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The Citizen
a day ago
- Business
- The Citizen
Water projects worth R50bn to be constructed in Limpopo while progress on older projects stalls
Although construction of some of the bulk water projects began years ago, most are yet to get off the ground. The Limpopo provincial government is working with the department of water and sanitation (DWS) to construct new bulk water projects worth more than R50 billion, while many of the province's other water projects are either stalled or progressing at a snail's pace. Outlining some of the long-term bulk water projects at The Ranch Hotel, near Polokwane last weekend, Deputy Minister of Water and Sanitation David Mahlobo said he was worried that the completion of Limpopo's water projects had been delayed for extended periods. 'The DWS does not have the capacity to implement water services projects directly. We are not provided with funding to establish this capacity because water services are a municipal function and not a DWS function,' he said. ALSO READ: R213m down the drain as Limpopo residents still have no water Mahlobo said progress meetings with all the water services authorities are held every month. 'But despite these measures, projects are still often delayed, primarily due to poor performance by contractors and payment service providers.' Limpopo's water projects delayed The Citizen understands that although construction of some of these long-term bulk water projects began many years ago, most are yet to get off the ground. For example, the Giyani water treatment works is still appointing an implementing agent and construction is only expected to start in July 2025. The Giyani bulk water project began in 2014 with a budget of R900 million. It was meant to be completed in August 2017, but the project is still not complete. It has so far cost the government more than R4.5 billion. The Mooihoek/Tubatse bulk water supply project is almost complete, with the contractor currently addressing a snag list to finalise the project. The Nebo bulk water supply is still in the scoping phase. Offtake to Schoonoord (Phase 3C) and Marulaneng (Phase 3B) is complete, but functionality depends on the completion of Malekana to the Jane-Furse pipeline. The R129 Mametja/Sekororo bulk water supply Phase 1 is delayed due to Eskom power connections, while RM04 experienced the same electricity problems for the water treatment works and boreholes. ALSO READ: Multi-billion Limpopo mega-project has ground to a halt Addressing a South African Local Government Association (Salga) lekgotla in Polokwane last week, Mahlobo said many water and sanitation projects in Limpopo have been subjected to lengthy delays. Mahlobo blamed corruption in the DWS and implementing agents, poor planning, poor performance of contractors, weak project and contract management by implementing agents, vandalism and theft, and illegal connections. Investigations into the Giyani water project by the Special Investigating Unit (SIU) are ongoing. The former CEO and CFO of Lepelle Northern Water (LNW), a state-owned water utility responsible for bulk water provision in Limpopo, resigned. One LNW manager has been charged and dismissed. The SIU is also filing criminal and civil litigation to recover funds. New water projects Some of the long-term bulk water projects to begin between 2025 and 2030 are the N'wamitwa Dam, with an estimated budget of R6 billion, the Beitbridge/Musina intergrated water supply scheme, with an estimated R2 billion budget and the 10-year R25 billion Olifants management model water project. This massive project is meant to supply water to three municipalities, Jane Furse, Mogalakwena and Polokwane. Phase 1 of the project began last year. When complete, it is expected to provide water to 39 000 households. Phase 1 of the Olifants/Ebenezer bulk water scheme began last year with an estimated cost of R18 billion. The project is scheduled to start pumping 114 megalitres of water per day in 2027 and ultimately 270 megalitres of water per day in 2029. NOW READ: R3bn allocated to fix Limpopo's roads and build new ones
Yahoo
a day ago
- Business
- Yahoo
Unisys vs. IBM: Which Tech Stock Has More Upside in 2H 2025?
In today's dynamic tech landscape, investors are increasingly eyeing IT services stocks that strike a balance between innovation and stability. Unisys Corporation UIS and International Business Machines Corporation IBM both operate at the heart of this sector, offering enterprise solutions ranging from cloud infrastructure and cybersecurity to AI-powered services. While IBM commands global recognition as a legacy tech powerhouse with a diversified revenue base, Unisys represents a leaner, value-oriented contender undergoing a strategic transformation. As demand for digital modernization accelerates, the real question for investors is: which of these IT services stocks offers the better opportunity right now, IBM's scale and consistency or Unisys's turnaround potential? Unisys is fundamentally driven by its transformation strategy centered on expanding solution-based revenue streams, operational optimization and increased brand relevance in AI and cybersecurity. A major growth driver is its Device Subscription Services (DSS) and Digital Workplace Solutions (DWS), with recent signings including large-scale device management contracts across global clients. With the backlog in the DWS segment growing at a double-digit pace year over year and major DSS contracts set to roll out over the next several quarters, Unisys appears well-positioned to drive sequential growth in the back half of 2025. Management expects DSS-driven field services to play a key role in that rebound, especially as new enterprise storage work and AI-enabling infrastructure start to gain is another key pillar. Unisys is expanding its portfolio with Post-Quantum Cryptography solutions, managed threat detection, and agentic AI to help clients navigate growing cyber risks. The company is also rolling out AI-enabled frameworks, like its Service Experience Accelerator, that automate IT operations and enhance productivity. With strong new business signings (TCV up 80% Y/Y) and a resilient backlog, Unisys is positioning itself for sequential revenue growth despite near-term discretionary spending softness. Operationally, it is improving margins through workforce optimization and SG&A cost control, aiming for $100 million in pre-pension free cash flow in 2025. Unisys's fundamentals hinge on innovation, recurring contract wins, and niche strength in security, AI integration and infrastructure support. IBM is strengthening its AI portfolio by integrating governance and security into a unified platform, marking a significant step toward safer and more responsible AI deployment. The company introduced the industry's first integrated software that combines its trusted framework with Guardium AI security, enabling enterprises to monitor and manage AI systems transparently while safeguarding AI agents and models. Enhancements to Guardium, co-developed with now allow detection of emerging AI use cases across cloud environments and code repositories, ensuring robust protection of decentralized AI assets. Furthering its AI ambitions, IBM is also partnering with SAP to apply generative AI in retail and collaborating with the All England Lawn Tennis Club to boost fan engagement during Wimbledon, underscoring IBM's commitment to real-world, responsible AI core growth is being powered by its focused pivot toward hybrid cloud, AI, and recurring software revenues. The company's software segment, which now makes up nearly 45% of its business, delivered 9% growth in first-quarter 2025, driven by strong demand for Red Hat (up 13%), automation, data, and AI-powered tools like watsonx. A key driver is IBM's early leadership in generative AI, with a $6 billion book of business largely supported by its consulting is also seeing high-margin gains from its shift to subscription and platform-based services, boasting an 80% recurring revenue base in software. Operational discipline is another major factor, with productivity initiatives yielding over $3.5 billion in annualized savings, helping IBM expand margins and fund innovation. The company's balance sheet remains robust with $17.6 billion in cash, supporting its aggressive investments, including the acquisition of HashiCorp to strengthen cloud security and automation. Overall, IBM's fundamentals rest on the durability of its diversified portfolio, enterprise trust, innovation, and scale. The Zacks Consensus Estimate for UIS' EPS implies year-over-year increases of 28.9%. Earnings estimates for 2025 have witnessed upward revisions of 132% in the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for IBM's 2025 EPS implies year-over-year growth of 6%. Earnings estimates for 2025 have witnessed upward revisions of 0.4% in the past 60 days. Image Source: Zacks Investment Research UIS stock has declined 27.2% in the year-to-date period against its industry's growth of 28.1%. Conversely, IBM shares have surged 32.8% in the same time frame. Image Source: Zacks Investment Research UIS is trading at a forward 12-month price-to-earnings ratio of 5X, below its median of 10.59X last year. IBM's forward sales multiple sits at 25.85X, above its median of 21.47X over the same time frame. Image Source: Zacks Investment Research While IBM remains a formidable tech leader with strong AI, cloud, and software capabilities, Unisys appears better positioned for upside in the near term due to its transformation-driven momentum and strategic focus. The company is actively reshaping its business through innovation in AI and cybersecurity, expanding solution-based offerings, and driving operational improvements that are beginning to show results. Unisys' emphasis on recurring revenues, new contract wins, and emerging technologies like post-quantum security and agentic AI provides a compelling turnaround narrative. Meanwhile, IBM's strength lies in its stability and scale, but its upside may be more moderate, given its already elevated valuation and slower earnings revision trends. For investors seeking a value-oriented opportunity with potential for outsized gains, Unisys offers a more dynamic risk-reward profile at this stage of the cycle. UIS sports a Zacks Rank #1 (Strong Buy), whereas IBM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Unisys Corporation (UIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
5 days ago
- Business
- Yahoo
3 Diversified Bond Funds to Strengthen Portfolio Stability
Investing in diversified bond funds is preferred to individual bond investing, as building a portfolio of the second type may prove relatively more expensive. A higher level of liquidity also makes diversified bond funds more attractive. Moreover, mutual funds having significant exposure to diversified bonds are excellent choices for investors seeking steady returns with a relatively low level of risk. Investing in funds that maintain a portfolio of bonds issued across a wide range of market sectors also reduces sector-specific risk. Below, we share with you three top-ranked diversified bond mutual funds, namely DWS Short Duration DBPIX, BBH Limited Duration BBBMX and Osterweis Strategic Income OSTIX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds. DWS Short Duration invests in fixed income securities rated within the top four credit rating categories by a nationally recognized statistical rating organization. It may invest in securities of diverse maturities. The fund has returned 4.5% over the past three years. Bryan Dziuban has been one of the fund managers of DBPIX since 2024. BBH Limited Duration aims for maximum total return. BBBMX invests in a well-diversified portfolio of durable, performing fixed-income instruments, primarily focused on asset-backed securities, notes and bonds. The fund has returned 5.7% over the past three years. As of January 2025, BBBMX had 55.3% of its assets invested in Total Misc Bonds. Osterweis Strategic Income invests primarily in income-bearing securities. OSTIX seeks to control risk through rigorous credit analysis, economic analysis, interest rate forecasts and sector trend review, and is not constrained by any particular duration or credit quality targets. The fund has returned 6.9% over the past three years. OSTIX has an expense ratio of 0.81%. To view the Zacks Rank and the past performance of all diversified bond mutual funds, investors can click here to see the complete list of diversified bond mutual funds. Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> View All Zacks #1 Ranked Mutual Funds Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (DBPIX): Fund Analysis Report Get Your Free (OSTIX): Fund Analysis Report Get Your Free (BBBMX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
IOL News
21-06-2025
- Politics
- IOL News
Thirst for Justice: Billions wasted as taps run dry
Residents resort to fetching water, pushing buckets home on trolleys due to the ongoing water shortage in their area. With the committee vowing to recall the DWS for a deeper probe into water boards, South Africa's water catastrophe has reached a breaking point. Image: Oupa Mokoena/Independent Newspapers THE water crisis in South Africa is not looming — it's already here, fueled by systemic failures, corruption, and a dangerous blame game between national and local government. This sinking reality dominated the Standing Committee on Public Accounts (Scopa) hearing, where the Department of Water and Sanitation (DWS) faced an intense interrogation over its financial mismanagement, R25 billion in unpaid municipal debts, and the collapse of basic service delivery. Minister Pemmy Majodina, making her debut Scopa appearance under the seventh administration, delivered a rather sobering admission: 'There is no crisis in bulk water supply — but at household level, the system is collapsing.' The root cause? A staggering 105 of the country's 144 municipalities are chronically underperforming, leaving millions without reliable water despite South Africa's dams operating at 98% capacity. The Minister was quick to deflect accountability, citing the constitutional division of powers. 'Whenever there's no water in a village, the DWS is blamed. But reticulation is a local government function,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Yet the data presented by her department painted a damning picture of the consequences: Municipalities owe water boards R25bn, pushing critical entities such as Amatola, Lepelle, and Vaal Central to the brink of insolvency. Meanwhile, the DWS achieved just 70% of its performance targets despite spending 99.8% of its R21.4bn budget — a disparity Deputy Minister David Mahlobo attributed to 'multi-year infrastructure projects'. Corruption remains a festering wound. Over the past five years, the Department investigated 446 misconduct allegations, with 326 substantiated. Cases have been referred to the Directorate for Priority Crime Investigation (DPCI – alias Hawks) and the SA Police Service (SAPS), but convictions remain elusive. The SIU's ongoing probes reveal even darker rot: R4.7bn squandered on the 'War on Leaks' programme, which deployed untrained youth to fix municipal leaks — a function outside the DWS's mandate. Another R17.9 million was paid to a consulting firm with 'no evidence of work performed', while 'water tanker mafias' sabotage infrastructure to profit from emergency contracts. The hearing turned incendiary when MK Party MP Khethukuthula Madlala confronted the DWS over its inertia. 'If the government waits for formal complaints while people are being shot, we've failed,' he said. Minister Majodina conceded the grim reality: communities are too terrified to report extortion and vandalism, fearing violent retaliation. 'We share the frustration, but our hands are tied,' she admitted, highlighting the limitations of a system that requires sworn affidavits to act against criminal networks. The Auditor-General's findings further eroded confidence. The DWS has received three consecutive unqualified audits with 'material misstatements', while 37 procurement deviations, including a water-saving campaign that ballooned to R4.4bn, double its budget, exposed glaring financial controls. The Water Trading Entity (WTE) is owed R18bn, with debtors now taking 573 days to pay, up from 451 days last year. The collapse of water boards emerged as a national security threat. While Rand Water and Umngeni were praised as 'world-class', entities like Amatola and Magalies are buckling under municipal debt and governance chaos. Vaal Central's potential failure would paralyse the Free State and Northern Cape. Court battles rage as defiant municipalities — some owing billions, 'take the DWS to court after receiving debt letters'. The DA's Peter Atkinson delivered a warning: 'At R12bn a year, it will take 40 years to fix water infrastructure.' The DWS's own estimates confirm R400bn is needed just for the worst-performing municipalities, excluding metros. While the Department touted public-private partnerships as a solution, Deputy Minister Mahlobo acknowledged a brutal truth: 'Investors won't touch bankrupt municipalities.' The EFF's Veronica Mente's closing remarks cut to the heart of the crisis. 'Thirty years into democracy, flushing a toilet is still a luxury,' she said, demanding that the DWS take over municipal water functions. 'This isn't just failure — it's betrayal.' As the hearing adjourned, Scopa Chairperson Sizwe Zibi fired a parting shot: 'It's still your problem to solve. I'm sorry.' With the committee vowing to recall the DWS for a deeper probe into water boards, South Africa's water catastrophe has reached a breaking point — and millions are left waiting for a government that cannot, or will not, act. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
Yahoo
19-06-2025
- Business
- Yahoo
3 Mutual Funds to Buy on Continued Growth in Semiconductor Sales
Semiconductor sales have been steadily rising over the past year, largely driven by the enthusiasm surrounding artificial intelligence (AI), particularly generative AI. Robust demand across multiple industries has led to significant revenue growth in the semiconductor sector over recent quarters. In fact, the semiconductor industry, a key segment of the broader tech market, played a key role in powering last year's market upswing. Given these positive trends, investing in semiconductor-focused mutual funds — such as DWS Science and Technology A KTCAX, Fidelity Select Technology Portfolio FSPTX, and Red Oak Technology Select ROGSX — may be a smart move. According to the Semiconductor Industry Association (SIA), global semiconductor sales jumped a solid 2.5% sequentially in April, hitting $57 billion, up from $55.6 billion in March. Year over year, sales grew 22.7%. This marked the 11th consecutive month of year-over-year growth above 17%. SIA President and CEO John Neuffer said, 'Global semiconductor sales in April ticked up on a month-to-month basis for the first time in 2025, and the global market continues to notch year-to-year growth driven by increasing sales into the Americas and Asia Pacific.' The initial decline in monthly sales this year was sparked by uncertainties over the future of U.S. tech companies in AI following the launch of the low-cost Chinese AI model DeepSeek. However, concerns eased quickly, with many experts viewing the launch as overly hyped. The solid April performance followed an impressive 2024, when global semiconductor sales reached $627.6 billion, reflecting a 19.1% increase over 2023's $526.8 billion. Fourth-quarter sales alone grew 17.1% year over year, totaling $170.9 billion. The growth was largely fueled by rising demand for semiconductors in data centers, with memory chips contributing significantly to revenues. As tech firms continue to invest heavily in AI, the semiconductor industry is expected to benefit further. Experts predict strong demand to continue into 2025, with the SIA anticipating double-digit sales growth. We have, thus, selected three mutual funds with significant exposure to semiconductor producers. These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to gain from the above factors. Moreover, these funds have encouraging three- and five-year returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund. The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money). DWS Science and Technology A fund seeks growth of capital. Under normal circumstances, KTCAX invests at least 80% of its net assets in common stocks of U.S. companies in the technology sector. DWS Science and Technology A fund has a track record of positive total returns for over 10 years. Specifically, KTCAX's returns over the three and five-year benchmarks are 18.6% and 17.1%, respectively. DWS Science and Technology A fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.88, which is lower than the category average of 1.03%. To see how this fund performed compared to its category and other #1 or 2 Ranked Mutual Funds, please click here. Fidelity Select Technology Portfolio fund seeks capital appreciation by investing most of its assets in common stocks of companies principally engaged in offering, using, or developing products, processes, or services that will provide or benefit significantly from technological advances and improvements. Specifically, Fidelity Select Technology Portfolio's returns over the three and five-year benchmarks are 15.7% and 18.3%, respectively. FSPTX carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.62%, which is lower than the category average. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here. Red Oak Technology Select fund seeks long-term capital growth by investing primarily in stocks of companies that rely extensively on technology in their product development or operations, or which may be experiencing growth in sales and earnings driven by technology-related products and services. ROGSX primarily invests in technology companies that develop, produce, or distribute products or services related to computers, semiconductors and electronics. Red Oak Technology Select fund's returns over the three and five-year benchmarks are 12.8% and 13.5%, respectively. ROGSX carries a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.92% To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here. Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FSPTX): Fund Analysis Report Get Your Free (ROGSX): Fund Analysis Report Get Your Free (KTCAX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
