South Africa’s airports to undergo multi-billion expansion

South Africa is set to revamp its aviation infrastructure with R21.7 billion expansions at Cape Town International and OR Tambo International airports, as announced by Transport Minister Sindisiwe Chikunga. These expansions aim to modernize and enhance facilities, with major projects including a R3 billion runway realignment at Cape Town and a new R5 billion cargo terminal at OR Tambo.

Moody’s Upgrades Ratings for Seven South African Banks

Moody’s Ratings Agency has positively revised the deposit ratings of seven major South African banks, signaling confidence in their resilience despite challenging operating conditions. The upgraded institutions include Standard Bank, Absa, FirstRand, Nedbank, Investec, African Bank, and Bidvest Bank, reflecting strong capital, funding, and profitability profiles. This rating upgrade demonstrates Moody’s confidence in the resilience and stability of South Africa’s banking sector, highlighting the banks’ abilities to navigate through economic headwinds.

Mondi acquires DS Smith for R119 billion, creating a global packaging powerhouse

Mondi Plc is set to acquire DS Smith Plc for R119 billion a move that will create one of the world’s largest packaging manufacturers. The purchase price represents a 33% premium over DS Smith’s share price before the acquisition talks were made public. This strategic merger aims to capitalize on cost savings and the benefits of increased scale amid industry consolidation. Post-deal, Mondi shareholders will own 54% of the merged entity, with DS Smith shareholders holding the remainder. The agreement underscores the evolving dynamics of the packaging sector, which saw a demand surge during the pandemic.

Markets

In the early trading hours of Monday, March 11, 2024, the South African Rand experienced a slight dip against the US dollar, marking its position at R18.79. Furthermore, South Africa’s benchmark 2030 government bond showed a slight improvement, with its yield dropping to 10.105%, indicating a bit of investor optimism in the nation’s assets.

Week ahead: Tuesday will see the release of the UK unemployment rate and the US Consumer Price Index (CPI). Wednesday will feature the UK’s Manufacturing production and Trade balance, along with the Eurozone’s Industrial production. Thursday’s schedule includes South Africa’s gold and mining production as well as manufacturing production, in addition to the US Producer Price Index (PPI). The week concludes on Friday with India’s Trade balance figures being published.