| GOVERNANCE, ELECTRICITY, INFRASTRUCTURE WOES DOMINATE AGM REPORT |
Annual reports, like the meetings at which they’re presented, generally make for pedestrian reading. Typically though, these reports shine a light on the all-too familiar challenges of governance and infrastructural challenges, as does the report by Pietermaritzburg and Midlands Chamber of Business President John Buyers at last week’s AGM.
The 11-page report laments the Msunduzi Municipality’s regression and poor service delivery that continues to sabotage an enabling environment that impacts the economy by hindering business growth and opportunities. The report also highlights the obduracy of the municipality that rebuffs the PMCB’s efforts to address electricity and water challenges. Buyers also acknowledged the dedication and willingness of on-the-ground teams who work under trying conditions.
Sadly, there’s no end to the intractable electricity scenario in the PMCB’s showdown with Msunduzi. An application has been made for Eskom to run the electricity until such time as the municipality can show it is capable of administering it efficiently. Ditto the legal challenge by the PMCB and Nelson Mandela Bay Business Chamber to the NERSA’s municipal tariff methodology that called for a measurable Cost-of-Supply approach.
The regulator dropped the ball, leading to Msunduzi’s 15% tariff increase for 2024/2025 that has since been reduced to 13.32%. But tariffs are applied across all categories, meaning that commercial and industrial customers continue to cross-subsidize other tariff categories - a key issue in the upcoming legal challenge to 15% tariff for the 2024/2025 year. Derek Alberts (editor)
See below: Eskom, NERSA go head-to-head over electricity trading licences |
| HAMMARSDALE TYRE RECYCLER PUSHES FOR DE-VULCANISATION |
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CEO Dr Mehran Zarrebini of the Mathe Group is calling for large-scale de-vulcanisation to help boost used tyre recycling.
Hammarsdale-based Mathe Group is spearheading a call for South Africa’s tyre recycling industry to embrace de-vulcanisation - a process that breaks down vulcanised rubber for reuse in high-value manufacturing. CEO Dr Mehran Zarrebini, fresh from the European Tyre Recycling Association Conference, says a large-scale de-vulcanisation plant could unlock new markets, reduce reliance on imported rubber, and tackle the environmental threat posed by off-the-road tyre stockpiles.
Mathe Group is currently processing over one million truck tyres at its Hammarsdale facility and is upgrading its plant with advanced processing technologies to further enhance rubber recovery and reduce steel contamination. Zarrebini says South Africa must follow Europe’s example of collaboration between business, academia and government to create policies that support innovation. He argues that de-vulcanisation is the next step in achieving full circularity in tyre recycling. (SOURCE: Engineering News)
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| ALL ABOUT COFFEE, INCLUDING GROWING, IN DURBAN THIS WEEK |
The annual Creative Coffee Week in Durban - 30 and 31July at FNB’s Acacia House in Umhlanga - brings together coffee professionals from across the industry to share insights, taste coffees, view curated swag, attend lectures, and participate in panel discussions, including on coffee growing in suitable areas in KZN, not least the burgeoning growing culture in Winterskloof and parts of Pietermaritzburg. Day two on Thursday includes a mini origin tour to the South Coast, visiting two coffee-growing farms and Beaver Creek Coffee Estate. For more information, click here.
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2008: The United States Congress apologised for the institution of slavery and Jim Crow laws that discriminated against African Americans.
Elsewhere, in 1954, the first part of J.R.R. Tolkien's fantasy epic The Lord of the Rings was published.
It’s Global Tiger Day, in deference to the world’s largest species of felines confined to Asia.
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GREEDY CLAIMANTS INFLATE FRAUDULENT LIFE INSURANCE CLAIMS 26%
Unscrupulous individuals and criminal syndicates are exploiting South Africa’s life insurance system, with 2024 seeing 16 520 cases of fraud and dishonesty - a 26% surge from 2023. The Association for Savings and Investment South Africa (Asisa) flagged 5,505 fake life insurance claims, including 38 chilling “murder-for-money” cases. Remuneration fraud - dishonest agents manipulating commissions - accounted for most incidents, costing R19 million.
Deceased estate fraud also surged, tripling to 161 cases, with criminals using forged documents and false bank accounts to siphon funds If undetected, these would have cost R220 million. Despite these threats, insurers prevented substantial losses, highlighting strengthened oversight. Still, experts warn that unchecked fraud could force premium hikes, punishing honest policyholders and threatening trust in the system. (SOURCE: Moneyweb)
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LEGAL DISPUTES SULLY R89 MILLION UTRECHT WASTE WATER PLANS
An R89 million wastewater treatment project launched in Utrecht continues to be dogged by procurement disputes and legal challenges. The Amajuba District Municipality allegedly awarded the tender before the mandatory objection period ended. Allegations of irregularities, including past misconduct in similar contracts, have intensified scrutiny. While the project promises cleaner water and sustainable development, its success now depends on transparent governance and accountability to restore public trust and ensure delivery. (SOURCE: New Castilian) |
ESKOM, NERSA GO HEAD-TO-HEAD OVER ELECTRICITY TRADING LICENCES
Eskom has taken legal action to stop the implementation of five electricity trading licences issued by the National Energy Regulator of South Africa (Nersa), citing serious financial and regulatory risks. The utility claims Nersa issued the licences without proper public consultation and failed to consider how traders could target Eskom’s most profitable customers. This, Eskom argues, would weaken its ability to cross-subsidise poorer communities and recover municipal debt. The utility is calling for clear trading regulations that include cost-sharing obligations before any licences are activated. Eskom fears that unregulated trading could cause top-paying clients to switch to discount-driven private traders, leaving the broader public and government to cover the shortfall. The court case could have lasting impacts on South Africa’s electricity landscape. (SOURCE: Moneyweb) |
R10.4 BILLION GERMAN LOAN TO SPEED UP FOSSIL FUEL SHIFT
South Africa has secured a €500 million (R10.4 billion) loan from Germany to support its transition away from fossil fuels, reinforcing its energy security and decarbonisation efforts. The 13-year loan, provided by German development bank KfW via GIZ, includes a three-year grace period at a 4.31% fixed rate. This forms part of Germany’s broader support under the $8.3 billion Just Energy Transition (Jet) Partnership launched at COP26. The loan builds on previous agreements from 2022 and 2023, bringing Germany’s total Jet-related loans to €1.3 billion. South Africa, which still relies on coal for 80% of its electricity, will use the funds to advance cleaner energy solutions, with support from global institutions including the World Bank and African Development Bank. (SOURCE: Bloomberg) |
R94.8 BILLION GUARANTEE TO KEEP TRANSNET RECOVERY ON TRACK
The South African government has granted Transnet an additional R94.8-billion guarantee facility to support its five-year recovery plan, aimed at restoring freight rail volumes to 250 million metric tons annually. This follows a R51-billion guarantee announced in May. Transnet’s freight volumes have plummeted due to equipment shortages, maintenance backlogs, cable theft, and underinvestment. Its debt now stands at R145 billion, with a widened loss of R7.3 billion in 2023/24. The inefficiencies have severely impacted exporters, forcing many, especially in chrome, to shift to costly and environmentally damaging road transport. The guarantees aim to stabilise Transnet and prevent further credit downgrades. |
COCA-COLA PLANT READY TO CHURN OUT 72 000 BOTTLES AN HOUR
Coca-Cola Beverages Africa (CCBA) has invested R365 million in a high-speed bottling line at its Midrand plant to boost production and meet rising demand. Capable of producing 72 000 bottles per hour, the line will manufacture Bonaqua and Powerade products, including a new Springboks edition. This marks the first such line in South Africa and supports CCBA’s local-first strategy and environmental goals through efficient water and energy use. The investment also includes workforce training to enhance skills and future readiness in its strive to serve its more than 735 000 customers across 15 African markets. (SOURCE: Moneyweb) |
SAA TO LAUNCH DIRECT MAURITIUS FLIGHTS IN TIME FOR CHRISTMAS
South African Airways (SAA) will launch its first direct flights between Cape Town and Mauritius from 9 December 2025, operating three times weekly - on Tuesdays, Thursdays, and Saturdays - to meet peak holiday demand. The flights depart Cape Town at 09:25 and return at 17:20. SAA CEO John Lamola said the route strengthens regional leisure travel and tourism goals for both countries. From mid-January to mid-March 2026, the frequency will reduce to two weekly flights to match seasonal trends. The schedule was crafted in consultation with tour operators to ensure convenience and flexibility. Bookings are now available through the airline’s website and accredited agents. |
CITRUS GROWERS IN DESPERATE BID TO STAVE OFF 30% TARIFFS
With just days before the US enforces a crippling 30% tariff on South African citrus imports, the Citrus Growers’ Association (CGA) has issued a last-ditch appeal for President Cyril Ramaphosa’s intervention. The tariff, set to take effect on 1 August, threatens to leave hundreds of thousands of cartons unsold and devastate rural economies in the Western and Northern Cape. “Citrus sustains jobs and communities,” said CGA CEO Dr Boitshoko Ntshabele. The CGA is urging Ramaphosa to negotiate either an extension of the current 10% tariff or a perishable-produce concession to protect livelihoods and the industry’s long-term viability. (SOURCE: Bizcommunity) |
… AS US, US SIGN LAST-MINUTE 15% TARIFF DEAL
The US and EU have struck a last-minute trade pact, averting a damaging transatlantic trade war. From August 1, EU exports - including cars, chips, and pharmaceuticals - will face a 15% US tariff. While higher than EU rates, the deal avoids harsher penalties and maintains open trade channels. In exchange, the EU committed to $750bn in US energy purchases and $600bn in investment. Steel and aluminium will still face 50% duties, but further negotiations are ongoing. (SOURCE: Bloomberg) |
ZIMBABWE NEEDS G20 TO SOLVE R374 BILLION DEFAULT
World Bank President Ajay Banga has urged Zimbabwe to engage the G20 for a structured debt resolution, warning the country cannot resolve its $21 billion (about R374 billion) default alone. Zimbabwe has been in default since 2000 and remains excluded from global capital markets. Despite various attempts - such as using metal exports, approaching ten nations for \$2.6 billion in arrears payments, and hiring advisors -the crisis persists. US sanctions and past economic turmoil have further complicated efforts. Banga recommends Zimbabwe follow examples like Sri Lanka and reach out to the G20 and Paris Club. South Africa, as current G20 chair, confirmed Zimbabwe’s recent approach for support. (SOURCE: Bloomberg) |
12-YEAR JUDGEMENT DELAY LANDS KZN JUDGE IN HOT WATER
KwaZulu-Natal judge Jacqueline Henriques will face a Judicial Conduct Tribunal over a 12-year delay in delivering a judgment. The complaint, lodged by former judge president Frans Kgomo, relates to a 2013 Northern Cape case still unresolved. The Judicial Service Commission cited “implausible” explanations and serious concerns about Henriques’ integrity, work ethic, and understanding of judicial duties. Although normally such delays aren’t impeachable, the JSC deemed her conduct extreme. Administrative oversights delayed the tribunal’s establishment until 2025. Advocacy group Judges Matter says the case raises concerns about JSC transparency. Henriques previously withdrew from consideration for deputy judge president amid pending disciplinary proceedings. (SOURCE: GroundUp) |
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The harder the conflict, the more glorious the triumph.
Thomas Paine |
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These rates are correct at time of going to press. | | Platinum | $ 1 375.23
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