Classic Business

Ahead of The State of The Nation address, Michael Avery and Jeremey Sampson discuss the real state of our battered nation and reputation.

The stench of corruption and the rotting corpse of zero accountability continue to choke out any vision we may have of our future. Debt service costs crowd out investment.

These commissions (Zondo, Nugent, Mpati) all reveal that governance systems have collapsed due to brazen looting by the ANC. State institutions are so hollowed out that securing the normal permits and licenses to conduct business have become a task that would make even Sisyphus groan.

We have also seen that state intelligence and law enforcement agencies have no absolute commitment to hold those accused of wrong-doing accountable. Far from it when state security is in on the act. Make no mistake, this is as a result of the governing party’s cadre deployment policy.

If there is going to be any meaningful change and hope, Avery says South Africa must go back to basics.

The Covid pandemic has ripped straight through the aviation industry to the heart of the Airports Company of SA (Acsa), which is among the very few state owned enterprises that has run profitably and without the need for government bailouts for the last 26 years.

Acsa’s asset base of more than R30 billion includes an investment property portfolio of R7,7 billion. Properties in this portfolio have consistently performed well above the cost of capital, thereby subsidising landing fees for airlines and passenger service charges for passengers.

Acsa this week issued a request for proposals for transaction advisory services to advise Airports Company South Africa on the potential monetisation of some of its investment property portfolio. The transaction adviser, once appointed, will assess, and advise on the appropriate monetization programme and the portfolio.

Michael Avery spoke to ACSA CFO, Siphamandla Mthethwa, about the strategy Acsa is considering, and the thinking has alarm bells ringing.

Sibongile Mongadi, founder of Uku’hamba

Sugen Pillay, President of the Consulting Engineers South Africa (CESA);

Tracey Myers, President of the South African Institute of Valuers (SAIV); and

Vishaal Lutchman, CEO of the South African Institution of Civil engineers (SAICE);

Electrical wholesaler, lighting and property group ARB Holdings saw a hefty bump to its cash pile in its half year to end-December 2020 amid some improvement in demand for electrical infrastructure.

ARB has investments in closely related trading and distribution businesses, including 74% of ARB Electrical Wholesalers, a level 2 B-BBEE company that operates 20 electrical wholesale branches throughout South Africa, and 60% of Eurolux, which imports and distributes light fittings, lamps and related accessories.

CEO Billy Neasham sat down with Michael Avery to talk about the results and the future for a small cap on the rise.

Farzam Ehsani, CEO of VALR

Ronald King, Head of Public Policy and Regulatory Affairs at PSG Wealth

Isaah Mhlanga, chief economist at Alexander Forbes

&

Lebo Thubisi, Head of manager research at Alexander Forbes Investments

Siglinda Losch, Sustainability Manager for the Food Lover’s Market Group

Michael Smollan, Chief Growth & Innovation Officer from Smollan