Company News in brief

South Africa faces upside risk to inflation, financial conditions, central bank governor says

REUTERS

South Africa faces upside risks to its inflation outlook, Central Bank Governor Lesetja Kganyago said, but the latest data has not shown evidence of price pressures from food despite adverse El Nino weather wreaking havoc across Africa.

Data out on Wednesday had shown headline inflation fell to 5.3% year-on-year, down from 5.6% in February and coming in a touch below analyst expectations.

In its March decision, the South African Reserve Bank (SARB) said headline inflation was expected to reach 4.5% - the midpoint of its target range - only at the end of 2025, later than previously forecast.

"There are upside risks to the inflation outlook," Kganyago told Reuters on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.

Those risks stemmed from higher oil prices on the back of heightened tensions in the Middle East, but also the prospect of tight global financial conditions amid the prospect of interest rates at the U.S. Federal Reserve staying higher for longer.

China's US envoy urges cooperation, cites 'severe' challenges

REUTERS

China's ambassador to the United States urged the two superpowers to cooperate on improving relations even as they "face severe challenges" on a range of issues.

Beijing hopes to work with Washington so that relations can move forward on a stable, healthy and sustainable track, but the two must jointly establish a correct understanding, Xie Feng told a Harvard University forum, according to a statement released by the Chinese Embassy in Washington on Sunday.

"If the United States continues to interfere in China's internal affairs and harm China's interests on issues related to Taiwan, Hong Kong, Xinjiang, Tibet, and the South China Sea, how can we maintain the bottom line of bilateral relations no matter how many 'guardrails' are set up?"

Bilateral relations have been vexed in recent months over issues including trade, allegations of national security threats, confrontations in the South China Sea and Washington ramping up ties with Japan and Philippines, which Beijing labelled "bloc politics" and "exclusive circles".

We won’t make electric cars in South Africa for a decade — Volkswagen

MYBROADBAND

Volkswagen won’t produce electric vehicles (EVs) in South Africa for at least another ten years.

That is according to feedback from Volkswagen Group Africa spokesperson Andile Dlamini in a recent interview with the Sunday Times.

Dlamini echoed recent comments from Volkswagen Africa operations managing director Martina Biene, in the company’s announcement of a R4-billion investment at its Kariega Plant in the Eastern Cape.

“As most global vehicle markets transition to EVs, African markets like South Africa will continue manufacturing and selling vehicles with internal combustion engines (ICEs) for the foreseeable future, owing to customer demand for ICEs and slow introduction of electric vehicles in these markets,” Biene said.

Volkswagen’s latest investment will go towards scaling up its manufacturing capabilities to produce an SUV for the African continent.

The company’s locally manufactured Polo and Polo Vivo models have been among South Africa’s best-selling models for several years.

Some of these are also exported to foreign markets like Europe, where new ICE vehicle sales will be banned from 2035.

As alluded by its name change to VW Group Africa from VW Group South Africa and its intention to export the new SUV to other African countries, it appears VW is more focused on growing its market share across the continent rather than rushing into EVs to keep up with more developed countries’ demand for the newer technology.

Apple pulls WhatsApp from China App Store

BUSINESS REPORT

Apple has removed Meta Platforms’ WhatsApp and Threads from its App Store in China after being ordered to do so by the Chinese government, which cited national security concerns.

Other Meta apps including Facebook, Instagram and Messenger remained available on Friday morning. Many other popular apps developed by Western companies including YouTube and X were also available for download.

It was not immediately clear how WhatsApp or Threads might have caused security concerns for Chinese authorities.

“The Cyberspace Administration of China ordered the removal of these apps from the China storefront based on their national security concerns,” Apple said in an e-mailed statement. “We are obligated to follow the laws in the countries where we operate, even when we disagree.”

Meta declined to comment and referred queries to Apple. The Cyberspace Administration of China did not immediately respond to a request for comment.

The iPhone maker said WhatsApp and Threads remain available for download on its other storefronts. Tech-savvy Chinese consumers are able to download the apps from Apple’s App Stores in other countries if they have an iCloud account there.