Business News - 5 September 2025

Economic Overview

South Africa’s rand put in a mixed performance this past month, showing slight gains against the dollar while staying mostly flat against the euro and pound. At the start of August, $1 cost about R18.0, and by early September it was around R17.7 – indicating the rand strengthened modestly versus the US dollar. Against the euro, it moved from roughly R20.8 to R20.7 per €1, essentially remaining stable. Versus the British pound, it traded around R23.8 at the beginning and about R23.9 by month’s end, again showing little change. In summary, the rand firmed up a bit against the dollar but was largely steady against the euro and pound over the month.

Several factors influenced the rand in this period. Globally, expectations that the US Federal Reserve might cut interest rates soon helped support riskier currencies like the rand, although periodic strong US data gave the dollar bursts of strength. A major headwind came early in August when the U.S. imposed a 30% tariff on South African imports, sparking concerns about export losses and jobs. This initially pressured the rand, though the impact was partly offset later by improved investor sentiment as markets anticipated easier global monetary policy. On the domestic front, news of a better-than-expected trade surplus in July provided a brief boost, but ongoing challenges – like persistent power shortages (load-shedding) and worries about government finances – kept sentiment cautious. Prices of gold and other commodities hit highs during the month, which normally benefits the rand, but the currency remained range-bound as investors stayed vigilant.

MTN Shakes Up Leadership, Pushes for Telecom Industry Consolidation

 Africa’s largest telecom company, MTN, announced a sweeping management reshuffle in its South African operation as it strives to reignite growth. The company named Ferdi Moolman as the new MTN South Africa CEO, replacing the outgoing CEO in a bid to turn around the underperforming unit. This leadership change comes after MTN’s South Africa business saw revenue pressures and lost market share, even as the broader group remained profitable. Alongside the CEO switch, MTN’s Group CEO Ralph Mupita signaled that South Africa’s mobile market may need consolidation. He noted that having too many players is squeezing margins and investment, hinting that MTN would support a healthier landscape possibly through mergers or partnerships.

The revamped team in MTN South Africa is tasked with improving service quality, accelerating the rollout of 5G and fiber, and winning back customers. For South African consumers, the changes could mean better networks and new offerings ahead. MTN’s message is clear: strong leadership and a leaner industry structure are needed to ensure reliable coverage and affordable prices in the mobile sector.

Checkers Unveils Smart Trolleys – Grocery Shopping Goes High-Tech

 In a first for South African retail, Shoprite’s Checkers chain unveiled high-tech “smart” shopping trolleys that let customers skip the checkout line. Called the Xpress Trolley, the cart is equipped with a built-in barcode scanner and a touchscreen. Shoppers can scan items as they pick them off shelves, bag their groceries in the cart, and pay on the trolley itself via a linked payment card – all without unloading at a till. The screen on the trolley provides a running total, product info, and even store navigation, enhancing convenience. Checkers began trialing 20 of these smart trolleys at two stores in the Western Cape in mid-August. Early customers report a faster, easier shopping experience, scanning and paying as they go. The innovation is part of Shoprite’s broader digital strategy to make in-store shopping more frictionless and modern. If the pilot succeeds, we could see these smart carts rolled out to more supermarkets – blending automation with the familiar grocery trolley to save time for shoppers.

Transnet Rail Opens Tracks to Private Operators

In a significant shakeup for logistics, Transnet Freight Rail is allowing private companies to run trains on South Africa’s rail network for the first time. The government approved 11 private operators to run freight services on key lines that haul commodities like coal, iron ore, and manganese. This move comes as Transnet, the state-owned rail and ports company, has struggled with aging equipment, cable theft, and capacity shortfalls. By inviting private players such as logistics firm Grindrod, the aim is to boost efficiency and increase freight volumes moved by rail. The new operators, who won slots across 41 routes, are expected to add millions of tons of capacity starting next year. For example, exporters of bulk commodities (from miners to farmers) could soon have more reliable train services to ports, reducing their dependence on trucks. The arrangement includes safety and investment commitments from the private firms to upgrade rolling stock and infrastructure. In short, South Africa’s freight rail is shifting from a Transnet monopoly to a hybrid model, and businesses hope this will unclog transport bottlenecks, cut logistics costs, and improve export competitiveness over time.

Harmony Gold Strikes $1B Copper Deal in Australia

Harmony Gold, South Africa’s largest gold producer, struck a $1.08 billion deal to acquire Australia’s MAC Copper mining company, marking a bold expansion beyond gold. The deal – approved by MAC Copper’s shareholders and awaiting final regulatory clearances – will give Harmony ownership of a significant copper mine in New South Wales, Australia. Harmony’s CEO, Peter Steenkamp, has outlined a strategy to diversify the company’s portfolio for long-term stability, given that copper is in high demand for electric vehicles and renewable energy technology. By adding roughly 40,000 tonnes of copper output per year, Harmony gains a new revenue stream that isn’t tied to volatile gold prices. The South African Reserve Bank gave its approval for the cross-border deal in August, viewing it as a strategic investment abroad. This acquisition – one of the largest by a South African mining firm in recent years – not only hedges Harmony’s risk but also positions the company in the growing global copper market. If all approvals are met and the deal closes, Harmony will emerge as a more diversified miner with a foot in two continents, potentially boosting its resilience and growth prospects.

Barloworld Buyout Gets Saudi Green Light

Barloworld, the 120-year-old South African industrial group known for heavy equipment sales, is set to be acquired by a Saudi-led consortium in a R23 billion deal. In mid-August, South Africa’s Competition Tribunal approved the takeover by a consortium called “Newco,” which includes Saudi Arabia’s Zahid Group (a large family-owned conglomerate) and a local partner tied to Barloworld’s CEO Dominic Sewela. The approval came with conditions, notably a requirement to implement a broad-based black economic empowerment structure after Barloworld delists from the JSE (Johannesburg Stock Exchange). Barloworld is best known as the regional dealer for Caterpillar construction machinery, and it also has interests in automotive and logistics. The buyers have pitched the deal as a win for South Africa, saying it will bring in fresh capital and secure Barloworld’s long-term future. With shareholders and regulators on board, the acquisition is expected to be finalized by September pending a few remaining formalities. This transaction underscores growing Middle Eastern investment interest in South African companies. For Barloworld’s employees and customers, the immediate operations continue as normal, but new ownership could mean strategic shifts or expansion into new markets leveraging the consortium’s global reach.

Shoprite Breaks Records, Surpasses R250 Billion in Sales

Retail giant Shoprite reported record-high annual sales, exceeding R250 billion for the first time. In results released in early September, the supermarket group – which includes Shoprite, Checkers, and Usave stores – notched over R20 billion in additional sales compared to the previous year. This robust growth came despite a very tough consumer environment marked by low disposable income and rising living costs. Shoprite credits its success to competitive pricing and strong customer loyalty, as well as expansion in its lower-cost Usave chain to serve price-conscious shoppers. The company also highlighted operational improvements: better product availability (even with load-shedding challenges) and efficiencies from its ongoing “Smarter Shoprite” digital initiative. Notably, the group’s investment in e-commerce and the popular Sixty60 delivery service has started contributing meaningfully to sales as more South Africans embrace online grocery shopping. By prioritizing affordability and convenience, Shoprite managed to grow market share during the year. The upbeat results from Shoprite stand in contrast to some rivals that struggled – it shows that even in a strained economy, consumers flock to retailers that deliver value and consistency. Shoprite’s management remains cautious about the year ahead but confident that its scale and innovations will keep it ahead in the retail race.

Telkom’s Turnaround: Profits Rise as Digital Strategy Pays Off

Telkom, South Africa’s third-largest telecom operator, reported a 6.5% rise in quarterly core profit, signaling early success in its turnaround strategy. For the April–June quarter, Telkom’s EBITDA reached R2.8 billion, boosted by a surge in mobile subscribers and expanding high-speed internet services. The company’s mobile data customer base jumped 27% year-on-year to over 17 million users, and its Openserve division saw a 17% uptick in homes connected to fibre broadband. Telkom has been aggressively migrating customers off old copper landlines to new-generation fibre and 4G/5G networks, and this quarter’s numbers show that strategy paying off. Overall revenue crept up modestly by about 1%, indicating that growth in new services is offsetting declines in legacy voice lines. The partly state-owned Telkom also noted it’s reining in costs and refocusing on core businesses after divesting some units. Investors reacted positively – Telkom’s share price rose on the earnings news, reflecting optimism that the company may return to sustained profitability. While challenges remain (fierce competition and high infrastructure costs), Telkom’s latest results suggest it is on the mend by going all-in on digital and mobile services, which is good news for its customers seeking faster and more reliable connectivity.

Toyota SA to Launch First Electric Vehicles in 2026

Japanese auto giant Toyota announced plans to introduce three full-electric vehicles (EVs) to South Africa in 2026, marking its first foray into the local EV market. Andrew Kirby, CEO of Toyota South Africa, revealed that the company will roll out battery-electric models as early as January 2026, complementing its current lineup of hybrid cars. This is a strategic move as South Africa’s EV market, though nascent, is expected to grow – Chinese brands like BYD have recently entered, and premium European EVs (from Volvo, BMW, etc.) are gaining traction. Toyota, which already holds a dominant 67% share of the country’s hybrid vehicle segment (thanks to popular models like the Corolla Cross hybrid), is now ready to compete on fully electric options. The initial EV models will be imported, but Toyota signaled it might consider local EV production in the future if conditions allow. One challenge highlighted is the need for supportive policies – the major carmakers (including Toyota) have jointly proposed government incentives and tax adjustments to encourage local EV manufacturing and to make EVs more affordable. Power supply issues and sparse charging infrastructure have been obstacles, but Toyota’s entry is a vote of confidence that these can be overcome. For South African consumers, this means more choice in electric cars within a couple of years, as the shift to greener mobility slowly accelerates.

Pick n Pay’s Boxer Leads the Retail Fightback

Retailer Pick n Pay reported a 4.3% rise in turnover for mid-2025, crediting much of the growth to its budget grocery chain, Boxer. In a trading update covering 17 weeks through June, the group highlighted that Boxer’s sales jumped over 12%, outpacing the core Pick n Pay supermarkets. Boxer, which was spun off and separately listed last year, focuses on lower-income markets and has been a star performer with its low prices – an important factor as consumers tighten their belts. Meanwhile, Pick n Pay’s main stores showed modest like-for-like sales growth (~3.6%) as the company proceeded with a “Store Reset” turnaround plan. This plan involves closing underperforming stores, revamping layouts, and simplifying product ranges to cut costs. The goal is to restore profitability in the core supermarket division, which had been loss-making; the company aims for that business to break even by 2026–2028. Management noted that despite the tough trading environment (and intense competition from Shoprite and Woolworths), the early results are “creditable” – losses have narrowed and efficiencies are improving. Pick n Pay also announced the appointment of retail veteran Grant Pattison to its board as an independent director, signaling a drive to bring in fresh strategic insight. For shoppers, Pick n Pay’s turnaround should translate into more consistent pricing, better-stocked stores, and an expanded Boxer network catering to value-seekers. It’s a work in progress, but the retailer is keen to regain ground and remain a key player in South African grocery retail.

Conclusion

In summary, August brought a blend of stability and change to South Africa’s economic and business landscape. The rand held steady overall, even as global signals and local challenges pulled it in different directions. A common theme across business headlines was adaptation – whether through leadership changes, tech innovation, or strategic deals, companies are maneuvering to secure growth in a tough climate. From banks and retailers to miners and telecom operators, South African businesses are streamlining operations, embracing digital solutions, and seeking new markets. The sentiment is cautiously optimistic: while headwinds like power outages and low consumer spending persist, corporate South Africa is responding with resilience and creativity.

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