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Image of electric Volvo trucks available to rent Electric trucks too expensive? Now you can rent one from Volvo Trucks SA
Published: 18 Apr 24
Volvo Trucks South Africa (SA) has introduced an equipment-as-a-service (EaaS) model for its new electric truck rentals business. Following last year’s launch of Volvo electric trucks in South Africa, the company has been importing a range of configurations to suit local conditions.
Together with large-scale procurement, rising rooftop solar installations are offering greater market stability that could stimulate local manufacturing Private renewables procurement may mitigate boom-bust cycles curbing South Africa’s green industrialisation
Published: 18 Apr 24
The combination of public and private procurement of large-scale renewables in South Africa signals increased stability for manufacturers of key components, a new GreenCape report argues. Published ahead of the release of the much-anticipated South African Renewable Energy Masterplan (SAREM), which will outline the country’s official approach to localising renewables value chains, GreenCape’s ‘Large-scale Renewable Energy’ report forecast that there will be about 32 GW of installed renewables capacity in South Africa by 2030.
Election posters Goldman says South African market ‘tough’ before election
Published: 18 Apr 24
South African investors are holding off on big moves before the vote next month, Goldman Sachs Group said, as the elections shape up to be the most pivotal in 30 years. Assuming the vote is trouble-free, “we could see quite a significant pickup in foreign interest in both equities and debt,” said Simon Denny, chief executive officer for South Africa at Goldman. Interest-rate cuts and progress tackling the nation’s rolling power outages will also be key to attracting more foreign capital, he said. Goldman has significantly expanded its operations in South Africa, tripling headcount over the past five years in its Johannesburg offices, from where it services the rest of sub-Saharan Africa. The US bank is betting on growth as energy constraints ease by the end of the year and a smooth outcome in the nation’s most-contested general election since 1994. “The market remains tough,” Denny said. “But we have capital on the ground and everything in place to continue to grow our businesses.”
Finance Minister Enoch Godongwana South Africa contingency reserves won't be spent on Eskom, Transnet – Godongwana
Published: 18 Apr 24
South Africa will use future drawdowns of its Gold and Foreign Exchange Contingency Reserve Account to curb its debt burden, Finance Minister Enoch Godongwana said, adding he was pondering tax hikes and expenditure cuts in the next post-election budget. Africa's most industrialised nation is grappling with an ailing economy and high debt ahead of a general election on May 29 that could see the governing African National Congress party lose its parliamentary majority for the first time since the end of apartheid 30 years ago.
Nehawu has called a strike at the Dube TradePort at King Shaka International Airport
Published: 18 Apr 24
The Dube TradePort Corporation, an agency of the KwaZulu-Natal provincial government, has announced that 112 employees, members of the Nehawu trade union, have gone on strike. The workers work in the company’s Bargaining Unit. The corporation has created and operates the Dube TradePort special economic zone and air cargo complex at Durban’s King Shaka International Airport. Nehawu issued the notice to strike after what Dube TradePort described as a “prolonged” process of negotiation and arbitration.
Joint report on the main roadmaps for aviation to reach net-zero emissions released
Published: 18 Apr 24
The ‘Aviation Net Zero CO2 Transition Pathways Comparative Review’, which is a joint initiative of the International Air Transport Association (IATA – the global representative body for the airline industry), the Air Transportation Systems Laboratory of the University College London, the Air Transport Action Group, the International Council on Clean Transportation, and the Mission Possible Partnership, has been released. This compares the 14 main roadmaps for aviation’s transition to net-zero ...
Rand Currency Reserve bank to cut rates less than earlier thought in 2024 – poll
Published: 18 Apr 24
South Africa's central bank is now predicted to deliver only 50 basis points of interest rate cuts this year, less than earlier projected as inflation is seen taking slightly longer to return to the Reserve Bank's comfort zone, a Reuters poll found. A cut of 25 bps to 8.00% next quarter, either in July or September, is expected from the Reserve Bank, according to a survey carried out in the past week, compared with 50 bps predicted in a March poll. The repo rate will finish the year at 7.75% instead of the 7.50% predicted last month if the central bank delivers another cut in November as the latest poll predicts. "We now forecast a more drawn-out, shallower easing cycle in South Africa," wrote Razia Khan, head of macro research for the region at Standard Chartered. Although inflation will likely dip below the mid-point of the central bank's target band in the fourth quarter it may ease hesitantly, Khan added. There will be a temporary dip in inflation in the last quarter of 2024 before it quickens again early next year, the poll showed.
Equatorial Guinea President Teodoro Obiang Nguema Mbasogo Africa’s oldest oil-rich dictatorship has a succession problem
Published: 18 Apr 24
Two South African engineers working in Equatorial Guinea’s offshore oil fields were preparing to return home in February 2023 when they were arrested for cocaine trafficking and thrown in jail, where they remain. Both men, their families and their employer have declared their innocence. They were detained days after a South African court ordered the seizure of one of Equatorial Guinean vice-president Teodoro Nguema Obiang Mangue’s yachts. The two incidents are linked, said people familiar with the matter who declined to be identified due to the sensitivity of the situation. They described the arrests — the first involving foreigners in the country’s critical oil sector — as the latest example of the vice-president’s impulsive behavior, which threatens the long-term stability of the Central African state that has been ruled by his father for the past 45 years.
Households remain under high interest rates chokehold
Published: 18 Apr 24
South Africa’s high interest rates continue to pressurise the finances of households amid the ongoing restrictive monetary policy stance by the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB). The latest Altron FinTech Household Resilience Index (AFHRI) shows that, over the past two years, the country’s benchmark prime lending rate has been raised consistently to almost 12% – the highest level in 14 years.
Report questions role of CCUS in steel decarbonisation
Published: 17 Apr 24
A new report by the Institute of Energy Economics and Financial Analysis (IEEFA) has shown that carbon capture use and storage (CCUS) is unlikely to play a major role in steel decarbonisation despite support for the technology at the 2023 COP28 climate conference. Direct reduced iron- (DRI-) based steelmaking, which can run on green hydrogen, is gaining momentum in the steel sector, the institute points out.
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