Business
Strikes in South Africa Impede Business
CAPE TOWN — Reeling from worker strikes and falling commodity prices, South Africa is facing fresh challenges in drawing investors to its resource-rich economy.
Africa’s biggest economy is a trove of precious metals and coal, and is believed to have the world’s largest reserves of platinum. But some companies say they are reassessing business in the country, as labor strikes upend production and hurt exports.
On Tuesday, police fired rubber bullets and stun grenades to disperse a crowd of striking mine workers outside an Anglo American Platinum Ltd. AMS.JO -3.69% mine in Rustenburg, northwest of Johannesburg. Police said the striking workers were preventing those not on strike from going to work and that they started to throw stones at police, before the crowd was dispersed. Two men were arrested.
The work stoppage at the world’s three largest platinum companies has cost $18 million in lost revenue a day, according to the companies. It is also the biggest strike in the platinum sector since 2012, when police killed 34 protesters during an illegal work stoppage at Lonmin LMI.LN 0.00% PLC’s Marikana mine.
On Tuesday, the World Bank lowered its South African growth forecast to 2.7% this year, pointing to the country’s sluggish mineral export growth and commodity prices that peaked a few years ago.
The troubles are hardening battle lines between the South African government and big business.
The South African government wants companies and workers to settle their differences at the bargaining table, and appears wary of jeopardizing political support from labor groups. Many companies are looking for ways to lighten their labor footprint—whether that is through closing mines, introducing new technology or steering clear from the mineral-rich economy.
“You’re not going to see a huge wealth of investment coming into South Africa,” said Rajat Kohli, the head of global mining and metals for Standard Bank.
Anglo American AAL.LN +2.36% Platinum has warned that if the current platinum strike continues it would consider closing more of its marginal mines. On Tuesday, the company’s executive director for South Africa, Khanyisile Kweyama, said the operating and production risks brought on by labor strikes, and rising costs, will prompt Anglo American to rely more on machines and less on workers.
“The labor intensity of the industry has come to haunt us,” she said.
Foreign-direct investment into South Africa more than doubled in 2013 to $10.3 billion, the United Nations Conference on Trade and Development said last month. But the bulk of that investment was in South African retailers, the U.N. said, and investment in the mining industry has steadily declined. Unctad doesn’t detail precise investments into specific industries.
Speaking at global mining conference in Cape Town on Tuesday, South Africa’s mining minister, Susan Shabangu, said the government understands how labor disruptions hurt foreign investment but that the country’s constitution protects the right to strike.
“We want a solution that will enable us to attract investment but also recognize the rights of workers,” she said.
Ms. Shabangu urged companies to do more to meet workers’ needs, including skills training, and to put more equity into the hands of local black South Africans. She also urged workers to protest peacefully.
But mining executives say that as they seek to meet transformation targets, union leaders continue to demand steep salary increases that could cause more mines to close, dissuade investment and shift focus to wage agreements rather than broader employee development.
The striking platinum workers are demanding that their employers raise entry-level salaries to 12,500 rand ($1,150) a month from around 5,000 rand.
A centerpiece of the ruling African National Congress’ campaign ahead of elections a few months from now is a pledge to create six million new jobs, if it wins a new term through 2019. Officials also acknowledge, however, that growth is too slow to dent official unemployment rates that hover near a quarter of the workforce.
The World Bank, in its new report, said the government’s current policies don’t go far enough to encourage exporters to invest in job-generating enterprises. It cited infrastructure bottlenecks and labor policies, which constrain employers from hiring and firing, as among the obstacles for investors.
“South Africa is playing against its strength as a large emerging market: It’s not taking advantage of its large pool of unskilled labor,” said Catriona Purfield, a World Bank economist and co-author of the new report.
The South African Chamber of Commerce and Industry echoed that gloomy assessment on Tuesday, releasing survey results showing its business confidence index slipping to a six-month low in January.
“South Africa’s competitive position amongst other emerging markets is not favorable,” the chamber said.
The country’s currency, the rand, has dropped some 7% against the U.S. dollar this year as investors sold more than $1 billion worth of South African stocks and bonds.
– WALLSTREET JOURNAL
Improved operating performances have seen Eterna Plc report higher revenue and profitability for the second quarter and half-year ended June 30, 2026.
The company’s unaudited consolidated financial results showed that revenue rose by 38 per cent to N217.31bn from N157.65bn in the corresponding period of 2025.
The results show that gross profit more than doubled to N15.99bn, while operating profit increased to N8.78bn from N2.34bn. Profit before tax rose by 389 per cent to N7.67bn from N1.57bn recorded in the corresponding period of 2025.
Profit after tax (PAT) increased to N5.88bn from N573.81m, while earnings per share (EPS) improved to N2.69 from N0.44.
The company also reported an improved financial position, with total assets standing at N82.75bn as of June 30, 2026.
Cash and bank balances increased to N20.36bn from N4.79bn as of December 31, 2025, while total liabilities declined to N51.22bn from N84.43bn. Total equity rose to N31.53bn from N7.77bn, reflecting stronger liquidity and capitalisation.
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On the results, the Managing Director/Chief Executive Officer, Dr. Jude Nwaulune, said, “These results demonstrate the strength of our business and the impact of disciplined execution across our operations. The significant improvement in profitability and financial position provides a solid foundation to advance our growth priorities.
“The successful Rights Issue has further strengthened our balance sheet, resulting in a healthy leverage position, stronger equity and improved net assets. We remain focused on expanding our retail, aviation, lubricants and gas businesses, improving operational efficiency and customer experience, and delivering sustainable value to shareholders and other stakeholders.”
The company said its full unaudited consolidated financial statements for the half-year ended June 30, 2026, are available on its website.
AVA Capital Plc has been admitted to the Main Board of Nigerian Exchange Limited (NGX) following the listing by introduction of its 5 billion ordinary shares at ₦7.50 per share, with a market capitalisation of ₦37.5 billion.
The listing marks a significant milestone in the Company’s growth journey, reinforcing its commitment to sustainable growth, strong corporate governance and long-term value creation, while enhancing its visibility within Nigeria’s capital market.
Speaking at the listing ceremony, the Chief Executive Officer of AVA Capital Plc, Kayode Fadahunsi, described the admission as a defining moment in the Company’s evolution. “Our admission to the Main Board of Nigerian Exchange is more than a listing; it is a public affirmation of the business we have built and the future we are committed to creating. We have established a resilient institution with a clear growth strategy, strong governance culture and an unwavering focus on creating sustainable value for our shareholders. Becoming a listed company deepens our accountability, broadens our visibility and positions us to seize new opportunities as we continue our growth journey.”
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Commenting on the listing, the Chief Executive Officer of Nigerian Exchange Limited, Jude Chiemeka, said the admission reflects the continued confidence of businesses in Nigeria’s capital market as a platform for sustainable growth. “Today’s listing reflects the confidence that forward-looking companies continue to place in the Nigerian capital market. By joining the Main Board of Nigerian Exchange, AVA Capital Plc is embracing the transparency, governance standards and market discipline that define public companies, while positioning itself to access a broader investor base and unlock long-term value. We are delighted to welcome AVA Capital Plc to the NGX family and look forward to supporting its continued growth.”
The admission of AVA Capital Plc expands the range of investment opportunities available to investors while reinforcing NGX’s commitment to connecting businesses with long-term capital and supporting their growth through enhanced visibility, strong governance and deeper investor engagement.
June 2026 results of the Nigerian National Petroleum Company Limited (NNPC Ltd) shows a Profit After Tax (PAT) of N535 billion, despite recording a marginal decline in crude oil and condensate production during the month.
The figure represents a 15.8 percent increase over the preceding month, according to the latest Monthly Financial and Operations Report of the state oil major, which indicates that the PAT rose by N73bn from the N462bn recorded in May, while revenue increased to N4.389tn.
According to the report, the company remitted cumulative statutory payments of N6.286tn to the Federation in H1, 2026.
It read, “NNPC Limited recorded N535bn profit after tax for the month of June, representing a 15.8 per cent increase from the N462bn recorded in May. Total revenue for the month stood at N4.389tn, while cumulative statutory payments to the Federation for the period January to June 2026 increased to N6.286tn, underscoring NNPC Limited’s sustained contribution to national revenue generation.”
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Average crude oil and condensate production declined marginally to 1.72 million barrels per day in June from 1.73 million barrels per day in May, representing a 0.58 percent decrease. However, output was 1.18 percent higher than the 1.70 million barrels per day recorded in June 2025.
According to the report, production was affected by operational disruptions, facility integrity issues and subsurface challenges across several assets.
It stated, “June production performance was impacted by operational disruptions, facility integrity issues, and subsurface challenges across several assets. However, performance was partially mitigated by production ramp-up following the completion of the Assa-Rumuekpe and 28-inch TNP Turnaround Maintenance.”
Despite the slight production decline, crude oil and condensate sales surged to 28.23 million barrels in June from 18.95 million barrels in May, representing a 48.97 percent month-on-month increase. The June sales volume was also 6.77 percent higher than the 26.44 million barrels sold in June 2025.
Gas production also improved, rising to 7,841 million standard cubic feet per day from 7,774 million standard cubic feet per day in May, while gas sales recovered to 4,970 million standard cubic feet per day from 4,921 million standard cubic feet per day.
The report highlighted progress on two major gas infrastructure projects. The Obiafu-Obrikom-Oben Gas Pipeline reached 98 percent completion, with final tie-in works ongoing.
It stated, “The Obiafu-Obrikom-Oben (OB3) Gas Pipeline progressed to 98% completion, with final tie-in works ongoing towards achieving First Gas in August 2026.”
Construction on the Ajaokuta-Kaduna-Kano Gas Pipeline also advanced to 94 percent completion. According to the company, “Construction and installation activities on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline advanced to 94 per cent completion, supporting the target of early gas delivery to Abuja in 2026.”
The NNPC Ltd declared that it would continue implementing measures to sustain production growth despite operational challenges.
It stated, “Focus remains on delivering incremental production across the asset portfolio by improving facility reliability and availability, minimizing Unscheduled Downtime, optimising crude export operations, and accelerating the maturation of production opportunities to sustain Upstream production growth.”
The report also showed that upstream pipeline availability remained at 100 percent during the month, while petrol availability across the NNPC Retail Limited stations stood at 53 percent. It added that all production, sales and financial figures remained provisional and were subject to reconciliation with relevant stakeholders.
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