Star 2026-02-05

South Africa’s private sector showed early signs of stabilisation in January after a difficult end to last year, with the S&P Global South Africa Purchasing Managers’ Index (PMI) returning to the neutral 50.0 level, indicating unchanged business conditions from December. The reading marked a modest improvement following a challenging fourth quarter in 2025, during which operating conditions weakened steadily. This is in line with the Absa Purchasing Managers’ Index (PMI) recording a sharp improvement of 8.2 points in January but remained just below the neutral 50-point mark. According to S&P Global on Wednesday, the January outcome reflected more stable demand conditions, easing inflationary pressures and a levelling off in output after a sharp contraction in December. The PMI is a composite indicator tracking activity across the private sector, with readings…

Mpact's share price has dropped 5.6% in the last few trading days after announcing plans to retrench just less than 10% of its workforce at its Springs Paper Mill. Mpact, the largest paper, packaging and recycling business in Southern Africa announced Tuesday its board had approved the start of retrenchment processes at the mill which would impact about 377 people. The group had employed 4 557 people in its 2024 financial year. The share price was trading 0.36% lower at R22.36 on Wednesday morning, while last Friday it opened at R22.44. Mpact's board said the decision followed a deterioration in the mill's competitiveness. The mill is the only domestic producer of cartonboard and competes with imports from several countries. Major customers historically are major brand owners in the fast…

Sea Harvest published a trading statement on Wednesday advising shareholders that it expects to report, for the financial year ended 31 December 2025, headline earnings per share from total operations of between 216 cents and 222 cents, representing a 300% increase over the prior comparative period and its highest since listing in 2017. Sea Harvest is a JSE-listed South African fishing and food company with a market capitalisation of roughly R3.4 billion. Sea Harvest said the significant improvement in performance was primarily attributable to higher catch rates, significantly improved pricing and efficiency gains in its hake business while its pelagic business also delivered strong results benefitting from efficiency gains. Increased milk flow in its dairy business and a keen focus on cost control across the Group contributed to the record…

South Africa’s inclusion in the extension of the Africa Growth and Opportunity Act (Agoa) through to the end of December 2026 has been welcomed as an important interim reprieve, even as commentators caution that strained relations with the United States underscore the need to secure more durable and diversified trade arrangements. The United States this week confirmed the extension of the beneficial trade agreement, while signalling that the programme would need to evolve. Washington said a modernised Agoa should demand more from its trading partners and deliver greater market access for US businesses, farmers and ranchers, in line with its broader trade policy priorities. In a statement, US Trade Representative Jamieson Greer said his office would work with relevant agencies to implement changes to the Harmonised Tariff Schedule of the…

Annnouncement means that South Africa has transitioned to a Class A Shareholder The South African government has unveiled plans to establish a domestic export–import bank focused exclusively on supporting exporters, industrial projects and regional value chains, as the country seeks to shield itself from rising global protectionism and escalating trade wars. The announcement coincided with South Africa’s official accession on Wednesday to the Establishment Agreement of the African Export-Import Bank (Afreximbank), formally bringing one of Africa’s largest economies into the membership of the Pan-African multilateral lender. South Africa has thus transitioned to Class A Shareholder status in the Afreximbank, which elevates its relationship with the bank from that of a participating member to a sovereign shareholder, strengthening its influence within Afreximbank’s governance structures and strategic direction. To operationalise this partnership,…

South Africa’s National Minimum Wage (NMW) will increase to R30.23 per hour from 1 March, the Department of Employment and Labour has confirmed, offering relief to millions of low-paid workers but renewing pressure on employers to comply with the law. The increase, implemented in terms of the National Minimum Wage Act of 2018, is set out in Schedule 1 of Government Gazette No. 54075 dated February 3, 2026. It represents an above-inflation adjustment of 5%, or R1.44 per hour, and is estimated to affect approximately 5.5 million workers across the economy. The revised wage applies across all sectors, including farm and domestic workers, whose minimum hourly rates remain fully aligned with the national wage floor. Workers employed under the Expanded Public Works Programme (EPWP) will earn a minimum of R16.62…