Business

5 things you need to know in South Africa today

Staff Writer

 ·15 Aug 2016

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

• The ANC’s top six have closed ranks around president Jacob Zuma, saying they will share responsibility for the party’s poor performance in the latest elections, and that Zuma’s leadership did not come up at the 4-day meeting held over the past weekend. ANC secretary general Gwede Mantashe said that there was no proposal for Zuma to step down.

• Auditing firm KPMG has rubbished reports that South Africa has regained the crown as Africa’s biggest economy. Earlier in August Bloomberg reported that SA had won back the top spot when looking at GDP values in dollar terms, after Nigeria’s naira had lost significant ground – however, KPMG said the method used to reach that conclusion is simply incorrect.

• South Africa’s Reserve Bank is expected to raise interest rates in November, despite much weaker economic growth. With inflation at 6.3 percent, and not expected to ease off any time soon, economists expect SARB to deliver a 25 basis-point hike to 7.25 percent in November. On Monday the rand was at R13.46 to the dollar, R17.41 to the pound and R15.02 to the euro.

• In global news: Asian shares inched back from one-year peaks on Monday as a rally in Chinese stocks helped offset news of Japan’s economic growth slowing to a halt last quarter. The need for further policy action in Japan was underlined by the subdued economic reading, leaving the Nikkei .N225 dithering either side of flat.

• Oil prices edged higher after boasting gains of 6 percent last week as Saudi Arabia’s oil minister held out the chance of action to help stabilize the market. Brent crude futures were up 31 cents on Monday at $47.28 a barrel, while U.S. crude added 35 cents to $44.84.

In other news: South African athlete Wayde van Niekerk has scored the country’s first gold medal the the 2016 Rio Olympics, with a world record breaking run of 43.03 seconds in the 400 metre event. He beat American Michael Johnson’s 1999 mark of 43.18 seconds.