Latest news with #R51
IOL News
3 days ago
- Business
- IOL News
How deal was struck to save National Lottery from shutdown
Sizekhaya Holdings is led by a consortium that includes KwaZulu-Natal business figures such as Moses Tembe, former Chairperson of the KZN Growth Coalition, and Sandile Zungu, owner of AmaZulu football club. Image: Sihle Mlambo/IOL In tense, last minute discussions at the weekend, Trade, Industry, and Competition Minister Parks Tau intervened to prevent a shutdown of the popular National Lottery. Tau's intervention came after a high-stakes meeting on Saturday with the National Lottery Commission (NLC) and Ithuba, the current lottery operator. The situation arose after a Gauteng High Court ruled that Ithuba's operating license could only be extended for five months, until the new operator, Sizekhaya Holdings takes over. However the NLC had argued that a 12-month temporary license was necessary to ensure a smooth transition, but the court disagreed. However, in a surprise move, Tau announced that he had granted a 12-month temporary license to Ithuba Holdings, allowing them to continue operating the National Lottery from June 1 until the end of May next year - when Sizekhaya Holdings takes over as the operator. According to sources close to Tau, the minister promised Ithuba that they would not lose any revenue and would instead make a profit, although the details of how this would be achieved are not clear. 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 ✕ Ad Loading "It was an intense meeting, and the minister knew what impact it would have on the country's economy given the scale of the tender and people relying on playing the lotto week in and week out," a source said. Ithuba had argued in court that if they accepted a five-month extension, they would incur a loss of R51 million. Ithuba has agreed to continue operating the National Lottery, ensuring that all games, draws, and prize payouts will proceed normally. The company has reassured the public that they will maintain their commitment to integrity, transparency, and the benefit of South Africans. "As a proudly 100% black-owned South African operator, Ithuba remains steadfast in its commitment to operate the National Lottery with integrity, transparency, and for the benefit of South Africans," the company stated on Saturday. While this agreement provides short-term relief, the long-term future of the National Lottery remains uncertain. Sizekhaya Holdings, the preferred bidder, is set to take over the lottery in June 2026, but questions remain about the transparency of the licensing process and the impact of further legal challenges. Announcing the preferred bidder Tau said he had received a report from the NLC regarding the satisfactory conclusion of negotiations with the preferred bidder for the Fourth National Lottery and Sports Pools Licence. 'I am pleased to announce that I have awarded Sizekhaya Holdings (RF) (Pty) Ltd ('Sizekhaya') the licence in terms of section 13 of the Lotteries Act 57 of 1997. As I indicated previously, I intended to announce the successful bidder on 28 May 2025 provided that the licence agreement negotiations with the preferred bidder were successfully concluded. I wish to thank the parties to the negotiations for completing their work in time. 'It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court. I am seeking legal advice with a view to appealing against the judgment's findings and orders, and I reserve all my rights concerning this judgment. 'With due respect to the Honourable High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the ends a long and difficult process of evaluating eight applications for the fourth licence. I appreciate that this has been an enormous and complex endeavour,' Tau said. On Sunday, Sizekhaya Holdings chairperson Moses Tembe, expressed his gratitude for being awarded the fourth lottery licence by the National Lottery "We welcome that the honourable Minister of Trade, Industry and Competition, Parks Tau appreciated the power of our vision. When the National Lottery was first mooted after the ushering in of our democracy, the most compelling argument for its existence was income it could generate to help the poorest and most vulnerable of South Africans," said Tembe. Tembe is a co-owner with Sandile Zungu, the owner of Amazulu Football. Ithuba had previously expressed disappointment at the decision to award the license to Sizekhaya Holdings, stating that they had invested significantly in developing the lottery infrastructure and had made significant contributions to good causes. "As a fully South African-owned and black-empowered operator, Ithuba Lottery has invested significantly in developing the first African central lottery system, owned and developed for Africa by South Africans," the company stated.
IOL News
3 days ago
- Business
- IOL News
Transnet secures R51 billion bailout to enhance South Africa's rail and port infrastructure
Analysis by the maritime sector has been mostly positive to the news that Transnet would be receiving a R51 billion bailout for Transnet announced by the Minister of Transport last week. Image: File IT IS HOPED that the R51 billion bailout for Transnet, announced by the Minister of Transport last week, will help revitalise the country's rail and port facilities and secure South Africa's reputation as the gateway into Africa. While it is yet to be established how exactly the entity would get to use the much needed financial assistance, but indications are that it will be directed mainly towards Transnet's debt and infrastructure upgrades. Experts in the maritime sector have been largely upbeat about the Minister of Transport's announcement. Transnet, in a statement, said that it welcomed the minister's R51 billion government guarantee facility to support Transnet's sustainability and long-term growth. 'The facility will enable Transnet to refinance maturing debt and ensure the organisation's continued access to adequate resources and facilities to be able to continue its operations as well as fund the capital investment programme for the foreseeable future.' Dave Watts, a maritime consultant, said that the communication from Transnet does not make clear how much of the R51 billion guarantee will be used to roll over or refinance current debt and how much will be used for increased borrowing. 'Clearly the state guarantees are critical in enabling the organisation to continue as a going concern and provide ongoing services to the SA Logistics sector and broader economy.' Watts added that refinancing maturing debt was not paying debt off; however, it was essential that there was sufficient working capital to enable ongoing operations and capital investments. 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 ✕ Ad loading 'Investment in infrastructure and equipment will, in the long run, enable volume and revenue growth, providing the ability to reduce the corporation's substantial debt burden. It is critical for the entire economy that there are sufficient funds to enable Transnet not only to continue operations but to sustain and expand on its current capital expenditure programme.' Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said that Transnet will use the bailout in part to refinance maturing debt, which was reported to be in the region of R120 billion earlier this year. 'It is also going to be used to pursue public sector participation (PSP) transactions being implemented in the port and rail networks. Transnet's capital debt, which has grown significantly over the last decade, is one of the obstacles Transnet faces in its attempt to revitalise the rail and port facilities. Much of its income is being used to service that debt and a bloated wage bill, which has not been helped by its recent agreement with the majority unions on wage increases or its ongoing dispute with United National Transport Union (UNTU) regarding wage increases." Hartwell added that the effect of this is that Transnet has not been in a position to invest at all in maintenance of existing infrastructure or building new infrastructure. 'In part, this has driven Transnet's recent enthusiasm to embrace PSPs, which have seen the signing of a number of agreements for terminal operations in Durban and Richards Bay and its invitation to the private sector to invest in rail operating agreements. The guarantee, which hopefully is closely protected by criteria to ensure that the money is properly invested in infrastructure rather than in wages, has to be welcomed by everybody involved in the logistics network. Hartwell said that Transnet's virtual monopoly over much of South Africa's logistics infrastructure means that its operational efficiency and cost models affect South Africa's entire import and export industry, which is the backbone of South Africa's economy. 'It is trite economic theory that investment in infrastructure creates the most significant return on investment, and it is to be hoped that this guarantee helps Transnet accelerate its privatisation programme. While details of the maturing debt have not been released, if a portion of this guarantee is to help refinance that debt, this must free up capital for investment in maintenance and thereby attract more interest from the private sector in PSPs involving the port and rail networks.' Hartwell added that the guarantee will allow Transnet to continue to operate, and it is to be hoped that this will not be seen by Transnet and its employees as an opportunity to consider carrying on business as usual. 'Given all of the well-publicised recent initiatives, however, it seems likely that the guarantee will help Transnet revitalise the rail and port facilities to enable South Africa to continue to be the gateway into Africa.' A maritime consultant who did not want to be named said that a large portion of the Government bail-out will unfortunately have to be utilised for the purposes of reducing the debt with International Funders secured in EUROS and not all for the acquisition of new equipment. 'This will also unfortunately result in a less than optimum impact of the bail-out on improved operations. For maximum impact on operations, the Government should have a qualifier to the bail-out of the nature that it should largely be used for the acquisition of new equipment.' BUSINESS REPORT Addition reporting: DAILY NEWS
IOL News
3 days ago
- Business
- IOL News
Transnet receives R51 billion bailout: Implications for South Africa's logistics sector
Analysis by the maritime sector has been mostly positive to the news that Transnet would be receiving a R51 billion bailout for Transnet announced by the Minister of Transport last week. Image: File Analysis by the maritime sector has been mostly positive to the news that Transnet would be receiving a R51 billion bailout for Transnet announced by the Minister of Transport last week. Transnet, in a statement, said that it welcomes the Minister of Transport's announcement of a R51 billion government guarantee facility to support its sustainability and long-term growth. 'The facility will enable Transnet to refinance maturing debt and ensure the organisation's continued access to adequate resources and facilities to be able to continue its operations as well as fund the capital investment programme for the foreseeable future.' Dave Watts, a maritime consultant, said that the communication from Transnet does not make clear how much of the R51 billion guarantee will be used to roll over or refinance current debt and how much will be used for increased borrowing. 'Clearly the state guarantees are critical in enabling the organisation to continue as a going concern and provide ongoing services to the SA Logistics sector and broader economy.' Watts added that refinancing maturing debt is not paying debt off; however, it is essential that there is sufficient working capital to enable ongoing operations and capital investments. 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 ✕ Ad loading 'Investment in infrastructure and equipment will, in the long run, enable volume and revenue growth, providing the ability to reduce the corporation's substantial debt burden. It is critical for the entire economy that there are sufficient funds to enable Transnet not only to continue operations but to sustain and expand on its current capital expenditure programme.' Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said that Transnet will use the bailout in part to refinance maturing debt, which was reported to be in the region of R120 billion earlier this year. 'It is also going to be used to pursue public sector participation (PSP) transactions being implemented in the port and rail networks. Transnet's capital debt, which has grown significantly over the last decade, is one of the obstacles Transnet faces in its attempt to revitalise the rail and port facilities. Much of its income is being used to service that debt and a bloated wage bill, which has not been helped by its recent agreement with the majority unions on wage increases or its ongoing dispute with United National Transport Union (UNTU) regarding wage increases." Hartwell added that the effect of this is that Transnet has not been in a position to invest at all in maintenance of existing infrastructure or building new infrastructure. 'In part, this has driven Transnet's recent enthusiasm to embrace PSPs, which have seen the signing of a number of agreements for terminal operations in Durban and Richards Bay and its invitation to the private sector to invest in rail operating agreements. The guarantee, which hopefully is closely protected by criteria to ensure that the money is properly invested in infrastructure rather than in wages, has to be welcomed by everybody involved in the logistics network. Hartwell said that Transnet's virtual monopoly over much of South Africa's logistics infrastructure means that its operational efficiency and cost models affect South Africa's entire import and export industry, which is the backbone of South Africa's economy. 'It is trite economic theory that investment in infrastructure creates the most significant return on investment, and it is to be hoped that this guarantee helps Transnet accelerate its privatisation programme. While details of the maturing debt have not been released, if a portion of this guarantee is to help refinance that debt, this must free up capital for investment in maintenance and thereby attract more interest from the private sector in PSPs involving the port and rail networks.' Hartwell added that the guarantee will allow Transnet to continue to operate, and it is to be hoped that this will not be seen by Transnet and its employees as an opportunity to consider carrying on business as usual. 'Given all of the well-publicised recent initiatives, however, it seems likely that the guarantee will help Transnet revitalise the rail and port facilities to enable South Africa to continue to be the gateway into Africa.' A maritime consultant who did not want to be named said that a large portion of the Government bail-out will unfortunately have to be utilised for the purposes of reducing the debt with International Funders secured in EUROS and not all for the acquisition of new equipment. 'This will also unfortunately result in a less than optimum impact of the bail-out on improved operations. For maximum impact on operations, the Government should have a qualifier to the bail-out of the nature that it should largely be used for the acquisition of new equipment.' BUSINESS REPORT Visit:
The Citizen
5 days ago
- Business
- The Citizen
Semigration boosts Cape residential rental yields
Semigration to the Cape has been a major boost for the residential rentals market, especially in areas such as Durbanville which offers a great lifestyle, but more affordability, says Daniela de Villiers, Seeff's rentals manager for the Durbanville area. The higher demand has unlocked more opportunities for investors and landlords in the area, offering attractive rental yields of 6%-10% depending on the area and property, she says. Average rental rates in the Durbanville and surrounding area range between R9,000 to R25,000, and for luxury homes, upwards of R30,000 per month. Luxury estate homes go to as much as R51,000 and R60,000 per month for homes rented out by Seeff in the Kanonberg and Clara Anna Fontein estates. Tenants are coming mainly from Gauteng, particularly the Pretoria area. They are drawn to the area due to the central location, reputable schools, and relative affordability compared to other upmarket locations in Cape Town. Durbanville offers easy access to main arterials, and well-maintained, safe neighbourhoods. The country-like lifestyle and proximity to the Durbanville Wine Valley are also a bonus for people moving from upcountry. Both families and young professionals are flocking to the area. Students from nearby medical facilities, and those doing practical rotations at state hospitals in the area are also drawn to the rental market. Anneke Roux, another rental agent with Seeff who operates in the Welgedacht area, says the area is also popular with those who enjoy an active lifestyle as they can safely walk and cycle in the scenic surroundings. The highest demand in Welgedacht is in the R13,000-R20,000 range while yields range from 6-10%. Schools are a big attraction, according to Allison Oosthuizen, another Seeff rental agent. Young professionals are drawn to the good selection of apartments in the area, including those at the Waterfront. Apartments rent out at R9,000-R11,000 per month which is more affordably priced compared to the Cape Town CBD. Townhouses is a popular alternative as they are also well-priced at R14,000-R18,000. Even luxury homes at R41,000-R51,000 offer good value compared to other upper end areas. The opportunity for investors is mostly for properties in the R1.2m to R2.4m price range where they can achieve a rental income of R9,000 to R20,000 per month, providing a rental yield of 5-7%. Gratia van Jaarsveld, another Seeff rental agent, however, cautions that landlords must keep their prices in line with the market or they could risk not attracting a good calibre tenant within a reasonable period. Pet-friendly properties are always sought-after. When investing in a rental property, a good location is vital, but landlords must maintain properties in a good condition to optimise the rental and retain good tenants. The areas of Pinelands and Thornton, closer to the City, report similar trends. Johan Meyer, licensee from Seeff for the areas, says the high demand is due to proximity to UCT, Groote Schuur Hospital, good schools, and access to the airport. Tenants include students, medical staff as well as those working at the Old Mutual offices. Here too, rental properties are in short supply, and landlords can earn yields of 6-10%. There is high demand for neat, modern accommodation such as the new Pineworx development. Apartments are renting out at R9,500-R14,000 while houses range from R20,000. The highest prices achieved by Seeff over the last year include R25,000 for a rental in Victory Avenue, R35,000 in Uitvlugt, and R42,000 in Links Drive. Issued by Gina Meintjes
IOL News
26-05-2025
- Business
- IOL News
Transnet gets R51 billion government guarantee boost to continue with recovery plan
Minister of Transport Barbara Creecy has this week approved a R51 billion guarantee facility for Transnet. The State-owned freight and logistics group plays a central role in the South African economy and the government's goal of inclusive growth. Image: Supplied Minister of Transport Barbara Creecy has approved a R51 billion guarantee facility for Transnet, effective immediately, in a bid to bolster the State-owned freight and logistics group. This financial backing, which was granted with the concurrence of the Minister of Finance, aims to support Transnet's vital capital investment programme and assist the entity in meeting its debt obligations amidst ongoing reforms. Transnet's significance cannot be understated; it serves as a cornerstone of the South African economy, playing a critical role in facilitating the government's goal of inclusive growth. Currently, Transnet is undergoing a comprehensive reform programme designed to enhance its operational performance as it strives to address longstanding financial, operational, and governance challenges that have impeded its ability to deliver on its strategic mandate. As part of its trajectory towards improvement, Transnet reported a successful record of transporting the equivalent of 161 million tons of freight on its rail network by March 2025. Notably, the entity had also released its 2024/25 Network Statement by December 2024, which introduces private sector operators into the freight rail domain. Anticipation builds as announcements of the first successful bidders are expected to be made by the end of July. In a continued effort to promote private investment, the Department of Transport issued a Request for Information (RFI) earlier this year for private investors focusing on five pivotal freight corridors and associated ports. With the deadline for the RFI closing on 31 May, the department said Transnet was on track to issue Requests for Proposals by September, aiming to attract further capital while maintaining State ownership of the network. To navigate immediate capital investment needs, Transnet has introduced project-based applications to the Budget Facility for Infrastructure. Additionally, collaboration is underway with National Treasury and the Presidency to formulate a joint funding policy aimed at facilitating swift capital improvements through private sector involvement in priority freight corridors. The decision to grant this crucial guarantee facility resulted from ongoing discussions between National Treasury and the Department of Transport, recognising the progress Transnet has made. The financial package, amounting to R41bn, is set to address the entity's funding requirements across the 2025/26 and 2026/27 financial years, complemented by a R10bn guarantee specifically allocated for liquidity management, focusing on the servicing of maturing debt and related capital investments. This marks a continuation of support initiated in December 2023, when a R47bn guarantee support facility was announced, enabling Transnet to implement its Recovery Plan for the fiscal years 2023/24 and 2024/25. This plan has been pivotal in galvanising increased capital investments and enhancing liquidity for the entity. A Guarantee Framework Agreement will formalise the responsibilities between the Department of Transport and National Treasury, establishing reviewable conditions for the guarantees. According to the department, any drawdowns by Transnet will be contingent on compliance with these conditions, which will centre on operational requirements and reforms in the logistics sector. Creecy expressed her confidence that the additional financial support provided to Transnet will catalyse further improvements in operations and accelerate the reforms laid out in the Freight Logistics Roadmap. She said this bold move was seen as a significant step towards fostering a more efficient and robust infrastructure for South Africa's freight and logistics industry. Meanwhile, Transnet welcomed the government guarantee facility to support its sustainability and long-term growth. Transnet said the facility will enable it to refinance maturing debt and ensure the organisation's continued access to adequate resources and facilities to be able to continue its operations as well as fund the capital investment programme for the foreseeable future. "It will also enable Transnet to focus on operational improvements and strategic reforms. In line with existing Guarantee Framework Conditions, Transnet has made significant strides in implementing rail and port reforms. In pursuit of enhanced partnership and collaboration, several key Private Sector Participation (PSP) transactions are being implemented," Transnet said in a statement. "PSPs are a key element of the organisation's strategy to modernise its operations and infrastructure and grow the logistics sector for the benefit of the economy. With government's commitment to support its recovery and strong collaboration with customers and industry partners, Transnet is on course to recover and fulfil its strategic role in the South African economy." BUSINESS REPORT Visit:
