Cosatu said it is concerned about the notion that public resources should be used to save embattled private companies. It was commenting after news that the embattled Tongaat Hulett is facing possible provisional liquidation.
Image: File.
Trade union federation Cosatu is warning against any “irresponsible” use of public resources to save the embattled Tongaat Hulett which is facing possible provisional liquidation, a move that will have a profound impact on KwaZulu-Natal’s agricultural economy and the sugar sector as a whole.
In a statement, Cosatu in KwaZulu-Natal expressed deep concern over the collapse of the business rescue process at Tongaat Hulett, adding the development poses a serious threat to jobs, the provincial economy, local supply chains, and the livelihoods of workers and communities who depend on the sugar industry.
However Cosatu KZN provincial leader Edwin Mkhize warned against the state rushing in to save the company.
“Cosatu KZN rejects the dangerous narrative that the state must rescue private capital without accountability. It would be criminal and morally indefensible for public funds, generated through the taxes of workers and the poor, to be used to save private companies that have historically enriched shareholders, executives, and monopoly capital, while suppressing wages and deepening poverty. We must save jobs, but with conditions and accountability.
“We are clear: South Africa cannot afford to lose a single job. KwaZulu-Natal, in particular, is already suffering from deep unemployment, poverty, and inequality. The collapse of Tongaat Hulett will worsen this crisis and undermine efforts to rebuild the provincial economy. For this reason, Cosatu KZN supports urgent government intervention to protect jobs, stabilise the sugar sector, and the economy. However, we state unequivocally that any state intervention must come with strict and non-negotiable conditions,” said Mkhize.
He stated that if the government is expected to inject resources into Tongaat Hulett, then the government must not act as a charity for private capital. The state must intervene in a manner that advances public ownership, worker control, and long-term industrial sustainability.
“Cosatu therefore demands that any financial support or intervention from the Department of Trade, Industry and Competition (DTIC) or any state institution must include amongst others that equity ownership by the state and workers in exchange for any public funding.
“We will not allow state resources, money belonging to the people, to be abused to protect the profits of private capital. The time has come for a new economic path where workers and communities are placed at the centre of industrial development, ownership, and decision-making,” he said.
Meanwhile Agriculture Minister John Steenhuisen said the department has been engaging with industry stakeholders and has been informed that, unless the current funding impasse is urgently resolved, growers will be unable to deliver cane and processing will come to a halt.
The department said the consequences of such an outcome would be severe, affecting approximately 15 500 delivering growers and between 35 000and 40 000 people whose livelihoods depend directly on the supply chain linked to the mills.
“This is not a theoretical risk, it is an immediate economic threat to rural communities,” Steenhuisen said.
“If the mills do not open, farmers cannot harvest, workers cannot earn an income, and entire local economies will stall. The longer uncertainty persists, the greater the damage becomes.”
The department said it is engaging with the relevant departments and financing stakeholders to support a practical solution that preserves production capacity and avoids irreversible losses in the sector.
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Recent claims regarding a R3.8 billion bailout for the South African Post Office (SAPO) have been refuted and slammed as misleading.
South Africa’s largest trade federation, Cosatu, announced that it is seeking urgent engagement with several ministers to address the crises threatening the collapse of the postal service.
The federation intends to meet with the Ministers of Communications and Digital Technologies, Finance, and Employment and Labour to find progressive solutions to safeguard thousands of jobs.
“We are extremely worried about reports that the R3.8 billion committed by the National Treasury has still not been received by SAPO and that only three out of six agreed trenches of payments from the UIF’s Temporary Employee Relief Scheme have been paid,” the union declared.
Cosatu argued that this funding delay makes it impossible for the Post Office to recover and risks the livelihoods of its remaining staff.
“It is very concerning that SAPO’s Business Rescue Practitioner is now said to be considering approaching the courts to liquidate SAPO,” the union noted.
“If true, this would be an absolute calamity for SAPO’s workers and their families, the customers and communities who depend upon its services.”
Cosatu further alleged that the business rescue practitioners have failed to implement a sustainable turnaround plan.
“They’ve been content to close branches and retrench thousands of workers instead, and thus further weakening the ability of SAPO to recover,” the union declared.
“The solution to stabilise and set SAPO as well as the Postbank on the path to sustainability, is not to deny it funds committed to its recovery, nor to apply for its liquidation.”
No Commitment Made to SAPO
Following Cosatu’s demands, the Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, dismissed the federation’s claims as “misleading.”
She clarified that the union is incorrect to suggest the National Treasury is withholding funds that were either promised or approved.
“Repeating such claims risks misleading workers and the public and creates expectations that are not supported by law or fact,” said Boshoff.
She noted that the absence of a viable turnaround plan, coupled with a prolonged business rescue process, has severely weakened SAPO’s financial and operational standing.
Boshoff emphasised that it was her duty to correct misinformation regarding the alleged bailout for an entity over which her committee has oversight.
“All stakeholders are urged to engage responsibly and accurately. Sustainable solutions cannot be built on funding assumptions that were never approved, committed, or appropriated,” she said.
“The National Treasury has been explicit in its engagements with Parliament that there exists no legally binding commitment of R3.8 billion that was ever made to SAPO.”
The R3.8 billion figure reportedly stems from assumptions and proposals within the entity’s business rescue plan rather than official government policy.
Treasury clarified that, by law, public funds can be released only after they are formally appropriated through the budget process, a step that has not occurred for the cited amount.
Both Treasury officials and legal advisers maintain that the National Treasury is under no obligation to transfer the funds.
“This reflects the Minister of Finance’s constitutional responsibility to safeguard the fiscus and ensure that all expenditure complies with legal, fiscal, and governance requirements,” added Boshoff.
According to Boshoff, only short-term relief funding has been provided through departmental mechanisms.
These payments were conditional, time-bound, and subject to strict compliance.
“These measures do not constitute, and were never intended to constitute, a R3.8 billion commitment,” Boshoff concluded.
Pick n Pay’s widening losses are not a unique problem, say analysts, with value legend John Biccard now a big holder of the stock.
Saying Pick n Pay is in a bad place is not revolutionary,” Richard Cheesman, fund manager at Urquhart Partners, tells Currency. But for investors, it still stings.
Take this week’s profit warning, in which the retailer warned investors to brace for a full-year headline loss that will be at least 20% worse than a year ago. It was enough of a surprise to slice off a 10th of Pick n Pay’s market cap.
Disturbingly, Pick n Pay Clothing, usually a high performer for the brand, is struggling: like-for-like sales shrank 6.8% in the second half of the 48-week period monitored in the update.
The big question for investors is whether Pick n Pay – under the dogged turnaround efforts of Sean Summers since 2023 – is failing to flay the demons of its own making, or whether the entire retail sector is in far worse shape than anyone thought.
“This is a two-pot hangover,” says Cheesman, referring to the windfall that retailers enjoyed in 2024 when savers were first allowed to withdraw a chunk of money from their pension funds.
Two-pot hangover
“Now it’s out of the base you’re seeing the impact. I don’t think Pick n Pay blew up their clothing business in the last six months – and I think you’ve seen the same kind of numbers with Mr Price and TFG,” he says.
It’s clear that much of the damage took place in the second half of the group’s financial year, with Black Friday – unaided by the two-post boost of 2024 – clearly not delivering the goods. Until the end of August, for example, the growth in Pick n Pay’s clothing business had been 7.5% year on year.
“Across the South African and international retail landscapes, clothing retail broadly is under pressure,” says Umthombo Wealth’s Alexander Duys.
But, he adds, Pick n Pay’s trading update is “a disappointing outcome for investors and a reminder of the difficult task management faces in driving a turnaround amid weak economic conditions”.
Intriguingly, value investing guru John Biccard has taken a large punt on Pick n Pay; the retailer makes up a roughly 5% share in his value fund, and he believes it’s not a Pick n Pay problem but “a market problem”.
“If you’re the weakest player in retail, and there’s a slowdown, you’re going to feel it the most,” the Ninety One portfolio manager tells Currency.
Though the slowdown in growth for Pick n Pay clothing is still concerning, as “they’ve been growing so much quicker than everyone else for years”, Biccard points to the fact that Truworths, Foschini and other clothing retailers are equally taking strain from the sluggish economy.
Overall sales have decreased 3.6% for Truworths in the half-year ended December 2025, driven by a 5.8% fall in cash sales. Its headline earnings per share are down 8% for the full year.
Foschini barely grew, with like-for-like sales rising only 1.2% in the third quarter of its 2026 financial year.
The Shein factor
And then there’s the relentless onslaught from online fast-fashion stores Shein and Temu. “Their rapid rise has reshaped competitive dynamics in the apparel sector, especially in the lower-price fashion segment where local physical retailers like Pick n Pay compete,” says Duys.
According to a 2025 report by the Localisation Support Fund, Shein and Temu collectively achieved R7.3bn in sales in 2024, accounting for 3.6% of the South African retail market and 37% of total online retail sales.
“This rapid growth has come at a notable cost to the local economy,” the fund says, with an estimated R960m lost in local manufacturing sales.
Even Shoprite, “the leader in the sector [which] always does the best, had a significant slowdown over the past two months”, notes Biccard.
Still worth a punt?
Luckily for Pick n Pay, Boxer, in which it maintains a 65.6% stake, is still doing well. The discount retailer grew sales 11.9% in total for the 48 weeks to February 1, and 3.9% on a like-for-like basis.
The difference in performance means that Pick n Pay’s 65.6% stake in Boxer is worth R21bn, while its own market cap is just R16bn.
“When the market value of a business is -R5bn, it basically means that, in perpetuity, Pick n Pay is going to lose money,” says Biccard.
Says Cheesman: “The market is valuing the core Pick n Pay business at less than zero.”
So, should investors throw in the towel? On the contrary, argues Biccard.
“It’s terrible right now, but that’s actually when you buy,” he says. “You have to say: ‘Is there a chance things will get better?’”
Both Cheesman and Biccard are relatively optimistic of a slight upturn in growth, from 1% closer to 2%. Petrol prices are going down, inflation is settling and interest rate cuts will help with consumer debt.
“I lean slightly optimistic here. Pick n Pay is finally taking the tough steps, closing underperforming stores and tackling its cost base,” Cheesman says.
In any case, Pick n Pay has at least two years of cash runway to turn things around, Biccard notes. “I have no doubt that it will go down some more, but then we will just buy some more.”
Caption: Kath McClay, President and CEO of Walmart International, Image Supplied.
South Africa’s retail landscape is taking shape as Massmart, the owner of Game, Makro and Builders considers closing about 20 Game stores across Gauteng, the Western Cape and KwaZulu-Natal.
Game currently operates about 122 outlets locally, part of a wider network of roughly 150 stores across 12 African countries.
In a statement shared with media, Massmart noted: “The potentially affected stores represent a small part of our total Game store portfolio, and we continue to invest in the future growth of Game, including through the rollout of our pantry merchandise proposition, which is enjoying high demand from Game customers.”
The group added that there are no plans in place to close the Game business.
That assurance comes despite mounting pressure on traditional big-box retailers, as analysts tracking the sector point to years of economic strain, rising competition and the rapid growth of online shopping as factors reshaping consumer habits.
Electronics and appliances, long staples of Game’s offering, rank among the most popular categories for e-commerce purchases.
Momentum behind the strategy became more visible late in 2025 when Walmart opened its first branded South African stores at Clearwater Mall and Fourways Mall, both converted from former Game sites. Another location is scheduled for launch in Boksburg during the first quarter of 2026.
Walmart, which first acquired a 51% stake in Massmart in 2011, moved to take full control in late 2022.
Kath McLay, who is the president and CEO of Walmart International, highlighted the company’s local ambitions.
“By partnering with South African suppliers and entrepreneurs, Walmart brings its signature Every Day Low Prices and global standards to the market.”
Massmart chief executive Miles Van Rensburg echoed that focus on affordability, noting: “Every rand matters when it comes to price. This balance of quality and everyday low prices enables us to build customer trust.”
Founded in 1962 by brothers Sam Walton and James “Bud” Walton in Rogers, Arkansas, Walmart has grown from a small discount store into a global retail powerhouse. It now operates 10,750 stores and clubs in 19 countries, alongside eCommerce platforms, and employs approximately 2.1 million people worldwide.
Johannesburg – Walmart’s push into South Africa is picking up speed, with new stores opening and more on the way, while Game’s network across the country continues to get smaller. This shift comes as Massmart, the local group fully owned by Walmart, looks at closing around 20 Game outlets in key provinces to make room for Walmart-branded shops. The changes highlight how the US retail giant is stepping up its game to offer better prices and quality goods to local shoppers facing tough economic times.
Walmart’s Growing Presence in South Africa
Walmart first dipped its toes into the South African market back in 2011 by buying a 51% stake in Massmart. By late 2022, it had taken full control, setting the stage for bigger moves. The company announced in September 2025 that it would open its first branded stores before the end of that year, marking a bold step to bring its well-known name directly to local consumers.
This expansion goes beyond just rebranding. Walmart aims to stock a wide mix of items, from fresh groceries and household basics to clothing and tech gadgets. Shoppers can expect exclusive private label products and unique items from around the world, all at competitive prices. The strategy focuses on quality and affordability, which Walmart sees as key to winning over South Africans hit by rising costs and weak growth.
Game’s Shrinking Network Amid Challenges
Game, a long-time favourite for electronics, appliances, and general goods, has been under strain for more than a decade. Fierce competition from other retailers and a sluggish economy have squeezed its profits and forced tough choices. Since late 2022, at least 13 Game stores have shut their doors, with some sites quickly turned into other formats or left empty.
Now, Massmart is reviewing about 20 more Game locations in Gauteng, the Western Cape, and KwaZulu-Natal. These could close soon, with plans to rebuild many as new Walmart outlets. This follows a pattern where struggling Game spots are repurposed to fit Walmart’s vision. For example, the Game store at East Point Shopping Centre in Boksburg closed in July 2025, paving the way for potential changes.
These closures are not taken lightly. Massmart has promised to talk with affected workers about options like moving to new roles or other support. The moves aim to streamline operations and focus on stronger brands, but they also reflect the harsh realities of a retail sector where only the most adaptable survive.
Key Store Openings and Rollout Plans
The rollout kicked off in November 2025 with Walmart’s first two stores in South Africa. One opened at Clearwater Mall in Roodepoort, and the other at Fourways Mall in Johannesburg. Both replaced former Game sites, allowing Walmart to hit the ground running without starting from scratch.
Building on that success, a third store is set to open in Boksburg on the East Rand by the end of February 2026. This location, likely at the old Game spot in East Point Shopping Centre, will bring Walmart’s affordable range closer to more communities. Company leaders have hinted at speeding up growth beyond Gauteng in 2026, with sites in other provinces under consideration.
Massmart plans to share more about its long-term strategy in the second quarter of 2026. This could include details on new builds, not just conversions, and how Walmart will blend with existing chains like Makro and Builders. The approach shows Walmart’s commitment to adapting to local needs while using its global muscle to offer better deals.
Impact on the Local Retail Scene
South Africa’s retail market, worth around R1.3 trillion, is heating up with Walmart’s arrival. It puts the US giant in direct rivalry with home-grown leaders like Shoprite, Woolworths, and Pick n Pay. These chains have long dominated groceries and general merchandise, but Walmart’s focus on low prices and wide variety could shake things up.
For shoppers, this means more choices and potentially lower costs on everyday items. Walmart’s entry follows a growth summit held in Johannesburg in April 2025, where the company connected with local suppliers to boost opportunities. This not only helps build a stronger supply chain but also supports jobs and small businesses in the area.
However, the changes raise questions about Game’s future. With roughly 100 stores left, Massmart might convert more to Walmart or shift them to mini-Makro formats, as seen in some past trials. Analysts see this as a reset for Walmart in Africa, sticking with South Africa despite pulling back from other low-growth spots worldwide.
Looking Ahead: Opportunities and Challenges
As Walmart ramps up, it faces hurdles like high unemployment, power outages, and supply chain snags that plague the local economy. Yet, with a population hungry for value, the timing could be right. The company’s 2.1 million global workforce and nearly R13 trillion in yearly revenue give it the tools to tackle these issues.
For Game employees and loyal customers, the transition brings uncertainty but also hope for fresh starts. Massmart stresses that any changes will involve talks to minimise job losses, possibly through transfers or training for new positions.
This evolving story underscores a bigger trend in South African retail: adaptation is key to survival. As Walmart grows and Game shrinks, the landscape is set for exciting shifts that could benefit consumers in the long run. Keep an eye out for updates as more stores open and strategies unfold.
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