Latest news with #R5.2
The South African
a day ago
- Business
- The South African
SA Post Office confirms you may get your mail by COURIER in 2029
The South African Post Office (SAPO) has unveiled an ambitious five-year plan to reinvent itself as a major player in the courier and delivery market, aiming to pull itself out of financial crisis and into profitability by 2029. The struggling state-owned entity presented its strategy to Parliament this week, revealing plans to dramatically increase revenue from R1.9 billion in 2024 to R5.2 billion by 2029, with a major push into the courier and parcels sector. SAPO is betting big on parcel delivery, hoping to grow revenue from a modest R38 million in 2024 to R1.4 billion within five years. The public postal service has set its sights on capturing: 5% of the B2B and B2C market 25% of the Consumer-to-Consumer (C2C) market These targets align with a 50% forecasted increase in international mail and parcel volumes, indicating a shifting market in which traditional postal services are rapidly declining. As digital communication continues to replace letters and bulk mail, SAPO predicts a 5% to 7% annual decline in traditional services like registered and franking mail, unless aggressive modernisation and digitisation are undertaken. The plan highlights a pivot toward a dual revenue model focused on digital transformation and parcel logistics – a move SAPO says is key to remaining relevant. Following a devastating R1.03 billion projected loss in 2024, the SAPO is targeting a net profit of R1.5 billion by 2029. But reaching that goal comes with steep costs. The Post Office estimates it will need an additional R3.8 billion in funding to execute its turnaround strategy. This follows a turbulent recent history that includes: Provisional liquidation in February 2023 A business rescue plan to avoid collapse to avoid collapse The retrenchment of over 4 300 workers Closure of 360+ branches nationwide Despite these cuts, the entity was bolstered by a R2.4 billion state bailout, enabling critical upgrades to IT infrastructure, logistics equipment, and its vehicle fleet. SAPO's transformation plan sees it becoming a self-sustaining, digitally-driven postal and logistics service – no longer reliant on government bailouts and increasingly integrated into South Africa's e-commerce ecosystem. 'This strategy is not just about survival – it's about creating a modern, profitable national service that meets the demands of a digital economy,' said an official familiar with the presentation. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
5 days ago
- Politics
- IOL News
NPA launches recruitment drive to fill 268 vacant positions
Justice and Constitutional Development Minister Mmamoloko Kubayi says the NPA's staff complement has expanded by 34% since 2019 and that it has a substantially reduced vacancy rate. Image: Ntswe Mokoena / GCIS Justice and Constitutional Development Minister Mmamoloko Kubayi on Tuesday said the National Prosecuting Authority (NPA) was currently in a drive to fill 268 vacant posts that were at various recruitment processes at the end of May 2025. Responding to questions in the National Council of Provinces, Kubayi said the NPA's staff complement has expanded by 34% since 2019 and has a substantially reduced vacancy rate. 'In the current format, human capacity, the head count is 5,513 permanent employees, an additional 327 appointed on fixed-term contracts, and 3,562 prosecutors who are permanently employed, and 289 are prosecutors who are appointed on contract. 'In the past financial year alone, the NPA has been able to appoint 728 permanent prosecutors and also 685 contract appointments,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Kubayi also said the NPA has moved from an annual performance of 50% in the 2020/21 financial year to 73% in 2023/24. 'The upward performance trajectory saw the NPA making a considerable contribution towards the Medium Term Development Plan for 2019-2024 in terms of improving on conviction rates in all court orders and attaining R11 billion in freezing orders against a target of R10.4 billion.' She stated that the NPA has been allocated R6.1 billion for the 2025/26 financial year, with R5.2 billion to be spent on compensation of employees and over R830 million on goods and services. 'It is projected that the NPA will be able to conclude and utilise this budget effectively. I must indicate, in some of the instances, we are able to pull from the Criminal Asset Recovery Account fund to support some of the work, and the Minister of Finance has been very supportive of the NPA in terms of ensuring financial resources.' Kubayi said prosecutors are undergoing continuous training and development in various aspects. 'Currently in the financial year, we have scheduled 148 training programmes and 10 have already taken place with 60 employees benefiting from this.' The minister added that they were consistently reviewing the capacity and the training needs for all areas, especially in dealing with specialised commercial and corruption-related matters. 'We have done the study that provides a picture of levels of capacity where it resides and amongst the prosecutors. Out of this review study, we'll be able to feel where the gaps are and in the areas where there are complex, organised crime, complex commercial crimes, including corruption, we're able to close those gaps.' Kubayi said there were lessons to be learned from the failed prosecution of Timothy Omotoso and Moroadi Cholota, former personal assistant of former Free State premier Ace Magashule. 'More work can be done, but support and providing oversight over some of the cases. A lot of work is being done and over time where there is shortage of capacity, for example, we are able to source even external capacity to come and support the NPA.' Kubayi also stated that the current workload per prosecutor in lower courts was split between the work of the district court and the regional court. 'The outstanding cases per prosecutor in the district court amount to 80 cases per prosecutor. The outstanding cases per prosecutor in the regional court amount to 53 cases. Apart from the criminal court work, prosecutors in both district and regional courts have dealt on average with 207 decision dockets in the past financial year.'
IOL News
06-06-2025
- Business
- IOL News
South Africa's exports face decline amid economic challenges
All indications were that exports are set to slow given the current economic climate, recent indicators, as well as surveys showing that manufacturing operating conditions are deteriorating. Image: Supplied All indications were that exports are set to slow given the current economic climate, recent indicators, as well as surveys showing that manufacturing operating conditions are deteriorating. This is according to Investec economist, Lara Hodes, who said that the trade account surplus was likely to decrease further. On Thursday, the South African Reserve Bank (SARB) said that South Africa imported more than it exported during the first quarter of the year, although the country benefitted from the rand price of exported goods and services increasing more than that of imports when it comes to terms of trade. Hodes noted that a pending decline in exports ahead was based on data such as the Absa Manufacturing Purchasing Managers' Index (PMI) for April, which noted that the data tracking export sales returned to contractionary levels. In addition, according to the results of the JP Morgan Global Manufacturing PMI survey, global 'manufacturing operating conditions deteriorated' in April, with 'new export orders suffering its steepest decrease since August 2023,' Hodes said. She also noted that survey data from JP Morgan provided evidence of further potential weakness. Hodes said that globally, heightened levels of uncertainty around tariffs persist. S&P Global, she said, has indicated that the damage to confidence stemming from the radical shift in US trade policy, along with its unpredictability, is likely to linger, which will weigh on trade and growth prospects. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Trade balance trend Image: SARS/Investec The central bank said in its release that South Africa's trade surplus narrowed slightly by R5.2 billion as the value of merchandise imports increased more than that of goods exports. 'The increase in the value of imports and exports of goods and services in the first quarter of 2025 reflected both higher volumes and prices,' the central bank explained. It added that the current account deficit as a ratio of gross domestic product (GDP) remained broadly the same at 0.5% from the fourth quarter of 2024 to the first quarter of 2025. However, the agency noted that 'South Africa's terms of trade, including gold, improved in the first quarter of 2025 as the rand price of exported goods and services increased more than that of imports'. IOL
IOL News
05-06-2025
- Business
- IOL News
Stronger rand helps South Africa reduce trade deficit
South Africa exported more than it imported in the first quarter, thanks to a rise in the value of exports, the Reserve Bank said. Pictured is Sarb governor, Lesetja Kganyago South Africa exported more than it imported during the first quarter of the year, the South African Reserve Bank (SARB) said, citing the fact that the value of goods exported had increased in rand terms. The local currency has been worth between just under R19 to the dollar at the start of the year to sticking below the key R18 to the greenback level since the middle of last month. In a statement issued on Thursday, the central bank said that South Africa's trade surplus narrowed slightly by R5.2 billion as the value of merchandise imports increased more than that of goods exports. The increase in the value of imports and exports of goods and services in the first quarter of 2025 reflected both higher volumes and prices, the central bank explained.
The Citizen
19-05-2025
- Business
- The Citizen
Here's why Amplats will still pay Anglo R1.6bn a year after unbundling
The separation will also cost R5.7bn in once-off charges. Demerging is an expensive exercise. Anglo American Platinum (Amplats) – to be renamed Valterra Platinum on 1 June – will spend a total of R432 million in transaction costs alone related to its separation from parent Anglo American plc. These will (mostly) be in the form of professional services fees, including investment bankers and lawyers. Aside from this, it will also incur once-off costs of R5.2 billion related to the demerger. Costs of Amplats unbundling from Anglo American In the prospectus, it says it will cost the platinum group metal (PGM) producer R1 billion to set up its 'standalone information management structure' as well as rebranding. A further 'R45 million is expected to be incurred in relation to site and office costs, security costs, and marketing costs'. The bulk of the once-off figure – R4.2 billion – 'relates to the settlement of intercompany services between the Anglo American Group and [the soon-to-be-renamed Valterra], of which R2.85 billion was accrued as at 31 December 2024, and the remaining R1.35 billion was agreed in 2025'. Services agreement Valterra, as it will be known, on 8 April agreed an umbrella services agreement with Anglo American that will kick in once the demerger, which has been approved by shareholders, is completed on 31 May. It says under the terms of this agreement, Anglo American 'has been contracted to provide certain administrative services to the Group [Amplats/Valterra] during a transitional period' while they are established and/or migrated to Valterra. ALSO READ: SA opened 159 new mines in five years, creating over 15 000 jobs Amplats has always been part of Anglo. That's just how it was – hence the reason for this convoluted arrangement. The agreement specifically covers 'the provision of staffing and resources principally in relation to finance, human resources, infrastructure operations, and information technology functions'. Valterra will pay its soon-to-be former parent R1.646 billion a year for these services. Amplats says 'shortly following completion of the Demerger, the Group [Amplats/Valterra] and the Anglo American Group will jointly prepare exit plans to transition the continuing services'. These timeframes typically run for 24 to 36 months. The separation of Absa from Barclays plc (following the latter's decision to divest) had a similar agreement. However, due to Barclays originally migrating Absa onto its systems, it footed most of the bill for the very complicated split to get Absa back onto its own systems. In total, Barclays made a R12.6 billion contribution (payment) towards the separation programme. ALSO READ: 'Restructuring a last resort', says Amplats as over 4 000 jobs in jeopardy As part of the demerger, Valterra will list on both the JSE and the London Stock Exchange (LSE), with the latter to ensure that 'the high number of Anglo American's existing, UK-based shareholders will not be prevented from holding, or continuing to hold, shares in the company following the demerger'. Anglo has said it will retain a shareholding in Valterra of 19.9% for at least 90 days following the demerger. Historically, it owned 67% of that business. Tax windfall The fiscus is set for a tax windfall due to the demerger, comprising $300 million in dividend-withholding tax, capital gains tax of $63 million, and securities transfer tax totalling $25 million. At current exchange rates, this equates to R7.1 billion. Under pressure from investors, Anglo announced a strategy in May 2024 to simplify its portfolio and focus on 'copper, premium iron ore and crop nutrients (potash)'. As part of this simplification, it announced that it would demerge a portion (read: the bulk) of its 67% stake in Amplats. This article was republished from Moneyweb. Read the original here. NOW READ: Mining bosses rake in hundreds of million rands per year each
