Trouble for Gayton McKenzie, and investigation over ‘ghost teachers’ hitting South Africa
The rand edged lower on Monday, with the main focus this week on inflation numbers, while investors also look out for geopolitical developments which could influence the risk-sensitive local currency.
Statistics South Africa will release July inflation data on Wednesday, with analysts polled by Reuters expecting a rise to 3.5% year-on-year from 3.0% in June.
The South African Reserve Bank (SARB) recently announced that it would lower its inflation target to 3%, at the lower end of its current 3% to 6% goal.
The SARB has anchored its interest rate decisions on getting inflation to around 4.5% in recent years, but has decided to lower this goal, arguing that it will result in lower interest rates in time.
Finance Minister Enoch Godongwana, who has the power to set the target, was not pleased with the SARB’s decision, but SARB Governor Lesetja Kganyago is confident that the parties will find a compromise.
The rand will also take cues from geopolitical events as traders keep a keen eye on US President Donald Trump’s meeting with Ukrainian and European leaders, and the Federal Reserve’s annual symposium in Jackson Hole.
On Tuesday, 19 August, the rand was trading at R17.65 to the dollar, R23.83 to the pound and R20.58 to the euro. Oil was trading slightly lower at $65.83 a barrel.
Here are five other important things happening in and affecting South Africa today:
McKenzie in trouble: The South African Human Rights Commission (SAHRC) has found that Sports, Arts and Culture Minister Gayton McKenzie’s past social media comments show prima facie evidence of violating the Equality Act. Previous comments made by McKenzie resurfaced this month, with the Minister using the k-word. An allegation letter has been sent to the Minister. [Newsday]
Major school investigation: The Education Labour Relations Council will investigate the alleged sale of teacher posts in South Africa and the existence of “ghost teachers.” Stories have indicated that unemployed graduates have been asked to pay for posts in schools. Ghost teachers are those who are on a school’s payroll, but do not teach. [News24]
Fire Motshekga: Rise Mzansi leader Songezo Ziba said that Defence Minister Angie Motshekga should be fired for defending SANDF Chief, Rudzani Maphwanya. Maphwanya came under fire for a trip to Iran, which did not receive approval from President Cyril Ramaphosa. [EWN]
Absa going international: Newly appointed Absa CEO Kenny Fihla is steering the bank into the East Africa region. Like Fihla’s previous employer, Standard Bank, he wants to target the East Africa region, given the region’s higher GDP growth rates. South Africa looks set for a third straight year of 1% or less GDP Growth. [Business Day]
Saudi investors coming: A Consortium led by Saudi Arabia’s Zahid Group has received approval from the Competition Tribunal to acquire Barloworld. The deal is set to be worth R23 billion, with Barloworld CEO Dominic Sewela also part of the consortium. Barloworld is set to be delisted from the JSE if the deal goes through [BusinessTech]
Loading ...