5 things you need to know in South Africa today
·15 Sep 2016
Here’s what is happening in and affecting South Africa today:
- SARS commissioner Tom Moyane – who initiated the investigation in the so called SARS rogue unit and finance minister Pravin Gordhan – has not approached the Hawks regarding allegations of corruption faced by his second in command, Jonas Makwakwa. Moyane is seen as a Zuma deployment and has butted heads with Gordhan over the past few years.
- Several state-owned companies, including Eskom, Sanral and the Land Bank have been placed on immediate review for downgrade by ratings agency, Moody’s. The group is concerned about whether the companies will have access to the debt market in the future, while investors worry over governance and corruption concerns. The move follows an announcement by Futuregrowth that it will halt financing the SOEs.
- Speaking of Futuregrowth – one of the state companies listed in its intent to cut funding, Transnet, is suing the asset manager, seeking a retraction and an apology for the statement saying there were governance issues at the state group. Transnet told Parliament that it does not need Futuregrowth’s money but believes Futuregrowth’s ‘attack’ on state companies was unwarranted.
- The latest Economic Freedom of the World: 2016 Annual Report by the Free Market Foundation shows that South Africa has slipped to position 105 out of 159 countries, down from 93 a year ago. We ranked 42nd in the world in 2000. The ranking measures economic freedom in terms of levels of personal choice, ability to enter markets, security of privately owned property, rule of law, and other factors.
- South Africa’s rand was firmer on Wednesday, recouping heavy losses in the previous session, as declining expectations that the U.S. Federal Reserve will raise rates next week put pressure on the dollar. On Thursday the rand was at R14.32 to the dollar, R19.00 to the pound and R16.13 to the euro.
In global news: Asian stocks wavered on Thursday as investors grappled with the apparently diminishing ability of major central banks to stimulate growth, while a tumble in crude oil prices added to the risk-averse mood.Oil prices rebounded in early Asian trade on Thursday after falling around 3 percent in the previous session.
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