Author: Gugu Lourie
South African drugstore chain Dis-Chem Pharmacies is planning to buy Baby City, a one-stop-shop with a range of branded baby products. Dis-Chem will spend R430 million to buy 100% of shareholding in Baby City from its owners, the Aronoff family. The South African drugstore chain informed investors on Friday that it recognises that the characteristics of the baby product sector align with the those of the pharmacy sector. The company added that both sectors are extremely resilient to perpetual new entrants – the baby sector sees approximately 900 000 new babies annually. Dis-Chem’s current offering is very focused on the FMCG and…
Most of South Africa may be moved to Level 3 of lockdown, which would allow for the easing of some restrictions and enable bottle stores to sell booze. Under level 3 regulations, the sale of alcohol is allowed between Monday and Wednesday and from 8am to noon. However, an independent liquor store organisation has warned that this will inevitably create “a pressure-cooker situation where customers will stand in massive queues in the streets, and will boil over into frustration and even possible violence and looting.” In a submission to the government, the Liquor Traders Association of South Africa (LTASA) proposes…
South Africa’s confirmed COVID-19 cases stood at 12 739 on Thursday night, with 19 more deaths recorded. “Regrettably we report a further 19 COVID-19 related deaths. This brings the total national deaths to 238,” said Health Minister, Dr Zweli Mkhize. The Minister expressed his condolences to the loved ones of those who passed on, while also thanking healthcare workers who cared for the deceased. As of Thursday night, the Eastern Cape had 1 569 cases comprising 12.3% of the national average, the Free State 145 cases, Gauteng 2 135 cases which comprised 16.8% of the national average. KwaZulu-Natal recorded 1…
The South African Social Security Agency (Sassa) says more than a million unemployed people have applied for the R350 monthly COVID-19 relief grant. “What we did when we started, we realised that when we reconciled, 60% of people who made the application were not supposed to,” Sassa spokesperson Paseka Letsatsi, told ENCA. The special COVID-19 Social Relief of Distress grant of R350 a month for the next 6 months will be paid to individuals who are currently unemployed and do not receive any other form of a social grant or UIF payment. Watch ENCA interview with Letsatsi, below: Also read:…
South Africa’s metered taxi, minibus taxi, bus and coach services industries are essential for the growth of the South African economy. Minibus taxis remain the most popular choice of transport for about 69% of South Africa’s commuters, generating an estimated R50 billion in fares annually, according to a recent report by ResearchAndMarkets. Buses and metered taxis continue to lose ground on e-hailing services. The Bus Rapid Transit system has been a failure, with high capital expenses, subsidies and low ridership undermining the plan to provide fast, affordable public transport. Taxis are used by about 69% of households compared to 59%…
The rapid growth in internet usage in Africa represents a significant opportunity for some of the world’s largest tech firms. With internet penetration rates estimated at an average of 24%, it remains the only continent where over half the total population is without internet access. China Mobile International, Facebook, MTN GlobalConnect, Orange, stc, Telecom Egypt, Vodafone and WIOCC are betting on this as they partner to build the most comprehensive subsea cable to serve the African continent and Middle East region. The companies announced today that they will partner to build 2Africa, a 37,000km long subsea cable to interconnect Europe…
JSE-listed technology group Altron on Thursday announced a raft of measures to preserve cash amid the economic upheaval created by the COVID-19 pandemic. Despite Altron’s resilience, with 62% of its income being annuity based, COVID-19 is expected to have a negative impact of mid-single digit on last financial year revenues. “To limit the impact on profitability, a number of cost savings initiatives have been implemented for the 2021 financial year which include cancelling all cash absorbing projects, freezing recruitment, promotions, and salary increases as well as halving all bonuses for Group Executive Officers, Managing Directors and First Line Managers for the…
MTN on Thursday reduced its capital expenditure guidance for 2020 to between R2 billion and R22 billion, revised from R28.3 billion guided at the 2019 full-year results. “The current environment is marked by significant uncertainties. It is still too early to assess the economic impact of the pandemic on our customers and reliably quantify the direct or indirect financial effects on our business,” the company informed investors on Thursday. “The remainder of the year will be shaped by the ramifications of the pandemic, and we will continue to update all stakeholders as the effects become clearer.” The company said its…
MTN added 2.9 million data users across its operations in Africa and the Middle East in the first quarter financial results for the year ended 31 March 2020, bringing its total user base to just shy of 99 million subscribers. “We are not only focused on managing the risks brought about by COVID-19, but also on the opportunities it creates in the accelerated digitalization it has brought about,” Rob Shuter, MTN Group CEO, said on Thursday. “We believe we are well-positioned as a company to benefit from this evolution, especially given our focus on growth in our data, digital and…
President Cyril Ramaphosa said on Wednesday evening that South Africa’s COVID-19 hotspots to remain in level 4 as most parts of the country move to level 3. “We will immediately begin a process of consultation with relevant stakeholders on a proposal that by the end of May, most of the country be placed on alert level 3, but that those parts of the country with the highest rates of infection remain on level 4,” Ramaphosa said. “It is important that we maintain stringent restrictions in these areas and restrict travel out of these areas to parts of the country with…
