BizNews Editor Alec Hogg provides context on the big stories. In this episode, there’s a special focus on the shock political divorce and what the Namibian oil and gas rush means for South Africa’s Western neighbour. Also, there’s a tribute to the late Robbie Venter.
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Transcript of the video ___STEADY_PAYWALL___
Good evening
In this episode of NewsWrap, in among the updates we’ve got two focused topics for you –a shock divorce between long-time political allies Democratic Alliance and the Freedom Front; and an in-depth look at the offshore discoveries transforming Namibia from sleepy backwater into the hottest oil and gas province on earth.
First up, though, let’s recap what’s happening in business….
In the news headlines
It’s been a tough US quarterly earnings season for Big Tech, with disappointing results and AI investments failing to convince Wall Street, erasing $6.4 trillion from global markets. However, the gig economy shines brightly. Uber, DoorDash, Instacart, and Just Eat Takeaway.com have exceeded expectations, with double-digit revenue growth. This resilience highlights strong demand for rides and deliveries, even as other sectors face economic uncertainties. Other tech companies to buck the trend were BizNews portfolio constituents Palantir and Cloudflare, whose share prices rose in the double digits after results beat analyst forecasts.
Impala Platinum announced it will report impairments of 19.8 billion rand ($1.08 billion) and a full-year loss of up to 17.8 billion rand, primarily due to declines in platinum-group metals. Over 80% of the writedown is linked to their Rustenburg complex.
Glencore has decided against spinning off its coal business after consulting shareholders. It announced this when declaring interim results which reported a 33% drop in earnings and a 9% fall in revenue.
In a mirror of what Arcellor Mittal has been facing in South Africa, Chile’s biggest steel plant has halted production due to Chinese dumping, causing $500m losses and risking 20,000 jobs.
Naspers and Prosus CFO Basil Sgourdos will retire on November 30, 2024, after 29 years. Chairman Koos Bekker thanked him for his exemplary service and leadership, which significantly contributed to the company’s global e-commerce success.
OUTA has urged Parliament’s Transport Committee to address governance issues at the South African Maritime Safety Authority (Samsa). Despite a new board, concerns remain over the lack of a permanent CEO since 2016 and the reinstatement of COO Sobantu Tilayi, who faces serious allegations and legal disputes.
And on the global front –
In the UK’s ongoing violence after the murder of three little girls in Stockport, anti-racism demonstrators outnumbered far-right protesters in Britain, preventing planned violence against asylum-seeker hotels and immigration lawyers.
Russia has declared a state of emergency in Kursk after 1,000 Ukrainian troops and several tanks crossed the border. The Kremlin says further advances were prevented.
Italy is to double its flat tax that has been encouraging wealthy foreigners to emigrate there, from €100,000 to €200,000, amid controversy over rising property prices.
Onto the unravelling in Oudsthoorn…….We all knew to expect the unexpected after the results of South Africa’s election on May29. It happened last week when Herman Mashaba of Action SA announced his party’s decision to support the ANC in Johannesburg, prioritising the city’s needs over previous campaign promises.
But the past week’s developments in ostrich central caught most by surprise. The Democratic Alliance and the Freedom Front Plus, fast friends for decades, on the brink of divorce.
The FF+ withdrew its support from the DA in Oudtshoorn, switching into a new coalition with the ANC, which resulted in the FF+ local leader becoming mayor. The rift appears to be spreading to multiple other municipalities in the Western Cape, the second domino falling yesterday when the DA ended its coalition with the FF+ in Laingsberg.
I spoke with both sides to understand what’s behind this and what it means nationally – here’s FF+ Cape leader Dr. Corné Mulder who starts with the breakdown of the 25 seat council…
For its part, the DA says the FF+ has been spoiling for a fight and is using its version of events as an excuse to push through the divorce. Its spokesman on the topic is Oudtshoorn Constituency head Dr Mark Burke, who attended Cambridge as a Rhodes Scholar and moved into politics after a successful fintech career….
I asked him why the DA was apparently putting so much at stake by supporting its man:
We’ve spent time here because the implications for South Africa’s body politic are significant. Taken to its logical conclusion the split threatens stability in nine municipalities in the Western Cape alone. There are numerous others that will be affected elsewhere by a full-blown divorce – most notably the City of Tshwane where the DA-led coalition has been in control since the November 2021 Local Election.
Our political insider Neil De Beer, leader of the United Independent Movement, suggests none of this is random and something will have to give …..here’s the relevant part of what he told my colleague Chris Steyn in their regular Sunday afternoon chat…..
Remember to catch the full interviews featured in NewsWrap clips on the BizNewsTV channel on YouTube….
Chris has highlighted the actions of many courageous whistleblowers, among them the indomitable lawyer Sarah Burger whose exposure of well-documented corruption at Fort Hare University has led to a predictably vicious response from the crooks. Despite having been jailed and charged – shades of SAPS whistleblower Patricia Mashile-Morgan – Ms Burger is unbowed………
It’s been a couple years already that we’ve been highlighting the energy related developments in Namibia. But after a false start a few decades back, many would be enthusiasts have been holding back. No more. Here are the highlights of an in-depth investigation into the Namibian discoveries by our partners at Bloomberg……..
Still on the continent, the expansion of Chinese companies into Africa is attracting increasing attention. Our partners at The Economist devoted this week’s cover story to the topic – here’s an excerpt from its Leader article which you’ll find on BizNews Premium…..
We close this episode of NewsWrap on a sad note marking the passing of a prominent member of the BizNews tribe.
Earlier this week, well known business leader and one-time SA’s great tennis hope Robbie Venter passed away. He was 64. The former chief executive of Altron is survived by his wife Sara, who he met when on a tennis scholarship at a university in California; their daughters Caitlin and Kristen; and other family members, including his brother Craig and father Bill.
Pictures sourced from Facebook
As a teenager, Venter was poised to become a challenger for a top ranking, reaching the semifinals at Junior Wimbledon and defeating subsequent superstar Ivan Lendl and other contemporaries. But he never fully recovered from a freak injury to a wrist bone and joined his father Bill’s creation, Altron, after seven years on the world circuit.
Robbie at Altron as a trainee progressed through the managerial ranks until after a decade and a half, he was appointed CEO, a position he held for 16 years until 2017. Always impeccably dressed, mannered and behaved, Venter was a gentleman in the very best sense of the word. Rest in Peace Robbie. You will be greatly missed by all who had the privilege of knowing you.
Until next week. I’m Alec Hogg of BizNews.com.
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