Business

5 important things happening in South Africa today

Staff Writer

 ·21 Feb 2017

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

• Finance minister says that he is not indispensable, and that he and his team are “just humble servants”. Speaking in an interview ahead of his 2017 budget speech, Gordhan addressed the speculation that he may soon be removed from National Treasury. All he said is that Treasury is an institution, and that ministers will come and go – “We hope that the capacity embedded within the institution will be sustained.”

• Drinkers, smokers and motorists beware: you’re the likely tax target in the 2017 Budget, as finance minister Pravin Gordhan looks for places he can draw billions in additional revenue. Along with more taxes on the wealthy, the fuel levy and sin taxes are also expected to increase. Gordhan will deliver his budget speech on 22 February.

• The ANC’s special NEC sitting has approved the party’s new vague economic policy of “radical economic transformation”, which is set to be released to the public this week. ANC spokesperson Zizi Kodwa said the NEC stuck to its meeting schedule, shooting down speculation that the ANC Youth League would use the meeting to propose that finance minister Pravin Gordhan get the chop.

• ZAR X – South Africa’s new stock exchange – says it is in discussions with at least five more companies who are interested in listing on the new bourse. New companies will join ZAR X’s sole listing, agricultural group Senwes. The new stock exchange uses a real-time settlement platform, which is a first for South Africa, compared to the JSE’s settlement window of four to six days.

• South African stocks snapped a four-session losing streak on Monday, buoyed by retailers Steinhoff and Shoprite which announced they had scrapped their plan to merge after failing to agree on a price. On the currency market, the rand edged lower, weighed down by renewed fears of a cabinet reshuffle ahead of Finance Minister Pravin Gordhan’s budget speech on Wednesday. On Tuesday, the rand was at R13.06 to the dollar and R16.25 to the pound and R13.82 to the euro.