Category: Southern Africa
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South Africa’s finmin approves cash-strapped national airline application
South Africa’s Finance Minister Pravin Gordhan has conditionally approved an application from the cash-strapped national airline for a guarantee as a going concern, the ministry said on Friday. South African Airways (SAA) has been surviving on state-guaranteed loans and has failed to submit financial statements for the past two years, with results for 2015/16 held…
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Zimbabwe public workers reject government job cuts plan
Zimbabwe’s main public service union on Friday rejected government plans to cut 25,000 jobs and suspend annual bonuses, saying that would hurt workers already struggling to make ends meet. The Apex Council, a grouping of all state sector unions, demanded talks with the government over the plan that Finance Minister Patrick Chinamasa has said is…
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S.African fund manager Abax cuts lending to state-owned enterprises
Fund manager Abax Investments has reduced bond purchases from South African state-owned firms in the past three years due to concerns over their weaker performance, a portfolio manager said on Friday. Rashaad Tayob also said Abax, which has 80 billion rand ($6 billion) under management, was concerned after the cabinet said a new committee would…
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South Africa’s rand hovers near seven-week lows
South Africa’s rand traded close to the previous day’s seven-week low against the dollar on Thursday, hurt by investor concerns over the future of Finance Minister Pravin Gordhan. Gordhan was head of the tax service when it set up a surveillance unit which police say was used to spy on politicians. * Rand touches early…
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Mozambique president appoints IMF official as central bank governor
Mozambican President Filipe Nyusi appointed Rogerio Lucas Zandamela, an International Monetary Fund (IMF) official, as central bank governor to replace Ernesto Gove, whose term has ended, the presidency said on Wednesday. The appointment comes as Mozambique is battling to restore the confidence of donors such as the IMF as it grapples with a spiraling debt…
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South Africa:IMF to visit Mozambique
The International Monetary Fund (IMF) is sending a team to Mozambique at the end of September for an update on the southern African nation’s struggling economy, including its progress in accounting for over $2 billion in irregular state loans. The IMF team will be in Maputo for a week from Sept. 22 to review efforts…
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Zambia in talks with IMF, plans to cut subsidies
Zambia plans to cut subsidies as agreed with the International monetary Fund, with talks on an aid package at an advanced stage, a presidential spokesman said on Tuesday. “The money that is being injected into subsidies will be invested in growth areas of the economy,” presidential spokesman Amos Chanda told a media briefing. Chanda said…
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South Africa:Why Future growth is suspending loans to S.A’s state-owned enterprises
As fiduciaries for its investors’ interests, Futuregrowth has taken a decision to suspend any additional loans to some of the largest State Owned Enterprises (SOEs). Futuregrowth and the asset management industry are substantial funders to South Africa’s SOEs — notably Eskom, Transnet, Sanral, Landbank, IDC and DBSA — via direct loans and capital and money…
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S.African Treasury, Eskom row over coal contracts as government rifts deepen
South Africa’s Treasury and state-owned Eskom clashed on Monday over a probe into coal contracts between the power utility and a company linked to the wealthy Gupta family that is accused of holding undue political sway over President Jacob Zuma. The row further scarred relations in a government rocked by a police investigation of Finance…
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Mozambique:IMF insists on international audit of debt
The International Monetary Fund (IMF) is demanding an external forensic audit of Mozambique’s public debt to regain investor confidence after a scandal over more than $2 billion in secret loans, its local representative said on Tuesday. Parliament and the attorney-general’s office have launched investigations into the undisclosed borrowing in 2013 and 2014 but the government…