Blow to iconic South African brand, and Mashatile calls for stricter BEE laws
The South African rand strengthened on Thursday after the U.S. reported higher-than-expected consumer inflation data.
However, a surge in first-time applications for unemployment aid suggests that the Federal Reserve is likely to cut interest rates at its meeting next Wednesday.
The rand traded at 17.38 against the dollar, representing an increase of approximately 0.6% from Wednesday’s close, as it recovered from earlier losses following the release of mixed domestic data.
The dollar was about 0.3% weaker against a basket of currencies, after U.S. consumer prices rose more than anticipated in August, marking the largest annual increase in inflation seen in seven months.
On Friday, 12 September, the rand was trading at R17.37 to the dollar, R23.55 to the pound and R20.38 to the euro. Oil was trading slightly lower at $65.90 a barrel.
Here are five other important things happening in and affecting South Africa today:
Liqui Fruit ordered to change trademark: The Advertising Regulatory Board’s appeals committee has deemed Liqui Fruit’s trademark, “Nothing But Fruit,” misleading. Pioneer Foods, the brand’s owner, must change or remove the trademark. In April, the board also instructed the brand to retract its claims about local sourcing. [News24]
BEE must be implemented more rigorously: Deputy President Paul Mashatile said that broad-based black economic empowerment (BBBEE) was here to stay and scrapping the policy would be like going back to apartheid. “The BBBEE is not a failed policy. In fact, I think it must be implemented more rigorously.” [EWN]
Bad news for economic growth: FirstRand CEO Mary Vilakazi highlighted South Africa’s challenging economic situation during the annual results release. She noted that many underestimated the duration and complexity of necessary structural reforms. While she acknowledged progress, she warned it might take up to two years for South Africa to achieve a higher growth rate. [Business Day]
Big changes to toll gates: By the end of 2025, the vast majority of South Africa’s toll plazas will support tap-and-go functionality for cards and smart devices and allow people to pay with debit cards. [MyBroadband]
Gauteng department in deep trouble: The Gauteng Department of Health has been flagged by the Auditor General of South Africa as the only department with non-compliance across all areas, due to a “lack of effective internal control.” [Newsday]
Loading ...