Here’s what is happening in and affecting South Africa today:
- The ANC has been rocked by more infighting as it gets set to announce its candidates to chair parliamentary portfolio committees this week. Historically, the revolts against former presidents Thabo Mbeki and Jacob Zuma are said to have started in the caucus, before spreading to the broader structures within the party. This makes it key for Ramaphosa to have a solid grip on the parliamentary caucus. [BusinessDay]
- South Africa is facing increased pressure to preserve its remaining investment-grade credit rating from Moody’s. Losing the rating would push South Africa out of debt indexes including the FTSE World Government Bond Index, which according to the IMF could trigger forced outflows of around $1.5 billion (R22 billion) and push up borrowing costs even more. [Bloomberg]
- The SAA Pilots Association is threatening to embark on a strike following the appointment of Zukisa Ramasia as interim CEO. The association argues that Ramasia doesn’t have the appropriate experience and acumen to successfully run the airline. [eNCA]
- Steinhoff is expected to release its delayed 2018 earnings report on Tuesday. The company’s share price has fallen by over 90% since December 2017 when its former CEO Markus Jooste abruptly resigned amid an accounting scandal. [News24]
- As the market reopens following the public holiday, the rand remains in fragile territory. The US-China trade dynamic continues to undermine emerging markets, while the focus now shifts to the US Federal Reserve interest rate decision due on Wednesday and the local State of the Nation Address on Thursday. On Tuesday, the rand was at R14.80 to the dollar, R18.55 to the pound and R16.63 to the euro.