Finance

5 things you need to know in South Africa today

Staff Writer

 ·2 Dec 2016

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

• It is D-day for South Africa as economists, government and businesses wait for ratings agency S&P Global to deliver its verdict on the country, possibly cutting it to junk status. Out of all the ratings agencies, S&P has consistently been the most pessimistic – the first to cut South Africa to one notch above junk, and the first to put the country on a negative outlook. While a junk outcome would obviously be bad for the country, analysts note that the country’s local currency rating is still out of junk territory – and that’s where 90% government debt is held.

• Finance minister has Pravin Gordhan has launched a probe into SARS, representing a new low in the relationship between the minister and SARS head Tom Moyane. Moyane is said to be the one who initiated the Hawks investigation into Gordhan over the establishment of the so-called ‘rogue unit’. Now Gordhan wants to know why certain SARS departments were closed down, or merged into other units, leading to a lack of accountability and co-operation with government.

• Public Protector Busisiwe Mkhwebane says that she is not ‘captured’ by Zuma and is not here to protect him. She was responding to criticism she received for reportedly opening an investigation into her predecessor, Thuli Madonsela, for ‘leaking’ interviews to the media. Mkhwebane said that she is here to defend the Constitution, and anyone who acts unlawfully – including the president – will be investigated.

• Controversial SABC executive Hlaudi Motsoeneng has made it clear that he is not going anywhere, saying he will not ‘take a break’ like Eskom CEO, Brian Molefe. Speaking to the ANC Youth League, Motsoeneng covered a range of topics – like how too much education in dangerous; how the ANC needs a woman to lead (implying support for Nkosazana Dlamini-Zuma to take over from president Zuma), and how some Youth League members should be appointed as ministers to replace those who defied the president at the latest NEC meeting.

• South Africa’s rand weakened on Thursday as the dollar regained recent losses on improved economic data, while stocks kicked off the last month of the year on the back foot as lower bullion prices hit gold mining shares. On Friday the rand kept above R14 to the dollar, as markets await the final rating decision for 2016 by S&P Global which could put the country in junk. The rand was trading at R14.07 to the dollar, R17.75 to the pound and R15.04 to the euro.