Here’s what is happening in and affecting South Africa:
- The South African Reserve Bank is laying the way for a rates hike, saying that with inflation uncomfortably close to the upper-limit of its set range, it may be left with no choice. Its forecasting model indicates higher lending rates in the next two years, rising to 7.7% by the end of 2020 to stem inflation. [Reuters]
- The SABC is looking to cut about 1,000 permanent jobs and 1,200 freelancers, which will save the company around R440 million. All employees at all levels will be affected. The group is also trying to recover money irregularly paid out as salaries. [ENCA]
- South Africa’s cities are in big trouble if they don’t rework their financial models a new report shows, claiming that the capital expenditure funding gap for the country’s nine largest cities will increase from R18 billion in 2017 to R569-billion over the next 10 years if things don’t change. [Daily Maverick]
- The ANC says it will launch an investigation into a reported R2 million that it is alleged to have received from individuals implicated in the VBS looting saga. The party said it is only aware of R250,000 it had received as a donation from the group implicated. [EWN]
- South Africa’s rand firmed on Monday, in line with other emerging market currencies, which have slowly restored gains after recent sharp losses. On Tuesday the rand was trading at R14.64 to the dollar, R18.74 to the pound and R16.66 to the euro.