Business

5 things you need to know in South Africa today

Staff Writer

 ·18 Jul 2016

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

• South African Airways has put its R15 billion debt restructuring on hold after questions were raised about corruption involved in the deal with the company hired to process it, BnP Capital. Tender processes were not followed, but SAA claims this was due to the urgency involved – however it denies setting payment at R256 million.

• The National Prosecuting Authority and president Jacob Zuma are pulling out all the stops to avoid getting the president his day in court over corruption charges. While weekend papers reported that the NPA will take the matter to the Constitutional Court, Zuma is not among the applicants – the president will first be going to the Supreme Court of Appeal to get the charges dropped.

• South Africa’s rand weakened on Friday against the dollar which gained as investors bet on higher U.S. interest rates this year after strong economic data. Stocks ended slightly higher, but gains were capped by global security concerns following the militant attack in France. On Monday the rand was at R14.31 to the dollar, R18.92 to the pound and R15.83 to the euro.

• In global news: The U.S. dollar gained on the yen in Asia on Monday as investors unwound safe-haven trades in the wake of the failed coup in Turkey, while a giant takeover bid in the tech sector and the promise of central bank stimulus lent support to equities. The Dow industrials ended at a record high on Friday.

• Oil prices rose in Asian trade on Monday, following gains last week, as traders shrugged off the impact of Friday’s attempted coup in Turkey, while a weaker dollar and upbeat economic data from the United States lent price support. Brent crude to $47.87 a barrel, while U.S. crude climbed 10 cents to $46.05 a barrel.

In other news: ANC election campaigning is kicking up with party leaders pressing that supporters should vote for the party to honour Nelson Mandela – and that the ANC was chosen by God to rule South Africa. President Jacob Zuma famously said the the party would rule until Jesus came again – a line repeated again this year.