Win for Please Call Me idea-man Makate, and good news about electricity prices in South Africa
The rand remained stable on Monday as traders evaluated Moody’s decision to maintain South Africa’s credit rating and outlook.
This comes ahead of key data releases that will provide insights into demand and output trends at the start of the fourth quarter.
The rand traded at 16.9675 against the dollar, which is about 0.2% weaker than Friday’s close.
Moody’s has kept South Africa’s credit rating at Ba2, noting that the decision reflects the country’s “low growth potential” and has maintained a stable outlook.
Economists at Nedbank had anticipated that the ratings agency might upgrade South Africa’s outlook from stable to positive.
Moody’s said that the stable outlook reflects our expectation that, while economic growth is likely to improve, it will remain modest, with the government’s debt burden remaining elevated, though stable, over the medium term.
Investor focus will shift to retail sales data on Wednesday and mining and manufacturing production figures on Thursday.
On the Johannesburg Stock Exchange, the Top 40 index was down 1% at last check.
On Tuesday, 9 December, the rand was trading at R17.04 to the dollar, R22.71 to the pound and R19.85 to the euro. Oil was trading slightly lower at $62.34 a barrel.
5 important things happening in South Africa today
Win for Makate: A court has ruled that Nkosana Makate, inventor of Please Call Me, does not need to ringfence 40% of his recent settlement with Vodacom. Black Rock Mining sought an interim order to freeze part of his payout, claiming it had funded Makate’s case years ago and was entitled to a share. [MyBroadband]
Good news about electricity prices: AfriForum has welcomed a new court-imposed annual timeline for the National Energy Regulator of South Africa (Nersa), following a victory in the North Gauteng High Court. The ruling mandates specific timelines for all future municipal electricity tariff applications. Morné Mostert, AfriForum’s local government affairs manager, stated that this milestone allows consumers to participate more effectively in decision-making regarding electricity tariffs, ending previous malpractices. [MyBroadband]
Eskom throws smelters a lifeline: Eskom and Glencore have agreed to a deal that will provide dedicated electricity from specific power stations, aiming to keep furnaces operational and protect Eskom from fluctuating coal prices. The agreement addresses concerns from smelters facing potential business withdrawals tied to government failures, according to a trade union with over 500,000 members. A memorandum of understanding (MoU) aims to preserve jobs, maintain up to 12 furnaces, and support beneficiation without creating financial burdens. [Business Day]
Major car brands recall vehicles: The National Consumer Commission (NCC) has announced the recall of Kia and Jeep Wrangler models. At least 323 Jeep Wrangler vehicles have been recalled. Meanwhile, at least 18,600 Kia vehicles have been recalled. Those models include Sportage, Sorento, Optima, Cerato, and Soul. [eNCA]
Green shoots for infrastructure in South Africa: The FNB/BER Building Confidence Index rose to a 10-year high of 43 in Q4, up from 35 in Q3. Nonetheless, over 55% of respondents remain dissatisfied with current business conditions. [Engineering News]
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