Trump snubs South Africa, and top investing CEO warns of major capital flight
The rand strengthened on Monday as markets anticipated the release of local gross domestic product (GDP) figures, which could provide insights into the health of Africa’s largest economy.
The rand was trading at 17.52 against the dollar, marking an increase of approximately 0.5% from Friday’s closing value.
Statistics South Africa is scheduled to release the second-quarter GDP data on Tuesday, September 9.
In the first quarter, the country achieved minimal quarter-on-quarter growth of 0.1%, as declines in sectors such as mining and manufacturing countered good performance in agriculture.
Investor attention will shift to the upcoming mining, manufacturing, and current account figures, which are expected on Thursday, September 11.
The US dollar was last seen 0.3% weaker against a basket of currencies, as last week’s disappointing US jobs data reinforced expectations that the Federal Reserve will lower interest rates next week.
On Tuesday, 9 September, the rand was trading at R17.48 to the dollar, R23.72 to the pound and R20.58 to the euro. Oil was trading slightly lower at $66.50 a barrel.
Here are five other important things happening in and affecting South Africa today:
Trump snubs South Africa: US President Donald Trump announced he will skip this year’s G20 Leaders’ Summit in South Africa, with Vice President JD Vance attending in his place. “I won’t be going this year,” Trump stated at the White House. This decision aligns with earlier comments where he mentioned he did not plan to attend, and several other members of his administration have snubbed various meetings. [Newsday]
Ninety One CEO warns of major capital flight: Corruption in South Africa is threatening the rule of law, warns Hendrik du Toit, CEO of Ninety One. He cautions that without legal stability, there will be capital flight, job losses, and social unrest. [Business Day]
New laws for Uber: The South African Department of Transport is set to implement new laws for e-hailing operators like Uber and Bolt. Drivers will no longer need charter permits or meter taxi licenses but will require an official e-hailing operating license. Vehicles must be branded as e-hailing and licensed for specific geographic areas. New regulations will include driver vetting, criminal record checks, and a requirement for a professional driving permit. [BusinessTech]
Ramaphosa to face the music: President Cyril Ramaphosa will face numerous questions from MPs in Parliament on Tuesday, marking his first appearance since the mid-year recess. Topics include new US trade tariffs, the struggling Postbank, and the purpose of the National Dialogue. [Primedia Plus]
One step cloer to ‘digital indentity’ in South Africa: The South African government has launched the MyMzansi platform, a zero-rated app for remote access to government services. Communications minister Solly Malatsi stated the app will allow citizens to access health services, vehicle licence renewals, and Home Affairs services, establishing a single digital identity for all South Africans.
[MyBroadband]
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