Latest news with #NqobileDludla
Time of India
2 days ago
- Business
- Time of India
South Africa's Telkom resumes dividends as earnings jump 62.3%
By Nqobile Dludla JOHANNESBURG: South African telecommunication firm Telkom reported on Tuesday a 62.3% rise in full-year earnings and resumed dividends after a four-year suspension, declaring also a special dividend of 98 cents per share. In 2020, the operator of South Africa's biggest fixed-line network announced the suspension of dividends for the next three financial years starting in 2021 to conserve cash for spectrum auctions and strengthen its financial position. However, after reaching the initial target, the under-pressure operator delayed resuming dividend payments as it faced challenging market conditions. "This year's robust performance and strategic execution allow us to share the fruits of our success with shareholders by distributing both an ordinary and a special dividend. In total, the group will return 1.3 billion rand ($73.28 million) to its shareholders," Telkom said in a statement. Telkom, majority-owned by the government, said its headline earnings per share for continuing operations rose to 467.5 cents in the year ended March 31, up from 288.1 cents a year earlier. Telkom - which owns a big chunk of the fast growing home and business fibre market - declared a final dividend of 163 cents per share. Revenue increased by 3.3% to 43.8 billion rand, surpassing expectations due to strong growth in mobile service revenue, which rose 10.2%, and fibre-related data revenue, up 10%. Analysts surveyed by LSEG had forecasted revenue of 43.5 billion rand. Group adjusted earnings before interest, tax, depreciation and amortization (EBITDA) jumped by 25.1% to 11.7 billion rand, while the EBITDA margin expanded by 4.7 percentage points to 26.9% due to cost-optimization initiatives.
Yahoo
7 days ago
- Automotive
- Yahoo
China's BYD to nearly triple South Africa dealers' network by next year
By Nqobile Dludla JOHANNESBURG (Reuters) -Chinese electric-vehicle giant BYD plans to nearly triple its dealership network in South Africa by next year as it looks to grow its market share in the country, a senior executive told Reuters. BYD's move comes at a time of growing competition in Africa's largest automotive market, where sales of new energy vehicles are rising and other Chinese companies - such as GAC, Chery and GWM - are also making inroads. Launched in 2023, with its BYD battery electric ATTO 3 vehicle, the automaker has about 13 dealerships. "By the end of the year, we will have about 20 dealerships around the country. The aim is to expand that to about 30, 35 the next year," Steve Chang, General Manager of BYD Auto South Africa told Reuters in an interview on Wednesday. BYD currently offers six models in the South African market, with its plug-in hybrid Shark pick-up, hybrid SEALION 6, and pure electric SEALION 7 SUV models launched in April, completing its hybrid and electric dual-powertrain strategy. The dealership expansion will help BYD become a fairly known brand and capture more buyers across a country that is slowly transitioning to electrified vehicles. In 2024, sales of new energy vehicles - a term that describes battery-powered fully electric vehicles and plug-in hybrid cars - rose to 15,611 units from 7,782 units in 2023, according to data from automotive industry body NAAMSA. While the share of NEVs to total car sales is still low, BYD is hoping to capture the market early on, in preparation for a meaningful transition, Chang said. "We want to educate and cultivate the market of South Africa and make sure that the South African consumers can catch up with the rest of the world," Chang added. The uptake of electric vehicles and investment in Africa is quite slow relative to emerging market peers due to limited charging infrastructure, unstable power supply and high import duties compared to fossil-fuelled cars. But BYD sees potential. "South Africa is actually one of the most important automotive markets in the southern Hemisphere. It's probably the biggest market in all of Africa, so it's a market that we have to look at and see how we can develop the market," Chang said.
Time of India
19-05-2025
- Business
- Time of India
Vodacom pursuing joint fibre ventures in Africa broadband push
By Nqobile Dludla JOHANNESBURG: Vodacom Group is pursuing partnerships for joint fibre ventures as Africa's second largest mobile operator looks to accelerate the roll out of high-speed broadband coverage across its markets. With the voice market slowing in parts of the continent including South Africa, telecom companies such as Vodacom and rivals MTN and Airtel Africa have doubled down on high-speed internet, an area long dominated by fibre companies such as Maziv-owned Dark Fibre Africa and Vumatel in South Africa. Vodacom wants to merge with Maziv but the deal has been prohibited by South Africa's competition authorities. Asked what will happen if its appeal with the Competition Appeal Court fails, Vodacom Group CEO Shameel Joosub said on a call with journalists that since funding for the proposed deal is still in the bank, the operator has "opportunities" to look at where else it could invest the money. "We will pursue fibre joint ventures in all our markets," Joosub said, adding that Vodacom had already set up a new entity in Tanzania and was working on fibre in Mozambique. "We're looking at different opportunities and different share the same ambition of wanting to make sure that we can provide connectivity," he added. The ideal joint venture structure for Vodacom would be a 50-50 split with Vodacom not concerned about controlling any vehicle, Joosub said. Rolling out fibre organically is a slow and costly expansion option at a time when mobile operators need to make up ground on existing fibre networks. Homes and businesses connected by Vodacom reached 198,000 in the year ended March 31, while its own fibre passed almost 166,000 homes and businesses. Vodacom, majority-owned by UK-based Vodafone, has 211.3 million mobile network customers across eight African countries. It is also partnering with satellite providers, including Amazon's Project Kuiper. Joosub said Vodacom could also potentially partner with Elon Musk's Starlink as "satellite is a necessary part of being able to expand coverage to everyone".
Yahoo
10-04-2025
- Automotive
- Yahoo
South Africa considering auto industry incentives as tariff buffer
By Nqobile Dludla JOHANNESBURG (Reuters) - South Africa is considering offering additional incentives to automakers to help cushion the impact of U.S. President Donald Trump's tariffs on cars, Trade, Industry and Competition Minister Parks Tau said on Thursday. "What we're currently considering is the possibility of expanding the automotive industry production plan so that we're able to mitigate the impact in our industry," Tau said in an interview with radio broadcaster Power FM. "We're currently modelling what the potential package could be for the auto sector, but also for other sectors so that we can do it within the means of the country to buffer the impact." The Automotive Production and Development Programme is an incentive programme that helps drive investment, innovation and job creation in the automotive industry. It offers various rebates and refunds on customs duties and manufacturers also receive incentives based on their production volumes. The National Association of Automobile Manufacturers of South Africa has expressed concern over the 25% U.S. import tariff on cars, saying that it cannot be absorbed by manufacturers, which will result in additional costs for U.S. consumers and a reduced choice of South African-produced brands. The U.S. is the third-largest destination for South African automotive exports, with approximately 35 billion rand ($1.8 billion) worth of vehicles shipped in 2024, accounting for 6.5% of total vehicle exports in 2024. South African-based manufacturing plants operated by BMW, Ford, Isuzu, Mercedes-Benz, Nissan and Toyota - which produce vehicles for global markets, including the U.S. - will be severely impacted NAAMSA added. ($1 = 19.3878 rand) Sign in to access your portfolio
Yahoo
03-04-2025
- Business
- Yahoo
Factbox-The US-Africa trade programme under threat from Trump tariffs
By Nqobile Dludla and Nellie Peyton JOHANNESBURG (Reuters) - President Donald Trump has moved to impose sweeping tariffs on most goods imported to the United States, including from African countries that benefit from a U.S. flagship trade programme for the continent. Analysts say the new tariffs suggest that the renewal of the initiative, known as the African Growth and Opportunity Act (AGOA), is extremely unlikely. Here are some key facts about the trade accord: WHAT IS AGOA? AGOA is a U.S. trade initiative passed in 2000 under former President Bill Clinton to deepen trade ties with Sub-Saharan Africa and help African countries develop their economies. It provides duty-free access to the U.S. market for thousands of products including motor vehicles and parts, textiles and clothing, minerals and metals, agricultural products and chemicals exported by eligible African countries. It has been renewed twice and is due to expire in September 2025. WHO BENEFITS? About 35 African countries are currently eligible. Countries can lose and regain eligibility based on criteria including economic policies and protection of human rights. A number of countries including South Africa, Nigeria, Ghana, Kenya, Lesotho, Madagascar and Ethiopia have successfully used AGOA to boost exports to the U.S., drive industrialization and create jobs, especially in textiles, automotives and minerals including crude oil. The United States benefits by furthering its interests on the continent. It also gains access to critical minerals and investment opportunities. Countries that undermine U.S. national security or foreign policy interests are not eligible for AGOA. U.S. lawmakers view it as an important soft power tool, particularly as a counter to Chinese influence. Sectors such as South Africa's automotive industry as well as Kenya and Lesotho's clothing sectors would be hit hardest from a sudden rise in tariffs or non-renewal of AGOA. WHAT DO CRITICS SAY? Many analysts have said that AGOA is under-utilized. Only about half of eligible countries have developed national AGOA utilization strategies, and the majority of exports come from just a few of them. While the apparel sector and automotive industry have been the programme's biggest success stories, other industries have lagged. U.S. imports from AGOA beneficiaries peaked in 2008 at $82 billion and had fallen to $29.1 billion in 2024, according to the AGOA website. Some analysts say AGOA has had a positive impact but that it needs to be updated and improved to include newer industries such as technology and digital services. WHAT HAPPENS NOW? African countries want a 10-year extension, but economists say that the Trump administration's protectionist trade policies mean AGOA's renewal is unlikely. The new tariffs have heightened the risk that AGOA may be scrapped altogether even before it expires, unless the region presents strong bargaining chips to keep it in place, analysts say. Government officials from South Africa and Madagascar said they were waiting for clarity on whether the reciprocal tariffs announced by Trump will be applied to goods that are exported under AGOA. AGOA's extension requires a decision of the U.S. Congress and is thereafter signed into law by the U.S. President.
