Business News - 4 July 2025

Economic Overview – Rand Strengthens on Improved Sentiment

The South African rand has slightly strengthened against the US dollar and British pound over the past four weeks, while slipping a bit against the euro. It’s now trading around R17.6 per US$, R23.9 per £, and R20.6 per €, compared to roughly R17.8, R24.3, and R20.3 a month ago.

Early in June, better-than-expected current account data (a smaller deficit) gave the rand a boost. By the end of June, easing global risk fears – notably a ceasefire in the Middle East conflict – weakened the safe-haven dollar and helped the rand regain ground against the USD. The rand had underperformed against the euro and pound during risk-off weeks, remaining weaker than its yearly average against those currencies. However, as geopolitical tensions calmed and risk aversion eased, the rand saw a mild recovery even versus the euro and pound. In summary, global factors (like U.S. tariff pauses and war de-escalation) and local fundamentals (solid external accounts and low inflation) have kept the rand relatively stable to slightly firmer this past month.

Sun International Cancels R7 Billion Casino Deal

Sun International has called off its R7.3 billion bid to acquire Peermont Group, the owner of Gauteng’s Emperors Palace casino. The deal was terminated by mutual agreement after South Africa’s Competition Tribunal scheduled merger hearings too late, missing the deal’s long-stop date. In essence, protracted regulatory delays and “deal fatigue” set in as the process dragged on for 18 months. The takeover was first announced in early 2024, but unresolved competition concerns and discovery disputes kept pushing the approval out. Rather than continue uncertain negotiations, both parties opted to walk away. Investors reacted positively to the news – Sun International’s stock jumped over 7% on the announcement, and it’s up about 25% from a year ago. The cancelled deal spares Sun International from taking on a huge acquisition amid a tough economy, and it highlights frustrations with slow competition rulings. Sun’s CEO noted that given the time elapsed and changes in the market (like the rise of online gambling reducing the importance of physical casino monopolies), the rationale for the merger had weakened.

Bottom line: Sun International will focus on its existing casinos and projects for now, as the ambitious Emperors Palace takeover is off the table.

Hyprop Sells 50% of Hyde Park Mall for R805 Million

Hyprop Investments, a major JSE-listed property investor, is selling 50% of the Hyde Park Corner shopping centre in Johannesburg for R805 million. Hyde Park Corner is an iconic upscale mall with 118 stores and an annual foot traffic of 3.5 million, fully owned by Hyprop until now. The buyer is a local real estate firm (Millennium Equity Partners’ subsidiary), which will take half ownership of the mall and its rental income stream. Hyprop even secured an option to potentially sell the remaining 50% stake down the line, indicating it may eventually exit the asset entirely. This move is strategic: Hyprop wants to rebalance its portfolio, allocating more capital to growth areas like the Western Cape and its Eastern European properties. Hyde Park, while a premier mall, is a mid-sized centre in Gauteng – and Hyprop signaled it plans to focus on larger regional malls. In the short term, proceeds from the sale will reduce debt and fund new investments (including more solar installations and upgrades at its other centers). This sale illustrates how property companies are reshuffling portfolios – even selling flagship assets – to strengthen balance sheets and pursue better growth prospects. For Hyde Park Corner shoppers and tenants, business continues as usual, just with a new co-owner in the mix.

Trellidor Offloads Two Units to Cut Debt

Durban-based security barrier company Trellidor is selling two underperforming divisions – Taylor Blinds and NMC – for up to R90 million as it refocuses on its core business. Trellidor had acquired these home décor and blinds businesses a few years ago, but they never met performance expectations. Lacking synergy with Trellidor’s mainstay security gates and shutters, the units’ returns on capital fell below targets. Now Trellidor has signed an agreement to sell 100% of Taylor Blinds and NMC SA (which makes decorative mouldings) to a buyer called Sole Ceramics, with the price capped at R90 million (subject to the subsidiaries’ net asset value). The rationale is to streamline operations and reduce debt: management admits these units distracted from Trellidor’s core and didn’t integrate well. By shedding them, Trellidor will cut overhead costs, pay down borrowings, and concentrate on its profitable security products. The deal, effective 30 June, is expected to ultimately improve shareholder value and returns. Trellidor’s latest results showed decent earnings growth from its main business, but high debt was a concern – this sale should help lighten the load. In short, the company is getting back to basics: doubling down on the Trellidor brand (security barriers) and cashing out of side ventures that didn’t pay off.

WeBuyCars Stays Focused on Used Cars

There’s been recent speculation that WeBuyCars might start selling new cars, but the company has poured cold water on the idea. At a media event, an executive was asked if the popular used-car dealer would expand into new vehicle sales. WeBuyCars responded that it has given little thought to selling new cars, as it prefers to stick to its core business of buying and selling used vehicles. The company built its brand (and large market share) by streamlining second-hand car sales, and for now it sees plenty of growth in that arena. Industry observers say moving into new car sales would be a big shift – requiring manufacturer agreements, warranties, and a different sales model – which could distract from WeBuyCars’ efficient used-car operations. The rumor was likely sparked by WeBuyCars’ rapid expansion (they now sell over 12,000 cars per month and have “Car Superstore” warehouses around the country). However, management indicated that any such move isn’t on the table currently. They are instead focusing on boosting used-car volumes, online sales tools, and financing options for customers, rather than entering the highly competitive new car dealership market. Takeaway: Car shoppers looking for new wheels shouldn’t expect a WeBuyCars showroom for brand-new models anytime soon – the company is sticking to what it knows best (pre-owned cars) in the foreseeable future.

Capitec Warns of Facebook Marketplace Scams

Capitec Bank has issued a fraud alert to customers about scams on Facebook Marketplace, which are on the rise and becoming more sophisticated. These scams typically involve criminals pretending to sell goods online – often at attractive prices – to lure buyers. Capitec’s warning notes that fraudsters often request upfront payments or deposits for items advertised on Marketplace, and then never deliver the goods. In other cases, scammers may send fake payment confirmations to sellers to trick them into handing over items without actually receiving money. The bank said this trend is leading to significant financial losses for victims and urged the public to be very cautious when shopping on peer-to-peer platforms.

Here are a few safety tips:

• Meet in person in a safe location: Whenever possible, do the exchange in person at a public place and avoid paying until you have the item.

• Beware of unrealistic deals: If the price seems too good to be true, it probably is. Scammers often entice buyers with huge bargains.

• Never trust unsolicited payment links or proofs: Don’t click random payment links sent by a “buyer,” and independently verify that you’ve received money into your bank account.

Capitec (and other banks) cannot easily recover money sent to fraudsters, so prevention is key. This consumer alert from one of South Africa’s biggest banks is a timely reminder to stay vigilant online, as scammers are constantly finding new ways to dupe people on marketplace platforms.

Tech Firm iOCO (EOH) Stages a Turnaround

A South African tech company formerly known as EOH has delivered an impressive turnaround – doubling investors’ money in a year. Now rebranded as iOCO, the IT services group was once mired in corruption scandals and heavy losses. But under a new shareholder-led leadership, iOCO’s share price has soared about 195% from its lows in April 2024 to March 2025, and the company swung back to profit. In February, iOCO announced a 220%–240% surge in earnings per share, translating to roughly R120 million net profit. Investors who bought in a year ago have seen the stock price roughly double, reflecting renewed confidence. How did they do it? The turnaround involved deep cost-cutting, asset sales, and a governance shake-up. Long-time CEO Stephen van Coller cleaned up much of the mess (firing implicated staff, settling debt, and even testifying about EOH’s past corruption), though the company remained fragile when he exited in 2024. Activist investors then took the reins: they replaced the board, and two of them – Rhys Summerton and Dennis Venter – even stepped in as co-CEOs (forgoing salaries) to drive the recovery. The new team implemented a three-phase strategy focusing on cost rationalisation, decentralisation, and targeted resource allocation.

By refocusing on core profitable contracts and shedding legacy baggage, iOCO has regained stability. The company even changed its name from the tainted “EOH” to iOCO in a bid to reset its image. While challenges remain, iOCO’s story so far is an encouraging example of a South African tech firm pulling back from the brink. Shareholders who stuck around are finally seeing rewards, and the company is cautiously optimistic that the worst is behind it.

Amazon Expands into SA Groceries Market

E-commerce giant Amazon is broadening its South African offerings to include groceries, pet food, and health products, stepping up competition with local retailers. Amazon launched in South Africa a year ago with a range of goods; now it has added a dedicated “Everyday Essentials” section featuring non-perishable groceries and household items. The new selection includes popular international brands (like Nestlé, Red Bull, Starbucks) as well as local favorites (Beacon chocolates, Simba chips, Koo canned goods). Amazon says these categories were among the top customer requests since its SA launch. The goal is to make Amazon a one-stop shop for more of people’s daily needs. This move pits Amazon directly against Takealot, the Naspers-owned online marketplace that currently leads South Africa’s e-commerce sector. Takealot has long sold groceries and essentials via its platform (and through Pick n Pay partnerships), so Amazon is essentially playing catch-up in this space – but with its global expertise and logistics muscle. Amazon is offering perks like same-day or next-day delivery in main areas and discounts on bulk purchases, aiming to win over shoppers with convenience and value. Early customer response has been “extremely positive,” Amazon SA reports, especially for bulk-buy deals and multipacks of everyday items.

For South African consumers, this expansion means more choice in online grocery shopping and potentially better prices as retailers compete. It also reflects Amazon’s commitment to the SA market: after setting up data centers and corporate offices here, the company is now aggressively going after retail segments traditionally dominated by local players. The battle for South Africa’s online grocery and essentials basket is officially on, and shoppers stand to benefit from the rivalry.

Takealot Looks to Former Post Office Staff for Logistics Expansion

South Africa’s top online retailer Takealot is exploring a plan to hire thousands of retrenched Post Office workers to support its national delivery network. This comes as part of its wider expansion and automation efforts across warehousing and logistics. With Takealot’s order volumes growing and demand for same-day delivery rising, the company sees an opportunity to bring on experienced, already-trained personnel who can adapt quickly to its systems.

If implemented, this move will help scale up Takealot’s operations without delays, improve national reach, and reduce last-mile delivery bottlenecks — while also providing jobs for workers recently displaced by public sector downsizing. It’s a clear example of how private sector companies are using digitisation and smart hiring strategies to solve business challenges and grow faster.

Huawei SA Rolls Out AI Cloud Tools for Local Businesses

Huawei South Africa has just introduced a new suite of AI cloud services aimed at helping local companies speed up their digital transformation. These include the CloudMatrix 384 AI supernode, designed for large data processing, and the Pangu large language model, tailored to South African business use cases. Huawei says these tools can be applied across industries like manufacturing, finance, and healthcare to automate repetitive tasks, optimise workflows, and unlock new insights from data.

The company is also working with local universities and SMMEs to train staff on AI tools, aiming to close the skills gap and encourage adoption. The message is clear: South African companies don’t need to wait for AI — they can start now. Huawei’s push shows growing momentum around accessible, enterprise-grade AI tools that help businesses become more efficient and competitive.

Study Reveals Company Culture Is Key to AI Success

New insights from Spencer Stuart, a global consulting firm with local presence, reveal that South African companies with strong learning cultures are more likely to succeed with AI. Their findings, released this week, show that businesses that encourage internal learning, promote cross-team collaboration, and link leadership goals to innovation are seeing faster and more successful tech adoption.

Rather than focusing only on the technology, Spencer Stuart argues that companies should first prepare their people. The research confirms a growing trend: firms that invest in training, change management, and purpose-led leadership are better equipped to implement automation and other advanced tools. This is especially relevant in SA, where many businesses are starting to integrate AI and digitisation at scale.

The bottom line: culture makes or breaks automation — and companies that build readiness from within will lead in the next business cycle.

Conclusion

This week’s headlines show a consistent theme: focus and execution. Whether it’s Sun International stepping away from an overextended merger, Hyprop and Trellidor sharpening their portfolios, or Takealot and Huawei doubling down on digital growth, South African companies are acting with greater intention.

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