5 things you need to know in South Africa today
·23 Aug 2016
Here’s what is happening in and affecting South Africa today:
- President Jacob Zuma is a step closer to assuming full control at state-owned companies, with the presidency announcing that he will chair a special presidential co-ordinating committee, which will have direct oversight of business strategies at parastatals. The move will undoubtedly have implications for companies like SAA, where Zuma’s friends are in charge, and are under pressure to step down.
- Comments from ANC secretary general Gwede Mantashe that the country’s budget should be reprioritised are putting the country at serious risk of being cut to junk status at the end of the year, BMI Research says. Ahead of the 2016 elections, Fitch Ratings warned that adopting populist policies would be bad for the economy, and said the ANC should avoid it.
- South Africa’s rand continued its retreat against a strengthening dollar on Monday, as rekindled expectations of a near-term rate rise kept investors cautious. On Tuesday, the rand was trading at R13.46 to the dollar, R17.73 to the pound and R15.26 to the euro.
- In global news, Asia shares inched ahead while oil fell for a second session on Tuesday, as investors awaited guidance on whether the Federal Reserve will raise U.S. interest rates this year.
- Oil prices fell over 1 percent on Tuesday, with Goldman Sachs warning that August’s price rally had been overdone and that a proposed oil production freeze at current near-record levels would not help rein in an oversupplied market. Brent crude oil was trading at $48.54 per barrel, down 62 cents, while U.S. crude was down 76 cents, at $46.65 per barrel.
In other news: Health professionals at Sefako Makgatho Health Sciences University (SMU) have performed Africa’s first hands-free kidney transplant, using laparoscopic instruments. Previous surgeries of this nature were done with hand assistance – this marks the first time that no hands entered a patient’s abdomen.
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