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Local steel industry still holds much potential

By: Mamaili Mamaila 28th February 2020 The current capacity and capabilities of the local steel industry are still largely understated, says export trade promotion agency the International Steel Fabricators (ISF). →

Volatile steel prices to continue in 2020

By: Mamaili Mamaila 28th February 2020 The volatile prices of domestic steel producers and domestic steel merchants are likely to continue in 2020, says national employer federation Steel and Engineering Industries Federation of Southern Africa (Seifsa) chief economist Dr Michael Ade. →

MICHAEL ADE 2020 is still going to be a difficult year for the metals and engineering sector, with ongoing pressure on margins

Gordhan: SAA business rescue practitioners have final say on airline's restructure

By: News24Wire 27th February 2020 South African Airways business rescue practitioners have the final say on a plan to restructure the embattled airline and government will respect that authority, Public Enterprises Minister Pravin Gordhan has said. Gordhan was speaking at News24's Frontline post-Budget panel discussion on... →

Photo by Reuters
Public Enterprises Minister Pravin Gordhan

Cities to receive grant funding in efforts to boost infrastructure development

By: Simone Liedtke 26th February 2020 Cities will receive grant funding through the integrated city development grant to institutionalise an effective system for preparing programmes and projects. This is in an effort to continue expanding the tools available for South African provinces and municipalities to improve spending, after... →

Contingent liabilities set to rise to R980bn

By: Simone Liedtke 26th February 2020 Contingent liabilities, which are mainly guarantees to State-owned companies (SOCs) are projected to reach R979.9-billion on March 31, 2020. According to Finance Minister Tito Mboweni, who tabled the 2020 National Budget, in Parliament, on Wednesday, government’s “long record of prudent debt... →

Two trade unions demand that SAA business rescue respects workers’ rights

By: Rebecca Campbell 25th February 2020 Two trade unions – the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) – have jointly accused the Business Rescue Practitioners (BRPs) currently overseeing the business rescue process for State-owned South African Airways (SAA) of... →

No power cuts planned for Tuesday after generation units return to service

By: News24Wire 25th February 2020 Eskom says it does not expect to have to implement power cuts on Tuesday after additional generation units returned to service overnight. The utility, in a morning power alert, said that the generation system had held up well since Sunday with emergency reserves at adequate levels. Eskom has... →

Cosatu’s plan on Eskom is immoral – Cape Chamber of Commerce

By: Sane Dhlamini 24th February 2020 The Cape Chamber of Commerce and Industry labelled the Congress of South African Trade Unions’ plan to save ailing power utility Eskom using Government Employees Pension Fund funds as immoral. Cosatu recently suggested saving Eskom by using R250-billion from the Public Investment Corporation,... →

Photo by Supplied by Cape Chamber
President of the Cape Chamber of Commerce and Industry, Geoff Jacobs

Mboweni’s budget unlikely to stop South Africa’s march to junk

By: Bloomberg 24th February 2020 Finance Minister Tito Mboweni’s budget this week is unlikely to convince Moody’s Investors Service that he has a credible plan to rein in government debt. Of 19 economists surveyed by Bloomberg this month, 14 expect Moody’s to downgrade the country to junk this year and nine of those say it’ll... →

No load-shedding expected on Monday as outlook is positive, says Eskom

By: African News Agency 24th February 2020 No load-shedding is expected on Monday, as the power generation outlook is positive, with four generation units returning to service, Eskom said. "With the planned return of four generation units, as well as adequate emergency reserves, Eskom does not expect to implement rotational load-shedding... →

Court declares major Gupta-era coal contract with Eskom invalid

By: News24Wire 21st February 2020 The Special Investigations Unit has secured a high court order setting aside a contract worth R3.7-billion between the formerly Gupta-owned mining group Tegeta Exploration & Resources and State power utility Eskom, according to Ministry of Justice and Correctional Services. According to the... →

Stage 2 load-shedding to continue until Sunday as breakdowns increase

By: News24Wire 21st February 2020 Eskom says that stage 2 load-shedding will continue until 6 am on Sunday morning due to a loss of additional units. "While we expect three generation units to return to service [on Friday], we lost a further two units last night to unplanned breakdowns," the utility said in an power update.... →

Electricity sector developments

21st February 2020 Creamer Media’s Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about the latest developments in South Africa’s electricity sector, with Mineral Resources and Energy Minister Gwede Mantashe having announced this week that the Section 34 Ministerial Determinations required to... →

Electricity sector developments

Denel upgraded by Fitch Ratings as it closes aerostructures business

By: Rebecca Campbell 21st February 2020 South Africa’s State-owned defence industrial group has Denel welcomed the recent decision by Fitch Ratings to affirm its long- and short-term ratings for the group, and to upgrade its outlook. Fitch affirmed Denel’s national short-term rating at “B(zaf)” and its national long-term rating also at... →

State-owned airlines struggling in financial turbulence

By: Rebecca Campbell 21st February 2020 Two of South Africa’s State-owned airlines continue to experience tough times as they try to recover from their current deep financial crises. They are national flag-carrier South African Airways (SAA) and the completely separate regional operator SA Express. SAA is now in business rescue, and... →

Regulator says local tyres are ‘export worthy’

By: Mamaili Mamaila 21st February 2020 South African pneumatic tyres are on par with their global counterparts, says regulatory authority the National Regulator for Compulsory Specifications (NRCS). →

HIGHLY GUARDED Any amendments for compulsory specifications are governed by the development and approval of relevant products

Indaba increases prospect of project funding

By: Cameron Mackay 21st February 2020 The Africa Energy Indaba provides an ideal opportunity for State-owned export credit agency (ECA) the Export Credit Insurance Corporation of South Africa (ECIC) to become more involved in the funding of significant energy infrastructure projects. “The Indaba raises the ECIC’s profile as an... →

ATTRACTING THE GLOBE The ECIC’s mandate from government is to make local exports attractive to international buyers to attract foreign income, stimulate local economic growth and create jobs

Regulator seeks to improve tyre homologation process

By: Mamaili Mamaila 21st February 2020 Regulatory authority the National Regulator for Compulsory Specifications (NRCS) is not “completely satisfied” with the current approval period for pneumatic tyre homologation, says NRCS automotive GM Duncan Mutengwe. →

TWICE THE TROUBLE The National Regulator for Compulsory Specifications follows a two-stage approach for importers applying for tyre homologation

Specialist on course despite pressures

By: Mamaili Mamaila 21st February 2020 Despite the local manufacturing sector being under pressure, mouldered product specialist DEMS’ rubber manufacturing division – which operates within a very niche and specialised market – has not been affected negatively, says DEMS MD Mark Baptie. →

ALWAYS ON EDGE DEMS is always investigating and looking for opportunities to remain competitive and continue to have an edge in the market

Rubber remains resilient despite strained sector

By: Mamaili Mamaila 21st February 2020 Engineered rubber remains a requirement for many industries notwithstanding local manufacturing industry woes, says rubber products manufacturer Hudson Rubber MD Stoney Steenkamp. →

RUBBING OFF THE RIGHT WAY The rubber sector will survive the current unfavourable economic climate as the product remains resilient and relevant in the industrial markets

Bleak outlook for rubber SMMEs in 2020

By: Mamaili Mamaila 21st February 2020 With the industrial market aspect of its rubber business having declined in 2019 by 25%, rubber compounding specialist National Rubber Matmin (NRM) MD Mike Stuart says 2020 is “not looking much better”. →

MIKE STUART National Rubber Matmin has had success in supplying products to the Australian mining sector

Inconsistencies between fiscal and other policies resulting in ‘austerity without consolidation’

By: Terence Creamer 20th February 2020 Prevailing inconsistencies between fiscal policy and the rest of government policy lay at the heart of the South African government’s current financial crisis and was resulting in “austerity without fiscal consolidation”, University of the Witwatersrand adjunct professor of public economics... →

University of the Witwatersrand adjunct professor of public economics Michael Sachs

'They stole most of the ANC's ideas.' Mboweni attacks EFF leaders

By: News24Wire 20th February 2020 Finance Minister Tito Mboweni took on the Economic Freedom Fighters, tweeting that he championed the concept of a State-owned bank long before "they" did. EFF leader Julius Malema dared President Cyril Ramaphosa to establish a State-owned bank during a State of the Nation debate this week and... →

Photo by World Economic Forum/Greg Beadle
Finance Minister Tito Mboweni

'We'll make it happen' : Mantashe says plan for new power utility a 'reality'

By: News24Wire 20th February 2020 Despite President Cyril Ramaphosa not bringing up the establishment of a new power generating entity in his economics-heavy State of the Nation Address, Mineral Resources and Energy Minister Gwede Mantashe says the plan is a "reality". Mantashe on Thursday briefed the media on the energy-related... →

Mineral Resources and Energy Minister Gwede Mantashe

Eskom to resume rolling blackouts after few days reprieve

By: News24Wire 20th February 2020 South Africa's electricity utility Eskom said on Thursday it would resume rotational power cuts from 9 am after a few days' reprieve and this would likely continue over the weekend. Eskom, which supplies about 95 percent of the country's electricity, has been forced to intermittently apply... →

Govt pension fund: It would be wrong to dismiss Eskom bailout proposal without all the facts

By: News24Wire 19th February 2020 It would be "untoward" of the Government Employees Pension Fund to dismiss a proposal to bailout debt-laden power utility Eskom without knowing all the facts, MPs heard on Wednesday. The GEPF's Principal Executive Officer, Abel Sithole, and its Head of Corporate Services, Musa Mabesa, briefed... →

Mantashe says Ministerial Determinations needed to unlock IRP 2019 are finalised and await Nersa’s concurrence

By: Terence Creamer 19th February 2020 Mineral Resources and Energy Minister Gwede Mantashe announced on Wednesday that the Section 34 Ministerial Determinations required to give effect to the Integrated Resource Plan 2019 had been finalised and were currently serving before the National Energy Regulator of South Africa in order to... →

Mineral Resources and Energy Minister Gwede Mantashe

Development Bank's R3.5bn bailout of SAA may be depleted by early March – Gordhan

By: News24Wire 19th February 2020 Minister of Public Enterprises Pravin Gordhan has said that the R3.5-billion in emergency funding that South African Airways received from the State-owned Development Bank of Southern Africa earlier in the year may be depleted by early March. Gordhan was addressing a joint sitting of Parliament's... →

Photo by Creamer Media
Public Enterprises Minister Pravin Gordhan

New Concor chief sees surge in issuance of large tenders as sign of possible construction turnaround

By: Terence Creamer 19th February 2020 Newly appointed Concor CEO Lucas Tseki believes the strong flow of tenders in the last quarter of 2019 could signal that the domestic construction market is finally bottoming out. He is also cautiously optimistic that infrastructure-focused departments and State-owned enterprises (SOEs) are, at... →

Concor CEO Lucas Tseki

Eskom asks customers to reduce demand as likelihood of power cuts grows

By: News24Wire 19th February 2020 Eskom has warned of an increased possibility of power cuts later on Wednesday after it lost additional generation capacity due to unplanned breakdowns at some of its power plants. While the utility is not currently implementing load-shedding, it urged customers to keep reducing demand and use... →

'Speeding' Shosholoza Meyl stopped in its tracks following fatal crash

By: News24Wire 19th February 2020 The Shosholoza Meyl, a long-distance train service operated by the Passenger Rail Agency of South Africa (PRASA), has been ordered to stop operating with immediate effect. This follows a fatal train crash on February 12, which left one man dead and several others injured when a goods and... →

Eskom CEO says it wants hand in negotiating IPP pricing

By: African News Agency 18th February 2020 Eskom wants to play a role in negotiating the price at which new and existing independent power producers sell electricity to the embattled utility, CEO Andre de Ruyter told MPs on Tuesday, "It is very important that [with] the roll-out of the new IPP programme that Eskom, as the ultimate buyer... →

Photo by Donna Slater
Eskom CEO Andre de Ruyter

South Africa’s ‘Energy War Room’ to meet for first time

By: Bloomberg 18th February 2020 South Africa’s Energy War Room, a grouping of the main cabinet ministers responsible for the power industry, will meet for the first time this week since being reconstituted by President Cyril Ramaphosa in December as the country battles an electricity crisis that’s stalling economic growth. The... →

Eskom needs cash injection to avoid debt crisis – CEO

By: Reuters 18th February 2020 Ailing power utility Eskom urgently needs more cash to stabilise its ballooning debt pile with the funds coming from a rise in tariffs or new equity, new CE Andre de Ruyter told lawmakers on Tuesday. Eskom, which supplies 90% of South Africa's power but has struggled to meet demand, had a bid for... →

Eskom CEO Andre de Ruyter

No power cuts planned for Tuesday, says Eskom

By: News24Wire 18th February 2020 Eskom says it is not planning to implement power cuts on Tuesday. In a power update on Tuesday morning, the power utility said that additional generating units had returned to service and its emergency reserves were at adequate levels. →

Mboweni moots referendum on rescuing State-owned companies on Twitter

By: African News Agency 17th February 2020 After a short hiatus from Twitter, Finance Minister Tito Mboweni is once again posting prolifically, using the platform at the weekend to call for a public debate, possibly a referendum, on the use of taxpayers' money to bail out failing State-owned enterprises. "We must develop a democratic... →

Finance Minister Tito Mboweni

No load-shedding planned for Monday, says Eskom

By: News24Wire 17th February 2020 Eskom says it is not planning to implement power cuts on Monday, after it replenished its emergency reserves of water and diesel over the weekend. This comes after the power utility halted stage 2 load-shedding ahead of schedule at 9 pm on Sunday. The prognosis for the week ahead is that the... →

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