V&A Waterfront to source 70% of its energy from renewables by 2026
The V&A Waterfront in Cape Town has signed a 10-year agreement with Etana Energy to receive 43 GWh of renewable energy (covering up to 70% of its energy needs) annually from 2026. This will significantly cut the Waterfront’s carbon footprint, with nearly 80% of its electricity coming from renewables combined with rooftop solar. The Waterfront has already reduced carbon emissions by 47%, water usage by 61%, and diverted 62% of waste from landfills, with plans to eliminate single-use plastics by 2025. Future projects include a waste-to-energy plant, a blackwater treatment facility, and a desalination plant.
Source: Moneyweb
Africa Data Centres secures R2 billion facility from RMB
Africa Data Centres, a subsidiary of Cassava Technologies, has secured R2 billion in funding from Rand Merchant Bank (RMB) to expand its services in South Africa. This “bespoke financing solution” will enable the company to increase its hyperscale data centre capacity by an additional 20MW to meet the growing demand for cloud computing services. RMB, part of FirstRand Bank, acted as coordinator, lead arranger, and book runner for the transaction. Africa Data Centres operates facilities in Cape Town, Midrand, Centurion, Nairobi, and Lagos, with Cassava Technologies providing communications solutions across 13 African countries.
A collective sigh of relief after court ruling on tax debt
The Constitutional Court’s judgment in favour of an asset management firm has ended a protracted legal battle with the South African Revenue Service (SARS) over a multimillion-rand tax debt. The court criticised the previous Supreme Court of Appeal (SCA) ruling as “unsustainable” and ordered SARS to cover the firm’s legal costs, dismissing the R800 million tax claim. This decision clarifies the tax exemption status for foreign business operations and alleviates concerns for South African multinationals about outsourcing practices. Future legislative changes proposed by the National Treasury are now unlikely to proceed in their original form due to the court’s findings.
Source: Moneyweb
Market moves
The South African rand has become the top choice for carry trades against the low-yielding Japanese yen, overtaking the Mexican peso, according to Jefferies Financial Group. This shift follows a business-friendly election outcome in South Africa, boosting investor confidence. The rand reached its strongest level in 10 months, breaking through the R18/$ mark, as Cyril Ramaphosa was sworn in as president. In contrast, the Mexican peso has struggled, losing over 7% against the US dollar due to policy uncertainties under President-elect Claudia Sheinbaum. This change reflects a broader market trend favouring the rand over Latin American currencies.
Source: Moneyweb; Bloomberg; OIG To The Point
The week ahead
Today, Japan will announce its Bank of Japan (BOJ) Core Consumer Price Index (CPI), South Africa will release leading indicators data, and the United States will disclose its House Price Index. Wednesday brings the United States’ Crude Oil Inventories report. Thursday features South Africa’s South African Reserve Bank (SARB) Quarterly Bulletin, Producer Price Index (PPI) data, Japan’s Retail Sales figures, and the United States’ Gross Domestic Product (GDP) data. Finally, on Friday, the United Kingdom will report its Gross Domestic Product (GDP), while South Africa will release Private Sector Credit and Trade Balance data.
Source: Investing.com
Market Performance as at 21 June 2024
Source: FundFocus. Data as at 21 June 2024. Past performance is not a reliable guide to future performance. For illustrative purposes only and not indicative of any investment.