Business News - 19 September 2025

Economic Overview

The South African rand strengthened slightly over the past week. On 19 September the rand traded around R17.34 per US$, up from roughly R17.37 a week earlier. It also firmed against the euro, moving from about R20.5 to R20.4 per €, and against the British pound, from roughly R23.5 to R23.4 per £. Investors were encouraged by the South African Reserve Bank’s (SARB) decision to hold the repo rate at 7 %, noting that rates had been cut 125 basis points since September 2024. Inflation remained low: headline inflation slowed to 3.3 % in August, prompting some analysts to speculate about further easing. Long‑term inflation expectations also dipped to 4.2 %, down from 4.4 %, reinforcing the view that price pressures are contained.

Cell C on its own feet

Blue Label is preparing to separate Cell C and pursue a standalone JSE listing, giving the mobile operator a cleaner capital structure and the ability to raise funds directly for network modernisation and customer growth. Management says an unbundling would also let investors value Cell C independently of Blue Label’s core prepaid and fintech operations, which have very different risk-return profiles. The plan follows a multi-year turnaround at Cell C and is aimed at unlocking value that the market struggles to see inside a conglomerate.

If the listing proceeds, Cell C could compete more aggressively with MTN, Vodacom, Rain and Telkom by tapping equity and debt markets in its own name. For Blue Label holders, a simpler group can mean a clearer story, better comparability, and potentially a sum-of-the-parts uplift. The next steps are board, shareholder and regulatory approvals—plus finalising the structure so Cell C can stand alone with the right leverage and wholesale network arrangements.

ArcelorMittal SA Flags 4,000+ Job Cuts

ArcelorMittal South Africa has warned that planned retrenchments could exceed 4,000 roles, almost half its workforce, as losses deepen on the back of weak demand, high power prices, logistics snags and import pressure. The figure is above earlier estimates linked only to the long-steel plants, with the flagship Vanderbijlpark flat-steel site now also in scope, union Solidarity says. The company remains in talks with stakeholders but says it must act to stop the bleed.

Regulators have shown some willingness to help: energy regulator NERSA said the company qualifies for discounted electricity tariffs under a negotiated pricing agreement, although Eskom must still agree the deal. Even with tariff relief, the road back is steep—plant closures threaten supply chains in construction, autos and mining, while a decision window looms as earlier shutdown deferrals expire. Expect intense engagement over the coming weeks as labour, government and Eskom weigh the trade-offs.

Amazon steps into the mall

Amazon South Africa has launched “Shop Mzansi” pop-up stores—live at Mall of Africa (18–21 Sept) and next at Tyger Valley (24–28 Sept)—to showcase products from local entrepreneurs and give online-first sellers a physical stage. The activations highlight Heritage Month and bring demonstrations, founder stories and app-based offers designed to convert foot-traffic into marketplace buyers.

For small brands, the benefit is discovery: pop-ups reduce the trust gap for new-to-brand shoppers and feed Amazon’s marketplace flywheel with richer content and reviews. For Amazon, it’s a data exercise—testing clicks-to-bricks in South Africa, measuring conversion to online baskets, and learning which categories warrant deeper local investment. If the format lands well, expect more cities, more training for sellers and tighter online-to-offline journeys.

Eskom plugs a costly leak

Eskom says it has contained a fraudulent prepaid-token scheme—known as “ghost vending”—that exploited its Online Vending System and contributed to roughly R23 billion in revenue losses in the prior financial year. The utility has strengthened IT controls, accelerated smart-meter rollouts and worked with law enforcement after discovering insiders and syndicates were issuing illegal tokens at scale.

Closing the loophole is about more than revenue: it restores confidence in prepaid systems for households and businesses and prevents honest customers cross-subsidising theft. Eskom says it’s fast-tracking a new, more secure vending platform, and warns that counterfeit tokens won’t work on municipal systems tied to different infrastructure—reducing scope for spill-over fraud.

R1.8 billion for SMEs: IFC Backs FirstRand’s Lending Push

The International Finance Corporation (IFC) has set up a $100 million (≈R1.8 billion) risk-sharing facility with FirstRand Bank, covering half the credit risk on a portfolio of loans to SMEs in South Africa. The goal is to make lending more accessible and affordable by lowering capital costs and encouraging cash-flow-based underwriting via FNB’s channels.

SMEs generate a large share of jobs and GDP but remain credit-constrained; IFC and FirstRand argue that targeted facilities can widen the funnel without relaxing standards. Public updates this week reaffirm the facility’s deployment to thousands of underserved businesses, signalling a push to support working capital, equipment purchases and value-chain finance where it can multiply employment.

SA Space Tech Goes Global: Simera Sense Wins French SSA Deal

Stellenbosch-linked Simera Sense has been selected to supply optical payloads for Infinite Orbits’ Orbit Guard space-situational-awareness mission under France’s CNES/France 2030 programme. Its xScape cameras will deliver Non-Earth Imaging—the ability to focus on satellites and debris rather than the planet—supporting safer, more reliable orbits.

It’s a flagship export win for South African new-space hardware. Multiple industry outlets confirmed the contract this week, noting that Simera’s portfolio ranges from the compact xScape50 to higher-resolution xScape100/200 units, with over forty payloads already on orbit. Beyond revenue, the project strengthens European SSA capacity and gives Simera fresh credentials for future constellations.

Campus of the Future: ADvTECH’s R420m “Emeris” Takes Shape

Education group ADvTECH is investing R420 million into a new Sandton “Emeris” mega-campus that will bring Varsity College, Vega and MSA under a single tertiary brand from 2026, with capacity for up to 9,000 students. Facilities include IT labs, design studios, a library and sports areas—geared to blend creative, business and tech pathways in one hub.

The strategy is to simplify branding, scale shared services and align curricula with scarce-skills hiring. Tertiary growth has been one of ADvTECH’s strongest engines; the Emeris move aims to deepen industry links and produce work-ready graduates in design, media, data and commerce—areas where employers say supply still lags demand.

Security Heavyweights Unite: Fidelity to Acquire SSG Holdings

Fidelity Services Group has acquired a majority stake in SSG Holdings, adding roughly 9,000 employees across guarding, cleaning and facilities-management to its national footprint. The tie-up brings two former Springbok captains—SSG chair John Smit and Fidelity CEO Wahl Bartmann—into the same boardroom and pushes Fidelity’s network beyond 255 locations and 69,000 staff.

For large clients, the appeal is one contract, many services—bundling physical security with tech, hygiene and FM. Fidelity says the deal accelerates its integrated-services strategy across Southern Africa; industry coverage notes the expanded reach and a stronger platform for cross-selling and national service-level consistency.

U.S. bid for Metrofile

An investor consortium led by U.S. interests has offered R3.25 per share in cash—about R1.37–R1.4 billion—to buy out Metrofile, the records- and data-management firm. The board supports the proposal, which triggered a sharp share-price jump as investors weighed the premium and the chance to accelerate digitisation under private ownership.

For Metrofile, the buyers bring capital and software expertise to push deeper into cloud archiving, workflow tools and AI-assisted retrieval, while maintaining its compliant physical-storage base. For shareholders, it’s a near-term liquidity event at a premium; for customers, management says continuity is the plan while the new owners invest for the long term.

Momentum keeps… momentum

Momentum Group reported record normalised headline earnings of R6.26 billion for FY-2025, up around 41–46 % year-on-year, and approved a further R1 billion share buyback alongside a higher dividend. Strength came from Momentum Investments, Metropolitan Life, Momentum Corporate and Guardrisk, with management pointing to disciplined pricing and distribution.

In a tough economy, the numbers signal strong cash generation and capital resilience. The strategy now focuses on platform upgrades, adviser-network depth and cost discipline into FY-2026, while returning capital where the group sees limited M&A at attractive returns. External trackers also flagged margin and EPS gains, underscoring a broadened earnings base.

Conclusion

This week showed South African companies pushing ahead with focused execution. We saw a major telecoms unbundling plan, a steel giant taking hard medicine, global and local capital backing SMEs and buyouts, and innovative moves in education, security, fintech and space tech. Retail is experimenting too, with Amazon using pop‑ups to connect local entrepreneurs to national demand.

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