Vodacom merger trouble, and SA GDP shock draws questions

Here’s what is happening in and affecting South Africa today:

• Divide over Vodacom-Maziv merger intervention: In Parliament, the EFF has condemned Minister Parks Tau for supporting an appeal against the Competition Tribunal’s decision to block the Vodacom-Remgro fibre merger, claiming it protects the interests of “white capitalist elites.” Tau’s appeal, backed by Vodacom and Remgro, seeks to overturn the tribunal’s October ruling, which blocked the deal involving a 30% stake in Maziv’s fibre assets. While the EFF criticises the move, the DA supports Tau’s appeal, seeing it as an opportunity for broader reform in South Africa’s competition policy. [Business Day]

• Doubts over farm data quality: Statistics SA reported a 0.3% GDP contraction from Q2 to Q3, surprising economists and the SARB. The decline was driven by a nearly 29% drop in the agricultural sector. Excluding agriculture, the economy would have grown by 0.4%, aligning with expectations. This has raised concerns about the accuracy of the agricultural data used in GDP calculations, with Johann Kotzé, CEO of Agri SA, saying that the figures “do not make sense.” While a contraction was expected due to the local drought, Kotzé says the scale is wildly out of sync with the sector’s actual experience. [News24]

• NCC investigating expired food sales: The National Consumer Commission (NCC) is investigating 18 companies in KwaZulu-Natal for allegedly selling expired food items. The investigation follows complaints from consumers and a visit last month to a company in Verulam, north of Durban. The company was found to repackage cakes and snacks with expired dates and sell other items without proper labels. [SABC]

• Body of illegal miner retrieved: Illegal miners occupying an abandoned gold mine in Stilfontein claim that several miners have died from hunger and dehydration. A recent note sent to the surface reported at least six fatalities since the authorities halted food and water deliveries to force them out. In November, law enforcement escalated Operation Vala Umgodi, enlisting mining experts to assist in bringing the miners to the surface. [EWN]

• Markets: The rand was steady on Tuesday as investors viewed an unexpected contraction in the economy in the third quarter as a temporary blip. On Wednesday (04 December), the rand was trading at R18.14 to the dollar, R22.94 to the pound, and R19.05 to the euro. Oil is trading at $73.82 a barrel. [Reuters]