Africa is certainly not for sissies - Financial Mail
Consumer goods group Tiger Brands’ expansion into the rest of Africa has very much been a case of a “cat on a hot tin roof”. Its experiences in Nigeria and now Kenya have exposed some bad or rather rushed decisions by CEO Peter Matlare and his executives. This has pushed the group into a quandary. While it wants to continue with its march to conquer sub-Saharan Africa, it’s had to become so circumspect that it is unlikely to take major risk in the near future, while it is still trying to fix some of its floundering African operations. The danger is that its rivals, notably Pioneer Foods, is not waiting, setting its sights on the same African markets that Tiger Brands identified a decade ago. Victor Seanie comments.
Fat margins are a luxury - Financial Mail Investors Monthly
Tiger Brands has not only come under pressure from its offshore operations, its South African business has also been up against a wall in the past couple of years. Since the days of the recession, consumer spending has yet to fully recover, which means growth in the consumer goods industry largely remains subdued. Ongoing job losses and sharp increases in administered prices such as fuel and electricity have stifled spending too. The result has been an increase in competition between branded goods producers such as Tiger Brands and retailers’ private label offerings. Victor Seanie comments.
Successful diversification in the sugar industry - Finweek
The sugar producing business is cyclical by nature, as illustrated by the impact of a drought on the recent results from Tongaat Hulett and Illovo Sugar, the giants of the local industry. Both companies have worked hard in recent years to diversify their businesses, including into downstream operations such as ethanol and furfural production, electricity co-generation and, in the case of Tongaat, starch operations and property development. Dirk van Vlaanderen gives input into this feature piece.
Hospitals nervous ahead of probe - Citizen
Netcare, Life Healthcare (LHC) and Mediclinic are expected to take some heat when the delayed hearings of the Competition Commissions’ inquiry into the private health care market start. The three listed hospital groups dominate the private hospital market and, although none has a market share of more than 35%, Health Minister Aaron Motsoaledi contends each is able to exercise dominant market power at provincial or district level. The inquiry was due to begin in May, but was delayed to allow further submissions. Abdul Davids comments.