
<p>JOHANNESBURG (Reuters) &#8211; South African lender Absa Group Ltd reported a 5% rise in first-half profit on Tuesday, while its core retail business managed to grow despite a faltering domestic economy.</p>



<p>Absa, once a market leader, has been trying to win back ground lost under the stewardship of former parent Barclays following its split from the British lender in 2017. But it is trying to turn around amid intense competition and a weak South African economy.</p>



<p>The bank said its headline earnings per share (HEPS) — the main profit measure in South Africa — rose 5% to 918.4 cents ($0.6019) for first-half, against 877.8 cents in 2018. When normalised to account for the impact of the Barclays separation, HEPS was up 3%.</p>



<p>Its South African retail business — which contributes over half of its earnings and had lagged behind its peers — grew earnings by 4%. This was despite a 20% spike in impairments and higher costs.</p>



<p>Meanwhile, rivals Nedbank and Standard Bank said earnings were flat at their domestic retail businesses following a shock economic growth contraction and spike in unemployment to an 11-year high.</p>



<p>Absa said its performance was due to higher non-interest income, which includes banking fees, and especially strong growth in everyday banking and car finance, which grew loans from 26 million rand to 122 million rand.</p>


South Africa’s Absa bank reports 5% rise in first-half profit

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<p>The largest union in the platinum sector, AMCU held a press briefing this morning for an update on the ongoing platinum wage negotiations and the upcoming Marikana Massacre commemoration. CNBC Africa reporter Karabo Letlhatlha spoke to Amcu President, Joseph Mathunjwa.</p>


Mining companies cannot plead poverty, says Amcu President Joseph Mathunjwa

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<p>In The Hashtag, CNBC Africa&#8217;s social media correspondent, Busi Lethole, takes a look at the protests in Hong Kong, paying Lobola during tough economic times and more!</p>


#TheHashtag: China fires warning shots at Hong Kong protesters & would you break bank for Lobola?

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<p>Kyle Burgess, Portfolio Manager at Nedbank Private Wealth why he selected Mondi as his Hot Stock.</p>


Hot Stocks: Nedbank Private Wealth’s Burgess picks Mondi


<p>JOHANNESBURG (Reuters) &#8211; South African President Cyril Ramaphosa won a court case against the anti-corruption watchdog on Thursday over a matter concerning ally Pravin Gordhan, ahead of a fresh battle over findings against the president himself.</p>



<p>A high court judge found that Ramaphosa had acted reasonably in not immediately disciplining Gordhan, the public enterprises minister, over a decision regarding the retirement of a tax official.</p>



<p>Thursday’s ruling was the third high-profile court defeat for Public Protector Busisiwe Mkhwebane in as many weeks, and she has come under public scrutiny for her investigations, including one into Ramaphosa.</p>



<p>Ramaphosa secured an “interdict” from the court, meaning he does not have to implement disciplinary action against Gordhan while Gordhan appeals against the finding by Mkhwebane.</p>



<p>By targeting Ramaphosa and Gordhan, the president’s supporters say, Mkhwebane is acting as a proxy for a faction in the ruling African National Congress party that is aligned with former president Jacob Zuma and opposes Ramaphosa’s agenda.</p>



<p>Mkhwebane denies playing politics, saying she is simply holding senior officials to account.</p>



<p>The judge criticised Mkhwebane for pushing for the disciplinary action against Gordhan to be implemented before his appeal of the public protector’s findings could be heard.</p>



<p>“It is mind-boggling why, in this matter, the public protector did not even consent to at least&#8230;have the remedial action stayed, pending finalisation of the review application,” judge Letty Molopa-Sethosa said in delivering her ruling.</p>



<p>Mkhwebane has also found in a separate investigation that Ramaphosa deliberately misled parliament over a 2017 donation to his campaign for the governing African National Congress party.</p>



<p>Ramaphosa has said he will urgently challenge the finding, which he says is flawed yet is still a headache for a president who has staked his reputation on cleaning up deep-rooted corruption and reviving Africa’s most developed economy.</p>



<p>Reporting by Alistair Smout; Editing by Mark Heinrich</p>


South Africa’s Ramaphosa wins court case against #PublicProtector, what you need to know


<p>JOHANNESBURG (Reuters) &#8211; South African lender Standard Bank shrugged off the impact of a faltering economy in its home market as its extensive operations across the continent helped the company to a 5% increase in first-half profit.</p>



<p> Standard Bank has been expanding in some of Africa’s fastest-growing economies even as its domestic operations struggle in the face high personal debt and widespread unemployment in its home market. </p>



<p>Like rival Nedbank, Standard Bank delivered flat earnings at its South African personal and business banking business. Elsewhere on the continent, Standard Bank &#8211; Africa’s largest lender by assets &#8211; more than doubled earnings in personal and business banking.</p>



<p>“Whilst there may be headwinds in certain markets, the diversity of our businesses and breadth of our footprint provide us with some shelter,” CEO Sim Tshabalala said in a statement.</p>



<p>Headline earnings per share (HEPS) &#8211; the main profit measure in South Africa &#8211; came in at 837.4 cents ($0.5591), against 794 cents in the same period last year. That 5% increase was slightly better than the 3% posted by Nedbank on Wednesday and helped to lift Standard Bank shares by 1.2% in morning trade.</p>



<p>Standard Bank’s pivot back to Africa after its failed foray into global emerging markets has paid off in other ways, too.</p>



<p>The lender said it would exercise an option to dispose of its 20% stake in the Industrial and Commercial Bank of China’s (ICBC) Argentinian operation &#8211; a relic from the abandoned strategy.</p>



<p>It expects to deliver a gain of about 600 million rand as a result of the transaction, adding that it will reinvest any proceeds into its Africa-focused operations, which have produced more stable profit.</p>



<p>However, a separate London-based partnership with ICBC, focused on financial markets and commodities, made a $129.5 million loss in the first half, largely attributable to a provision covering exposure to a single client that filed for bankruptcy.</p>



<p>Standard Bank has previously said the London-based ICBC joint venture would need 1.1 billion rand injected to support its business plan.</p>



<p>($1 = 14.9705 rand)</p>



<p>Reporting by Emma Rumney; Editing by David Goodman </p>


Standard Bank’s expansion in some of Africa’s fastest-growing economies pays off

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<p>The High court in Pretoria today gave judgement in the matter where President Ramaphosa is seeking a declaratory order to stay or delay taking remedial actions ordered by the Public Protector against Minister Pravin Gordhan. The public protector wants the president to discipline his minister now, while the president says “Not right now.” So which way and why- CNBC Africa’s Karabo Letlhatlha shares more details.</p>


North Gauteng High Court rules in favour of Ramaphosa in dispute with Public Protector

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<p>Nkazi Sokhulu has changed the financial services industry by creating a digital insurer which offers credit life insurance. The Co-founder and CEO of Yalu, Nkazi Sokhulu joins CNBC Africa for more.</p>


Credit life insurance is bigger than life insurance and no one knows about it, says Yalu founder Nkazi Sokhulu


<p>HARARE (Reuters) &#8211; Zimbabwe’s main opposition party is planning street demonstrations next week to protest against the government’s handling of the economy, which is mired in its worst crisis in a decade and has plunged most citizens into poverty.</p>



<p>The southern African nation is enduring shortages of foreign currency, fuel and bread as well as 18-hour power cuts. The power outages threaten mining and industrial output and have upended lives. [nL8N24X7EO]</p>



<p>The opposition Movement for Democratic Change (MDC) will hold marches in the capital on Aug. 16 against corruption, unemployment and power and fuel shortages and a deteriorating economy, the party said in a notice to the police dated Aug. 5.</p>



<p>“The national challenges are a result of a governance and legitimacy crisis arising primarily out of the disputed election of July 2018,” national organising secretary Amos Chibaya said in the notice, seen by Reuters.</p>



<p>The departure of long-time leader Robert Mugabe after a coup in 2017 was greeted with euphoria and hope, but this has gradually turned to despair as his successor, President Emmerson Mnangagwa, has failed to revive the economy or usher in meaningful political reforms.</p>



<p>Chibaya said demonstrators would present a petition to parliament after next week’s march.</p>



<p>Luke Tamborinyoka, the MDC deputy spokesman, confirmed the party had notified the police, adding that “we hope the police will allow us to exercise our constitutional right”.</p>



<p>Police spokesman Paul Nyathi said he could not immediately comment.</p>



<p>The MDC does not recognise Mnangagwa’s presidency and maintains that he rigged last year’s vote, charges that the 76-year-old leader denies. Last week, MDC legislators boycotted the mid-term budget statement in parliament because Mnangagwa was present.</p>



<p>The last big protest in Zimbabwe, organised by the main labour union in January against a sharp fuel hike, turned deadly after it spilled onto the streets and was met by an army clampdown in which more than a dozen people died. [nL8N1ZE26M]</p>



<p>Everyday life is getting increasingly tough, with the prices of basic goods spiralling and medical supplies in short supply. Motorists wait for hours to fill up at fuel stations despite fuel prices having gone up more than 500% this year.</p>



<p>Reporting by MacDonald Dzirutwe; Editing by Frances Kerry</p>


Zimbabwe’s opposition MDC party is planning to protest next week, here’s why


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s state power utility Eskom urgently needs a turnaround plan as its capital structure is unsustainable, credit ratings agency Moody’s said on Tuesday in a report which sent the rand lower.</p>



<p>“The company’s operational and financial performance has deteriorated, indicating the extent of the challenges facing Eskom in meeting its debt obligations absent government support,” Moody’s said in a note.</p>



<p>Eskom reported a mammoth 20.7 billion rand ($1.39 billion) annual loss a week ago. [nL8N24V5CB]</p>



<p>($1 = 14.9196 rand)</p>



<p>Reporting by Alistair Smout; Editing by Jan Harvey</p>


South Africa’s state power utility Eskom urgently needs turnaround plan – Moody’s


<p>HARARE (Reuters) &#8211; Zimbabwe will ramp up its electricity imports over the next few weeks, potentially easing rolling power cuts, after it agreed to make payments to clear its debt to a regional power utility, a treasury official said on Monday. </p>



<p>The southern African nation has endured 18-hour daily power cuts since May as a result of a prolonged drought that has reduced output at its largest hydro plant and ageing coal-fired generators that keep breaking down.</p>



<p>Foreign power companies also stopped supplying Zimbabwe with electricity in 2017 after the country failed to pay its bills, although Zimbabwe resumed limited imports of 300 MW a month last week.</p>



<p>George Guvamatanga, secretary for the ministry of finance, told business leaders in Harare that Zimbabwe had agreed to make weekly payments to clear its debt to a regional power utility, which would start providing at least 400 MW of electricity a month, starting from this week.</p>



<p>That would take total imports to 700 MW a month.</p>



<p>Guvamatanga did not name the supplier. Zimbabwe typically buys electricity from South Africa’s Eskom and Hydro Cahora Bassa of Mozambique.</p>



<p>Zimbabwe owes more than $70 million to Eskom and Hydro Cahora Bassa of Mozambique for past power supplies.</p>



<p>“I think the arrangement that we have put in place now on electricity should hopefully guarantee us increased supply from tomorrow or Wednesday,” Guvamatanga said.</p>



<p>“Working with the mining sector we have been able to ring-fence adequate resources to pay for at least 400 megawatts of electricity a month.”</p>



<p>Power shortages, along with drought and a severe dollar crunch, will result in the economy shrinking this year, the finance minister said last week.</p>



<p>Energy and Power Development Minister Fortune Chasi was in South Africa at the end of July to try negotiate for a power deal with Eskom. He did not immediately respond to calls and messages on his mobile phone on Monday.</p>



<p>Eskom, which is itself struggling to meet South Africa’s electricity needs, had no immediate comment.</p>



<p>The government said last week that power utility ZESA Holdings was accessing 300 MW during off-peak hours from the Southern African Power Pool, a regional industry collaboration linking up national grids.</p>



<p>Guvamatanga said for now Zimbabwe would have to rely on electricity imports, which required foreign currency that is in short supply.</p>



<p>Last week finance minister Mthuli Ncube announced a three-fold increase in electricity tariffs, as the government seeks to raise more funds for power generation.</p>



<p>Reporting by MacDonald Dzirutwe; Editing by Susan Fenton <br></p>


Zimbabwe ramps up its electricity imports to ease outages

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<p>Jabu Mabuza is set to keep the CEO chair warm for the next three months. This gives South Africa&#8217;s struggling power utility just under a hundred days to find its new chief executive. Applications closed last week Friday but the criteria is open for interpretation. Joining CNBC Africa for more is Meta Maponya, Chairperson and Founder Member of the Black Energy Professionals Association.</p>


BEPA: Here’s what it takes to become the next Eskom CEO

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<p>According to analyst reports, 5G will be entering into the market by 2020 with revenues reaching up to $672 billion. So far, investment into 5G could be the largest global capital outlay in telecommunications history. So how can investors and operators of 5G ensure returns for next generation of wireless network technology? Vino Govender an Executive for Strategy, Mergers, Acquisitions and Innovation at Dark Fibre Africa (DFA) joins CNBC Africa for more.</p>


How big will the introduction of 5G prove to be for SA telecoms markets?

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<p>According to the World Wide Worx (WWW) survey commissioned by Tyme Bank, after people have paid the most important monthly expenses 57 per cent of people run out of money by the 15th of every month. The hardest hit are women as they are equally responsible of familial duties as well as financial responsibilities. Mavis Ureke, International Behavioural Science and performance Specialist joins CNBC Africa for more.</p>


Mavis Ureke on financial literacy and money management in Womens’ month

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<p>Recent troubles at South Africa&#8217;s electricity public utility Eskom have led to a revised outlook on the economy by Fitch ratings. For a discussion on the bank&#8217;s reaction to the latest downgrade and if the country&#8217;s monetary policy was ready for it, CNBC Africa&#8217;s Arnold Kwizera caught up with South African Reserve Bank (SARB) Governor, Lesetja Kganyago for more.</p>


How does Eskom downgrade affect monetary policy? A revised look at economic stability

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<p>In an economy faced with international uncertainty, Zimbabwe&#8217;s minister of Finance delivered the half-year budget review statement yesterday.</p>


Fin min Mthuli Ncube confident Zimbabwe has turned a corner, business needs to come to the table


<p>HARARE (Reuters) &#8211; Zimbabwe will repeal its indigenisation and economic empowerment legislation dealing with ownership of foreign-controlled companies and replace it with a new empowerment law, Finance Minister Mthuli Ncube said on Thursday.</p>



<p>Addressing parliament, Ncube also said foreign investors can now take majority stakes in the platinum and diamond sectors.</p>



<p>The empowerment law adopted in 2008 under Robert Mugabe forced foreign-owned businesses including mines to cede at least 51% shares of their local operations to black Zimbabweans.</p>



<p>In a bid to attract investment, President Emmerson Mnangagwa last year removed these requirements for other minerals except diamonds and platinum, which his government said were strategically important.</p>



<p>Reporting by MacDonald Dzirutwe; Writing by Olivia Kumwenda-Mtambo; Editing by Hugh Lawson </p>


Southern Africa

South Africa’s Absa bank reports 5% rise in first-half profit

Mining companies cannot plead poverty, says Amcu President Joseph Mathunjwa

#TheHashtag: China fires warning shots at Hong Kong protesters & would you break bank for Lobola?

Hot Stocks: Nedbank Private Wealth’s Burgess picks Mondi

South Africa’s Ramaphosa wins court case against #PublicProtector, what you need to know

Standard Bank’s expansion in some of Africa’s fastest-growing economies pays off

North Gauteng High Court rules in favour of Ramaphosa in dispute with Public Protector

Credit life insurance is bigger than life insurance and no one knows about it, says Yalu founder Nkazi Sokhulu

Zimbabwe’s opposition MDC party is planning to protest next week, here’s why

South Africa’s state power utility Eskom urgently needs turnaround plan – Moody’s

Zimbabwe ramps up its electricity imports to ease outages

BEPA: Here’s what it takes to become the next Eskom CEO

How big will the introduction of 5G prove to be for SA telecoms markets?

Mavis Ureke on financial literacy and money management in Womens’ month

How does Eskom downgrade affect monetary policy? A revised look at economic stability

Fin min Mthuli Ncube confident Zimbabwe has turned a corner, business needs to come to the table

Zimbabwe to repeal empowerment law, what you need to know

News Tips

Advertise With Us

Southern Africa

South Africa’s Absa bank reports 5% rise in first-half profit

Mining companies cannot plead poverty, says Amcu President Joseph Mathunjwa

#TheHashtag: China fires warning shots at Hong Kong protesters & would you break bank for Lobola?

Hot Stocks: Nedbank Private Wealth’s Burgess picks Mondi

South Africa’s Ramaphosa wins court case against #PublicProtector, what you need to know

Standard Bank’s expansion in some of Africa’s fastest-growing economies pays off

North Gauteng High Court rules in favour of Ramaphosa in dispute with Public Protector

Credit life insurance is bigger than life insurance and no one knows about it, says Yalu founder Nkazi Sokhulu

Zimbabwe’s opposition MDC party is planning to protest next week, here’s why

South Africa’s state power utility Eskom urgently needs turnaround plan – Moody’s

Zimbabwe ramps up its electricity imports to ease outages

BEPA: Here’s what it takes to become the next Eskom CEO

How big will the introduction of 5G prove to be for SA telecoms markets?

Mavis Ureke on financial literacy and money management in Womens’ month

How does Eskom downgrade affect monetary policy? A revised look at economic stability

Fin min Mthuli Ncube confident Zimbabwe has turned a corner, business needs to come to the table

Zimbabwe to repeal empowerment law, what you need to know

News Tips

Advertise With Us

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