Flash Briefing: Manufacturing shrinks; FirstRand bonuses; CR on farm killings; tourism picks up – Tsogo Sun, City Lodge

By Claire Badenhorst & Jackie Cameron

• South Africa's manufacturing output falls. SA's manufacturing output contracted 10.8% year-on-year in August after shrinking by a revised 10.2% in July, the statistics agency said on Monday. The output, also called factory production, however, was up 3.6% in August month-on-month, and expanded 20.7% in the three months to the end of the eighth month of the year, Statistics South Africa said.
• FirstRand rejigs bonuses for managers hit by virus. FirstRand has come up with a new and innovative incentive program which will help the bank retain its top managers. According to Bloomberg, the economic fallout caused by the pandemic hit earnings and sank share-based rewards – a situation which could possibly cause the loss of valued employees. As South Africa entered lockdown, FirstRand's executive directors waived 30% of their salaries for three months and rewards dropped by more than 40%. The new program began in September and will lock in participants for the next three years.
• Farm murders not orchestrated, says President. South African President Cyril Ramaphosa said a spate of killings in rural areas were acts of criminality and rejected the notion that an orchestrated campaign is being waged to drive white farmers from their land. "Contrary to the irresponsible claims of some lobby groups, killings on farms are not ethnic cleansing. They are not genocidal," Ramaphosa said in his weekly newsletter on Monday. "Numerous studies show that crime in farming communities is largely opportunistic. Rural communities are more vulnerable because of their isolated location." Ramaphosa's comments follow the murder of farm manager Brendin Horner in the central Free State province last week. The killing prompted a group of White farmers to storm a police station in the town of Senekal in search of a Black suspect who'd been arrested, serving a stark reminder of the racial tensions that persist in rural South Africa more than a quarter century after the end of White-minority rule.
• Tourism activity is up. South Africa's tourism and hospitality sector – brought to a standstill during Covid-19 lockdown -is showing signs of improvement. Although disposable incomes have been reduced, a large middle-class consumer base in South Africa can afford to, and wants to travel. So says Tsogo Sun CEO Marcel von Aulock, who says: "we are confident that the opening of borders will stimulate the market further." He says general consumer spend has shifted slightly. However, there is an uptake in spend, particularly from a food and beverage perspective. City Lodge Group Chief operating officer Lindiwe Sangweni-Siddo says they have noticed a definite growth in demand in Durban. Durban is accessible by car from various parts of South Africa. "Locals from Durban and domestic travellers find Durban to be a great getaway, especially after months of lockdown." For more on this story, visit BizNews.com.
• A quick look at how stocks were trading on the JSE on Monday. Hammerson was the best performer at the end of the trading session, gaining over 10%. Leading stocks down was PSG Konsult at almost 4%.