COMPANY NEWS IN BRIEF
Standard Bank eyes massive investmentThe Democratic Republic of the Congo (DRC), and to a lesser extent Zambia, are set to become two of Standard Bank's most important markets north of the Limpopo. This is thanks to the massive endowments of minerals needed to drive the global energy transition in the two African nations.
"It's not just about renewable energy projects," CEO of Standard Bank's corporate and investment banking (CIB) unit, Kenny Fihla, told News24. "It's about where the minerals needed to drive the transition will come from," adding:
The DRC is the world's largest known source of cobalt, a key transition metal needed to produce batteries for electric vehicles. It also has lithium, nickel and some of the world’s highest-grade reserves of copper.
Zambia, meanwhile, is the world's seventh-largest producer of copper, an essential component in electrical equipment, and also has smaller deposits of cobalt and nickel.
"Because of the energy transition, we need to think differently about our businesses in the DRC and Zambia," said Fihla.
Standard Bank operates under its usual banner in the DRC, but as Stanbic Bank in Zambia, a legacy of an agreement to differentiate its African operations from former parent Standard Chartered, which it now competes with.-Fin24
NHI expected to face legal challenges
Drug maker Adcock Ingram said on Friday it is "highly likely" that the proposed National Health Insurance (NHI) will face legal challenges, which could delay its implementation.
In June 2023, Parliament approved the NHI Bill despite push-back and growing concern over some of its provisions from healthcare and other stakeholders, with the next step including President Cyril Ramaphosa signing it into law.
In its annual report released on Friday, the pharmaceutical producer of brands such as Panado and Corenza-C, said the bill in its current "is highly likely to be challenged through the court processes, either based on it being 'unconstitutional' or for the re-evaluation of the powers of the ministers".
The minimum implementation period is five to 10 years, assuming any of the legal challenges don't delay the implementation or result in a complete redrafting of the bill, it added.
Other industry stakeholders, including medical schemes operators Discovery and Momentum and other health practitioner groups, have raised concerns about the operability and legality of the NHI Bill while still expressing support for universal healthcare coverage.-Fin24
Luno's US owner DCG sued for 'fraud'
New York Attorney General Letitia James sued cryptocurrency firms Genesis Global, its parent company Digital Currency Group (DCG) and Gemini for allegedly "defrauding" investors of more than US$1 billion.
DCG owns South African-founded cryptocurrency exchange Luno. The development underscores the challenges the crypto industry continues to face almost a year after the bankruptcy of Sam Bankman-Fried's exchange FTX, which led to a meltdown in the sector that overwhelmed several major firms.
Through the lawsuit, Attorney General James is seeking restitution for investors and "disgorgement of ill-gotten gains," along with a ban on all the three cryptocurrency firms from the financial investment industry in New York.
At the heart of the lawsuit is a program that Gemini ran in partnership with Genesis, dubbed "Gemini Earn". The program allowed customers to lend crypto assets such as bitcoin to Genesis.
Gemini, run by the Winklevoss twins best known for their legal battle against Meta Platforms' Mark Zuckerberg, had billed the program as a "low-risk investment" even when its internal analyses had found Genesis was on risky financial footing, James alleged.-Fin24
Meta, Google quit tech summit
Meta and Google have pulled out of the Web Summit, one of the tech sector's biggest annual events, after the organiser criticised Israel's actions following the Hamas attacks, the companies said on Friday.
A spokesman for Meta confirmed to AFP that it would not take part in this year's event.
"We will no longer have a presence at Web Summit," a Google spokesperson said.
Irish entrepreneur Paddy Cosgrave, co-founder of the Web Summit, wrote on social media platform X last week that he was "shocked at the rhetoric and actions of so many Western leaders & governments."
"War crimes are war crimes even when committed by allies, and should be called out for what they are," Cosgrave wrote on October 13.
Hamas militants stormed into Israel from the Gaza Strip on October 7, and killed at least 1 400 people, mostly civilians who were shot, mutilated or burnt to death on the first day of the raid, according to Israeli officials.-Fin24
Discovery CEO to join investment firm
Outgoing Discovery Health CEO Ryan Noach, who resigned earlier this month, is joining investment firm DNI Group, which focuses on business-to-business distribution and technology services.
Noach, who is leaving Discovery at end-December after 15 years, will join DNI Group as its new CEO with effect from 1 March 2024. He will be replacing DNI Group’s current CEO, Andrew Dunn, who will move into the executive chair role.
"This strategic transition marks a significant milestone in the company's continued growth and commitment to delivering unparalleled excellence in the telecommunications, financial services, retail and technology sectors," DNI Group said on its website. "Ryan brings a wealth of experience and a stellar reputation, having served as a key leader at one of the largest and most successful corporations in the country in Discovery."
DNI said it generates almost R10bn in revenue and employs more than 1 000 people in 29 countries. According to its website, its shareholders include private investors (27.31%), management (24.86%), Andrew Dunn’s family (20.05%), Aspen Pharmacare CEO Stephen Saad’s family (10.06%), Peter Gain’s family (8%), mining magnate Mike Teke’s family (4.92%) and the Ellerines family (2.17%).
The Mineworker's Investment Company (MIC) also owns 24.68% along with Sabvest Capital (19.66%), Rand Merchant Bank (3.5%) and other management (4.81%).-Fin24