COMPANY NEWS IN BRIEF

With new car prices now 'shocking', WeBuyCars CEO sees used sales bump this year

While SA's consumers still have their backs against the wall, newly listed second-hand car retailer WeBuyCars is optimistic about a resurgence in sales towards the end of the year.

Not only does CEO Faan van der Walt think the possibility of interest rate cuts on the horizon could provide some much-needed relief, but he also believes the suspension of load shedding and the successful national elections outcome will all go some way to boosting consumer sentiment.

"I think we are probably poised now to have better years to come, especially considering that right now inflation is at an approximately 15-year high. So, while the consumer really feels the pressure and there doesn't seem much hope, people can only wait that long before they start having more confidence and start spending again."

Also traditionally, in the months leading up to the December festive period, there tends to be a general pickup in vehicle trading, he says, noting that even in a difficult market, WeBuyCars is selling "north of 14 000 cars a month."

Van der Walt hopes to see new car sales and second-hand purchases increasing in the remaining months of the year, saying this is important for the sustainability of the market in SA.

"So, we really hope to see new vehicle sales. And we need new vehicle sales to grow, so hopefully that can happen. But other factors that will drive that are import duties, although I don't expect that to change anytime soon, except for maybe electric vehicles.

-FIN24-

Ethiopian Airlines signs deal for $6 billion mega airport

Ethiopian Airlines has signed a deal for the design of a new $6 billion (R112.4 billion) airport described as the biggest in Africa, state media reported.

The new hub will be able to handle 100 million passengers a year once completed in five years, Ethiopian Airlines chief executive Mesfin Tasew was quoted as saying at a press conference on Friday.

He said Ethiopian Airlines had signed a memorandum of understanding (MoU) with Dubai-based consulting company Dar to develop the design for the airport, which will have four runways.

It will be built in Bishoftu, about 40 kilometres southeast of the capital Addis Ababa, and stretch across 35 square kilometres, he said.

"The first phase includes the construction of the airport facility with a capacity of 60 million passengers per year and the completion of phase two of the airport project will grow to handling more than 100 million passengers per year," Mesfin said, according to state-affiliated Fana Broadcasting Corporate.

Dar director of operations Tariq Al-Qanni, who was at the press conference, said it would be the biggest airport in Africa once complete, Fana reported.

"The scope of the agreement is for Dar to develop the detailed design of the new airport and at the same time to assist Ethiopian Airlines in the selection of the contractors who will build the new airport facilities," Mesfin added.

Ethiopian Airlines is the largest in Africa, last month reporting revenue of $7 billion for its 2023/24 financial year, carrying 17.1 million passengers.

-AFP-

Joburg house prices under pressure as Cape Town properties gain 30% in five years

While Cape Town residential property prices rose by almost 6% over the past year, Johannesburg prices fell as the city struggled with severe water and electricity problems, a major hike in the municipal rates as well as tumultuous local governance.

The Statistics SA's latest Residential Property Price Index shows that prices in the City of Johannesburg (-1.3%), Nelson Mandela Bay Municipality (-0.9%) and eThekwini Municipality (-0.5%) declined over the year to March 2024. The index tracks prices, sourced from the Deeds Office, for houses, townhouses, and flats that are purchased by private individuals.

Over the previous five years, Cape Town residential prices rose by 30%, while Johannesburg prices grew only 8.6% - the weakest of all the metropolitan areas. Overall, SA residential prices increased by 3.5% in the 12 months to March 2024, which is an improvement on 3.1% in February 2024. In May 2023, the annual price increase reached a low of 1.6%.

While property prices in the Western Cape (+7.7%) and North West (+5.5%) gained over the year, prices fell in the Northern Cape (-4.8%) and Limpopo (-2.3%). Of SA's cities, Buffalo City showed the largest price increase (+7.0%).

Since March 2024, when the survey was completed, pressure on property markets may have increased, with an FNB survey of estate agents showing that properties remained on the market for an average of 12 weeks and two days in the second quarter, up from 10 weeks and six days in the first.

-FIN24-

Gold Fields to buy Canadian miner Osisko in $1.57 billion cash deal

Gold Fields Ltd has agreed to acquire Osisko Mining for C$2.16 billion ($1.57 billion), it said on Monday, barely two years after an attempt to buy another Canadian miner was scuppered by a rival offer.

The Johannesburg-based gold producer will pay C$4.90 per share, a 55% premium to Osisko's Aug. 9 trading price, it said in a statement. The deal will help the South African producer expand its presence in the Americas region, where it already has mines in Chile and Peru.

Osisko shares soared 63% as trading opened in Toronto on Monday, while Gold Fields shares extended losses to trade 5.6% down at 1431 GMT, at their lowest since early July.

CEO Mike Fraser told Reuters that making a cash offer had helped Gold Fields move quickly, and also avoided a share dilution.

"We understand some of the competitors were attempting to...compete on a share based transaction. They would have probably had to compete at a higher price."

-REUTERS