Hits&Misses
Relief as bus strike averted, but bad news for mining investment
FASHION group Mr Price will buy a 70% stake in Studio 88 group, a sneaker and branded clothing retailer, paying R3.3bn in cash in its biggest acquisition to date. The deal will allow it to grow within the burgeoning township and informal economy. Studio 88 has more than 700 stores, and chains include the more affordable Skipper Bar and premium footwear brand Sidestep.
AFRICA’S largest mobile operator, MTN, received final approval from Nigerian regulators for its mobile money platform, which will allow it to scale up its fintech services in the continent’s biggest market. The entry into mobile payments in Nigeria pits MTN against the third-largest mobile operator in the world, Airtel.
BUS operators breathed a collective sigh of relief after the bargaining council averted a wage strike that would have resulted in workers downing tools ahead of the busy Easter period by tabling a revised offer that unions have agreed to take back to their members for a mandate. A strike was in the offing after pay talks between employer organisations and trade unions reached a deadlock recently.
AFTER five months of firm growth, retail sales declined in February as spending behaviour normalised following a robust December and January. The outcome was worse than that of a Bloomberg consensus of economists, who had expected an increase of 5.5% year on year. Stats SA said retail trade sales fell 0.9% from a year earlier, mainly dragged lower by general dealers.
SA, once the top gold producer in the world, is firmly among the alsorans, ranked among the least attractive places in the world for mining investment. The sector’s decline was laid bare in the Fraser Institute’s annual survey of mining companies, which showed SA now ranks a lowly 75 out of the 84 jurisdictions judged on attractiveness to mining investment.
MANUFACTURING
production showed only a small increase in February after January’s strong performance, suggesting the growth spiral that was expected to continue could be running out of steam. Stats SA said production rose by 0.2% year on year.