Category: Southern Africa
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Fitch says South Africa’s new mining rules may deter investment
Fitch Ratings agency said on Monday that new regulations seeking to accelerate black ownership in South Africa’s mining industry would deter investment. The government published its revised Mining Charter on Thursday, raising the minimum threshold for black ownership of mining companies to 30 percent from 26 percent. But the Chamber of Mines, which represents mining firms,…
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South Africa central bank hits back against Public Protector
South Africa’s central bank said on Tuesday a recommendation by the Public Protector to change the constitution to promote growth was unlawful and would hit the regulator’s independence by stripping it of its key aim to protect the currency. “The Reserve Bank has consulted its legal team and has been advised that the remedial action…
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S.A: Eskom Chairman Ben Ngubane resigns
Dr Ben Ngubane has resigned with immediate effect as Non-Executive Director and Chairperson of the Board of Eskom. “Dr Ngubane formally tendered his resignation, which I accepted,” Minister of Public Enterprises, Lynne Brown, said. “I would like to thank Dr Ngubane for his contribution to turning Eskom around since the load shedding days of 2014/15,…
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Moody’s downgrades the five largest South African banks to Baa3; outlook negative
Moody’s Investors Service, (“Moody’s”) has today downgraded to Baa3 (negative outlook) from Baa2 (Rating Under Review outlook), the long-term local- and foreign-currency deposit ratings of the five largest South African banks: The Standard Bank of South Africa Limited, FirstRand Bank Limited, Absa Bank Limited, Nedbank Limited, and Investec Bank Ltd.. The rating agency has also…
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IMF may grant Zambia $1.3 billion funding package
The International Monetary Fund (IMF) may grant Zambia up to $1.3 billion in a three-year credit facility to help plug a budget deficit of around 7 percent, the lender’s mission chief said on Saturday. A decision will be made by the IMF board in August, Tsidi Tsikata told a joint news conference with the Zambian…
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South Africa’s Sibanye says 178 illegal miners now arrested at strike-hit Cooke mine
South Africa’s Sibanye Gold said on Monday that 178 illegal miners have now been arrested at its Cooke operations since the start of a violent wildcat strike last Tuesday. A company source, who declined to be identified because he is not authorized to speak on the record, also said the strike was continuing. The strike…
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South Africa’s central bank wary of cutting rates: Kahn
South Africa’s central bank is wary of cutting interest rates to support economic growth until it is convinced an improved inflation outlook can be sustained, monetary policy committee member Brian Kahn said on Thursday. “We would not want to reduce rates and then be forced into a premature reversal of policy,” Kahn said in a…
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Fitch sees South Africa missing revenue forecasts
South Africa is likely to miss revenue forecasts set out in a February budget while weakness in running of state-owned companies will be a risk to fiscal deficit targets, Fitch director Jan Friederich said on Thursday. Friederich said business confidence had been dented by political infighting within the ruling African National Congress ahead of a…
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South Africa: Markets see cutting rates to boost growth
South African bonds priced in a higher likelihood of a 50 basis point rate cut by the central bank sooner than anticipated after the economy unexpectedly slipped into recession and raised the risk of further credit downgrades. Forward rate markets on Wednesday were pricing in a nearly 30 percent chance of a 50 basis point…
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S.Africa’s Eskom to seek 20 pct electricity tariff increase: report
South Africa’s cash-strapped utility Eskom will seek power price increases of nearly 20 percent when it approaches the electricity regulator at end of the month, the BusinessDay newspaper reported on Tuesday citing confidential documents. Eskom, the sole power supplier to Africa’s most developed economy, was granted a 2.2 percent tariff increase by the National Energy…