INFLATION DIPS ON LOWER FOOD PRICES 

Food inflation declined from 11.8% to 10% on an annual rate and lower food inflation is expected for the rest of 2017, but there is still pressure from rising meat prices, said an analyst. According to a report on the latest consumer price inflation data released by Statistics South Africa (StatsSA) yesterday, economist at Momentum Investments Sanisha Packirisamy explained that food inflation had peaked in December but had slowed since then. StatsSA reported that inflation decreased from 6.6% in January 2017 to 6.3% in February 2017. Core inflation decreased to 5.2%, from the 5.5% annual rate reported in January. Core inflation is expected to average around 5.6% over the next 12 months, said Packirisamy. Food inflation picked up 0.6% on a month-to-month basis in February. The upward pressure came from meat prices which were up 1.6% for the month. Fruit prices increased 1% and vegetable prices also increased 1.8% for the month, explained Packirisamy. Bread and cereal prices increased by 12.8% on an annual rate, this is lower than the previous 12-month average of 15.3%, said Packirisamy. In January these prices had risen 17%. A recovery of 58c/l in petrol prices could also offset the fuel levy of 30c/l to be introduced in April 2017. The 29c/l increase in petrol prices in February drove up transport costs by 1.7% for the month. “An 8c/l cut is expected to provide some relief in March 2017,” she said. (Fin24)

CURRENT ACCOUNT DEFICIT TOUCHES SIX-YEAR LOW

South Africa's current account deficit narrowed more than expected in the fourth quarter of last year to its lowest in nearly six years, helped by a surge in mining exports after a rise in global commodity prices, the central bank said yesterday. The Rand extended gains against the Dollar in response to the data, rising 0.5% to hit a session high of ZAR12.6225/dollar. The South African Reserve Bank said the current account deficit narrowed to 1.7% of GDP in the last three months of 2016 from a revised shortfall of 3.8% in Q3 2016. Exports rose 3.7% in value terms during the quarter, resulting in a trade surplus of ZAR56 billion from a revised deficit of ZAR7 billion in Q3 2016. For the year as a whole, the current account deficit narrowed to 3.3% of GDP from 4.4% in 2015. (Reuters)

WILL NET1 SHAREHOLDER FORCE BUY-BACK?

The International Finance Corporation (IFC), which is the single largest shareholder in Net1, could force the company to buy back its 10 million Net1 shares at a total cost of US$107 million (about ZAR1.3 billion). An agreement reached between Net1 and the IFC in April 2016, when the IFC purchased an 18% stake in Net1, allows the IFC to sell the shares back to Net1 if Net1 is the subject of a governmental complaint (or a court judgment) relating to allegations of corruption or fraud.  When asked about the likelihood of Net1 being forced to repurchase the shares, an IFC spokesperson said: "It is not appropriate for any shareholder to address such issues outside of exchange-sanctioned market communication channels." Repaying the US$107 million investment could create liquidity problems for Net1, particularly if the Constitutional Court forces CPS to relinquish whatever profit it made. In its latest ruling on the matter the court repeated its earlier ruling that because the Sassa contract was invalid CPS, could not make a profit on it. (BDLive)

CALL TO NAME-AND SHAME POULTRY DUMPERS

Local poultry industry players are hopeful that Parliament’s public hearings into the crisis in the sector will confirm, once and for all, that dumping is causing the chicken industry a lot of harm. Parliament will hold public hearings today amid calls by the sector to restrict chicken imports from the EU and other regions. The local poultry sector has shed hundreds of jobs in recent months and blames this on cheap chicken imports. The industry and unions argue that the EU is selling chicken legs, thighs and wings below cost and have called on the government to intervene. But the EU has said its farmers are simply more competitive than their counterparts in South Africa.

… AS BRAZILIAN MEAT IMPORTS ARE HALTED 

The department of agriculture also announced yesterday it had suspended imports of meat from establishments suspected of being involved in the Brazil meat scandal. Allegations are that corrupt Brazilian producers have been selling rotten meat around the world for years. The Department of Agriculture said it had requested the Brazilian authority to provide official information and a list of establishments that have been identified regarding the exportation of unsafe meat to various countries, which could include South Africa. The department has also advised the Brazilian authority to ban all exportation of meat from such establishments until the issue has been resolved to the satisfaction of the South African Veterinary Authority. (BDLive)

SPECIALIST RETAILERS THROW IN the TOWEL

Nine West will walk out of SA and Mango will follow suit as the House of Busby alters its portfolio to match domestic needs, the group said. Head of marketing Leane Adolph said yesterday all free-standing stores under both these brands would close by the end of March. The House of Busby owns the exclusive rights to both Mango and Nine West. The Nine West licence was acquired in 1999 and, until recently, had 13 stand-alone stores throughout the country. Nine West sells footwear, handbags, eyewear and accessories. The Mango licence was acquired in 2006 and there were nine stand-alone stores in SA. Mango now has 35 store-in-stores in Edgars stores nationwide.  (IOL)

ADVTECH ON A ROLL

Private education group Advtech reported a 24% increase in full-year profit, buoyed by strong performance from its businesses and expects growth to continue, it said yesterday. Advtech said basic normalised earnings per share increased to 66.7 cents in the full-year to end December 2016 from 53.9cents in 2015. The company, which runs 78 schools and 27 tertiary campuses, said group revenue increased by 24% to ZA3.4 billion.  Revenue from the school division was up 15%, while revenue from the tertiary division grew 28% to ZAR1.3 billion. A final gross dividend of 19 cents was declared. (Reuters)

METAIR FEELS CURRENCY PAIN

An attempted coup in Turkey were among "several unexpected events, many of which were outside of our control" that South African vehicle parts maker Metair blamed for a decline in profit in 2016. Metair reported today its aftertax profit shrank 16% to ZAR468 million, although its revenue grew 16% to ZAR8.95 billion. It maintained its dividend at 70c for the year to end-December. Metair said the volatility of the Turkish lira made it difficult to forecast its contribution to the group in the current financial year. In its home market, Metair said it suffered from teething problems with a model change during the first half of its financial year. The South African manufacturer is attempting to become a world leader in modern battery technology, using lithium-ion products originally developed for mining cap lamps. (BDLive)

PRINT MEDIA FRETS OVER BOOZE ADVERTiSing ban

Proposed amendments to the draft Liquor Amendment Bill, under consideration by the Department of Trade and Industry, will see a ban on all print advertising of all alcohol products — including inserts and pamphlets as well as a ban on all digital and social media advertising. If enacted, such a provision would have a devastating effect on the print media. Banning inserts of alcohol adverts in newspapers alone would mean a revenue loss of ZAR260 million a year, according to the South African Liquor Brandowners’ Association (Salba). Salba is still evaluating the effects of a proposed ban on newspaper advertisements as well as on internet, social media, cinema and movie advertising as proposed in the draft bill. Other proposals in the latest draft are that people below the age of 21 years can be employed in the manufacturing or sale of alcohol even though it increases the legal age of drinking from 18 to 21 years. However, they will not be able to own a business that serves or sells alcohol. (BDLive)

MOZAMBIQUE DEBT WOES DEEPEN

Mozambique missed a US$119 million (about ZAR 1.5 billion) payment due on Tuesday on a loan Credit Suisse Group arranged, the second debt repayment the government failed to make in as many months. The US$622 million facility was taken out by state-owned ProIndicus and was supposed to fund the purchase of boats and radar systems to protect the country’s Indian Ocean coastline, where companies including Italy’s Eni and US-based Anadarko Petroleum have large offshore gas reserves. Donors and the International Monetary Fund froze aid to the government after about US$1.4 billion of undisclosed loans, including the ProIndicus facility, were uncovered in April last year. Mozambique said in October it couldn’t afford to service its debt and subsequently defaulted on a US$60 million interest payment on its Eurobonds in January. In November, Mozambique said it had fallen into US$175.5 million of arrears on another loan a state-owned company contracted, which the government had guaranteed. (Fin24)

US SETS SIGHTS ON GLOBAL CONTAINER LINERS

The US justice department has ordered top executives from several container shipping lines to testify in an antitrust investigation over practices by an industry that is the backbone of world trade, the companies said yesterday. The world's biggest container group, Denmark's A.P. Moller-Maersk, together with second largest line MSC of Switzerland, Germany's Hapag Lloyd, Taiwan-based Evergreen and Hong Kong-based Orient Overseas Container Line (OOCL) said their executives were among those who had been summonsed. None offered details on what exactly was being sought by the U.S. authorities, although OOCL said its subpoena called for the production of documents. (Reuters)

EVENTS MANAGEMENT

Starts: 08 May 2017

The events industry can serve as a catalyst for economic growth and an opportunity for alternative income to boost the GDP of a region. The events industry is growing with “professionals” offering services as event organisers, wedding planners, and party planners. While a special set of skills is required to be a successful events manager, it is near impossible to find a suitably experienced events manager with formal a qualification in events management.

This programme will focus on the professional development of events managers in order to ensure seamless execution of any type of event, within various environments and industries. This will contribute to the indispensable skillset required in preparation for large international events.

Duration:  Five days

For more information contact Calvin Van Doorn T: +27 31 260 1728 E: vandoorn@ukzn.ac.za

THE pcb TOGETHER WITH PE CORPORATE SERVICES

Invites you to a presentation on 
THE LATEST SALARY INCREASE TRENDS FOR 2017 
Presented by: Lionel van Schalkwijk - Regional Manager PE Corporates Services
The presentation will cover :
•    Actual and predicted salary/wage increase trends in 2016/2017
•    Factors impacting on salary/wage increases in South Africa
•    The possible impact of the proposed National Minimum Wage.
ABOUT THE PRESENTER 
Lionel van Schalkwijk, Regional Manager PE Corporates Services, B Com, CPIR Wits, Chartered Reward Specialist. He joined PECS in 2009 as the principal consultant in the salary survey and remuneration practice and is currently responsible for the African Expatriate and In-country Local Remuneration and Benefits Survey. Lionel is familiar with most local job evaluation systems and has 13 year's experience in remuneration consulting, salary review exercises and pay-line development.
8:00 am – 10h00 am, Chamber House, Royal Showgrounds, R100 Non Members, No charge.  Due to limited space a maximum of 2 delegates per company will be allowed.  Breakfast will be served.