Latest news with #R1.3bn
TimesLIVE
29-05-2025
- Business
- TimesLIVE
Cape Town central line recovery created more than 2,500 jobs: Creecy
More than 2,500 jobs have been created during the recovery of the Cape Town central line, transport minister Barbara Creecy said during its official reopening on Thursday. Creecy said this meant a direct contribution to the local economy. The central line from Chris Hani to Cape Town city reopened after it shut down for four years due to cable theft and vandalism. Its reopening comes after extensive repair work on stations, substations and overhead traction electrification systems. The central line is Cape Town's most important rail corridor. It connects the communities of Khayelitsha and Mitchells Plain to the Cape Town CBD and Bellville CBD. At full capacity the line contributes 350,000 of Cape Town's 685,900 daily passenger trips. The process of recovering the central line corridor has so far cost R1.3bn, said Creecy. The recovery of the line is more than the reopening of a rail line, she said. 'It is the return of dignity, mobility and hope for the working-class people of Cape Town. 'There are now two trains departing Chris Hani Station per hour on the central line. But as we increase our signalling capacity, we hope to run an optimal service where we have six trains per hour.' 'The recovery of the line had lot of challenges, including illegal occupation, vandalism of infrastructure and a grim security environment. Today the train ride from Chris Hani station to Cape Town station is a safe, reliable and modern rail corridor that again connects people to opportunities to work and to education,' she said. Creecy said the reopening of lines has led to a significant increase in passenger trips nationwide, reaching 77-million over the past year. This figure is projected to reach 123-million this year, indicating a clear trajectory towards the goal of 600-million by 2030/2031. Creecy said several initiatives are ongoing to ensure the progress made is sustained and accelerated. 'The revised rail bill [Railway Safety Bill] is in the cabinet system and once approved will be released for public comment. The bill will provide much needed clarity on the future of the rail reform process, especially in how it will affect commuters, as well as determining the modalities of possible devolution of certain rail functions.'
IOL News
26-05-2025
- Business
- IOL News
Nampak's turnaround starting to pay off as interim profit soars to R3 billion
Nampak reported a total profit from operations of R3 billion in the six months to March 31, compared with a R135 million loss at the same time last year, and it also substantially reduced debt. Image: supplied In a striking demonstration of fiscal resilience, South Africa's metals packaging group Nampak has recorded a remarkable turnaround in its financial fortunes for the six months ending March 31. The company reported a profit of R3 billion, a stark contrast to a loss of R135 million reported during the same period last year. This turnaround has not only bolstered its's position, but also highlighted the impact of strategic management amid a tightening consumer environment. CEO Phildon Roux shared insights on the results, noting that earnings a share surged to 35 842.2 cents — a robust recovery from a loss of 1 123.5 cents in the first half of the previous year. 'The first half yielded a rewarding financial outcome,' Roux stated, attributing the momentum to a concentrated focus on margin management, cost containment, and efficiency enhancements. This approach resulted in a 22% increase in trading profit alongside a 7% rise in operating profit. The company's commitment to reducing debt was evidenced by the sale of Bevcan Nigeria, which netted R1.3bn and marked a pivotal milestone in their deleveraging strategy. This, combined with strong operating cash flow and lower interest costs, facilitated improved financial metrics despite an uptick in net working capital investments. While the previous year's operating profit was significantly buoyed by a R290m post-retirement medical aid (PRMA) gain, Nampak's current performance reflects the effective management of financial assets. The firm recognised a R65m pension fund surplus and a R100m interim settlement from an outstanding Covid-19 insurance claim, enhancing headline earnings although less substantially than in prior periods. Revenue from continuing operations grew by 11% to R5.7bn, propelled by both volume growth and strategic price management. This growth was particularly noted in Beverage South Africa (up 7%), Diversified South Africa (up 14%), and Beverage Angola, which saw a stark 16% increase. However, Beverage South Africa faced challenges with the slower-than-planned expansion of its Springs Line 2, underscoring a mismatch between growing demand and available supply. Trading profits also saw a healthy rise, climbing 22% to R764m. The better-than-expected performance was largely driven by a 49% surge in Diversified South Africa and a 33% boost in Beverage Angola. These sectors reported particularly strong revenue growth, highlighting the effectiveness of Nampak's strategies in regions facing varying economic climates. Roux remarked on the focus placed on excellent margin management and cost control, praising the impressive performance of Diversified South Africa, which was supported by organic growth and an improved supply chain for fruit and fish cans. The earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a commendable rise of 7% to R1.1bn supporting the company's overall financial health. Despite the improved cash flow from operations, the outflow of working capital registered higher than usual due to escalating revenue levels. Nevertheless, management has prioritised improvements in collections, successfully offsetting some of the increased cash requirements. The impact of the initial tranche of the disputed Covid-19 insurance claim continues to assist working capital, a factor that Roux acknowledges as crucial for sustaining momentum. As part of its ongoing commitment to financial resilience, Nampak has reduced its net debt significantly from R5.7bn to R3.9bn, a success attributed to strategic asset disposals and prudent cash management. The outlook is optimistic, with Roux confident that the local beverage market's growth potentials remain strong, outpacing supply. Strategic initiatives are already underway to expand capacity and enhance operational efficiencies. 'The outlook for the Nampak group remains promising. The continuity of our strategic and cultural interventions bodes well for sustaining performance in the future,' Roux concluded, hinting at a solid trajectory for the company as it navigates through challenges and seeks to fulfil growing market demands. Visit:
TimesLIVE
07-05-2025
- Business
- TimesLIVE
NSFAS in 'firefighting mode' over student accommodation crisis
The National Student Financial Aid Scheme (NSFAS) acting CEO Waseem Carrim acknowledged ongoing problems with student accommodation, citing inadequate planning and risk assessment before implementing the student accommodation pilot project. Nsfas launched the pilot project during the 2022/23 academic year to ensure that qualifying students were provided with conducive private accommodation. Carrim said that NSFAS had undertaken the project without doing necessary feasibility studies, capacity building, policy guidelines, or a legal framework, resulting in significant issues within the system. This came as NSFAS briefed MPs on updates related to resolving students' appeals, funding decisions for the 2025 academic year, disbursement of funding and allowances, the close-out report, student accommodation and related matters. Highlighting the structural problems within the student accommodation sector, Carrim pointed out the shortage of safe and secure student housing in South Africa. 'If you go to the University of Fort Hare today, Alice campus, there are insufficient beds, which means we end up paying the students an allowance. And say, go and find your own which is not a good way to run the system, but we must recognise that even where student accommodation exists, we do not have an effective and efficient distribution system of allocating, placing and paying for that student accommodation.' Carrim noted that in 2024, about 2,500 accommodation providers, representing about 81,000 students, were paid about R2.9bn for private accommodation. However, in 2025, though payments had been made to 3,828 providers representing more than 100,000 students, the disbursements amounted to about R1.3bn, significantly lower than the previous year. To address the immediate issues, Carrim said, NSFAS had finalised the 2024 reconciliation of unpaid student accommodation and instituted a 2024 claims process, with payments expected by May 31. Carrim said many small and medium businesses could not survive without NSFAS payments if there were no payments for two or three months. 'On the other side of that, we also have a fiduciary obligation to confirm that the students who are staying in those residences are confirmed students. We are picking up too many instances where students are living in accommodation as NSFAS students, but we don't have registration data,' he said. Further, Carrim acknowledged challenges related to unaccredited accommodation allowances, which were capped at R2,500 to encourage landlords to upgrade facilities to meet accreditation standards. He noted that this cap led to protests, such as at the University of the Free State, prompting NSFAS to grant a deviation for the 2025 academic year. Addressing the Eastern Cape situation, Carrim said that a system challenge had caused some landlords to receive only one month of disbursement after being owed four for months. He assured that a top-up payment was scheduled for May 2 . A member of the portfolio committee on higher education, Sedukanelo Tshepo Louw, recommended that by the end of May, institutions should have NSFAS officers on-site so that students could address their frustrations directly with them. 'Unaccredited private accommodation should not be paid for, however, providers should be encouraged to seek accreditation,' Louw said.
The Herald
25-04-2025
- Politics
- The Herald
US justice dept grant cuts valued at $811m, people and records say
Activating Change, a nonprofit that supports domestic violence victims with disabilities, lost five federal grants totaling more than $2m (R37.6m), said executive director Nancy Smith. One of those paid for American sign language interpretation services for domestic violence victims, while another trains police on how to investigate trafficking crimes against people with disabilities. Another recipient that lost funding is the central Iowa trauma recovery centre, which received support from Republican senator Charles Grassley. Other types of canceled grants funded programmes from criminal justice research to efforts to help reduce recidivism and support people after they leave prison. A justice department official said on Thursday night the grant to the Iowa-based trauma recovery centre was being restored, but the department would not restore the grants to Activating Change because of its affiliation with the Vera Institute of Justice. The Vera Institute of Justice, an independent nonprofit, was recently targeted by billionaire Elon Musk's department of government efficiency as part of its cost-cutting effort. "The justice department's reckless cuts to their federal grants endanger the victims' safety," the Vera Institute of Justice told Reuters in a statement. "It is unconscionable that this administration would put partisan politics over the wellbeing of victims of crime," the group said. Smith said in a statement that terminating her group's grants represented a "political act". "This punishes deaf and disabled survivors, silences marginalised voices, and dismantles vital support for those facing the greatest barriers to safety and healing," she said. Of the $811m in total cuts, about $71m (R1.3bn) comes from grants offered by the office for victims of crime, according to a spreadsheet of the grants seen by Reuters. The justice department cut roughly $535m (R10bn) to programmes from the bureau of justice assistance, which funds programmes to support many local police departments and correctional facilities, the data shows. The federal agency cut about $136m (R2.5bn) from the office of juvenile justice and delinquency prevention, and terminated nearly $59m (R1.1bn) in research grants funded by the national institute of justice. Reuters
