Latest news with #R5.2
IOL News
a day ago
- Business
- IOL News
South Africa's exports face decline amid economic challenges
All indications were that exports are set to slow given the current economic climate, recent indicators, as well as surveys showing that manufacturing operating conditions are deteriorating. Image: Supplied All indications were that exports are set to slow given the current economic climate, recent indicators, as well as surveys showing that manufacturing operating conditions are deteriorating. This is according to Investec economist, Lara Hodes, who said that the trade account surplus was likely to decrease further. On Thursday, the South African Reserve Bank (SARB) said that South Africa imported more than it exported during the first quarter of the year, although the country benefitted from the rand price of exported goods and services increasing more than that of imports when it comes to terms of trade. Hodes noted that a pending decline in exports ahead was based on data such as the Absa Manufacturing Purchasing Managers' Index (PMI) for April, which noted that the data tracking export sales returned to contractionary levels. In addition, according to the results of the JP Morgan Global Manufacturing PMI survey, global 'manufacturing operating conditions deteriorated' in April, with 'new export orders suffering its steepest decrease since August 2023,' Hodes said. She also noted that survey data from JP Morgan provided evidence of further potential weakness. Hodes said that globally, heightened levels of uncertainty around tariffs persist. S&P Global, she said, has indicated that the damage to confidence stemming from the radical shift in US trade policy, along with its unpredictability, is likely to linger, which will weigh on trade and growth prospects. 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 ✕ Trade balance trend Image: SARS/Investec The central bank said in its release that South Africa's trade surplus narrowed slightly by R5.2 billion as the value of merchandise imports increased more than that of goods exports. 'The increase in the value of imports and exports of goods and services in the first quarter of 2025 reflected both higher volumes and prices,' the central bank explained. It added that the current account deficit as a ratio of gross domestic product (GDP) remained broadly the same at 0.5% from the fourth quarter of 2024 to the first quarter of 2025. However, the agency noted that 'South Africa's terms of trade, including gold, improved in the first quarter of 2025 as the rand price of exported goods and services increased more than that of imports'. IOL
IOL News
2 days ago
- Business
- IOL News
Stronger rand helps South Africa reduce trade deficit
South Africa exported more than it imported in the first quarter, thanks to a rise in the value of exports, the Reserve Bank said. Pictured is Sarb governor, Lesetja Kganyago South Africa exported more than it imported during the first quarter of the year, the South African Reserve Bank (SARB) said, citing the fact that the value of goods exported had increased in rand terms. The local currency has been worth between just under R19 to the dollar at the start of the year to sticking below the key R18 to the greenback level since the middle of last month. In a statement issued on Thursday, the central bank said that South Africa's trade surplus narrowed slightly by R5.2 billion as the value of merchandise imports increased more than that of goods exports. The increase in the value of imports and exports of goods and services in the first quarter of 2025 reflected both higher volumes and prices, the central bank explained.
The Citizen
19-05-2025
- Business
- The Citizen
Here's why Amplats will still pay Anglo R1.6bn a year after unbundling
The separation will also cost R5.7bn in once-off charges. Demerging is an expensive exercise. Anglo American Platinum (Amplats) – to be renamed Valterra Platinum on 1 June – will spend a total of R432 million in transaction costs alone related to its separation from parent Anglo American plc. These will (mostly) be in the form of professional services fees, including investment bankers and lawyers. Aside from this, it will also incur once-off costs of R5.2 billion related to the demerger. Costs of Amplats unbundling from Anglo American In the prospectus, it says it will cost the platinum group metal (PGM) producer R1 billion to set up its 'standalone information management structure' as well as rebranding. A further 'R45 million is expected to be incurred in relation to site and office costs, security costs, and marketing costs'. The bulk of the once-off figure – R4.2 billion – 'relates to the settlement of intercompany services between the Anglo American Group and [the soon-to-be-renamed Valterra], of which R2.85 billion was accrued as at 31 December 2024, and the remaining R1.35 billion was agreed in 2025'. Services agreement Valterra, as it will be known, on 8 April agreed an umbrella services agreement with Anglo American that will kick in once the demerger, which has been approved by shareholders, is completed on 31 May. It says under the terms of this agreement, Anglo American 'has been contracted to provide certain administrative services to the Group [Amplats/Valterra] during a transitional period' while they are established and/or migrated to Valterra. ALSO READ: SA opened 159 new mines in five years, creating over 15 000 jobs Amplats has always been part of Anglo. That's just how it was – hence the reason for this convoluted arrangement. The agreement specifically covers 'the provision of staffing and resources principally in relation to finance, human resources, infrastructure operations, and information technology functions'. Valterra will pay its soon-to-be former parent R1.646 billion a year for these services. Amplats says 'shortly following completion of the Demerger, the Group [Amplats/Valterra] and the Anglo American Group will jointly prepare exit plans to transition the continuing services'. These timeframes typically run for 24 to 36 months. The separation of Absa from Barclays plc (following the latter's decision to divest) had a similar agreement. However, due to Barclays originally migrating Absa onto its systems, it footed most of the bill for the very complicated split to get Absa back onto its own systems. In total, Barclays made a R12.6 billion contribution (payment) towards the separation programme. ALSO READ: 'Restructuring a last resort', says Amplats as over 4 000 jobs in jeopardy As part of the demerger, Valterra will list on both the JSE and the London Stock Exchange (LSE), with the latter to ensure that 'the high number of Anglo American's existing, UK-based shareholders will not be prevented from holding, or continuing to hold, shares in the company following the demerger'. Anglo has said it will retain a shareholding in Valterra of 19.9% for at least 90 days following the demerger. Historically, it owned 67% of that business. Tax windfall The fiscus is set for a tax windfall due to the demerger, comprising $300 million in dividend-withholding tax, capital gains tax of $63 million, and securities transfer tax totalling $25 million. At current exchange rates, this equates to R7.1 billion. Under pressure from investors, Anglo announced a strategy in May 2024 to simplify its portfolio and focus on 'copper, premium iron ore and crop nutrients (potash)'. As part of this simplification, it announced that it would demerge a portion (read: the bulk) of its 67% stake in Amplats. This article was republished from Moneyweb. Read the original here. NOW READ: Mining bosses rake in hundreds of million rands per year each
Trade Arabia
09-04-2025
- Business
- Trade Arabia
Germany eyes Africa's energy future with major investment
Germany is eyeing expanded investments in Africa's energy sector, having pledged €4 billion ($4 billion) for green energy projects by 2030 and advancing hydrogen and gas partnerships through the European Union's (EU) Global Gateway initiative. These investments aim to enhance conditions for private sector involvement and infrastructure development, underscoring Germany's commitment to sustainable development and economic growth across the continent. In South Africa, Germany committed R5.2 billion last December to support the country's energy transition and deepen bilateral cooperation. This funding is directed towards facilitating South Africa's shift from coal to renewable energy sources, addressing both environmental concerns and energy security. Earlier this month, the EU also announced a €4.7 billion investment in South Africa to support green energy initiatives and vaccine production, reflecting a broader commitment to sustainable development in the region. Further strengthening these efforts, Germany and the African Development Bank announced joint initiatives last month to accelerate energy access and private sector growth across Africa. This partnership includes support for the Mission 300 initiative, which aims to provide electricity access to 300 million Africans by 2030, and expanded financing for youth entrepreneurship programs. Meanwhile, German companies are optimistic about their prospects in South Africa, signaling growing confidence in the country's economic stability, expanding trade opportunities and the potential for long-term partnerships in energy and industrial sectors. A recent survey by KPMG Germany and the Southern African-German Chamber of Commerce and Industry revealed that 64% of German companies expect rising revenues in South Africa, with 44% planning to invest in the country within the next three years. Germany has already been active in Africa's green hydrogen sector, recognising the continent's vast potential for renewable energy production. In Namibia, German investors have partnered on the $10 billion Hyphen Green Hydrogen Project, aiming to harness the country's abundant solar and wind resources to produce green ammonia for global export. Additionally, Germany mobilised €150 billion through the Global Gateway initiative earlier this year to enhance its energy engagement in Africa, with green hydrogen as a key focus. West African countries alone have the potential to produce up to 165,000 TWh of green hydrogen annually – far exceeding Germany's projected demand for 2030. Beyond renewable initiatives, Germany remains open to cooperating with African countries on natural gas and blue hydrogen production. This approach reflects Germany's updated Africa policy guidelines, which emphasise the importance of African energy resources – including renewable electricity, green hydrogen and, under specific conditions, natural gas – for a successful energy transition in both Africa and Europe. "Germany's growing investment in Africa's energy sector signals a transformative shift toward sustainable development and economic growth. With a clear focus on green hydrogen, renewables and responsible fossil fuel cooperation, the country is positioning itself as a key partner in Africa's energy future. African Energy Week 2025 will serve as a vital platform to advance these partnerships, unlocking new opportunities and accelerating Africa's energy transition,' said Tomás Gerbasio, Vice President of Commercial and Strategic Engagement at the African Energy Chamber. -TradeArabia News Service
Zawya
09-04-2025
- Business
- Zawya
Germany Sets Sights on Africa's Energy Future with Major Investment Pledge
Germany is eyeing expanded investments in Africa's energy sector, having pledged €4 billion for green energy projects by 2030 and advancing hydrogen and gas partnerships through the European Union's (EU) Global Gateway initiative. These investments aim to enhance conditions for private sector involvement and infrastructure development, underscoring Germany's commitment to sustainable development and economic growth across the continent. In South Africa, Germany committed R5.2 billion last December to support the country's energy transition and deepen bilateral cooperation. This funding is directed towards facilitating South Africa's shift from coal to renewable energy sources, addressing both environmental concerns and energy security. Earlier this month, the EU also announced a €4.7 billion investment in South Africa to support green energy initiatives and vaccine production, reflecting a broader commitment to sustainable development in the region. Further strengthening these efforts, Germany and the African Development Bank announced joint initiatives last month to accelerate energy access and private sector growth across Africa. This partnership includes support for the Mission 300 initiative, which aims to provide electricity access to 300 million Africans by 2030, and expanded financing for youth entrepreneurship programs. Meanwhile, German companies are optimistic about their prospects in South Africa, signaling growing confidence in the country's economic stability, expanding trade opportunities and the potential for long-term partnerships in energy and industrial sectors. A recent survey by KPMG Germany and the Southern African-German Chamber of Commerce and Industry revealed that 64% of German companies expect rising revenues in South Africa, with 44% planning to invest in the country within the next three years. Germany has already been active in Africa's green hydrogen sector, recognizing the continent's vast potential for renewable energy production. In Namibia, German investors have partnered on the $10 billion Hyphen Green Hydrogen Project, aiming to harness the country's abundant solar and wind resources to produce green ammonia for global export. Additionally, Germany mobilized €150 billion through the Global Gateway initiative earlier this year to enhance its energy engagement in Africa, with green hydrogen as a key focus. West African countries alone have the potential to produce up to 165,000 TWh of green hydrogen annually – far exceeding Germany's projected demand for 2030. Beyond renewable initiatives, Germany remains open to cooperating with African countries on natural gas and blue hydrogen production. This approach reflects Germany's updated Africa policy guidelines, which emphasize the importance of African energy resources – including renewable electricity, green hydrogen and, under specific conditions, natural gas – for a successful energy transition in both Africa and Europe. "Germany's growing investment in Africa's energy sector signals a transformative shift toward sustainable development and economic growth. With a clear focus on green hydrogen, renewables and responsible fossil fuel cooperation, the country is positioning itself as a key partner in Africa's energy future. African Energy Week 2025 will serve as a vital platform to advance these partnerships, unlocking new opportunities and accelerating Africa's energy transition,' said Tomás Gerbasio, Vice President of Commercial and Strategic Engagement at the African Energy Chamber. The upcoming African Energy Week (AEW) 2025: Invest in African Energies conference presents a strategic platform for German investors to explore and engage with energy opportunities across the continent. AEW 2025 aims to drive forward the momentum established in previous years, offering a dynamic space for leaders, policymakers and stakeholders to address regional and global energy challenges while advancing Africa's position as a leader in sustainable energy solutions. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
