New Mercedes-Benz South Africa CEO resigns, and South Africa has done the impossible
The rand was mostly unchanged on Tuesday following the release of unemployment and manufacturing data, with traders focused primarily on a national budget review scheduled for Wednesday.
The rand was trading at 17.1450 against the dollar, close to its previous closing level.
On Monday, the local currency saw a recovery, gaining about 1% after news that the US Senate had passed a deal to restore federal funding and end the longest government shutdown in history.
Stats SA reported that the official unemployment rate decreased slightly in the third quarter of this year, falling to 31.9% from 33.2% in the second quarter.
The agency also released manufacturing output figures for September, which showed a year-on-year increase of 0.3%.
This was better than the 0.3% decline that Reuters analysts had expected but weaker than Nedbank’s forecast of a 0.7% rise.
Nedbank economists noted that while the manufacturing sector continues to face structural and cost pressures, output is expected to receive some support from consumer-oriented sectors benefiting from firmer domestic demand and improved electricity supply and logistics performance.
Investor focus is now on the national budget presentation by Finance Minister Enoch Godongwana, which is anticipated to show a slightly improved fiscal outlook.
The Johannesburg Stock Exchange’s Top-40 index was up 0.8%, primarily driven by gains in shares of Gold Fields, Harmony Gold, and Vodacom.
On Wednesday, 12 November, the rand was trading at R17.17 to the dollar, R22.54 to the pound and 19.87 to the euro. Oil was trading slightly lower at $64.99 a barrel.
5 important things happening in South Africa today
New Mercedes-Benz South Africa CEO resigns: Mercedes-Benz South Africa announced on Monday that Abey Kgotle, who was set to become the new CEO, has resigned for personal reasons. His resignation comes less than a month before he was scheduled to assume the role. As a result, the current CEO, Andreas Brand, will remain in his position “until further notice.” [Engineering News]
South Africa has done the impossible: Adrian Enthoven, chair of Hollard Insurance and investment group Yellowwoods, believes South Africa has turned a corner. He highlighted that recent structural reforms have transformed the economy, driving significant investment into network industries. Enthoven urges South Africans to overcome negativity and acknowledge the positive strides made for economic growth. [News24]
Unemployment rate improves: South Africa’s unemployment rate has decreased by 1.3 percentage points in the third quarter of the year, moving to 31.9% from 33.2% in the second quarter. [BusinessTech]
Billion rand state-owned company destroyed: Denel, despite its strong products and history, has been severely impacted by mismanagement and corruption. It has not published regular annual reports, with the last one from the 2019/20 financial year released in February 2021. This report showed revenue fell from R6.02 billion in 2018 to R2.73 billion in 2020, resulting in a net loss of R1.9 billion, which is R493 million more than the previous year. A decade earlier, the company had a profit of R111 million. [MyBroadband]
Gambling ban proposed for some South Africans: South Africa’s bookmakers have initiated industry discussions to explore measures that can prevent Sassa social grant recipients and National Student Financial Aid Scheme (NSFAS) beneficiaries from misusing taxpayer assistance for online betting. [Business Day]
Loading ...