5 things you need to know in South Africa today
·7 Jul 2016
Here is what is happening in South Africa and the markets:
- Public Protector Thuli Madonsela has been given the go-ahead by Treasury to redirect funds from other projects to fast-track the probe into the Guptas and alleged state capture. Treasury also committed to give the Public Protector an additional R1.5 million to carry out the investigation. This is only half of the funding that the PP requested, however.
- The back-and-forth between the SABC and ANC continues, as the ANC’s Jackson Mthembu again laid into the broadcaster. The SABC snapped back at the party after it criticised the SABC’s protest policy, calling it censorship and illegal. It claimed that certain ANC members wanted the company to fail so their business interests could be bought up.
- South African assets fell on Wednesday as risk appetite was subdued by renewed global fears over the economic impact of Britain’s eventual departure from the European Union. On Thursday the rand was trading at R14.74 to the dollar, R19.13 to the pound and R16.33 to the euro.
- In global news: Asian share markets crept higher on Thursday after upbeat U.S. economic data took some of the sting out of the latest Brexit scare, while the Australian dollar slipped as the country’s triple A credit rating came under threat. U.S. stocks rose on Wednesday as the Federal Reserve was seen refraining from raising U.S. interest rates soon.
- Oil prices rose in early trading on Thursday, supported by a report of another fall in U.S. crude inventories as well as a weaker dollar, although a glut of refined products and economic growth concerns continue to weigh on markets. Brent crude was trading at $49.08 per barrel, up 28 cents, while U.S. crude was up 27 cents at $47.70 a barrel.
In other news: The price of maize and maize products is expected to remain stubbornly high in South Africa as producers continue to suffer the effects of the drought, and the world at large faces a white maize shortage. South Africa consumes 10.5 million tonnes of maize a year, while farmers are only able to produce 7.4 million.
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