African exports to the US. Cilliers added that the local currency was also being pushed down by the South African Reserve Bank's decision, expected later today, to cut interest rates by 0.25 percentage points, taking the prime lending rate to 10.5% – offering some relief. By 09.30am, the rand had breached the R18 to the dollar mark after holding at around R17.90 for several days. Investec chief economist Annabel Bishop said the slump was directly linked to tariff uncertainty. The only optimistic economist polled by IOL Business was Old Mutual chief economist Johann Els, who still sees the rand settling between R16 and R16.99 despite the tariffs – although it won't reach this level immediately. The tariffs will add roughly $3.5 billion (R63bn) to the cost of exports to the US, based on South Africa's 2023 export value. Key exports include mineral resources (platinum and gold, which are excluded from the tariffs), agricultural products (citrus fruits, wine, processed foods), and manufactured goods such as automobiles. Gross domestic product (GDP) will also take a hit. Nolan Wapenaar, co-chief investment officer at Anchor Capital, said 'economists are all modelling to estimate the impact and, from what I am seeing, this will shave about 0.7% off economic growth. Just not nice.' This would reduce economic growth to 0.3% for the year, down from an already weak 0.1% in the first quarter. On Tuesday, the International Monetary Fund's latest World Economic Outlook optimistically projected South Africa's economy to grow 1% this year, noting that global growth is expected to slow as recent trade disruptions take effect. Donald MacKay, CEO of XA Global Trade Advisors, has said that the tariffs in place – and those expected – affect about 1.3% of South Africa's GDP. 'That doesn't mean it's going to move the GDP down by 1.3%, but that is the portion of our GDP that has the potential to shift,' he said. MacKay told IOL Business 'the ability to quantify this, there are just far too many things that we just don't know. The job losses, the simple answer is I don't know.' He added 'the two sectors that are labour-intensive and will take pain are the citrus growers and the table grapes. So, cars are not impacted by this, because cars already have a 25% tariff.' In 2023, exports to the US accounted for around 2.2% of GDP, while approximately 426 000 jobs were linked to exports to that market. ActionSA president Herman Mashaba said the agricultural and automotive export market to the US alone employs more than 100 000 South Africans. Even with platinum and gold excluded from tariffs, hundreds of thousands of jobs are at risk in a country where millions are unemployed. The official unemployment rate was 32.9% in the first quarter of the year. In a worst-case scenario, unemployment could rise sharply, with the number of jobless South Africans increasing from 16.4 million to 16.8 million out of a potential workforce of 25 million – an official unemployment rate of 34.4%. For context, the worst unemployment rate since democratic elections was in the fourth quarter of 2021 at 35.03%. Meanwhile, the chances of a deal with the US are diminishing. South Africa has already begun seeking alternative trade partners within Africa. Earlier this week, Trade, Industry and Competition Minister Parks Tau attempted to calm fears, saying South Africa was still pursuing an agreement. 'Our view is that negotiations remain the best tool to deal with the issues that are on the table,' Tau said in a statement. He added that South Africa had made several offers to the US, including importing Liquified Natural Gas for 10 years, unlocking $12 billion. Tau also said South Africa would simplify poultry imports and provide 'open market access for blueberries subject to necessary protocols'. MacKay, however, called for greater transparency. 'We need the government to be a little bit more transparent and tell us what is actually going on, what the offers look like precisely. And without that kind of detail, then all I've got to say is the media release tells us absolutely nothing of value.' Tau has conceded that 'a reset' in trade relations between the two countries is 'unavoidable'. IOL
