Sanlam, one of South Africa’s largest insurance and financial services groups, and the Professional Provident Society Insurance Company (PPS) have formally extended the agreement governing their relationship, with PPS reaffirming Sanlam as its preferred provider in its endeavour to broaden its range of products and services.
KWV Limited, South Africa’s second-largest wine and spirits producer and exporter, has concluded an agreement with a broad-based black economic empowerment (BEE) consortium in the local wine industry, Phetogo Investments, for Phetogo to make a share purchase offer to acquire a 25,1% stake in the company.
South Africa’s Advertising Standards Authority has ruled in favour of retail group Pick ‘n Pay regarding a complaint from a member of public that the company’s Hypermarket marketing campaign was misleading by claiming Pick ‘n Pay is "always cheaper". The authority found that the "always cheaper" slogan is backed up by independent research.
Listed South African retailer Edgars Consolidated Stores (Edcon) is optimistic that it will attract good investor interest, as well as a lower price, for its second securitised debt issue from its OntheCards securitisation programme, based on its customers’ store card debt, according to CEO for group services, Mark Bower.
The ambiance at the World Economic Forum’s (WEF) 14th annual Africa Economic Summit, which took place in Maputo last week, was markedly more relaxed than previous gatherings in Durban, as participants and the media fell under the spell of the Mozambicans’ slower but friendly pace of life and took advantage of the city’s excellent food and nightlife.
At an average of 2,5% of gross domestic product, levels of foreign direct investment (FDI) flows into Africa are not as low as generally believed, especially relative to Africa’s market size compared with the rest of the world, according to the World Bank’s Alan Gelb. But South Africa in particular has recently recorded FDI flows that are well below their potential.
Long-serving Pick ‘n Pay director and disabled rights champion Martin Rosen, who was also managing director for group enterprises, has retired from the group after 33 years with the company. Pick ‘n Pay said Rosen, who was also a member of the chairperson’s executive committee, started at Pick ‘n Pay in 1971 as a trainee manager.
Alluvial and marine diamond mining group Trans Hex has no plans to reduce jobs at its mining operations across South Africa, Namibia and Angola despite pressure on its earnings stemming from the strong exchange rate of the rand against the United States dollar, according to deputy chairperson Bernard van Rooyen.
New legislation restructuring the country’s legal framework dealing with lending, in the form of the Consumer Credit Bill, is expected to be published within the next few weeks and should not encounter many impediments in Parliament, according to Bob Tucker, CEO of the Banking Council of South Africa.
Although the consensus view among economists and financial-market participants is that interest rates in South Africa will rise in the second half of 2004 in reaction to expected higher inflation, there is a case to be made for the possibility of the next move in interest rates being down rather than up, according to a Sanlam economist.