Latest news with #R3.8bn
TimesLIVE
29-06-2025
- Business
- TimesLIVE
Gauteng to pay second instalment of R3.377bn towards historical e-toll debt
The Gauteng government will on Monday make a payment of R5.476bn towards the e-toll debt and the contribution towards the SANRAL Gauteng Freeway Improvement Project, Gauteng finance MEC Lebogang Maile said. Maile said the government will be paying the second instalment towards the historical e-toll debt which, based on the memorandum of agreement, amounts to R3.377bn. 'This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30% contribution,' he said. The provincial government made the first instalment of R3.8bn in September 2024, consisting of R3.2bn historical debt and the maintenance portion of R546m. In addition to the e-toll payment, Maile said the provincial government will also transfer an amount of R2.099bn as part of the contribution towards the backlog of rehabilitation to restore the GFIP 1 freeways to an acceptable condition before SANRAL resumes its obligations for all future maintenance funded by the national fiscus. He said the amount outstanding for SANRAL's Gauteng freeway projects was R3.559bn. 'We must emphasise that in terms of the agreement, SANRAL cannot use these funds for any purpose other than the nine projects that are financed by the province. SANRAL is also required to report to the Gauteng provincial government on progress being made with the implementation of these projects. This will include providing credible information on developmental objectives such as how these projects contribute to economic growth in the province, the number of jobs being created through these projects and related social and economic benefits,' he said. Maile said the implications of the e-toll debt and contributions to SANRAL's Gauteng Freeway Improvement Project require the Gauteng government to manage finances prudently, while carefully balancing the service delivery needs of residents. He said the provincial Treasury has a five-year budget approach that will facilitate provincial delivery based on the Medium-Term Development Plan for the seventh administration. 'The five-year budget approach will focus on introducing and implementing immediate, short-term, and medium-term budget reforms over the 2025 MTEF. This includes maintaining fiscal discipline and credibility, and impactful service delivery. Over the next few years, the Gauteng provincial government will have to allocate a substantial amount of funds each year to service the repayment obligations for e-tolls. This will be happening in a constrained fiscal environment, details of which we expressed in the initial budget speech and reiterated when we re-tabled the budget for the 2025/2026 financial year,' Maile said. Maile noted that the funding envelope was stretched by existing allocations, particularly in keeping critical social programmes in health and education funded. 'Nevertheless, we reaffirm our commitment to the residents of Gauteng that the servicing of the e-toll debt will not compromise our priorities, particularly with social services such as health and education,' he said. Maile said the provincial government was implementing various measures and reforms to ensure the sustainability of the fiscal environment, including active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement.
IOL News
24-06-2025
- Business
- IOL News
Transforming energy: Absa CIB's R1. 6 billion boost for South Africa's wind farm
Absa Corporate and Investment Banking (CIB) has provided renewable energy finance through the provision of R1.6 billion in facilities to FE Overberg (RF), for Phase 2 of the FE Overberg Wind Project. Once completed, FE Overberg (comprising Phase 1 and Phase 2) will constitute South Africa's largest privately developed wind farm. Red Rocket Holdings is the Independent Power Producer (IPP) responsible for the development of the FE Overberg Wind Project, with a total overall capacity (Phase 1 and Phase 2) of 380 MW. With total debt facilities of R3.8bn, the Phase 2 project will generate 150MW of clean wind energy for Discovery Green (DG), a licensed electricity trader and subsidiary of Discovery Limited. The debt facilities will substantially finance the project's full lifecycle – from design and construction to operations and maintenance – ensuring the supplying of 100% renewable energy to DG's customers under a 25-year Power Purchase Agreement (PPA) between FE Overberg and DG. The project is expected to provide green energy to DG's customers at a competitive energy tariff
IOL News
18-06-2025
- Business
- IOL News
Funding crisis looms for SA Post Office and Post Bank as rescue practitioners prepare to exit
The National Treasury firmly ruled itself out as an option to recapitalise SAPO. Image: Supplied Uncertainty surrounds the funding of about R7 billion needed to recapitalise both the South African Post Office (SAPO) and the Post Bank after National Treasury firmly ruled itself out as an option. This comes as the SAPO Business Rescue Practitioners prepare to exit the process, leaving the entity with a R1.7bn paper profit. During a briefing to Parliament's Portfolio Committee on Digital Technologies and Communications on Tuesday, SAPO's group acting CEO, Fathima Gany, expressed the urgency of the situation. Gany said SAPO required R3.8bn to efficiently run its extensive network of 657 branches while integrating necessary digitisation capabilities. "The magic number is R3.8bn. It could be anything else, unfortunately the fiscus doesn't have the ability to give us that and we have to appreciate that. How do we get SAPO fit for business to operate in this futuristic space that's digitalised?" Gany said. "We don't know what the funding model will be as we go out to the market. It has to be a hybrid because if it's not a hybrid and we turn only to the fiscus and the answer is no, then its a futile discussion on how to get SAPO ready for business." 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 ✕ Gany said the Post Office had settled all historical and outstanding debt through the business rescue process in a compromise that saw 12 cents to the rand paid out to the creditors, with the remainder flushed into the profit and loss account. She said SAPO looked like it made profits but those were none cash profits, and they were on the back of expenses while there were some creditors in dispute and immaterial amount. Gany said SAPO was close to finalising a service-level agreement with the Post Bank in the services it delivers to it, and some of the commercial revenue streams envisaged from postal branches. Meanwhile, Post Bank acting CEO Nikki Mbengashe said it was unclear how the bank could structure the at least R3bn required for it to serve the identified niche. Mbengashe said one of the options was to obtain guarantees from the National Treasury to enable the bank to raise funding without necessarily diluting the shareholding. "How much funding do we need? A lot if we really want to build branches, if we want to build digital presence. We don't have ATMs, branches and the infrastructure we need to have to provide digital capabilities," Mbengashe said. "The minimum is R3bn. We have done that exercise, we are engaging with the board in our next meeting. We have no intention of privatising the Post Bank, but we do need funding therefore we need to find options. We have gone to the National Treasury three times and three times the National Treasury has said no." Cape Argus
IOL News
17-06-2025
- Business
- IOL News
SA Post Office, Post Bank face R7bn funding crisis as rescue practitioners prepare exit
This comes as the SAPO Business Rescue Practitioners prepare to exit the process, leaving the entity with a R1.7bn paper profit. Image: Independent Newspapers Archives Banele Ginidza Uncertainty surrounds the funding of about R7 billion needed to recapitalise both the South African Post Office (SAPO) and the Post Bank after National Treasury firmly ruled itself out as an option. This comes as the SAPO Business Rescue Practitioners prepare to exit the process, leaving the entity with a R1.7bn paper profit. During a briefing to Parliament's Portfolio Committee on Digital Technologies and Communications on Tueaday, SAPO's Group acting CEO, Fathima Gany, expressed the urgency of the situation. Gany said SAPO required R3.8bn to efficiently run its extensive network of 657 branches while integrating necessary digitisation capabilities. "The magic number is R3.8bn. It could be anything else, unfortunately the fiscus doesn't have the ability to give us that and we have to appreciate that. How do we get SAPO fit for business to operate in this futuristic space that's digitalised?" Gany said. "We don't know what the funding model will be as we go out to the market. It has to be a hybrid because if it's not a hybrid and we turn only to the fiscus and the answer is no, then its a futile discussion on how to get SAPO ready for business." 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 Next Stay Close ✕ Ad loading Gany said the Post Office had settled all historical and outstanding debt through the business rescue process in a compromise that saw 12 cents to the rand paid out to the creditiors, with the remainder flushed into the profit and loss account. She said SAPO looked like it made profits but those were none cash profits, and they were on the back of expenses while there were some creditors in dispute and immaterial amount. Gany said SAPO was close to finalising a service-level agreement with the Post Bank in the services it delivers to it, and some of the commercial revenue streams envisaged from postal branches. Meanwhile, Post Bank acting CEO Nikki Mbengashe said it was unclear how the bank could structure the at least R3bn required for it to serve the identified niche. Mbengashe said one of the options was to obtain guarantees from the National Treasury to enable the bank to raise funding without necessarily diluting the shareholding. "How much funding do we need? A lot if we really want to build branches, if we want to build digital presence. We dont have ATMs, branches and the infrastructure we need to have to provide digital capabilities," Mbengashe said. "The minimum is R3bn. We have done that exercise, we are engaging with the board in our next meeting. We have no intention of privatising the Post Bank, but we do need funding therefore we need to find options. We have gone to the National Treasury three times and three times the National Treasury has said no."
TimesLIVE
27-05-2025
- Automotive
- TimesLIVE
Zeda records lower revenue as corporate customers delay investment
Car rental group Zeda, which operates the Avis and Budget businesses, reported lower revenue for the half year to March as the challenging trading environment forced corporate customers to delay investment decisions, including fleet replacement and holding onto vehicles for longer. Small to medium enterprises (SMEs) also came under similar strain, particularly in the mining and transport sectors. Revenue was down 1.6% to R5.2bn. The leasing business segment delivered a solid performance, with revenue increasing by 5.6% to R1.4bn, underpinned by increased penetration within the corporate, heavy commercial fleet and the rest of Africa businesses. The leasing business maintained its growth trajectory, despite the overall delayed fleet investments, Zeda said. It said the upward trajectory of additional revenue was affected by corporate customers delaying replacement cycles and some constraints from SMEs with contracts in the mining and transport sectors in South Africa. Heavy commercial remains a steady growth pillar for Zeda, with a healthy order book. The car rental segment's revenue decreased by 4% to R3.8bn due to a drop in used car volumes. However, excluding the car sales business, rental revenue remained flat. 'We were able to defend the revenue levels despite a decline in the replacement and inbound business. Rental days increased by 2.5%, primarily driven by a 49% rise in the short-term subscription business, following an improvement in technology that made transactions easier for customers,' said Zeda. Zeda has on average more than 20,000 vehicles in its fleet in Southern Africa. Its customer segment base is diversified and consists of the private sector, public sector, insurance business (replacement), inbound market, domestic leisure market and short-term subscription. This business provides a range of self-drive and driven products and services, including car and van rental, chauffeur services and luxury vehicle services. 'In a period where traditional car rental and vehicle sales faced mounting pressure, our leasing, subscription and greater Africa strategies delivered, helping grow earnings, improve margins and continue investing for the long term. 'We achieved this through a stringent implementation of the operating model of financing right, buying right, using right and disposing right,' said Zeda CEO Ramasela Ganda. Zeda anticipates improved performance in the second half of its 2025 financial year, driven by stronger car sales, contract renewals and subscription momentum. Ganda said the bedrock of Zeda's growth pillars consists of the subscription business, the corporate leasing book, greater Africa, and the used car business. 'These pillars provide us with access to vehicles, markets and a disposal channel, which are core to our fundamentals, which remain strong despite the challenging trading environment.'
