Here’s what is happening in and affecting South Africa today:
- Government and public servant unions have agreed to an above-inflation wage increase for 2018/19, which will see the lowest earners get a pay hike of 7%, while the highest pay-bracket will get an increase of 6%. The wage agreement is expected to be signed on Monday. [Bloomberg]
- Embattled retail group Steinhoff is having a tough time untangling its internal debt mess, with the group seeking three extensions to over $11 billion in debt. On top of its standing accounting issues, the group says that legal costs and fees to investigate the ongoing scandal have pushed the company into the red through to March. [Bloomberg]
- Economist Magnus Heystek says that buying into the ‘Ramaphoria’ effect on the country is premature – particularly when so many of the Zuma-era policies that have caused so much economic turmoil still stand. In particular, the land issue which is now coming to the fore, is a key concern where a loss of investment is already being felt. [Moneyweb]
- The ANC is now united on its position in the land debate, with a two-day summit on the topic bringing divergent views on land redistribution without compensation together on the same page. According to president Cyril Ramaphosa, land will be taken without compensation in South Africa, and legislation will be introduced to facilitate it. [Daily Maverick]
- South Africa’s rand weakened on Friday as surging US Treasury yields and a continued dollar rally sent emerging markets tumbling. On Monday, the rand started the week at R12.77 to the dollar, R17.16 to the pound and R15.01 to the euro.