| CHAMBER SCORES TARIFF WIN AS MSUNDUZI DEBT WOES MOUNT |
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A comparison of the Msunduzi Municipality's proposed electricity tariffs against those approved by NERSA shows the difference between the planned 9.26% hike and the approved 6.9% increase.
The National Energy Regulator of South Africa (NERSA) confirmed what the Pietermaritzburg and Midlands Chamber of Business knew, that the 2026/2027 electricity tariffs for Msunduzi Municipality - effective 1 July - were based on a flawed Cost-of-Supply (CoS) study. The upshot is that NERSA approved an average increase of 6.9%, significantly below the 9.26% initially applied for, and adopted, by the council.
Formal reasons are still awaited, but it would seem that the error-riddled CoS study influenced the municipality's final determination, particularly in tariff modelling and consumption assumptions. The PMCB submission highighlighted a litany of problems with the CoS study, from unrealistic assumptions about factoring in industrial demand in off-peak periods, contradicting usage across peak, standard, and off-peak time bands and seasonal inconsitencies that created structural misalignment and disorted revenue projections.
Among other concerns were a material under-statement of the Business as Usual (BAU) Revenue, excessive losses claimed, and the inclusion of interest on creditors, expenses which cannot be considered to be efficiently incurred, said PMCB CEO Melanie Veness.
“We’re pleased that the regulator adjusted the tariffs accordingly. Winning the 2024 court case that challenged the regulator’s methodology of determining municipal tariffs has ensured that municipalities now have to submit these CoS which allow us to interrogate whether there is fair determination of the tariffs - a huge win for accountability,” she said.
“No longer can municipalties not spend money on the electricity function or simply pass on the cost of their inefficiencies to us,” she said.
The flawed CoS framework, based on unreliable revenue forecasting, has complicated municipal planning, pricing decisions and revenue projections that almost certainly will render Msunduzi’s budget unfunded and deepen its debt woes.
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| COMRADES TOP DOGS IN RUNNING FOR R8.2 MILLION PURSE |
The men’s and women’s winners of the 2026 Comrades Marathon will each receive R925 000, with equal prize money paid across all categories. Additional incentive bonuses worth up to R1.397 million are available for breaking the Up Run record, achieving a record average pace, and claiming the Cell C Hot Spot prize. This means a race winner could earn as much as R2.322 million in a single day. The total Comrades prize purse now exceeds R8.2 million, a 10% increase on 2025. Prize money is also awarded to the top 10 finishers, age-category achievers, first South African finishers, and leading KZN athletes.
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| FINAL REMINDER FOR FIRST-HAND LOOK AT BELGOTEX |
Members of the Pietermaritzburg and Midlands Chamber of Business are reminded of the Industry Networking meeting hosted at Belgotex Carpets on Thursday, 11 June. The event from 3-5 pm offers an opportunity to connect with industry peers, build relationships and gain insights into local business operations. Space is limited, with only two representatives per company permitted. Book either though the Chamber’s online registration system or contact Thabsile on (033) 3452747 or at info@pmcb.org.za.
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1976: Pupils at Naledi High School in Soweto started protesting against the compulsory use of Afrikaans.
Elsewhere, in 1928, Charles Kingsford Smith completed the world's first trans-Pacific flight. The Australian aviator and his crew left Oakland, California on May 31 and landed nine days later in Brisbane.
Today is dedicated to the animals in our hearts forever, on World Pet Memorial Day. |
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3D BLUEPRINT OUTLINES AMBITIOUS PLAN FOR INDUSTRIAL REVIVAL
South Africa’s revised industrial development strategy aims to halt deindustrialisation and accelerate economic growth by strengthening key sectors and improving competitiveness. Underpinned by the three Ds of decarbonisation, diversification and digitalisation, the plan also includes actions geared towards stemming the ongoing tide of deindustrialisation in traditional sectors. It identifies reliable electricity supply, efficient logistics networks and stronger skills development as critical foundations for achieving annual economic growth of 3%.
The strategy seeks to reverse years of manufacturing decline, stimulate investment and create jobs by supporting industrial expansion and modernisation. The initiative forms part of broader efforts to rebuild industrial capacity, boost exports and position South Africa for more sustainable long-term economic growth amid challenging domestic and global conditions. (SOURCE: BDLive/Engineering News)
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BUY-NOW-PAY-LATER SCHEMES BLEMISH CREDIT SCORES
Greater visibility of buy-now-pay-later (BNPL) transactions could affect the credit profiles of up to a quarter of South African consumers, according to TransUnion. The credit bureau says BNPL products are increasingly serving as an entry point into formal credit markets rather than replacing traditional borrowing options. As lenders gain access to more BNPL repayment data, consumers’ payment behaviour may have a direct impact on their credit scores and future borrowing ability. While the sector has expanded rapidly by offering flexible payment options, industry experts warn that missed payments and excessive use could create long-term financial risks for consumers seeking credit. (SOURCE: BDLive)
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OMBUD CLAWS BACK R443 MILLION FOR DUPED CONSUMERS
The National Financial Ombud Scheme (National Financial recovered nearly R443 million for consumers in 2025, up from R328.5 million the previous year, reflecting stronger enforcement and rising consumer complaints. The scheme handled 50 065 cases and closed 34 277, with monthly case openings rising 16% to 4 174. Recoveries included R299.6 million in life insurance, R82.9 million in non-life insurance, R53 million in banking, and R7.47 million in credit disputes. While outcomes show improved consumer protection, officials warn the growing caseload signals increasing financial distress and systemic issues in banking and insurance services. (SOURCE: Daily Maverick)
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... AS 1 400 COMPANIES HEAD FOR BUSINESS RESCUE
South Africa is experiencing a sharp rise in business rescue filings, highlighting the mounting pressures facing companies in a sluggish economic environment. More than 1 400 businesses are currently under business rescue, with Gauteng accounting for about 51% of new filings, underscoring the province’s concentration of commercial activity and financial distress. The increase reflects ongoing challenges including weak economic growth, high operating costs, constrained consumer spending and elevated debt burdens. Business rescue offers financially distressed firms an opportunity to restructure and avoid liquidation while protecting jobs and creditor interests. High-profile entities, including the South African Post Office, remain under rescue proceedings. The trend signals a difficult year ahead as many businesses struggle to maintain profitability and cash flow. (SOURCE: BDLive)
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COURT BACKS NO B-BBEE RULES FOR FOREIGN AIRLINES
The Pretoria High Court has confirmed that international airlines operating in the country are not required to comply with local black economic empowerment (BEE) ownership rules. The ruling provides regulatory certainty for foreign carriers, which argued that ownership requirements conflict with international aviation agreements and global industry norms. The decision is expected to ease concerns among overseas airlines about market access and investment conditions in South Africa. Industry stakeholders say the judgment reinforces the principle that international air transport is governed by bilateral and multilateral agreements. The ruling could have broader implications for foreign investment and regulatory policy in key sectors. (SOURCE: News24)
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DRUG IMPORTS BAD MEDICINE FOR LOCAL PHARMACEUTICALS
South Africa’s pharmaceutical industry warns that rising medicine imports are squeezing local manufacturers, putting jobs, investment and medicine security at risk. Industry data shows pharmaceutical imports have climbed sharply since Covid-19, with imported products now accounting for about 70% of medicines used in the country, while local manufacturers supply only around 30%. The sector argues that government tenders increasingly favour cheaper imported medicines, undermining domestic production capacity. Industry body Pharmaceutical Industry Association of South Africa says the trend threatens thousands of manufacturing jobs and future investment. It is calling for procurement policies that balance affordability with support for local production and long-term supply security. (SOURCE: BDLive)
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OMNIA SHARES SOAR ON 28% PROFIT RISE
Diversified chemicals and fertiliser group Omnia Holdings reported strong annual results for the year ended March 2026, with headline earnings per share rising 21% to 849 cents and revenue up 6% to R24.2 billion. Operating profit increased 28% to R2.17 billion, driven mainly by strong performances in agriculture and mining. The company lifted its ordinary dividend by 18% to 470 cents per share, alongside a special dividend of 280 cents The share price hit a new 52-week high and is up about 30% year-to-date, reflecting investor optimism. (SOURCE: Moneyweb)
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PPC BOOKS 75% EARNINGS GROWTH ON TURNAROUND PLAN
Cement manufacturer PPC delivered a strong financial recovery, reporting a 31% rise in EBITDA to about R2.1 billion for the year ended March 2026, driven by its ongoing turnaround strategy. Earnings per share jumped 75% to 56 cents, while EBITDA margins expanded to 20.3%, up 4.2 percentage points. Revenue increased 3.9% to R10.26 billion, supported by stronger Zimbabwe operations and stable South African volumes. Cash inflows climbed 23% to R1.3 billion, reflecting improved operational efficiency and cost control under its Awaken the Giant strategy. (SOURCE: Moneyweb)
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500 NIGERIANS TO BE FLOWN HOME IN WAKE OF XENOPHOBIA
Nigeria will start repatriating citizens from South Africa this week following rising anti-immigrant tensions and protests. The government has scheduled five flights, beginning tomorrow, with more than 500 Nigerians screened and cleared for departure. In total, about 1 094 people have registered interest in returning home. The first flight, operated by Air Peace, will carry around 270 passengers. The move comes amid renewed concerns over xenophobic unrest in South Africa, where past waves of violence displaced tens of thousands. Authorities have agreed to waive visa overstay penalties, though individuals with criminal cases are excluded from the repatriation process. (SOURCE: Bloomberg)
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BITCOIN'S R4.2 TRILLION SLUMP MASKS CRYPTO EVOLUTION
A sharp US$235 billion (about R4.2 trillion) decline in cryptocurrency market value has highlighted ongoing volatility in digital assets, but analysts say it masks a deeper transformation within the sector. While Bitcoin and other major cryptocurrencies have come under pressure from economic uncertainty and shifting investor sentiment, institutional participation continues to grow. Investors are increasingly focusing on regulated products, tokenised assets and blockchain-based financial services rather than speculative trading alone. Market observers argue the recent sell-off reflects a maturing industry adapting to stricter regulation and broader adoption. Despite short-term losses, the crypto sector continues evolving beyond its early speculative roots. (SOURCE: Bloomberg)
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LEFT-BEHIND PHONES TOP UBER'S LOST AND FOUND LIST
Uber’s 10th Annual Lost & Found Index proves that humans are impressively consistent at misplacing their lives. Over a decade, the most commonly forgotten item remains the phone - surpassing one million reports - followed closely by wallets, keys, headphones, luggage, and the occasional passport panic. The report reads like a cultural time capsule: AirPods became essential, masks and vaccine cards briefly ruled 2021, and even trendy items like plush toys have ended up in back seats. New York City once again claims the crown as the most forgetful place on earth, with July 17 officially declared peak “where did I put that?” day across the global Uber universe. (SOURCE: 1440.com)
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Healing takes time, and asking for help is a courageous step.
Mariska Hargitay |
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