A ship loader at Grindrod's Maputo Coal Terminal. Grindrod announced its acquisition of the remaining 35% stake in Terminal de Carvão da Matola Limitada (TCM) at the Port of Maputo on September 19, 2024. This move was part of their strategy to enhance logistics services along the Maputo corridor.
Image: Supplied
The announcement of Grindrod's acquisition of the remaining 35% shareholding in Terminal de Carvão da Matola (TCM) at Maputo port stands as a significant strategic milestone for the company, as outlined by Chairman Cheryl Carolus in the integrated report released on Friday.
This decision solidifies Grindrod's established presence at the port and aligns with the group's larger strategy to enhance logistics and export capabilities across Africa and beyond.
Despite facing challenging trading conditions throughout 2024, including logistics constraints and cost pressures in Mozambique, Carolus remains optimistic about Grindrod's future, highlighting achievements in critical areas directly related to their operational strategy.
"The group achieved notable milestones," she stated, underscoring that the acquisition is expected to facilitate further growth in integrated logistics solutions tailored to customer needs.
The report also disclosed that the sale of a non-core North Coast property to African Bank was successfully finalised in March 2025, reflecting a commitment to focus on core business areas.
This ongoing transformation is further complemented by a robust financial performance, with Grindrod generating a revenue of R27.5 billion, a notable 16.8% increase compared to the previous year, despite declaring a lower dividend of 40 cents per share, down from 72.4 cents.
Looking ahead, she said global growth predictions show a slight increase to 3.3%, while South Africa's growth is forecasted to hover around 1.8% from 2025 to 2027, a welcome change following a decade of stagnation.
However, the economic landscape remains fraught with challenges, including energy shortages and logistical inefficiencies, posing potential constraints on further growth. China's economy is expected to stabilise at a growth rate of 4.5%, and India’s is projected to flourish at 6.5% over the same period.
A particular point of concern for Grindrod is the evolving trade relationship with the US, South Africa's third-largest trading partner.
The uncertainty surrounding US tariff threats creates an unpredictable environment that could severely affect South Africa's economy, particularly if the country loses its favourable position under the African Growth and Opportunity Act (AGOA).
The potential exit from AGOA would compel businesses to seek new markets or bear increased costs, risking jobs and straining export-driven industries.
Meanwhile, greater aspirations are on the horizon for Mozambique as its recovery continues post-cyclone and political unrest.
The TotalEnergies Liquefied Natural Gas (LNG) project is expected to gain momentum following the recent approval of a $4.7 billion loan from the US Export-Import Bank, signaling renewed confidence in the country's burgeoning energy sector.
With an estimated economic growth of 4.3% in 2024, albeit below initial forecasts, Mozambique is poised to reclaim its strategic role as a logistics hub, enhancing regional trade corridors, the group said.
However, infrastructural deficits persist, notably in connectivity between production areas and export terminals, contributing to ongoing operational challenges. This situation is compounded by the volatile nature of global commodity markets, which are likely to experience increased fluctuations due to geopolitical tensions and climate-related disruptions.
Grindrod's share price fell 3.09% on Friday afternoon to R10.97, much in line with the big 3.43% decline in the JSE All Share Index, at the same time. Grindrod's price was also 11.7% below what it traded at a year before.
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