Business

5 important things happening in South Africa today

Staff Writer

 ·23 Mar 2023

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

• Bleak growth forecast: The International Monetary Fund (IMF) says the South African economy will only grow by a projected 0.1% in 2023. Its medium-term projection is slightly better, with growth expected to reach 1.5%, lower than the expected population growth of 1.7%. The IMF thus expects South Africans to get poorer per capita, with poverty and inequality increasing. It also disagreed with National Treasury’s budget framework as it expects the deficit to widen. [News24]

• US immunity: The US Embassy in Pretoria says the Johannesburg High Court lacks jurisdiction over the US regarding a case brought forward by the Zimbabwe Anti-Sanctions Movement (ZASM), which seeks to have sanctions against Zimbabwe declared unlawful. ZASM argues that because the US and SA banks involved – including FirstRand, Standard Bank and Absa – have offices in Johannesburg, and are under obligation to apply US government sanctions, South Africa’s courts do have jurisdiction. [Moneyweb]

• Trouble for Steinhoff: Shareholders of the embattled retail holding firm Steinhoff voted against a debt restructuring deal, seriously raising the prospect of liquidation, leaving equity investors with nothing. Under the proposed deal, shareholders would receive 20% in an unlisted vehicle while debt holders would take 80% of the firm and extend the debt repayment for three years. Over 60% of shareholders voted against the deal, with Steinhoff warning beforehand that such a move would leave them with no stake at all. [BusinessDay]

• Speaker survives: Nosiviwe Mapisa-Nqakula will continue as National Assembly Speaker after surviving a motion of no-confidence tabled by the EFF. EFF leader Julis Malema said that the speaker misinterpreted the party’s intentions during the state of the Nation Address, where EFF members were thrown out after climbing the stage. The motion had little support, with over 234 members voting against the motion, 42 in favour, and 73 abstaining. [EWN]

• Markets: South Africa’s rand strengthened on Wednesday as the US dollar slipped ahead of a highly anticipated interest rate decision by the US Federal Reserve (Fed). The Fed decided to raise its benchmark interest rates by 25 basis points to a range of 4.75% to 5%. Despite facing the largest banking crisis since 2008, the Fed chose to keep fighting prices with its latest interest rate hike. On Thursday (23 March), the rand was trading at R18.16/$, R19.80/€, and R22.38/£. Brent crude is trading at $76.08 a barrel. [Nasdaq, The Guardian]