The Bad ...
Drinks maker Distell Group suffered slack demand in the January to March quarter as South African consumers struggled with unemployment and debt.
But South Africa's top wine and spirits maker is betting the soccer World Cup will give it a much-needed boost.
- MTN and Standard Bank face a claim of R1-billion for infringement of technology patents in their MTN Banking joint venture. The companies have been served with summonses by 3MFuture Africa, which says it developed the technology used to launch and maintain MTN Banking.
- Vodacom and its Congolese partner CWN will seek international arbitration to settle an acrimonious dispute over fees at their joint venture. Majority owner Vodacom wanted to make a capital call to restructure the firm's balance sheet, but CWN refused and said, according to Congolese law, the company should be dissolved instead. Vodacom says it has lent more than $340-million to the Congo joint venture, which has 3.6 million subscribers, while CWN says Vodacom owes it at least $180-million in fees and damages.
- The initially approved municipal tariff rate of 24.8% finalised by the City of Johannesburg is going to be revised to 28.9%. Executive mayor Amos Masondo said the revision came after "the city learnt with shock" that municipal tariff rates would be increased by 28.9%. This increase follows the recent approval of an Eskom tariff of 24.8% over three years by the National Energy Regulator of SA.
- The Competition Tribunal raided the offices of SA Airways and Mango as part of a probe into price fixing related to the soccer World Cup. The investigation comes as demand for flights and accommodation during the World Cup has so far failed to meet expectations. The probe was first announced in January. At the time the commission said SAA had promised to co-operate with the investigation, provided that it was excluded from prosecution.
- The proposed strikes by Cosatu against the electricity tariff increase will impact negatively on investor sentiment. The SA Chamber of Commerce and Industry said the proposed strike action came at a time when South Africa had the opportunity to rally positive exposure as host of the Fifa World Cup. Cosatu has made a Section 77 submission to the National Economic Development and Labour Council to strike against the tariff increase that was granted to Eskom in February.
- African Oxygen Ltd, the continent's largest supplier of industrial gas, shut down a South African plant last week after a leak. The Witbank plant supplies liquid oxygen, nitrogen and other gases to industrial customers. Afrox said the plant would remain closed for another week.

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