Star 2025-10-02

South Africa’s manufacturing sector showed renewed momentum in September, with the Absa Purchasing Managers’ Index (PMI) rising by 2.7 points to 52.2, its strongest level since October 2024. The PMI, compiled by Absa, the Bureau for Economic Research (BER) and Stellenbosch University, indicates that the sector returned to expansionary territory, supported by stronger domestic demand. Encouragingly, the average PMI for the third quarter improved to 50.8 points, up from 45.4 in the second quarter and 46.2 in the first quarter. However, economists at Absa Corporate and Investment Banking cautioned that the recovery has been volatile, with sluggish global trade, steep US tariffs, and lingering port delays weighing on sustained activity. “Manufacturers have been cautious when making employment decisions, due to extended periods of subdued demand not sufficient to lift production…

Energy users group warns power utility that ongoing uncertainty remains an obstacle to economy The Energy Intensive Users Group (EIUG) has warned that ongoing uncertainty about South Africa’s electricity tariff path remains a key obstacle to growth, industrial stability and investor confidence. The caution comes after Eskom on Tuesday reported a R16 billion profit for the 2024/25 financial year, a dramatic turnaround from a R55bn loss the previous year. The EIUG on Wednesday said the power utility now faces challenges in containing operational and primary energy costs, which are projected to rise between 5% and 15% in the 2025/26 financial year, even as electricity sales volumes are expected to decline by 2–3%. Fanele Mondi, CEO of the EIUG, said the group welcomed assurances from Electricity and Energy Minister Kgosientsho Ramokgopa…

Barloworld and Newco have announced that the Standby Offer related to their proposed R23 billion transaction is now wholly unconditional, marking a significant milestone in the consortium-led acquisition process. The breakthrough follows the parties’ decision on Wednesday to waive the condition relating to competition approval from the Common Market for Eastern and Southern Africa (COMESA). With no material adverse changes or competing superior proposals having arisen, all conditions attached to the Standby Offer have now been either fulfilled or waived. As of the announcement date, Newco had received valid acceptances for 77.6 million Barloworld ordinary shares, representing 41.6% of issued shares (excluding treasury shares). Combined with the existing holdings of the consortium and the Barloworld Foundation, this gives Newco control of 65% of Barloworld’s ordinary shares. Sydney Mhlarhi, spokesperson for…

In a market defined by its unique cultural nuances and economic challenges, the latest findings from the 2025 Township CX Report signal a significant shift in consumer behaviour among South Africa’s township residents. According to this comprehensive study, which was conducted by Rogerwilco in collaboration with Field and Insights Africa and MoyaApp, price sensitivity dominates as the leading factor in brand loyalty, spotting a transformative trend that marketers cannot afford to ignore. The report reveals that a striking 68% of township consumers now weigh price above all else when deciding on brands, underscoring the financial pressures that influence everyday shopping choices. This marked preference for affordability is accompanied by a strong inclination to support local entrepreneurs, with one in three consumers opting for indigenous businesses over national chains. This data…

In a world defined by digital transformation, few financial innovations hold as much promise as the tokenisation of assets. It has been a talking point in financial circles for a while now - and for very good reason. In a sense, it has become the very real meeting point between traditional finance and blockchain technology. Tokenisation refers to the process of turning ownership of a real-world asset like property, stocks, fiat currencies, or commodities into a digital token that lives on a blockchain. Each token typically represents an ownership stake in the underlying asset. As an example, right now Luno offers 58 tokenised US stocks and exchange-traded funds (ETFs) on our app. The uptake since the introduction of these stocks has been nothing short of phenomenal, with our first month…

Africa’s payment ecosystem has long been defined by accessibility. In many markets, millions of people operated outside the formal banking system, relying on cash or informal transfers to move money. Out of this gap emerged one of the continent’s most striking financial shifts: the rapid rise of mobile-enabled wallets and fintech platforms that gave people a way to transact securely, even without a traditional bank account. Necessity was the primary driver of this innovation – and African banks played a central role in scaling and securing these new channels. The effect was transformative. Low-value domestic transactions and remittance flows – once slow, costly, and unreliable – could now move quickly across platforms designed for the way African economies actually function. By embedding these flows into formal systems, banks and their…