Today's edition
Bakkie to Basics
Good morning. It's a plant-your-flag-at-home kind of day: Toyota is pouring R10.4 billion into building the next Hilux in Durban, Amazon is slipping into South African skies on a local partner's licence, and a cheaper copy of Ozempic just cleared the gate. Different bets, same home ground. Let's get into it.
MARKETS
DRIVEN HOME
Toyota bets R10.4 billion on building the new Hilux at home
The Toyota Hilux is about as South African as a bakkie gets, and the newest one is now rolling off the line in Prospecton, just south of Durban. On Thursday the first new-generation model came off that line, with President Cyril Ramaphosa there to mark the moment. Behind the ceremony sits a R10.4 billion bet: Toyota has sunk the money into retooling the plant for its ninth-generation Hilux, wagering that a truck designed for local conditions and built by South African hands can still compete from a South African base. Ramaphosa cast the day as a matter of confidence in South Africa and the enduring value of long-term investment.
The build, by the numbers:
- The build: R10.4 billion to retool the Durban plant for the new-generation Hilux.
- The suppliers: another R2 billion committed by parts makers around the plant.
- The stakes: vehicle-making is about 5% of the economy and roughly 115,000 jobs.
Whether the new Hilux can out-muscle cheaper imports is the question that gets answered now, one truck at a time.
LICENCE TO BEAM
Amazon brings satellite internet to South Africa, riding a local partner's licence
Amazon is coming for South Africa's internet, and doing it the quiet way. Its satellite network, Amazon Leo, will power a new home-internet service called evry, run hand-in-hand with Herotel, the country's largest fixed-internet provider, going live in 2027. The clever part is the paperwork: rather than fight for its own licence, Amazon rides on Herotel's, sidestepping the local-ownership rules that have kept Elon Musk's Starlink out. One rival is stuck at the door; the other found a side entrance. Amazon is dangling up to $16.9 billion a year in economic benefits to match.
BAGEL BITE
Which law states every action has an equal and opposite reaction?
A. Newton’s First Law
B. Newton’s Second Law
C. Newton’s Third Law
DOING THE ROUNDS
Buying that outfit just got easier to stomach. From 15 July, shoppers on Bash, TFG's fast-growing online store, can split any purchase into three interest-free payments through PayJustNow, or stretch bigger baskets over twelve months. It extends a partnership that already spans 29 of TFG's brands, and lands as the group's online sales in Africa jump 49%. Full story →
Old Mutual's shareholders just balked at a R300 million prize for their new boss. At the insurer's annual meeting the pay policy scraped through with 68% support and the pay report with 71%, both under the 75% mark that signals real comfort. The reward only pays out if CEO Jurie Strydom lifts the share price to R21.74 by 2030, from about R13.91 now, so the board has invited the holdouts to talk it over. Full story →
Christo Wiese's Brait is getting Virgin Active into shape for the stock market. The investment group, whose stake in the gym chain makes up more than half its worth, has launched a R2.5 billion share sale to existing investors at a discount. The cash helps pay down Virgin Active's debt ahead of a listing pencilled in for 2027 or 2028, most likely in the UK with a slice offered in Johannesburg. Earnings are up 37% on the year. Full story →
The diabetes jab behind a thousand weight-loss headlines is about to get a cheaper cousin. Sun Pharma has won South African approval for a generic version of Ozempic, Novo Nordisk's blockbuster diabetes medicine, and plans to start selling within days. It comes as a once-a-week pen, with South Africa only the second market after India where Sun Pharma has cleared it, landing where a month of the branded jabs can run R3,000 to R6,000. Full story →
WEATHER
BAGEL GAMES
Have you got what it takes to win today’s Wordle? Play here →
THE ANSWER
As for the Bagel Bite, the answer is: C. Newton’s Third Law
Newton’s Third Law of Motion states that forces always occur in pairs. When one object pushes or pulls on another, the second object pushes or pulls back with an equal force in the opposite direction. These forces act on different objects, so they do not cancel each other out. Newton’s cradle demonstrates this clearly: when one ball is lifted and released, it strikes the next ball and transfers force through the row. The ball at the opposite end then swings outward, showing how forces are passed between the balls through equal and opposite interactions.
That's your Monday wrap. Enjoyed it? Forward it on — a friend can subscribe in a click. Written by the Business Bagel crew.