NATIONAL NEWS - Here’s what caught our attention on Monday:
Telkom results
Telecommunications firm, Telkom is reporting a 5.3% revenue increase to R41.8 billion for the year ended 31 March. The company attributes the increase to an improved performance in its mobile business.
During the period, Telkom was able to add 9.7 million subscribers in its mobile services category, up 85.9%. Headline earnings per share increased by 22.6% to 722.0 cents and Ebidta increased by 8.5% to R11.3 billion. A final ordinary share dividend of 249 cents per share has been declared.
Read: Telkom is cleaning up in mobile
Cabinet announcement delayed
President Cyril Ramaphosa, who was officially inaugurated as president of South Africa on Saturday, was due to announce his new cabinet on Tuesday. The decision is being watched closely by investors and South Africans alike, as it is pivotal in helping Ramaphosa drive his reform and economic growth strategies.
The presidency released a statement over the weekend saying that the announcement will be made ‘later in the week’ without giving specifics. Some contenders for key cabinet posts include, David Mabuza, Naledi Pando, Nkosazana-Dlamini Zuma, Tito Mboweni, Pravin Gordhan and others.
The post for Eskom CEO is open
Eskom’s outgoing CEO, Phakamani Hadebe handed in his resignation on Friday, citing health reasons. Hadebe has been CEO of the embattled power utility for just 16 months.
Bloomberg is reporting that the incoming CEO will be overseeing a hefty task, which includes overseeing a fleet of old and outdated power plants, the company’s looming debt load – valued at almost R500 billion – and nearly 16 000 workers.
No potential candidates have been announced yet.
SA signs carbon tax into law
The long-delayed carbon tax has finally been signed into law; the first phase of the tax will come into effect from June 1 to December 2022, with a tax rate of R120 per tonne of carbon dioxide equivalent.
Treasury confirmed the signing on Sunday. The law seeks to reduce carbon emissions in an effort to meet agreements on the global climate crisis. The second phase of the tax will run from 2023 to 2030, following a review.
Read: SA carbon tax finally becomes law
Rand update
Focus is shifting to cabinet appointments expected later this week. President Ramaphosa has the nation guessing at who will take the deputy president’s role and whether some key members, such as Tito Mboweni and Pravin Gordhan, will be retained.
On an economic front, South Africa’s producer price inflation figures for April are due, along with private sector credit, M3 money supply and balance of trade data. Internationally, a myriad of issues loom, with US President Donald Trump deciding to ease restrictions previously imposed on Huawei as the trade war continues.
On Monday, the rand was at R14.41 to the dollar at 08:49.
