COMAPNY NEWS IN BRIEF

South Africa mulls tax rebates, subsidies to boost local EV industrySouth Africa is considering introducing tax rebates or subsidies for consumers to boost buying of electric vehicles, President Cyril Ramaphosa said on Thursday, as Africa's most industrialised economy transitions its automotive industry.Global automakers like Ford (F.N), opens new tab, Volkswagen, BMW and Toyota manufacture models in South Africa for both the local and European markets. Britain and the European Union jointly consume 46% of the vehicles the country produces.The move towards cleaner and more sustainable fuels, plus stringent regulation in key markets, is putting pressure on some global automakers to shift towards electric and hybrid models, Ramaphosa said at an automotive industry conference.As a result, South Africa's automotive industry is positioning itself to take advantage of the demand for new energy vehicles."Consideration must be given to incentives for manufacturers, as well as tax rebates or subsidies for consumers, to accelerate the uptake of electric vehicles," Ramaphosa said.To encourage the production of electric cars in South Africa, the government will introduce an allowance for new investments from March 1, 2026, Finance Minister Enoch Godongwana said in February in his budget.This will allow producers to claim 150% of qualifying investment spending on electric and hydrogen-powered vehicles in the first year.Ramaphosa added that the government is working to finalise comprehensive policy guidelines on so-called new energy vehicles "that do not exclude alternative technologies such as hybrids and plug-in hybrids".Last year, the minister for trade, industry and competition published a white paper outlining steps to support the transition such as government incentives and a temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market.The paper also advocated the production of batteries for battery electric vehicles in South Africa and the development of value chains in the green hydrogen fuel cell market."We are committed to working hand-in-hand with the private sector to promote the production of new energy vehicles and the development of the necessary infrastructure to support them," Ramaphosa said.-REUTERS Mondi slumps as maintenance shutdowns, weak SA wood prices biteShares of paper and packaging giant Mondi slumped 9% at one point on Thursday morning, after it reported that its core profit fell over a third in its third quarter to end-September.It felt pressure from planned maintenance and losses in the estimated fair value of its forestry assets.Underlying earnings before interest, taxation, depreciation and amortization (ebitda) fell about 36% to €223 million (R4.3 billion) in the third quarter from its second, with the group also reporting pressure from softer seasonal demand and higher input costs.The group said the effect of additional, and previously flagged, planned maintenance shutdowns, as well as losses in the fair value of its forestry assets, amounted to about €90 million. At its half-year, the group had reported that the decrease in wood prices in SA would likely lead to downgrades of the estimated value of its forestry assets.Mondi, valued at about R122 billion on the JSE, is SA's biggest uncoated fine paper producer, though the country only accounted for about 9% of its external revenue last year. The group said on Thursday that selling prices in corrugated packaging and flexible packaging were higher when compared to the previous quarter after price hikes earlier in the year. -FIN24PSG improves its cash and adds staff amid earnings jump of almost a thirdPSG Financial Services has grown its half-year earnings by almost a third after a pickup for equity markets and sustained high interest rates offset a challenging general economic backdrop.Headline earnings rose 27% to R609.5 million in the six months ended August, it reported on Thursday, with the group's wealth, asset management, and insurance divisions all delivering a positive performance.On a per-share basis, recurring headline earnings jumped 28% to 48.2c, and it upped interim dividend by 26% to 17c.Total assets under management increased 15.9% to R435.7 billion, comprising assets managed by PSG Wealth of R379.1 billion and PSG Asset Management of R56.6 billion.PSG Insure's gross written premium increased 10.3% to R3.7 billion, while the advice-led group's performance fees constituted 6% of headline earnings, up from 2.5% in the prior half-year."While operating conditions remained challenging, more favourable equity market conditions and sustained high interest rates impacted positively on the group's results during the period," CEO Francois Gouws said in a statement."The firm remains confident about its long-term growth prospects, and we therefore continued to invest in both technology and people."The group said while the market had reacted positively to the formation of the Government of National Unity (GNU) in the aftermath of the 29 May general election, there was a need for policy reforms which demonstrated that achieving sustainable economic growth was a priority.-FIN24BHP reports copper boost, eyes Chinese stimulusMining giant BHP, which may be gearing up for another bid for Anglo American, reported a climb in both copper and iron ore production for its first quarter to end September, boosted by debottlenecking efforts at a port in Australia and higher grades at the world's largest copper mine, Escondida.The miner on Thursday kept its 2025 guidance unchanged across its major commodities, which also includes coal and nickel, saying it saw a strong operational start to the year at Escondida, where production climbed 11% year on year. Total copper production rose 4% to 476 000 tonnes, while copper prices rose 17%. This remains a major focus area for the group, which expects demand for the ductile and conductive metal to rise 70% by 2050.Copper is also seen as the major reason for its interest in Anglo American, with BHP abandoning a R900 billion bid at the end of May, with UK law requiring it to wait until the end of October for another takeover bid.BHP also reported that its iron ore production rose 2% to 65-million tonnes, though prices fell 18%, with the group completing a port debottlenecking project in West Australia to benefit its South Flank mine, its newest and most technologically advanced mine. This included a yard extension project, which refers to the area in which material is handled.Copper production still fell 6% when compared to the prior quarter and iron ore fell 7%, with both affected in part by planned maintenance.-FIN24

COMAPNY NEWS IN BRIEF

Comments

Namibian Sun 2024-12-27

Please login to leave a comment

COMAPNY NEWS IN BRIEF

Comments

Namibian Sun 2024-12-27

Please login to leave a comment

Login