5 important things you need to know in South Africa today
·6 Sep 2016
Here’s what is happening in and affecting South Africa today:
- Water wasters in Joburg are facing steep fines as Johannesburg Water moved to clamp down on excessive water use amid an ongoing drought. The body needs to reduce water demand by 15% or face outages – so it will fine those wasting water as much as R1,500. This will apply to restrictions such as: no filling pools; no using sprinkler systems to water gardens; and more.
- Energy minister Tina Joemat-Pettersson is using any excuse she can think of to prevent the DA – and the public – from seeing important documents on the proposed nuclear build in SA. She says the documents are privileged and sensitive, and subject to sub judice, as there is an ongoing case in the High Court. The DA is seeking transparency on the build, specifically on the cost of the nuclear programme, and the companies involved.
- Ratings firm S&P Global is keeping a very close eye on South Africa’s ability to remain committed to turning itself around. The group is seeking indications that the country is making progress in meeting its fiscal consolidation targets, while maintaining the strength of its institutions such as SARB and SOEs. Economists argue that the so-called ‘Sars Wars’ directly undermine these targets, and junk status for SA is all but guaranteed at this stage.
- Stats SA is expected to release the GDP data for the second quarter of 2016 on Tuesday, with predictions that the South African economy rebounded in a big way. Estimates from Bloomberg show that the country made a massive swing, avoiding a technical recession, jumping from a 1.2% decline in the first quarter of the year, to over 2.5% growth in the second quarter. The outlook for the rest of 2016 remains cloudy, however, amid lingering political uncertainty.
- The rand has clawed back some of the heavy loss incurred on news that Finance Minister Pravin Gordhan was under investigation, but analysts say political risk remains elevated, as investors worry over political interference in the running of Africa’s most industrialised economy. On Tuesday the rand was at R14.39 to the dollar, R19.17 to the pound and R16.04 to the euro.
In global news: Asian shares edged up on Tuesday as investors awaited the Reserve Bank of Australia’s policy meeting in which it is expected to keep interest rates steady. European stocks touched an eight-month high on Monday, then reversed as trading wound down in the absence of U.S. markets, which were closed for Labor Day.
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