The broad-based black equity ownership programme announced by the country’s biggest microlender, African Bank Investments Limited (Abil) on Monday, could potentially reach more than 30Â 000 people, according to Abil. The deal is valued at about R600-million.
The expected R33-billion inflow from the Barclays/Absa deal could boost South Africa’s gross domestic product growth by as much as 0,5% for a couple of years, according to Absa’s chief economist, Christo Luus. He says Barclays’ bid for a 60% stake in local bank Absa reflects heightened foreign investor confidence in the local economy.
Further news on United Kingdom banking group Barclays’ proposed bid for a 60% stake in South Africa’s biggest retail bank, Absa, is likely to be forthcoming early next week, sources close to the deal intimated on Thursday. According to the sources, Absa’s board will hold a special meeting on Friday.
The JSE Securities Exchange (JSE) was firm across the board in noon trade on Friday — this despite a firmer rand and the fact that United States stocks ended lower on Thursday. At noon, the all-share and all-share industrial indexes were up 0,78% and 0,38% respectively.
The JSE Securities Exchange (JSE) was down by more than 1,5% in noon trade on Thursday after resources plunged by more than 3%. At noon, the all-share and all-share industrial indices were down 1,61% and 0,65% respectively. Financials dropped by 0,37% and the banks index was 0,67% lower.
Despite the reported haggling about a price, economist and analyst Dr Iraj Abedian believes there is little chance of United Kingdom banking group Barclays’ bid for a 60% stake in South Africa’s biggest retail bank, Absa, being scuppered. "It’s just too good a deal to walk away from," he told a television interviewer.
The black economic empowerment (BEE) deal announced on Tuesday by banking group Nedcor fulfils the group’s objective of exceeding the ownership targets of the Financial Sector Charter, Nedcor CEO Tom Boardman said. "This is a truly broad-based empowerment transaction," he said.
Although the year has not yet ended, specialist banker Investec has had a good second half so far and is on track to deliver a strong performance for the financial year ended March 31 2005, Investec CEO Stephen Koseff said on Monday. "We have benefited from our continued strict focus on driving profitable growth in our key business areas and geographies," he said.
The Commission for Africa on Friday called for rich countries to dismantle barriers against African goods, particularly in agriculture, and for trade-distorting agricultural subsidies to be abolished. The commission also said in its report that the developed world must support the African Union’s New Partnership for Africa’s Development.
FirstRand CEO Laurie Dippenaar believes the financial services group is more focused after a recent brand alignment, and that, barring any "unforeseen external shocks", it is also well positioned to achieve its stated objective of 10% real growth. FirstRand lifted attributable profits by a whopping 23% to R2,8-billion for the six months ended December.