Business

5 important things happening in South Africa today

Staff Writer

 ·10 Sep 2019

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

• Ratings firm Moody’s expects load shedding to return and continue in South Africa, which spells bad news for municipalities’ credit ratings, as well as South Africa’s rating overall. In a new report, Moody’s has noted how electricity sales’ contribution to GDP has declined, with the expectation that it will continue to do so because of load shedding. It expects large power users will also migrate off-grid. [Fin24]

• Finance minister Tito Mboweni’s economic plan may have some of its biggest growth drivers overlooked, because of the political fallout over how it was compiled and released, warns former deputy Mcebisi Jonas. The plan has riled many within the ANC’s alliance, with calls from unions to scrap it, while some in the NEC also push back. Jonas said South Africa didn’t have time for distractions, and there needs to be a show of urgency from government. [Business Day]

• Old Mutual says it is within its rights to enforce a second directive from the board to dismiss CEO Peter Moyo – which is why it blocked the executive from returning to work on Monday. However, Moyo said that he expects the company to respect the rule of law, with a court order ruling that the first instance of his firing was unlawful. The courts last week dismissed Old Mutual’s application to keep Moyo out until its appeal of the initial ruling reaches its conclusion. [Enca]

• The ANC says it will work with other parties to fast-track changes to the country’s laws regarding violence against women and children, saying it will introduce harsher punishments for those convicted of the crimes. It, however, ruled out the return of the death penalty completely, saying that it wasn’t even entertained at its meetings. The party wants life sentences without bail or chance of parole for those convicted. [TimesLive]

• South Africa’s rand rallied to a 5-week high on Monday on global demand for riskier assets as investors bet the United States central bank would cut lending rates next week. On Tuesday the rand was at R14.76 to the dollar, R18.22 to the pound and R16.31 to the euro.