| EL NIÑO REPRIEVE, THREATENED TREES, BRAWLING BARISTAS, ELECTION ENTREPRENEURS, RAND BETS |
Here’s hoping that we may skirt the worst of the El Niño storm threatening drought and destruction over southern Africa this summer. It turns out the coastal eastern zone of South Africa, from eastern Mpumalanga and eSwatini, through KZN and into the Eastern Cape, is considered a primary exception to the classic El Niño drought rule. That’s because during an exceptionally strong El Niño, localised ocean and wind patterns counter the Pacific Ocean signals, leading to more rainfall than normal.
These issues matter to Sappi whose exotic trees depend heavily on the climate for timber, dissolving wood pulp and paper production. But there’s more to the business than simply growing trees. Operating across vast tracts of land, Sappi Southern Africa CEO Graeme explains how propagating the threatened pepper-bark tree helps to protect biodiversity, creates a renewable source of medicine and an income stream for communities.
Speaking of growing plants, KZN’s burgeoning coffee scene is brewing very nicely. The 2026 Battle of Beans sees baristas across the province pulling out all the stops as the industry finds its feet. Now in its third year, BOB has 30 undercover judges sampling independent cafés before the public gets its turn to taste, vote and crown their favourite brew.
The local government election is looking less like a council race and more like an entrepreneurial stampede: 142 072 candidates have been nominated for 10 526 councillor seats, a 43% increase on 2021. That includes 100 856 ward candidates, 40 241 PR candidates and 975 independents. And 2 274 hopefuls missed the final submission deadline.
Finally, any bets on the Rand going forward? It's currently trading a touch under R16 to the Dollar and is also holding its ground against the Pound (R21.65) and the Euro at R15.59. Currency movements are transitory by definition and may well be different when we reconvene on Monday. Happy weekend to all. Derek Alberts. (editor) |
| STUDENTS STAND WITH ESTHER HOUSE AGAINST GENDER VIOLENCE |
(ltr) Mishreya Pillay (2nd year BA), Kivashan Pillay (2nd year BComm), Student Wellness Specialist Sonya Nursoo and Stacey Murukezi (3rd year BComm) at the recent Gender-Based Violence workshop.
The Emeris Pietermaritzburg Faculty of Law, in partnership with Emeris Cares, recently hosted a gender-based violence (GBV) awareness workshop promoting dialogue, solidarity and social justice. Abrina Esther House managers Ntokozo Mkhwanazi and Slindile Zondi shared insights into GBV, highlighting emotional, psychological, sexual and financial abuse alongside physical violence.
Students discussed warning signs, support systems and community responsibility in preventing abuse. A two-week donation drive also collected food and toiletries for Abrina Esther House, supporting survivors of abuse and human trafficking.
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| FULL N3 CLOSURE TO DISRUPT WEEKEND TRAFFIC |
| Motorists are advised to plan their routes in and out of Pietermaritzburg this weekend in view of a full N3 closure between the Ashburton and Market Road interchanges from 6 pm tomorrow, 5 September, to 5 am on Monday, 7 September. The N3 northbound will be closed after the Ashburton off-ramp, while southbound traffic will be closed after the Market Road off-ramp. Motorists should plan routes ahead, expect congestion and follow detour signage. Trucks and heavy vehicles are urged to delay trips or reroute where possible. |
| SUPPORT THE OPEN HANDS GOLF DAY |
Open Hands, a new member of the Pietermaritzburg & Midlands Chamber of Business, works with people affected by strokes, brain injuries, disability, trauma, illness and isolation. They are holding a Golf Day on Thursday 10 September 2026 at Gowrie Farm Lodge & Golf Course. The day is about far more than golf or fundraising, they want to bring businesses, golfers and members of the wider community together for a memorable day of connection, laughter and shared experience, while raising funds to extend the work of Open Hands.
The event will have an 11:00 shotgun start and will be played as a Fourball Alliance. There will also be some unusual Open Hands challenges, including one tee shot played with each golfer’s non-dominant hand, forbidden words, mobile scorecards, a live leaderboard, wonderful prizes and a R250,000 hole-in-one prize. A fourball costs R5,000, or R1,250 per golfer. To show your support of the work Open Hands does businesses and individuals can register a fourball here: https://www.openhands.co.za/gowrie26/corporates, https://www.openhands.co.za/gowrie26/register |
2019: Protests against gender-based violence broke out in Cape Town after the rape and death first year UCT student Uyinene Mrwetyana.
1998: Google was founded by Larry Page and Sergey Brin when they were doctoral students working on a research project at Stanford University.
On this day back in 1870, Napoleon III was ousted as Emperor of France for capitulating during the Franco-Prussian War. |
MORE RETIREES PUTTING SAVING AHEAD OF SPENDING ON LIVING COSTS
South African retirees are choosing to spend less rather than increase withdrawals from their retirement savings, despite mounting cost-of-living pressures. Association for Savings and Investment South Africa (Asisa) data shows living annuity investors withdrew an average 6.6% of invested capital as income in 2025, down from a peak of 7% in 2011.
Retirement savings invested in living annuities reached R911.7 billion across 579,205 annuities at the end of 2025. Of this, 45% - worth R410.2 billion - was subject to annual withdrawal rates of 2.5% to 5%. A further 27.3%, or R248.9 billion, was drawn at rates between 5% and 7.5%. Asisa says the trend reflects retirees’ priority of preserving capital and avoiding the risk of running out of money later in life. (SOURCE: Moneyweb)
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KGANYAGO SIGNALS CAUTIOUS APPROACH TO RATE HIKES
South African Reserve Bank Governor Lesetja Kganyago says policymakers can respond cautiously to inflation shocks caused by higher oil prices and the looming drought. He described the economic environment as a “polyshock”, with the Iran war pushing up energy and fertiliser costs while El Niño threatens food supplies. The MPC kept the benchmark rate at 7% in July after a 25-basis-point increase previously. Its next decision is due on 23 September, with markets pricing a 52% chance of another 25-basis-point hike. Inflation eased to 4.3% in July from 5%, but Kganyago reiterated the Reserve Bank’s commitment to its 3% target. (SOURCE: Bloomberg)
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TOWNSHIP BUSINESSES URGED TO BUY IN BULK TO COMPETE
Township and rural businesses should collaborate on bulk purchasing to improve their bargaining power and compete with foreign-owned spaza stores, Deputy Trade, Industry and Competition Minister Zuko Godlimpi says. Speaking at the launch of the Competition Commission’s Rural Township Economy Project, Godlimpi said foreign-owned operators often procure stock collectively for multiple stores, securing better prices. The study of 600 businesses and 1 000 consumers found informal retailers face higher procurement costs, limited product choice and weak bargaining power. Red tape also remains a major obstacle, with complex permits, licences, zoning rules and municipal by-laws restricting formalisation, access to support and expansion into shopping malls. (SOURCE: Moneyweb)
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PRIVATE SECTOR EDGES INTO AUGUST GROWTH
South Africa’s private sector expanded marginally in August, with the S&P Global Purchasing Managers’ Index (PMI) rising to 50.5 from 50.3 in July. A reading above 50 indicates growth. New orders increased slightly as businesses reported larger orders, successful tenders and improving sales linked to stronger customer finances. Output expanded for a second consecutive month and at its fastest pace since April, while purchasing activity grew at its quickest rate since March. Input stocks also rose at the fastest rate in four months. Export sales remained marginally positive but fell to a three-month low. Economist David Owen said stronger growth remained uncertain. (SOURCE: Reuters)
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R280 BILLION CRIMINAL ECONOMY DOESN'T PLAY AROUND
South Africa’s shadow economy is estimated at R280 billion, with criminal networks increasingly infiltrating legitimate markets, including toys. The illicit economy now accounts for as much as a quarter of the country’s toy market, highlighting the scale of the challenge facing manufacturers, importers and retailers. Counterfeit and illegally imported products undermine legitimate businesses by competing on price while avoiding taxes, compliance costs and safety requirements. The growing criminal presence also exposes consumers, particularly children, to potentially unsafe products. Authorities and industry stakeholders face mounting pressure to strengthen border controls, enforcement and supply-chain monitoring as organised crime expands its reach into consumer markets. (SOURCE: News24)
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... AS CHINESE BRANDS SPARK APPLIANCE PRICE WAR
Chinese brands are reshaping South Africa’s appliance market, intensifying price competition as cash-strapped consumers delay replacing household products. NielsenIQ data shows emerging Chinese brands made significant gains across key appliance and consumer technology categories during the first half of 2026. Their growing presence is putting pressure on established brands to compete more aggressively on price and value. Consumers are increasingly cautious about major purchases amid persistent cost-of-living pressures, while demand is also being influenced by greater reliance on backup power systems for home appliances and entertainment. The trend signals a rapidly changing market as affordable Chinese products gain traction among South African households. (SOURCE: BDLive)
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ESKOM BUDGETS R21 BILLION TO CLEAN UP ITS ACT
Eskom has earmarked R21-billion for decommissioning ageing coal-fired power stations and investing in cleaner energy as it reshapes its generation fleet. The power utility is preparing for coal station closures while expanding renewable energy capacity to support a more sustainable electricity system. Eskom group CEO Dan Marokane said the power system is now in a more reliable position than in recent years. The utility’s transition plans include managing the social and economic impact of plant closures while developing alternative uses for affected sites. Eskom is also exploring renewable projects and other opportunities to help support communities and economic activity around retiring stations. (SOURCE: BDLive)
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SANTAM BRACES FOR FIRE RISK AS EL NIÑO STRENGTHENS
Santam is preparing for heightened wildfire risks as an exceptionally strong El Niño develops, with South Africa facing hotter, drier conditions this summer. SA Weather Service forecasts show Pacific Ocean temperatures could exceed 3°C above normal, compared with the 1.5°C threshold for a strong El Niño. The North West could face particularly severe fires, with more than 1.6 million hectares potentially at risk. The insurer is urging property owners and businesses to strengthen fire-prevention measures and review insurance cover. El Niño is expected to persist through the 2026/27 summer, increasing risks to agriculture, water supplies, property and rural economies. (SOURCE: New24)
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DISCOVERY EARNINGS SURGE 21% AS BANK TURNS PROFITABLE
Discovery’s normalised headline earnings rose 21% to R11.8 billion for the year ended June, supported by stronger South African and Vitality businesses. Discovery Bank delivered its first full-year profit, swinging from a loss to R370 million. Group net income increased 39% to R13.1 billion. Discovery declared a final dividend of R2.73 per share, taking the annual payout to R3.84. The financial-services group said its expansion strategy and years of investment across South Africa and international markets are beginning to deliver stronger returns. (SOURCE: SENS)
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JPMORGAN ADDS TO A2X LISTINGS PORTFOLIO
JPMorgan Equities South Africa has begun trading on A2X Markets, strengthening the alternative exchange’s position in the local listed-securities market. Its participation means A2X members now account for 85% of listed-security trades executed in South Africa. The move comes ahead of Capitec’s secondary listing on A2X on 7 September, while retaining its primary Johannesburg Stock Exchange listing. A2X currently has 167 securities listed, including 30 companies from the JSE’s Top 40, with combined market capitalisation exceeding R13 trillion. JPMorgan said joining A2X would expand client access to liquidity and support best-execution objectives, while A2X expects deeper liquidity and improved execution. (SOURCE: Moneyweb)
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ZERO-VAT EXPORT BOON FOR QUALIFYING BUSINESSES
South African exporters can benefit from a 0% VAT rate on qualifying goods, meaning no VAT is charged on eligible exports while businesses can generally retain their input-tax deductions. Recent amendments have expanded the circumstances in which exporters can apply zero-rating, including movable goods delivered directly to harbour terminal operators and port authorities. The changes aim to simplify VAT compliance for port-bound shipments and provide greater certainty for exporters. Direct exports, where suppliers arrange transport to foreign destinations, can qualify for zero-rating if prescribed documentation is retained. Indirect exports, however, generally remain subject to the standard 15% VAT rate. (SOURCE: FreightNews)
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... AS TRUMP EXTENDS AGOA FOR 2 YEARS
US President Donald Trump has signed legislation extending the African Growth and Opportunity Act (Agoa) for two years, falling well short of South Africa’s push for a 15-year extension. The move provides African exporters with continued preferential access to the US market, but uncertainty remains over South Africa’s eligibility from 2027. Pretoria has welcomed the extension despite strained relations with Washington and punitive US tariffs on South African goods. Agoa has been an important platform for boosting African exports and investment. South Africa now faces continued negotiations with the US to protect its access and secure longer-term certainty for exporters and manufacturers. (SOURCE: BDLive)
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ETHIOPIAN AIRLINES LOADING UP ON BOEING FREIGHTER FLEET
Ethiopian Airlines is reportedly close to ordering up to 10 Boeing 777 freighters as it expands its cargo operations. The deal would strengthen the airline’s position as Africa’s leading air-cargo carrier and deepen its relationship with Boeing. Boeing is seeking a US Federal Aviation Administration waiver to extend delivery timelines for 777F aircraft, as demand for the popular freighter grows. Ethiopian has increasingly invested in cargo capacity to support expanding trade across Africa, Asia and the Middle East. (SOURCE: Bloomberg)
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US-IRAN STALEMATE PUSHES OIL TOWARD $100 A BARREL
The US and Iran remain locked in a dangerous stalemate after six months of conflict, with fresh tit-for-tat strikes raising fears of renewed all-out warfare. Iran has targeted merchant vessels and US regional bases, while Washington has struck Islamic Revolutionary Guard Corps sites involved in attacks on shipping. Brent crude has risen more than 6% this week to above $95 a barrel, while US diesel prices hit a four-year high. The Strait of Hormuz, through which roughly a fifth of global oil and LNG flows before the war, remains Iran’s key pressure point. A US naval blockade and sanctions are squeezing Iran, pushing inflation toward 80%, but Tehran shows little sign of yielding. (SOURCE: Bloomberg)
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PMCB INDUSTRY NETWORKING MEETING
The PMCB Team invites you to an INDUSTRY NETWORKING MEETING At
TRUDA FOODS
DATE: 10 September 2026
THE MEETING STARTS AT 9h00 – 11h00
VENUE: 2 Lester Brown Road, Mkondeni , Pietermaritzburg, 3201
Due to limited space, a maximum of two people per company will be permitted to attend. |
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The best thing about memories is making them.
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