AGP Executive Report

Recycling & Sustainability: Petco Awards spotlight South Africa’s recycling champions, from Orange Farm’s Tumelo Morolo (1,500 households; 600 tonnes diverted) to Alexandra’s women-led Shomang Sebenzani (1,800 households daily; school swap-shops reaching nearly 19,000 learners). Banking & Finance: Old Mutual says OM Bank integration is on track for year-end, with customer uptake jumping to 473,000 and retail deposits nearly doubling to R541m in Q1 2026. Trade & Investment (UAE): South Africa’s trade ministry and business leaders flag the UAE as a key strategic partner, citing 33 Emirati projects worth about $22.96bn and 5,500+ jobs, as bilateral trade tops $8bn. Road Safety & Security: License Plate Association warns illegal number plate trade is booming, estimating over half of monthly plates are illegal and undermining road safety and security. Energy & Inflation: Rising energy prices push OECD inflation to 4.4% in April, while South Africa grapples with cost pressures. Immigration Crackdown: Ramaphosa outlines tougher measures to curb illegal immigration, including dedicated courts and stronger enforcement, while critics question feasibility and human-rights impacts. Agri-Exports: Pistachio industry targets up to 8% of global export share, aiming for 60,000 tonnes annually by decade’s end. Corporate Returns: Omnia rewards shareholders with a special dividend after strong earnings growth, driven by agriculture and mining.

Migration Crackdown: President Cyril Ramaphosa acknowledged weaknesses in South Africa’s migration management and promised tougher enforcement, including harsher penalties for employers who hire undocumented migrants, while stressing that only authorised officials can act and that corruption in Home Affairs will be pursued. Transport Funding Closure: Cabinet approved the write-off of all outstanding Gauteng e-toll debt, ending years of GFIP uncertainty for motorists and closing remaining litigation. Energy Infrastructure Push: Eskom and Zululand Energy Terminal signed a Heads of Agreement to advance South Africa’s gas-to-power programme, with Eskom set as “foundation customer” for LNG import, storage and regasification supporting a planned 3,000MW build. Construction Labour Compliance: The BCCEI urged civil engineering contractors and subcontractors to better understand industry collective agreements and wage determinations to reduce disputes and improve project smoothness. Security & Property Theft Trends: Security experts warned criminal syndicates are targeting high-value home assets—solar panels, gas bottles and outdoor lighting—using fast dismantling and black-market resale. Home Affairs Access: Cape Town handed over Civic Centre space for an appointment-only National Home Affairs office, aiming for operations before end-July. World Cup Media Business: beIN SPORTS unveiled a 17-hours-daily, trilingual FIFA World Cup 2026 coverage plan across MENA, broadcasting all 104 matches via dedicated channels and digital platforms.

Municipal Finance Shock: Johannesburg business leaders warn the city’s fiscal and governance crisis is a national economic emergency, citing Auditor-General concerns and Eskom’s threat of power cuts if payments aren’t settled by July 8. Labour Fallout: Employment Minister Nomakhosazana Meth has stepped in to halt Pick n Pay’s Section 189 retrenchment process that could affect 22,000 workers, pushing talks on pay, hours, transport and bonuses. Arms Export Court Challenge: The Southern Africa Litigation Centre filed a landmark bid to suspend South Africa’s arms exports to the US, arguing legal obligations under the arms control act were not met. Energy & Industry Security: Eskom advances the Richards Bay gas-to-power push via gas agreements, as South Africa seeks more reliable energy supply. Logistics Under Pressure: Truck hijacking remains a costly, persistent drag on the economy and supply chains despite years of security tech. Health & HIV Prevention: South Africa officially rolls out the twice-yearly Lenacapavir HIV prevention injection, as funding and access remain key. Agriculture & Trade: KZN citrus farmers target 3%–5% export growth, using equipment to cut fruit bruising and protect cold-chain quality. Innovation & Safety: A former Bracken High learner is piloting solar-powered, AI-integrated Ridebox kiosks aimed at improving commuter safety. Xenophobia Response: Ghana says it is pursuing compensation for businesses destroyed in South Africa, while South Africa warns Ghana against “public spectacles” during evacuations.

Sovereign Credit Boost: Government welcomed Fitch’s upgrade of South Africa’s long-term foreign and local currency ratings from BB- to BB, citing stronger fiscal discipline, lower debt-to-GDP than expected, and progress stabilising public finances—an early tailwind for borrowing costs. Agri-Exports: The Citrus Growers Association trimmed South Africa’s citrus export forecast after late-May floods, now targeting 207.4m cartons, with the overall impact described as minor despite local Eastern Cape orchard damage and logistics disruption. Logistics & Crime: SARS seized about 90 bricks of cocaine hidden inside heavy excavation equipment at the Port of Durban, handing the case to SAPS for investigation after detector dogs and preliminary testing flagged the contraband. Retail Pressure: TFG/Foschini owner said it will close more than 100 underperforming stores as profits fall while revenue rises, pointing to weak consumer spending and trading strain. Labour & Skills: About 800 NSF students face uncertainty after the fund suspended a R354m engineering internship programme over alleged contractual non-compliance. Energy Projects: Eskom advanced gas-to-power plans for Richards Bay, with deals and agreements aimed at strengthening energy security. Governance & Industry: Film and TV workers renewed calls to fix South Africa’s rebate incentive, citing complicated processes and long reimbursement backlogs.

Sovereign Credit Boost: Fitch upgraded South Africa’s long-term foreign and local currency ratings from BB- to BB, citing prudent fiscal management, widening primary surpluses, stronger revenue collection, disciplined spending, and reforms in energy and logistics—its first such sovereign upgrade in nearly 21 years. Energy & Power Sector: Eskom’s decision to delay mothballing key coal stations to 2030 is credited with enabling South Africa’s first winter without load-shedding in more than a year, after years of instability. Healthcare Reform Pressure: With only about 14% of South Africans on medical aid, experts warn the “missing middle” is being pushed into the public system as costs rise, while employers increasingly explore fully funded healthcare benefits to protect workforce resilience. Municipal Finance Stress: Johannesburg faces scrutiny after an Auditor-General finding of R9.5bn revenue written off as irrecoverable, with concerns over billing accuracy and knock-on risks to electricity and water payments. Trade & Industry Links: South Africa and Kenya urged faster removal of red tape and tariffs, with plans to suspend import duties on Kenyan tea and coffee as bilateral trade deepens. HIV Prevention Rollout: South Africa launched the twice-yearly Lenacapavir injection for HIV prevention, backed by major funding commitments aimed at scaling delivery over the next three years. Migration Tensions: Xenophobic violence in South Africa continues to drive repatriation efforts, with Nigeria reporting over 1,000 citizens seeking to return home.

Sovereign Credit Boost: Fitch upgraded South Africa’s long-term rating to BB from BB- for the first time in nearly 21 years, citing prudent fiscal management, widening primary surpluses and easing energy/logistics constraints. HIV Prevention Rollout: President Ramaphosa officially launched Lenacapavir, a twice-yearly injection to help prevent HIV, aiming to reach 3 million people over three years and paving the way for local manufacturing via a voluntary licence. Retail Watch: Mr Price shares jumped after resilient earnings and improved margins, though management warned inflation and interest-rate reversals could still pressure consumers. Debt Collection Shift: Industry voices say some South Africans are increasingly using AI voice agents to discuss overdue accounts, reflecting the emotional strain of debt and the scale of impaired credit records. Mining/Capital Markets: B2i Digital signed on as official marketing partner for 121 Mining Investment New York, set for June 15-16, linking mining firms with North American investors. Trade & Industry Links: Kenya and South Africa agreed to remove trade barriers affecting tea, with leaders framing it as support for small farmers and regional integration. Logistics & Cost Pressure: Transporters warn that rising fuel, maintenance, insurance, tolls and compliance costs are outpacing haulage rates, pushing up prices. Food Security Risk: Commentary flags that stolen Ukrainian grain is a wider food-security concern for Africa, tied to trust and transparency in maritime supply chains.

Industrial Tech & Mining: VEGA will showcase its measurement technology at Electra Mining Africa 2026 in Johannesburg (7–11 Sept), targeting harsh mining and industrial conditions. African Trade & Logistics: South Africa and Kenya signed six MoUs at the Union Buildings covering trade facilitation, maritime/shipping cooperation, skills (TVET), arts and sports—aimed at cutting non-tariff barriers under AfCFTA. Manufacturing & Industry Growth: Improvon broke ground on a build-to-suit manufacturing facility for Cranbrook Flavours in Cape Town, consolidating production, labs, R&D and warehousing for delivery by April 2027. Agriculture & Food Security: Foot-and-mouth disease vaccine rollout is accelerating after delays, with 13.5m doses procured and 4.4m animals vaccinated by 28 May, while farmers still demand faster, cleaner execution. Retail & Consumer Pressure: Traditional trade (spaza, taverns, independents) outperformed modern retail in Q1 as shoppers bought smaller, more frequent baskets amid weak income growth. Governance & Compliance: Parents at Seatides Combined School in KZN are protesting for financial transparency as the DoE confirms a financial investigation. Environment & Shipping: Whale-strike risk is rising as shipping reroutes around South Africa, with researchers calling for urgent mitigation measures. Vehicle Safety: Toyota and Lexus recalls cover 4,858 and 1,667 vehicles respectively due to parking assist software freezing or failing to display rear-view images.

Vehicle Safety Recalls: South Africa’s National Consumer Commission has issued recalls covering 6,525 Toyota and Lexus vehicles, citing a software fault that can freeze or blank the rear-view camera image when reversing, with owners urged to visit authorised dealers for free fixes. Water Resilience for Households: Builders Warehouse says more South Africans are moving to backup water systems as outages and ageing infrastructure bite, pushing buyers to plan the right solution for their household needs and budgets. Corruption Watch: The Special Investigating Unit has been authorised to probe maladministration at the Private Security Industry Regulatory Authority and the Unemployment Insurance Fund after President Ramaphosa signed a 2026 proclamation. Xenophobia and Migration Pressure: Anti-migrant mobs have driven hundreds of foreign nationals to flee along the south coast, with Mozambique and South African authorities disputing casualty claims amid ongoing violence. Regional Trade and Mobility: Kenya and South Africa sign on to deepen cooperation on trade, investment and mobility, with leaders framing the next phase as turning diplomacy into tangible benefits for citizens. Logistics Skills: DHL launches a humanitarian logistics academy in Johannesburg, offering free training to help non-profits handle customs, dangerous goods and safety more effectively. World Cup Turf Science: A Reuters report spotlights the high-stakes grass-growing effort behind 2026 World Cup pitches, underscoring how climate-specific turf science is being tested across venues.

Rugby Governance: An editorial backlash targets Saru over high ticket pricing for Springboks vs All Blacks, arguing the union is treating sport like a pure business while fans face supply limits. Water & Municipal Finance: Rand Water says Ekurhuleni systems are recovering after a major maintenance phase, while Joburg residents brace for a steep water levy jump from July as the city tries to fund infrastructure and maintenance backlogs. Energy & Power Planning: Eskom revives the Thyspunt nuclear plan, defending it as part of the future energy mix as environmentalists warn of risks to sensitive coastal areas. Food & Farming Support: Bayer and Khula launch a R7.5m accelerator to help emerging farmers access tools, skills, finance and markets. Trade & Tariffs: The US proposes 12.5% tariffs tied to forced-labour concerns, with South Africa named among affected economies. Youth Jobs: Ramaphosa flags youth unemployment as a crisis and points to a R1trn infrastructure push to create jobs. Fraud & Consumer Safety: Stellenbosch scam victims report police impersonation fraud, while World Cup-related online scams are also flagged. Transport & Industry: Transnet completes a R4bn investment at the Saldanha iron ore terminal, supporting logistics capacity. Local Development: Cape Town’s Bellville Skyline Project will light up key buildings with energy-efficient LEDs to boost the district’s night-time appeal.

World Cup Build-Up: A star-studded managerial lineup is set for the 2026 FIFA World Cup, with high-profile coaches and ex-Premier League figures heading to North America as teams prepare to prove themselves on the pitch. Bilateral Trade & Industry: Deputy President Paul Mashatile met India’s President Droupadi Murmu in New Delhi, pushing cooperation in technology, pharmaceuticals, energy, skilling and MSMEs—while also meeting Indian counterparts on trade, investment and defence. Jobs & Infrastructure Push: Ramaphosa flagged youth unemployment as a major threat, alongside a R1-trillion three-year plan for roads, dams, schools, hospitals and energy/logistics infrastructure. Retail Competition: Amazon launched Prime in South Africa (R59/month or R399/year), bundling free delivery with Prime Video and gaming—raising the stakes in the e-commerce battle with Takealot. Procurement & SMEs: Nigeria’s procurement reforms show how affirmative contracting can expand SME participation in public tenders. Competition Watchdog: The Competition Commission referred Adcock Ingram Critical Care to the Tribunal over alleged excessive pricing in renal replacement therapy products. Food Systems: “Farm-to-table” is being reframed as a survival strategy for SA’s food system amid access and supply-chain pressures. Business Climate: South Africa’s private sector contracted in May, with fuel costs and Middle East uncertainty weighing on demand and confidence. Agriculture Policy: Grain SA moves toward legal action over delayed implementation of a revised wheat tariff meant to protect local producers. Energy & Climate: SANEA rebranded to drive inclusive energy growth as the sector’s transition accelerates. Finance & Risk: S&P kept SA ratings steady, but warned oil risks could pressure inflation and consumer spending.

Xenophobia & Migration Crackdown: President Cyril Ramaphosa vowed tougher action on illegal immigration as anti-foreigner protests spread, while Reuters reported deaths of Mozambican citizens in Mossel Bay amid violence. Labour Market Reform: The Department of Employment and Labour outlined a new labour market enforcement and migration policy to prioritise South Africans for jobs, with stricter penalties for employers hiring undocumented foreign nationals. Energy & Municipal Accountability: Eskom moved to clear a forensic investigations backlog as municipal debt and governance failures continue to bite, while Johannesburg’s audit regression was linked to weak controls and major electricity and water losses. Business Climate: South Africa’s business confidence slipped as Middle East conflict pushed oil prices higher, feeding inflation fears and rate-hike expectations. Rates & Inflation: SARB governor Lesetja Kganyago defended the latest rate hike ahead of full fuel-price effects, warning against entrenched inflation expectations. Agriculture & FMD: A Gauteng foot-and-mouth disease motion failed in the legislature, leaving farmers waiting on clearer vaccine distribution and biosecurity accountability. World Cup Commerce: Amazon Prime launched in South Africa, bundling delivery, video and cloud gaming, with Prime Day set for late June. Transport & Trade: South Africa’s new vehicle sales hit a 13-year high in May despite cost pressures, signalling demand resilience. Climate Litigation: A landmark African Court climate case seeks guidance on states’ duties to protect people from climate harms.

Foot-and-mouth disease response: South Africa says it has procured 13.5m FMD vaccine doses since February and vaccinated just under 4.4m animals by 28 May, with 3.5m more doses arriving last week and SAHPRA approving an additional 14m-dose pipeline to support boosters. Fuel costs: Mineral and Petroleum Resources announced June fuel price adjustments effective 3 June, citing Brent crude moves and changes in international product prices. Plastics push: The SA Plastics Pact 2030 targets were launched, aiming to tackle waste from a linear economy through partnerships across government, business and civil society. HIV/TB funding drive: Deputy President Paul Mashatile will meet private-sector captains under SANAC to close funding gaps for the NSP for HIV, TB and STIs via sustainable public-private financing. Transport compliance in Gauteng: MEC Kedibone Diale-Tlabela will hand over operating licences to minibus taxi and scholar transport operators to improve safety and accountability. Industry and jobs: IOL plans a major recruitment drive tied to a R200m expansion programme, while Orion S.A. released its 2025 sustainability report highlighting waste reduction and electrification-linked materials. Business confidence and growth: Commentary and updates point to pressure on sentiment from global tensions and higher fuel costs, alongside ongoing fiscal credibility messaging. Food security education: Young South Africans are being taught aquaponics to support food security, using fish-plant systems that reduce reliance on fertilisers and land. Conservation: KZN conservationists marked 20 years of bearded vulture protection, warning the species still faces poisoning, persecution and habitat threats. Mobility and infrastructure: Telkom connects more homes to fibre, and energy/industrial intelligence coverage continues to track how data and AI are being used to improve operations.

Diamond Sector Shock: Petra Diamonds put its Finsch mine into business rescue, blaming a weak diamond market and a stronger rand as lab-grown gems keep squeezing natural prices. Water Governance: South Africa’s 2026 National Water Amendment Bill moves through Parliament, with experts warning it could reshape water rights and hit agriculture and industry, including a proposed ban on private water trading. Fuel Costs: June fuel outlook is mixed—petrol likely to rise again (around R1.05/litre), while diesel could drop (up to about R3.60/litre depending on grade), though levies may complicate relief. Telecom Earnings: Telkom reported a 27.5% profit jump and higher dividends, driven by data growth and progress in its fibre transition. City Finance: Johannesburg council approved the R97.1b 2026/27 budget, but commentary continues to flag deep financial strain and Eskom-linked risks. Transport Safety Tech: CODETA launched a cashless taxi pilot using dedicated cards and route-based fare deductions, aiming to cut robberies and improve commuter safety. Labour & Jobs: Labour Minister Nomakhosazana Meth pushed tougher enforcement and youth jobs measures amid a “missing jobs crisis.” Energy & Industry: EU launched investment roadshows in South Africa targeting critical minerals and clean energy projects. Xenophobia Fallout: Mozambique says five citizens were killed in South Africa-linked xenophobic attacks, with repatriation underway. Legal Fight at Sea: Small-scale fishers challenge a West Coast seismic survey approval in court, arguing assessments missed cumulative impacts.

Ferrochrome Rescue: Nersa approved discounted electricity tariffs for ferrochrome smelters, cutting power costs by over 50% and prompting Glencore-Merafe to halt up to 1,500 job cuts. Fuel Watch: Petrol 93 and 95 rise by R1.43/litre from June 3, while diesel and paraffin drop, easing pressure for some logistics and farm users. Vehicle Demand: South Africa’s new-vehicle market posted its strongest May since 2013, up 12.8% to 51,071 units, with buyers increasingly value-driven on affordability and total cost of ownership. Water Stress: New data shows more than half of households face systematic water shortages, with ageing infrastructure and maintenance backlogs driving “dry-tap” disruptions. Agri Under Pressure: Iran-linked disruptions are pushing diesel and fertiliser costs higher, squeezing wheat farmers and threatening output. Industrial Maintenance: Local upgrades in lubrication systems and laser cladding promise longer equipment life and less downtime across sugar mills and hydraulic cylinders. Trade & Food: USMEF urges the US to push AGOA implementation after complaints about import barriers to US beef and pork, naming South Africa among key markets. Livestock Health: South Africa’s foot-and-mouth vaccination drive has reached nearly 4.4m animals after procuring 13.5m doses. Power Market Reform: Southern Africa’s shift toward independent transmission providers is gaining momentum, with South Africa leading the framework.

Energy & Industry Dealmaking: Africa Energy Forum 2026 returns in Cape Town (16–19 June) with a focus on transmission, mining corridors, baseload power and renewables meant to anchor industrial growth. Renewables Transformation: SAWEA backs 20 women in the 2026 MDP and calls for intentional transformation as wind/solar still leave women underrepresented in engineering and leadership. Electricity Market Tech: Mezzanine and Open Access Energy sign a reseller deal to push Virtual Wheeling across South Africa’s renewable market via Energypro. Tariffs Under Scrutiny: Meridian Economics challenges Nersa’s approval of 54% electricity tariff relief for chrome producers, warning the process could cost about R16.6bn. Property Under Pressure: With rates still high, the property sector warns higher interest costs could slow housing delivery and jobs. Jobs Snapshot: Stats SA reports unemployment rising to 32.7% in Q1 2026, with youth unemployment at 45.8%. Fuel Watch: June fuel price outlook points to petrol likely up and diesel down, with tax relief phasing out. Public Finance & Credit: S&P affirms SA’s ratings with a positive outlook, citing reform momentum in electricity and logistics. Security & Compliance: Business Day flags illegal number plates being sold quickly in Joburg, undermining vehicle registration integrity. Health & Addiction: Sahpra moves toward tighter codeine controls as dependence grows, while TB prevention gets linked to tackling tobacco and nicotine addiction. Arts Funding Strain: Arts festivals face collapse after funding cuts and board dissolution at the National Arts Council.

Xenophobia & Human Rights: The Tijjaniya Muslim Movement of Ghana says South Africa is breaching binding international law by failing to prevent and prosecute escalating xenophobic attacks on migrants, citing treaty obligations to protect life and equal protection. Energy Regulation: Nersa has finalised approvals for electricity tariff applications from all 176 licensed municipal and private distributors after a deadline extension, with relief and pricing changes continuing to ripple through industry. Mining & Power Costs: Nersa approved an interim discounted power tariff for ferrochrome producers Samancor Chrome and the Glencore-Merafe JV, aimed at keeping high-cost smelters operating amid China-driven competition. Agriculture & Flood Damage: The table grape industry is seeking disaster relief after Western Cape floods damaged vineyards and infrastructure, with some growers reporting losses up to R1.2m/ha. Logistics & Fuel Pressure: A week-ahead focus highlights fuel price adjustments tied to Middle East conflict, plus business sentiment signals from the Absa manufacturing PMI. Security & Illegal Mining: SAPS and SANDF seized 800+ live rounds in Gauteng operations tied to illegal mining and gang violence, arresting 36 suspects. Court & Contracts: A court challenge over wildfire-fighting programme management has been dismissed, clearing the way for a service-level agreement with Tefla. Social Protection: Sassa beneficiaries are urged to replace expiring gold cards with Postbank’s black card before 31 August to avoid grant access disruption.