Hits & Misses
Millions poured into renewables, billions lost to Transnet gridlock
NORWAY and the UK will spend R600m developing renewable-energy projects in SA to help fund its transition from coalfired power generation to clean fuels. The countries’ development-finance institutions will help blackowned renewables company H1 Capital build 2,400MW of new wind and solar plants, according to a joint statement. The deal marks a first investment by the Norfund-managed Climate Investment Fund, through which Norway plans to allocate more than $1bn (R15.2bn) over five years. Britain invested through its CDC Group.
A GAUGE measuring manufacturing sentiment rose to the highest level in almost 15 years in February, though its advance could be short-lived with input costs likely to rise due to high international oil prices and geopolitical tensions. Absa’s purchasing managers’ index, compiled by the Bureau for Economic Research, climbed to 58.6 from 57.1 a month earlier.
FIGURES released by the Automotive Business Council (Naamsa) show that 44,229 new cars and commercial vehicles were sold last month — 18.4% more than the 37,360 of February 2021.
EXXARO, the largest supplier of coal to Eskom, suffered about R5bn in lost export sales due to bottlenecks in the country’s rail network, the latest reminder of one of the biggest constraints on the flagging economy. It joins a host of companies in the mining industry and other sectors that have been counting the costs of inefficiencies at Transnet.
PRESIDENT Cyril Ramaphosa implored mayors, councillors and government representatives to turn local government around, saying many had lost faith in its ability to meet their needs. He was addressing the national conference of the South African Local Government Association, the employer body representing SA’s 257 municipalities, in Cape Town.
CONSTRUCTION group WBHO reported a loss representing almost a third of its R5bn market value for its half year to end-December, with the group still struggling with the fallout from Covid and its Australian unit’s collapse. Revenue fell 22% to R16bn, with WBHO reporting a R1.5bn loss, from profit of R43m previously.