Finance

5 things you need to know in South Africa today

Staff Writer

 ·9 Nov 2016

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

• Global markets – including South Africa – were hit hard as the U.S. dollar sank and stock markets slammed into reverse in wild trade on Wednesday as investors faced the real possibility of a shock win by Republican Donald Trump that could upend the global political order. The rand weakened significantly from around R13.20 to R13.77 overnight.

• Finance Minister Pravin Gordhan says that the country must tackle corruption and weak economic growth or face the risk of a credit rating downgrade to “junk” status. He noted that ratings agencies would be in South Africa next week to do their assessments. All three major agencies have warned that slowing growth and political infighting could trigger downgrades.

• The ANC’s National Working Committee has decided to support president Jacob Zuma and rather focus on trying to trash former Public Protector Thuli Madonsela’s report on state capture. Despite his many scandals, Zuma has been thrown a lifeline, while the NWC is questioning the state capture report’s merits, and the integrity of Madonsela. The committee is made up of 14 ANC leaders who are responsible for the day-to-day running of the party.

• Former president Thabo Mbeki has warned that time is running out for businesses citizens and government to “do the right thing” to bring South Africa back on track. He blamed Parliament for failing to address the problem of corruption more urgently – particularly when the Constitutional Court handed it a ruling regarding the Nkandla saga. He said so-called state capture was a drain on society, and served only the few, neglecting the people of the country.

• The South African rand has plummeted after several weeks of rebound, much in thanks to the surprising popularity of republican candidate Donald Trump, and his strong performance in the US presidential election. On Wednesday, the rand was trading at R13.77 to the dollar, R17.26 to the pound and R15.47 to the euro.