BizNews Radio

Fractures have appeared in the foreign relations between South Africa and the United States following a series of events. These events included accusations from the US ambassador to South Africa that a Russian cargo ship, Lady R, was loaded with supplies for use against Ukraine, and a call between Minister of International Relations and Cooperation, Naledi Pandor, and the Hamas leader Ismail Haniyeh. But after a fairly friendly 20th AGOA Forum over the past week in Johannesburg, relations seem to be on the mend. In an interview with Biznews, Dr Piet Croukamp, political analyst and a senior lecturer at North-West University, said that it would be optimistic to think that South Africa is out of the danger zone because the country’s “foreign policy is so unstable.” However, the idea that South Africa will be removed from the AGOA agreement appears to have dissipated. It appeared, he said, that the Americans were buying the idea that the agreement must be stretched over a longer period than five years, but he had doubts that a new agreement would materialise before 2025. He said that unless the South Africans did something “really stupid” and it is not impossible with Naledi Pandor at DIRCO, he could not see South Africa being removed from AGOA any time soon. The Americans will however not tolerate support for Hamas, he said. Dr Croukamp also warned that South Africa will have to do something about its infrastructure, electricity and roads as it would not be able to compete with American producers and service providers.

The 40th forum of the African Growth and Opportunity Act (AGOA), which offers duty-free access to the United States economy for 20 African countries, has concluded and appears that concerns about South Africa potentially losing its benefits due to the 'Lady R' diplomatic spat and its support for Hamas and Iran have abated. South Africa is advocating for an early 2024 renewal of AGOA in the U.S. Congress, as the current agreement is set to expire in September 2025. In an interview with Biznews, Renai Moothilal, the CEO of the National Association of Automotive Component and Allied Manufacturers (NAACAM) said while it is challenging to predict the outcome until a formal announcement by the U.S. Congress, a strong case has been made for the continuation of AGOA. Moothilal said the automotive industry plays a significant role in the South African economy contributing to 5% of GDP and employing 110,000 people primarily in component manufacturing. AGOA, he said, is vital for the industry’s competitiveness and ability to maintain volume. Moothilal pointed out that South Africa exports a substantial number of vehicles and components to the U.S., which accounted for R24 billion in exports last year. He explained that South Africa contributes less than 1% to global auto production and it can't afford to lose any markets, making AGOA crucial for the sector's growth. Commenting on the global shift to electric vehicles (EVs) he said that component manufacturers are already adapting to technology changes and are prepared for the shift to EVS.

Easy Equities has been grabbing lots of social media attention over the past week after a R25 fee elicited unhappiness from some of its one million active clients. Freshly returning from his fourth visit to the Philippines this year, CEO Charles Savage explains why he’s delighted at the response and shares his thoughts about a share price that last month bottomed at a mere one-sixth of its recent peak. He spoke to Alec Hogg of BizNews.

In the dynamic world of fantasy fund management, where the thrills of the trading floor meet the strategic battlefields of a game board, a remarkable journey has come to a close. After 27 intense weeks of sharp moves, unforeseen market twirls, and astute stock selections, the Fantasy Fund Manager podcast stands as a testament to the spirited competition and financial education it has stirred among its participants. Join Stuart Lowman from BizNews as he delves into the closing chapter of this exhilarating contest. In a conversation filled with insight and reflection, we hear from Corion Capital’s David Bacher and the triumphant inaugural winner, Raymond Steyn, unravelling their strategies, the pressures of market fluctuations, and the sweet taste of victory against the backdrop of a turbulent economy. This is more than a game—it's a glimpse into the mindset of those who navigate the highs and lows of investing with agility and foresight. So tune in, as we celebrate the culmination of an adventure that's as much about the numbers as it is about the narrative of those who dare to dream in digits. Big thanks to our platinum sponsors, Sharenet, Terebinth Capital, ClucasGray Asset Management, and MoneyBetter. Until next year.

For South African investors, October was a month many would prefer never happened. Apart from the collapse of the R3bn BHI Trust Ponzi scheme, the only places to hide in legitimate markets were Bitcoin, Gold and Bonds. In our regular catch-up with David Bacher, the author of the Corion Report shares his insights into the reasons for what he had dubbed ‘Red October’. He spoke to Alec Hogg, editor of BizNews.

The recent surge in the price of Bitcoin, which has more than doubled this year, comes as no surprise to our long-time tech guru, former Google executive, and tech entrepreneur, Stafford Masie. In this fascinating interview, he explains why some of the world’s biggest investment names have converted to becoming ‘Bitcoin Maximalists’ - those who believe the coin is far superior to all other cryptocurrencies. He suggests that period of advantage for retail investors is quickly closing and goes so far as to argue that, given its high-risk socio-political implications, it is irresponsible for those living in South Africa not to own Bitcoin. He spoke to Alec Hogg, editor of BizNews.

Sharknets, commonly used in many coastal areas including South Africa to reduce the likelihood of humans being bitten by sharks, are responsible for the deaths of thousands of sharks and inadvertently trap and harm marine species like dolphins. A team of marine biologists at Stellenbosch University has developed an alternative solution, the SharkSafe Barrier. Their eco-friendly innovation is gaining international recognition with the first international installation on a private island in the Bahamas. The SharkSafe Barrier biomimics the visual effect of a kelp forest and generates a strong magnetic field through ceramic magnets, forming a double barrier that deters sharks from swimming through it. In an interview with Biznews, Dr. Sara Andreotti, a co-founder, and the Chief Operations Officer of the company, said humans fear sharks even though only 6-8 people are killed by sharks every year. She told Biznews that their device prevents shark deaths and the deaths of other marine life while providing safe swimming and surfing waters, which is good for tourism. The first successful commercial rollout of their innovation has been in the Bahamas and it is now being considered at a beach in Plettenberg Bay in South Africa. Dr Andreotti shed light on the alarming decline in the great white shark population in South African waters. She stressed that, contrary to the well-documented influence of Orcas, the primary cause of this decline can be attributed to human activities. Bycatching and illegal gill nets continue to pose serious threats, compounded by an exemption granted to the Kwazulu-Natal Sharks Board for the protection of great white sharks.

A prominent Muslim strategic consultant on the Middle East has called on South Africans to stop “incitement protests” against Israel. Mohammad Kabiya makes the call in an interview with BizNews in which he says Hamas terrorists killed not only Jews in the October 7 terror attack, but also Arab Muslims. He lists all the reasons why he does not regard Israel as an “Apartheid State; and he stresses that the Hamas terror attack was contrary to all human standards and all of the Islamic Sharia rules. He says the terrorists are not Muslims, but barbarians. And he slams the Hamas leaders “with billions of dollars” who are staying in Arab capitals in luxury hotels while “dealing and selling the Arab blood, the Palestinian's blood…”

Finance Minister Enoch Godogwana has described South Africa’s public finances as significantly weaker in his mid-term budget emphasising that measures to stabilise public finances and reform the economy to generate higher growth are essential. Markets reactions were generally favourable with the rand strengthening. Thea Fourie from S&P Global Market Intelligence said in an interview with Biznews that lower expenditure was a welcome surprise and that the investor community appeared to be happy with Mr Godongwana’s projections, but said concerns lingered about the persistent rise in the public sector debt-to-GDP ratio. Medium term risks remained on the horizon, she said. Transnet and Eskom, Fourie warned could be bad news for the debt trajectory. These risks she said raised concerns about the government’s ability to achieve its objectives. - Linda van Tilburg

Finance Minister Enoch Godongwana presented his medium-term budget in Parliament, revealing that disappointing tax revenues and rising costs to service the debt have taken a toll on government finances. Godongwana’s predictions include a slower-than-anticipated economic growth of 0.8% compared to his February budget projections, accompanied by a substantial increase of R54.7 billion in the main budget deficit. These forecasts according to Dawie Roodt, the Chief Economist at the Efficient Group, are far too optimistic. In an interview with Biznews, Roodt said he did not believe the projected growth would materialise and that several items are not included in the deficit numbers. The finance minister’s overall picture, he said, is not as rosy as the minister is portraying it. It is significantly worse. Roodt also believes that Transnet will have to be bailed out. Without it, he said, the economy is not going to function. Roodt estimates that the fiscal deficit is closer to 6.6% if Eskom’s debt is considered. Cutting the size of the state sector, he regarded it as good news and suggested the government start with VIP Protection expenses. The real picture of the economy, he said, will emerge in the main budget in February 2024. Roodt also said the picture that Mr Godongwana painted of himself as Mr Austerity does not hold water; he is Mr Expenditure. – Linda van Tilburg