Author: Gugu Lourie

South African food retailers have been scrambling to deliver groceries to their customers as demand for online shopping increases during the lockdown. Pick n PayOnline, South Africa’s largest online grocery retailer, announced on Tuesday that it is signing up more online shoppers as more people turn to online convenience during the lockdown. Since the end of March 2020, Pick n Pay’s online shop has had more than 144,000 new customers registered online. This is 8x more registrations than the previous year. Pick n Pay online also experienced a 200% increase in active transacting online customers during the period. For more…

Pick n Pay Online, South Africa’s largest online grocery retailer, announced on Tuesday that it is signing up more online shoppers as more people turn to online convenience during the lockdown. The COVID-19 outbreak has significantly accelerated the demand for online shopping and many shoppers turned to Pick n Pay Online for their grocery shop. Since the end of March 2020, Pick n Pay’s online shop has had more than 144,000 new customers registered online. This is 8x more registrations than the previous year. Pick n Pay online also experienced a 200% increase in active transacting online customers during the period. Last year the retailer significantly enhanced its online offering, which included changing its logistics…

Nedbank has launched a new ‘super app’, called Avo, which will give the bank’s customers to access online shopping, essential services and financial products on a single platform. “Created to bring customers and businesses together, accurately matching customer’s lifestyle needs to product and service offerings through powerful artificial intelligence, safe and secure payments, and bank-grade security.” – Fred Swanepoel, Chief Information Officer of Nedbank. To date, Avo has reached the milestone of over 5 000 customers registered and 170 registered Home Repair and Services merchants. With requests flying in daily, Avo may just be the platform small businesses need to…

In these times of great economic uncertainty, the fibre industry is a great South African success story and proof of how the private sector can drive economic development, says Jessica Spira, Business Development Director at Rand Merchant Bank (RMB). The bank was the joint mandated lead arranger and co-funder of a R16-billion senior debt financing package provided to Community Investment Ventures Holdings (CIVH), concluded in December 2019, to help fund the expansion of their operating companies Vumatel and Dark Fibre Africa, the country’s two largest privately-owned providers of fibre infrastructure. “Funders don’t put that kind of money into a business…

Agile Capital, a black-owned private equity firm, is sitting on R900 million cash pile and is hunting for investment opportunities. The Johannesburg-based mid-market private equity investment firm offers a solid investment track record and long-term growth prospects. Agile, which means “to build” in Setswana, was launched in 2015 by passionate and highly-skilled business partners Tshego Sefolo and Londeka Shezi. Agile, through its private equity funds, targets investments across diverse sectors. It has R2,38 billion assets under management. Agile Capital has a capital of about R900-million available for investment into new opportunities. “We have managed to establish ourselves as a respected private…

JSE-listed property group Balwin is slowly building its fibre business. Balwin is a construction and property group focusing on large scale sectional-title residential estates in high-growth, high-density metropolitan nodes in South Africa’s major cities. In 2017, Balwin Properties created Balwin Fibre to own all fibre infrastructure across its estate to become a large fibre network operator in South Africa. The group now generates annuity income by leveraging off its asset base and expanding its service offering to homeowners.  The primary source of annuity income is through the provision of high-speed fibre connectivity to homeowners within Balwin’s estates through Balwin Fibre. …

Inspired by a BBC article, a journalist asked people to share the last “normal photo” on their phones. The #LastNormalPhoto is now trending on Twitter, with thousands of people sharing images of what feels like a different lifetime. The BBC recently asked people to share an image their pre-COVID life, asking for the “last normal photo” in everyone’s camera roll. They then published an article over the weekend with 13 images, and 13 people’s touching stories about those images, from weddings to huge sporting events. Inspired by the article, journalist Robyn Vinter also asked Twitter users to share, and the…

The South African National Defence Force (SANDF) has ordered all soldiers to return to work as it sets up four field hospitals to deal with COVID-19. The Sunday Independent reports that SANDF is setting up four field hospitals valued at R50 million. The newspaper added that the army is also planning to convert 2010 Soccer World Cup stadiums into countrywide field hospitals. A senior SANDF official told the paper that FNB Stadium and Moses Mabhida Stadium were among the four venues. Two weeks ago President Cyril Ramaphosa warned the country that the “worst is still coming.” The president has deployed…

As part of South Africa’s lockdown regulations – including during level 4 – the sale of cigarettes is not allowed. Smokers say the lockdown ban on cigarette sales has been a spectacular failure and should be lifted as soon as possible, according to a Sunday Times report. In a study entitled Lighting up the illicit market, members of the University of Cape Town’s (UCT’s) research unit on the economics of excisable products said the ban had caused “hyperinflation” in which cigarette prices “skyrocketed” by 4.4% a day. The ban has made a cigarette price war after the lockdown inevitable and…

The department of basic education wants schools in ‘hotspots’ such as Buffalo City, Cape Town, Johannesburg, Ekurhuleni, eThekwini, Mangaung and Nelson Mandela Bay to be regarded as being on lockdown level 5 and remain closed in June. Schools were closed from March 18 due to a coronavirus outbreak. More than 5,000 schools in COVID-19 hot spots across SA, including 929 private schools, will stay shut next month if the cabinet approves a new proposal by the basic education department, the Sunday Times reports. Keeping these schools shut would affect 3.7-million pupils and 134,779 teachers. The Sunday Times reports that according…

South African businesses have called for the coronavirus lockdown level 4 to be lifted so that the country can be moved to level 2. The country is preparing for a further easing and gradual reopening of the economy. Most of South Africa is likely to move to level 3 lockdown by June 1 while hotspot areas, especially big metros, are likely to remain on level 4 lockdown. The government is likely to review the regulations for level 4 restrictions. For more read: South Africa’s COVID-19 Hotspots To Remain in Level 4 Sandile Zungu, chair of the Black Business Council, said…

As of today, the total number of confirmed COVID-19 cases in South Africa is 13 524. Case Data Province New cases on 15 May 2020 Total cases for 15 May 2020 Percentage total Eastern Cape 93 1662 12,3 Free State 6 151 1,1 Gauteng 75 2210 16,3 KwaZulu-Natal 38 1482 11,0 Limpopo 2 57 0,4 Mpumalanga 0 67 0,5 North West 5 63 0,5 Northern Cape 3 34 0,3 Western Cape 563 7798 57,7 Unknown 0 0 0,0 Total 785 13524 100,0 Testing Data 421 555 tests have been conducted with 18 537 done in the last 24 hour cycle. Sector…

More than 3.5 million people have applied for the new special COVID-19 Social Relief of Distress (SRD) Grant – within three days of the system going live. “The special COVID-19 SRD Grant is intended to mitigate the undue hardships faced by individuals and families through this difficult time. We are pleased with the intake so far and we urge all eligible individuals to apply on time,” Minister of Social Development Lindiwe Zulu said on Thursday. The South African Social Security Agency (SASSA) started taking nationwide applications for the grant on Monday. “As of Friday, 3 585 040 applications were received.…

The University of South Africa (Unisa) has partnered with MTN and will contribute R59,7 million over a period of two months to provide students with data. As part of the deal, all registered Unisa students will receive 30GB of data per month (10GB anytime and 20GB night time) for a period of 2 months from mid-May to mid-July 2020. The data will enable students to take part in the Unisa May/June 2020 examinations. Students may use the data and connectivity during this period to conduct other academic activities such as the submission of assignments online, online contact with the university…

Distell, the R17.3 billion South African alcohol empire behind Savanna cider, Amarula, Oudemeester and Bernini, is looking at expanding its business into the lucrative sanitiser market. Last month, Distell began producing hand sanitisers and other hygienic products at its production facilities as part of its efforts to help curb the spread of the COVID-19 pandemic. Distell announced on Friday it has donated 105 000 litres of sanitiser to both the South African government and NGO’s to support the need for responsible self- isolation and good hygiene practices in vulnerable communities. It has also generated R8 million worth of revenue from…

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…