The seasonally adjusted Absa Purchasing Managers’ Index (PMI) declined to 45.7 index points in August, down from 52.1 in July. While the magnitude of the decline may have been larger than anticipated, a fall in the PMI in August was not totally unexpected. This followed on July’s surprisingly solid reading despite the weak domestic demand environment and growing concerns about the health of the global economy.

All of the PMI’s major subcomponents came in below the neutral 50-point mark, signalling general weakness in the sector. For some time, the suppliers’ deliveries index had managed to remain (well) above 50 points, providing support to the headline index. However, even this indicator dropped in contractionary terrain in August. This was the first time this index declined to below 50 since April 2018. The business activity and new sales orders indices also slumped back in contractionary terrain during August after a single month above 50 points in July. Respondents continued to be fairly down beat about exports for a third straight month, while domestic demand likely also weighed on orders. This negatively impacted output levels, while the sustained weakness in output growth, in turn, affected employment. The employment index fell by four index points to reach a more than five-year low in August.

Worryingly, the index tracking expected business conditions in six months’ time also dipped back below the neutral 50-point markfor the first time since November 2018. This means that more purchasing managers expect conditions to worsen (from already weak levels) going forward.

Despite the decline in the diesel price in early August, the purchasing price index rose by 5.7 points to reach 73.6 in August –the highest level since March. The increase was likely driven by the sharply weaker rand exchange rate during the month compared to July.

• Absa PMI August 2019
• Absa PMI Infographic

Barclays has kicked off applications to its 2014 Pan Africa Graduate Development Programme (PAGDP) to attract, select and hire high calibre post graduates who will be exposed to technical, financial and professional training and mentoring on the African continent.

Since its inception in 2008, 645 graduates have been hired into the programme. PAGDP aims to provide a consistent talent pipeline to meet the demand for scarce and critical skills. The programme design is such that graduates are exposed to both on-the-job learning and behavioural competencies that are delivered through cross-border summits.

Graduates who meet the criteria are invited to apply for the programme. Applications close on 31 August 2013 for roles based in South Africa and 15 September 2013 for roles based in the rest of our African countries.

The programme commences in February 2014 with a two-week orientation in Johannesburg.

Graduates are the lifeblood of the economy. As an organisation that supports the development of young talent, we are striving to ensure that we play our part in helping you find your feet in the corporate world.

• Get more information

The seasonally adjusted Absa Purchasing Managers’ Index (PMI) measured 52.1 index points in July, up from 46.2 in June. This is the first reading above the neutral 50-point mark since December 2018 with the improvement well supported by the underlying subcomponents. Four of the five major subcomponents came in above the neutral 50-point mark, signalling an expansion in activity.

However, given growing concerns about the health of the global manufacturing sector, it remains to be seen whether this improvement can be sustained going forward. While purchasing managers continue to expect conditions to improve in six months’ time, they are less optimistic than before. The expected business conditions index declined to 54.5 index points in July, down from 62.3 just two months before and more than 12 points below the level recorded at the start of the year.

In July, the new sales orders index rose for a second consecutive month. The reported improvement in demand likely contributed to the rise in business activity. As a result, both indices rose well above the neutral 50-point mark. The purchasing inventories index also edged back above the neutral level to reach 50.9 points after averaging 42.5 points in the preceding three months. It is not clear what the catalyst for these notable increases was. It may be that a number of manufacturing firms in – or supplying to – sectors that are busy with wage negotiations (automotive and platinum mining, for example) increased output, or saw increased demand for their products, in July to guard against possible strike-related production disruptions. Should this be the case, the notable upward moves in July are unlikely to be repeated.

Unfortunately, job prospects remained bleak, with the employment index only ticking up to 43.1 index points, thus remaining in deep negative terrain.

The index tracking purchasing prices erased most of last month’s gain and fell back to 67.9 index points in July. Apart from May’s reading of 67.7 points, this is the lowest level since May 2018. The stronger rand exchange rate (on average) may have supported the decline in the index.

• Absa PMI July 2019
• Absa PMI Infographic

Absa has taken note of the Public Protector, Advocate Busisiwe Mkhwebane’s assertion today that her office subpoenaed Absa to provide bank account information relating to her investigation into the President.

We wish to place on record that Absa is not aware of such a supboena and therefore has not refused to cooperate with her investigation.

In the past 12 months, Absa has received two subpoenas from the Public Protector and has, in accordance with the law, complied with them. These subpoenas did not involve any information relating to the President.

The Public Protector’s assertion is therefore, refuted.

Absa is the first issuer to secondary-list metal exchange-traded funds (ETFs) on A2X Markets, an alternative stock exchange in South Africa. The move provides investors the opportunity to buy and sell Absa’s metal *ETFs on an alternative, low-cost platform…

Read the media release, issued by A2X Markets, here

*An ETF is a basket of securities that you can buy or sell through a brokerage firm on a stock exchange.

Barclays operations in Nigeria have officially re-branded to Absa, in line with parent company Absa Group’s strategic plans on the continent.

Barclays Stockbrokers Nigeria Limited has been renamed to Absa Securities Nigeria Limited, and Barclays Securities Nigeria Limited is now known as Absa Capital Markets Nigeria Limited.

The change comes after parent company Barclays Africa Group was renamed to Absa Group in July 2018, as part of its separation from UK-headquartered Barclays PLC, allowing it to embark on a new era as a standalone African banking group with global scalability.

Part of the Absa Group’s separation agreement with Barclays PLC was to remove the Barclays brand from all assets by mid-2020 at the latest. The change in name and brand for the Group’s Nigerian operations is thus well ahead of schedule.

“Nigeria is one of the first countries outside of South Africa to change to the Absa brand, and we are excited to break new ground under our new brand. The new brand is an expression of the Group’s new identity as a forward-looking bank in a digital era and will bring refreshed energy and optimism to our local operations,” said Feyi Olusanya, Co-Head of Investment Banking of Absa Nigeria.

Other Barclays-branded assets in other markets across the continent will change to Absa at a later date that is still to be announced.

Products and service functionality will not be affected by the re-brand, although the visual look and feel will change, and customers are urged to be vigilant about potential fraud.

The continent-wide rebranding from Barclays to Absa is considered one of Africa’s most ambitious rebranding programmes, with offices, stationery, signage, branches, digital interfaces, and so much more requiring change across 12 markets.

As Absa, the Group announced a new growth strategy in March 2018, prioritising cultural transformation, restoring the Group’s leadership position in core business areas, and developing pioneering propositions for customers and clients. The strategy is expected to double Absa’s share of bank revenues in Africa, with Nigeria a market of interest to the Group.

The seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose to 46.2 index points in June 2019, up from 45.4 in May. The average level for the second quarter was 46.3 points, below the level recorded in the first quarter of 2019.

In contrast, available official statistics suggest that quarterly manufacturing output is set to rebound strongly in the second quarter after a dismal first quarter. However, part of this rebound is driven by a normalisation in output after load shedding disrupted production earlier in the year.

Furthermore, the PMI survey suggests that underlying demand conditions remain weak, which limits the possibility of a sustained recovery in output going forward. Indeed, the index tracking expected business conditions in six months’ time declined by a significant 6.7 points, after remaining unchanged in May. Part of this may be due to the reported decline in export orders in June, with the expectation of slower global growth foretelling that export demand will likely remain under pressure in coming months.

In June, only one of the five major subcomponents came in above 50 points – the index tracking suppliers’ deliveries. This index rose to a lofty 56.9 points from 55.7 in May. Both the business activity and new sales orders indices edged higher in June, but remained well below the neutral 50-point mark for a respective sixth and fifth consecutive month. The inventories index also increased in June after declining in the preceding two months. The only major subcomponent of the headline PMI to decline, when compared with May, was the employment index. Worryingly, the employment index recorded its worst quarter since 2009, which does not bode well for potential job creation in the sector.

Purchasing prices edged higher in June after two straight declines. The uptick was likely driven by a weaker rand exchange rate, which pushes up the cost of imported raw materials and intermediate products.

• PMI Infographic June 2019

Absa Bank Limited (the “Borrower” or “Absa” or the “Bank”), Bank of America Merrill Lynch and Standard Chartered Bank (together the “Bookrunners” and “Coordinators”) are pleased to announce the signing and successful closing of a US$ 500,000,000 Term Loan facility (the “Facility”).

The Facility has an initial tenor of two years, subject to an extension option available at the Borrower’s discretion to extend the maturity by a further one-year at the end of the initial two-year tenor. The Facility pays a margin of 1.05% per annum. The proceeds of the Facility will be used for general corporate purposes including, but not limited to trade related finance.

The Facility launched on 29th May 2019 to select financial institutions, at a launch amount of US$ 300,000,000 (subject to increase). Absa subsequently elected to upsize the transaction to US$ 500,000,000, in light of the significant commitments received.

The response from the market was extremely strong, with more than 192% oversubscription achieved versus the original launch amount with the final lender group consisting of 19 geographically diverse banks. This significant over-subscription necessitated the scaling back of total commitments, even after upsizing the facility to US$ 500,000,000. The positive market response is a reflection of Absa’s strong appeal to international investors, as well as the Borrower’s robust credit profile.

“This is the first syndicated loan Absa Bank has concluded in more than a decade and we are pleased with the result. I would also like to acknowledge our Coordinators and the key relationship banks that have participated in this US$500m syndicated loan,” said Jason Quinn, Absa Group Ltd. Financial Director. “The need for this syndicated loan following our US$400m Tier II bond issuance last year is to fund the growth in our US dollar lending both in South Africa and our Regional Operations, in support of our group strategy”.

SingularityU South Africa brings together leading exponential technology thought leaders from around the world to address education, energy, poverty, prosperity, and water.

SingularityU South Africa is proud to announce that the SingularityU South Africa Summit 2019 will take place at the Kyalami Grand Prix and Conference Centre, in Johannesburg on 16 and 17 October 2019. Now in its third year, and promising to be exponentially bigger than previous years, this future-focussed event will take Singularity’s mission to use new technologies to help solve the global challenges further, by placing a specific focus on future proofing Africa.

Thought leaders and innovators from across the world will present a forward thinking approach to unlocking the potential that Africa holds. Topics that will be addressed are designed to bring the most pressing issues facing the continent to the fore, including education, energy, poverty, prosperity and water. This summit intends to equip the leaders of today and tomorrow with the thinking and knowledge needed, to use technology to help pioneer a better future for all Africans.

“As part of our mission to future proof Africa, we are focussing on the most pressing problems and the technologies that can help address these. Innovation holds the key to the exponential solutions that can solve our education, energy, poverty & water challenges” said Mic Mann, co-CEO of SingularityU South Africa.

At a launch event held in the economic hub of Johannesburg, the first six speakers that will take to the stage at this year’s summit were announced. They include Sivan Ya’ari, the driving force behind InnoAfrica, which has supplied over 1 million people in rural areas in Africa with clean drinking water, using solar power, after identifying the need for a more sustainable energy solution. Award winning scientist and futurist Ramez Naam, who has authored several books including The Infinite Resource: The Power of Ideas on a Finite Planet, which looks at the environmental and natural resource challenges of climate change, energy, food and water, will address the scientific and technological innovation needed to solve the energy challenges faced by Africa. Andres De Leon, the COO of Hyperloop Transportation, who are pioneering the full scale passenger capsule, will share how boundless thinking has enabled the future of mobility to include this remarkable transport solution.

CEO and chief researcher at Next Bio Sciences, South African SingularityU Faculty member Kim Hullett, will share how advances in stem cell and genetic research are unlocking solutions to medical challenges around the world. SingularityU Canada robotics specialist faculty, Suzanne Gildert (pHD), who co-founded Sanctuary AI, with a mission to build synthetic humans, will discuss how we will have robots that will look like us and assist in the future will help us be more human. Coming in from the Nordic faculty of SingularityU, Kris Øostergaard will present an innovative perspective on transforming legacy organisations by embracing a new innovation framework and the exponential effects that this can yield. More speakers will be announced in due course.

The SingularityU South Africa Summit is hosted in collaboration with The Development Bank of Southern Africa, Global Partner Deloitte, and Strategic partners MTN and Absa. The Summit will showcase how technology can be used to solve the various global challenges. It aims to address the most pressing issues facing Africa, by hosting global thought leaders in the areas most in need of attention on the continent. Attention is also being paid to bringing a youth component into this visionary event, details of which will be announced at a later stage.
“We believe we have the ability to unlock the potential lying in the African continent and lead the way in the fourth industrial revolution” added Shayne Mann, co-CEO of SingularityU South Africa.

The third annual SingularityU South Africa Summit will focus on creating a collaborative and more economically-inclusive future, whereby partnerships and deals can be conceptualised and developed across the continent. Networking opportunities will allow attendees to connect with SingularityU faculty members and alumni. Exhibitors will present breakthrough ideas and investment opportunities that will run alongside the summit.

Quotes from SingularityU South Africa Summit Partners
Development Bank of Southern Africa (DBSA)

The DBSA’s vision is to build Africa’s prosperity and there is no doubt that technological innovation will provide the impetus for rapid development in South Africa and the region. Technology now makes it possible to change the way services are delivered and the DBSA has been investigating solutions to infrastructure problems using new techniques and products.

Our relationship with Singularity gives the Bank additional insight into global innovation and how exponential technologies can help to address specific challenges, particularly in South Africa, where there are still huge divides.

Deloitte

Innovation plays a major role in any industry, and so in an unpredictable and constantly shifting business environment, we aspire to act as connectors between ideas, areas of expertise, industries, people and geographies such that we accompany organisations as they navigate through the future.
Our alliance with Singularity University affords us the opportunity to participate as a global partner in the annual SingularityU Summit. Globally, SingularityU Summits have developed into a point of inspiration and connection for the local community, an opportunity to highlight breakthrough ideas and technologies and a catalyst to accelerating a local culture of innovation. For Deloitte, it’s tremendously exciting to be part of the third annual SingularityU Summit in South Africa as we continue to walk with our clients on an exponential journey to #futureproofafrica.

MTN

MTN believes that everyone deserves the benefits of a modern connected life and in giving back to our communities in an impactful way. As such, MTN consider it important to understand the potential change that rapidly evolving social and technological developments could have on our environments and communities. The partnership with SingularityU South Africa affords us the opportunity to stay on top these developments.

Absa

We are living in a time of extraordinary change and technological disruption. But one thing is clear: if this Fourth Industrial Revolution has the potential to ring in a new era of social progress and strengthened societies, we need to improve access to technology and educate everyone so they can fully benefit from the opportunities it opens up. Without a decisive plan for inclusivity at all levels of our society, this Revolution will fail the very people it should benefit the most. We are therefore excited to be a part of SingularityU South Africa’s journey as it embeds our commitment to partnering with different thought leaders to ignite change and redefine the future of our continent.

About SingularityU South Africa

SingularityU South Africa is the seventh country partner of Singularity University and the first in Africa. It is hosted in collaboration with our country partner The Development Bank of Southern Africa, global partner Deloitte, and strategic partner MTN and ABSA. Our massive transformative purpose is to build an empowered network of globally connected change-makers across Africa who are able to innovate and implement solutions that will solve some of the continent’s greatest challenges. We want to leapfrog Africa into the Fourth Industrial Revolution. We can do so by empowering its people to create abundant, sustainable, and holistic ways of living and working. In this way, we can #futureproofAfrica. We apply SU’s approach of applying exponential technology and thinking to solve South Africa’s and the continent’s greatest challenges around unemployment, education, infrastructure, energy, and medicine, among others. As a catalyst for change, SingularityU South Africa runs custom education, innovation, and impact programmes that help others leverage rapidly accelerating technologies—including artificial intelligence, nanotechnology, blockchain, and digital biology—in innovative ways to unlock solutions that can positively impact millions of lives.