5 things you need to know about in South Africa today
·12 Aug 2016
Here’s what is happening in and affecting South Africa today:
- The ANC have raised “concerns” over the current system of proportional representation in the elections, which saw it lose metros like Nelson Mandela Bay to opposition parties, despite winning 60% of the wards in the region. The party is discussing the system at a four day conference, and is considering reviewing the Electoral Act.
- In the latest coalition news, the DA has made a deal to give up three municipalities in the Western Cape to secure a ruling majority in Beaufort West. Other parties are remaining tight-lipped, with some speculation that the EFF might simply stay out of it, leaving the DA and ANC to form minority governments in hung municipalities.
- South Africa’s rand was little changed near 10-month highs on Thursday and gains in the benchmark stock index were limited by losses for Old Mutual shares after weak results and news of a possible delay to its break-up. On Friday the rand was trading at R13.41 to the dollar R17.40 to the pound and R14.94 to the euro.
- In global news, Asian stocks inched up on Friday, after a surge in oil prices helped propel Wall Street to record highs overnight, while Chinese economic indicators that missed expectations did not dent gains in mainland shares.
- Oil prices edged up in early trading on Friday, extending gains from the previous session on expectations that exporters could at an upcoming meeting talk about ways to prop up a market that continues to be dogged by a supply overhang. Brent crude oil futures were trading at $46.20 per barrel, up 16 cents, while U.S. crude futures were at $43.71 a barrel, up 22 cents.
In other news: The latest BankservAfrica Economic Transaction Index for July shows that South Africa’s economic activity is “dramatically slowing”, after surprising data from June showing a boost in productivity. The country may avoid recession in 2016, but still faces 0% growth for the year.
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