Today’s top entrepreneurship and business stories (27 February)
Nersa approves 2.2% tariff increase for Eskom
The National Energy Regulator of South Africa (Nersa) on Thursday authorised Eskom to raise tariffs by 2.2 percent in the 2017/18 financial year.
Nersa chairperson, Jacob Modise, said Eskom’s full year revenue of R205,214 million for the 2017/18 financial year will now result in a percentage increase of 2.2 percent as determined in the Multi-Year Price Determination (MYPD3) decision.
In the MYPD3 decision, Nersa approved an eight percent average increase per annum for a period of five years, starting from the 1st of April 2013 to the 31st of March 2018.
Modise said the reason for the lower percentage increase this year was due to the base adjustments made in the preceding years as a result of the approved Regulatory Clearing Account (RCA) balances for Eskom. (via African News Agency)
Capitalworks signs agreement to acquire Aon shareholding in 10 sub Saharan African countries
Capitalworks, a leading private equity firm based in and focused on Africa, is to acquire Aon plc’s shareholding in its African insurance brokerage and employee benefit operations in Angola, Kenya, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Tanzania, Uganda and Zambia.
As an Aon global network correspondent, the new group will become Aon’s exclusive correspondent for these 10 countries and the transaction will become effective once regulatory approval has been granted.
“We are excited about investing in a world-class operation which is one of the leading players in Africa,’’ states Garth Willis, principal at Capitalworks. “We will be working with management to build on the Aon heritage as a trusted partner to clients in protecting the future of their people and assets in Africa.”
“Capitalworks is looking forward to partnering with the management team that has grown the franchise to be the largest insurance broker and employee benefit network on the continent.”
The new group will have the benefit of consistency in leadership and staffing, with Joe Onsando, currently CEO of Aon Sub-Saharan Africa, leading the business, supported by his existing teams in all ten countries. (via SAVCA)
MTN warns on losses for year
Group on Monday warned shareholders that it expected to report a basic headline loss per share of between 74 cents and 81 cents for the year to the end of December, down from headline earnings per share of 746 cents in the year before.
In addition to the Nigerian regulatory fine, the company pointed to other factors including foreign exchange losses and transaction charges for its empowerment transaction.
The full results are expected on Thursday March 2. (via African News Agency)