| REGULATOR DISMISSES MSUNDUZI 15.5% POWER HIKE, SETTLES ON 13.32% |
Electricity users are advised to check that their July accounts reflect a 13.32% increase after NERSA yesterday rejected Msunduzi Municipality’s proposed 15.5% increase for the 2025/2026 financial year, and approved instead an increase of 13.32%. It’s a bitter-sweet outcome for Pietermaritzburg and Midlands Chamber of Business CEO Melanie Veness - much as the limited hike is appreciated, the process remains shrouded in frustration and uncertainty.
"We know that the Regulator took some of the issues raised in our submission into account in the final decision, but it’s unclear which," she says. “We’re not sure how the result was arrived at, as the Chamber’s motivation was based on the previous year’s Cost of Supply (COS) approach, because we were denied access to the current-year COS Study and key documents that would have made more meaningful analysis possible."
The increase appears to have been applied uniformly, rather than being cost-reflective across customer categories, meaning commercial and industrial users will continue subsidising others, an approach that is both unfair and unlawful.
“This issue that has been raised in our upcoming legal challenge of NERSA’s approval of Msunduzi’s tariff of 15% for the 2024/2025 year” she said. Veness will request the full Record of Decision to understand NERSA’s rationale and assess further options.
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| CALLING ALL MUSICIANS TO JOIN DURBAN MASS ORCHESTRA |
The Music en Masse concert has become an annual event that features a public performance by a massed orchestra under the baton of Russell Scott (pictured).
Can you read music and play an instrument? Then don’t miss your chance to be part of Durban’s biggest orchestra ever! The British Cultural & Heritage Association invites musicians of all ages and cultures to join Music en Masse 2024 - a fun, participative orchestral concert taking place at the DLI Hall, Greyville, on Sunday 27 July at 2:30pm. Play alongside fellow amateurs and enthusiasts under the baton of Russell Scott in a thrilling programme of orchestral favourites. To participate, or for more information phone (031) 202 6174 or contact Cheri at bcha1820@global.co.za or Lynne at bcha1820@gmail.com. |
| EARLY NOTICE FOR ANNUAL GOLF DAY AT VCC ON 29 AUGUST |
| Get ready for a great day of golf, networking and fun at the Xtec PMCB Golf Day on Friday, 29 August at Victoria Country Club. Join the 4-Ball Alliance (2 scores to count), with tee-off from 11 am. The cost is R2 800 per 4-ball (excl. VAT), including green fees, dinner, drinks, and prizes. Prizegiving and dinner begin at 5.30 pm. Partners are welcome for dinner at R250 (booking essential). Sponsorships are available at the 10th tee and green (R3 000), putting green (R4 000) and other tees and greens at R1 200. Book with Heidi on (033) 345 2747 or at pmcb@pmcb.org.za. |
1877: The first Wimbledon Championships began.
Elsewhere, in 1816, Argentina's parliamentary body declared independence from Spain.
Today is propitious for learning about new places, on Call of the Horizon Day. |
LOW GROWTH LEAVES SOUTH AFRICANS POORER THAN GLOBAL PEERS
South African consumers continue to suffer under a low-growth economy that’s left them poorer than global peers. Since 2010, GDP per capita has decoupled from global trends, reaching just $15 194 (about R270 453) in 2023 versus the $22 850 (about R406 730) world average, says Investec Wealth & Investment International.
Chronic power outages, corruption, and slow policy execution have shrunk the economy by an estimated 37% and cost R5 trillion in lost tax revenue. Business confidence remains weak, and fixed capital investment is lagging - only 15% of GDP in 2024 compared to 40% in China. To close the gap, GDP per capita would need to grow by 8% annually, nearly double the global average. (SOURCE: Bloomberg)
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GOVERNMENT PINS HOPES ON TARIFF-SOFTENING DIPLOMACY
South Africa is intensifying diplomatic efforts after US President Donald Trump confirmed a 30% tariff on SA goods from 1 August, citing persistent trade imbalances and non-reciprocal barriers. President Cyril Ramaphosa responded, welcoming scope for adjustment through negotiations and reaffirming SA’s commitment to a fair trade partnership. A framework deal submitted on 20 May includes reciprocal benefits, such as US gas purchases and improved meat trade access, in exchange for concessions on SA steel and auto exports. However, SA contests the 30% figure, citing lower average tariffs. Parliament has urged urgent diplomacy and market diversification to cushion economic fallout. (SOURCE: Engineering News) |
... AS 30% TARIFFS SET TO ERODE TAX REVENUE, SLOW GROWTH
South Africa’s National Treasury is modelling the potential budget impact of a proposed 30% US tariff, warning it could erode tax revenue and slow economic growth. Deputy Finance Minister David Masondo said the tariff threatens not only exports to the US, but also trade with partners like China and Europe. The Treasury is assessing the impact ahead of October’s medium-term budget. Masondo noted that US companies like Ford Motor Co. operating in South Africa could also be affected. Government remains hopeful of negotiating a revised deal before the 1 August deadline to prevent economic fallout and protect the country’s tax base. (SOURCE: Moneyweb) |
… AND CALLS MOUNT TO REVISIT B-BBEE, PROPERTY RIGHTS
The Democratic Alliance (DA), ActionSA, and Solidarity have slammed government inaction following US President Donald Trump’s announcement of a 30% tariff on South African goods from August 1. DA leader John Steenhuisen warned the move could devastate industries and cost billions in export revenue, calling for reforms to property rights, B-BBEE, ports, freight rail, and electricity. ActionSA said the tariffs expose the Government of National Unity’s failure to protect national interests, accusing it of prioritising ideology over the economy. Solidarity urged President Ramaphosa to act urgently and negotiate with the US before the deadline, warning ordinary South Africans would bear the cost. (SOURCE: Engineering News) |
R11 BILLION LOOT RECOVERED IN STATE CAPTURE DRIVE
South Africa’s asset recovery efforts linked to the State Capture Commission have surged, with R11 billion recovered by March 2025 - up from R2.9 billion in October 2022. This was confirmed by Minister in The Presidency, Khumbudzo Ntshavheni, during a post-Cabinet briefing. Progress follows President Cyril Ramaphosa’s implementation of key commission recommendations, including eight new anti-corruption laws and the creation of the Investigating Directorate Against Corruption. Four prosecutions have resulted in guilty verdicts, with 11 more cases involving 51 individuals and 27 companies underway. The crackdown also includes director delinquency referrals and private sector investigations by the CIPC. |
JSE BRACES FOR WAVE OF SMALL-CAP DELISTINGS
A wave of delistings is reshaping the JSE, with Trencor set to exit on 22 July after 70 years. Others include AH Vest, exiting due to low liquidity and compliance costs, and Ayo Technology Solutions, going private following a R619m PIC settlement. MTN Zakhele Futhi will delist as its BEE deal unwinds, while Tongaat Hulett remains suspended amid business rescue. Assura will disappear after a merger with Primary Health Properties. MultiChoice will delist post-acquisition by Canal+, which may list instead. Reinet's future is uncertain following a major asset sale. Potential listings include Cell C via Blue Label. (SOURCE: Moneyweb) |
ILLEGAL TOBACCO TRADE COSTS ECONOMY R100 MILLION PER DAY
The illicit cigarette trade in South Africa has reached record highs, costing the country an estimated R28 billion annually - about R100 million per working day - in lost excise and VAT. A study by Ipsos, commissioned by British American Tobacco (BAT), found that over 91% of these products come from 14 local manufacturers. Nearly 70% of retailers sell packs for under R20, far below the R26.22 minimum collectable tax (MCT). Despite enforcement efforts, BAT’s Johnny Moloto says illicit producers continue to dominate unfairly, with hotspots in the Eastern, Northern, Western Cape, and North West provinces. Existing crackdowns appear ineffective. (SOURCE: Moneyweb) |
VODACOM, REMGRO R13.2 BILLION FIBRE DEAL A STEP CLOSER
Vodacom and Remgro’s R13.2 billion fibre deal is likely to proceed after the Competition Commission withdrew its opposition ahead of a Competition Appeal Court hearing set for 22–24 July. The revised agreement includes increased capital investment, lower-cost broadband packages, and commitments to prevent competitor exclusion. Vodacom plans to acquire 30% of Maziv, a Remgro unit. The deal also promises free fibre access to clinics and libraries. Group CEO Shameel Joosub welcomed the progress, saying it will boost network expansion and job creation. Vodacom shares rose 1.4% following the news. Minister Parks Tau also supported overturning the previous tribunal block. (SOURCE: Bloomberg) |
COPPER PRICES SURGE AFTER 50% US TARIFF ON IMPORTS
US President Donald Trump escalated his global trade war by announcing a 50% tariff on imported copper, with further levies on semiconductors and pharmaceuticals expected soon. During a White House cabinet meeting, Trump confirmed looming 10% tariffs on imports from Brics nations like Brazil, India, and South Africa, while also threatening increased tariffs on the EU. Markets responded sharply: copper futures surged over 10%, while pharmaceutical stocks dipped amid talk of 200% drug import tariffs. Despite ongoing trade talks with the EU and China, Trump's aggressive tariff stance has heightened uncertainty in an already fragile global economy. (SOURCE: Reuters) |
… AS SUPPLY CRUNCH THREATENS 32% OF CHIP PRODUCTION
Climate change threatens copper supply vital to semiconductor production, with 32% of global chip output at risk by 2035 - four times today’s level - PwC warned in a new report. Copper, essential for chip circuitry, faces growing disruption from droughts, especially in Chile, the world’s top producer, where up to 75% of production could be at risk within a decade. Other major copper suppliers - Peru, China, the US, Australia, DRC, and Zambia - are similarly vulnerable. PwC says without innovation in materials and water management, supply risks will intensify, potentially repeating the costly global chip shortage last seen during the pandemic. (SOURCE: Reuters) |
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Do not be embarrassed by your failures, learn from them and start again.
Richard Branson |
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| Dollar | R17.77 | + 0.66% | | Pound | R24.16 | - 0.18% | | Euro | R20.83 | - 0.08% | | Yen | 0.120933 |
| | Yuan | R2.48 | + 0.12% | | Bitcoin | R108 723.59
| - 0.14% |
These rates are correct at time of going to press. | | Platinum | $ 1 348.78
| - 1.91% | | Gold | $ 3 291.46
| - 0.30% | | Oil | $ 69.98
| + 0.52% | | All Share | 97 256.54
| - 0.11% | | Repo | 7.25 | | | Prime | 10.75 | |
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