Business

5 important things happening in South Africa today

Staff Writer

 ·3 Sep 2019

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

• Finance minister Tito Mboweni’s economic reform document is coming under scrutiny, with the minister having to present it to the ANC’s top 6 this week, with questions being raised as to whether it could ever be implemented at all. The 77-page policy was dropped unexpectedly and has left the governing party divided. The plan has been outright rejected by unions. Businesses have welcomed the plan. [Daily Maverick]

• The SABC is having its turn at the state capture commission, telling of political interference and being left out in the cold by government despite promises of aid. The group is awaiting a R3.2 billion cash injection, with aid promised if the board met 11 conditions – which it says it has. Currently the group can only pay salaries, which make up 45% of its total expenditure. [IOL]

• Despite making a show of ridding government of ‘failed’ politicians, president Cyril Ramaphosa is now reportedly sitting with documents awaiting his signature to send the likes of Bathabile Dlamini and Siyabonga Cwele to other countries as ambassadors – keeping them on government’s payroll. Insiders at Dirco are worried that this will send the wrong message and hamper South Africa’s investment drive. [Daily Maverick]

• Stats SA will publish second quarter GDP figures today, with economists expecting the country to avoid recession. South Africa’s economy contracted 3.2% in the first quarter, hit by nationwide power outages by cash-strapped state power firm Eskom. A Reuters poll of economists forecasts Q2 GDP expanding 2.4%. [Reuters]

• South Africa’s rand traded sideways on Monday, with investors holding fire ahead of second quarter economic growth figures that could help gauge the future direction for the currency. On Tuesday the rand was at R15.27 to the dollar, R18.38 to the pound and R16.70 to the euro.