Category: Southern Africa
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South Africa:Fitch downgrade domestic debt a risk to sovereign rating: Treasury
The downgrade of South Africa’s rand denominated debt rating by Fitch to one notch above subinvestment highlighted the risk of a sovereign downgrade to “junk” status, the Treasury said on Tuesday. “Although the action represents an alignment, it also serves as a timely reminder of the risks of a downgrade that lie ahead and the…
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Zimbabwe: Zera Blocks Tariff Increase
The Zimbabwe Energy Regulatory Authority (ZERA) has shot down a proposal by Zesa Holdings to increase electricity tariffs by 49 percent, declaring the average power charge should remain at 9,86 cents per kilowatt hour this year. The regulatory authority said it had considered the performance of the economy as well as efforts being made by…
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Zimbabwe regulator turns down power tariff hike request
Zimbabwe’s energy regulator has turned down an application by the state-run power distributor to raise electricity tariffs by nearly 50 percent because it would hurt a struggling economy, it said on Thursday. The southern African nation has experienced a devastating drought that has left millions facing hunger while a slump in commodity prices has left…
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South African Reserve Bank leaves repo rate unchanged at 7.0 percent
South Africa’s Reserve Bank kept its benchmark repo rate unchanged at 7 percent on Thursday, saying that while it was still concerned about inflation, the weak economy had provided some room to delay further policy tightening. “The MPC (monetary policy committee) is aware that some of the favourable factors that contributed to this decision could…
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Malawi: Severe Drought Elevates Food Crisis to ‘Highest Level’
El Nino-related drought has led to food shortages in much of southern Africa. WFP Executive Director Ertharin Cousin told DW that more assistance is needed to feed those in need. The United Nations World Food Programme (WFP) has launched a relief program to feed families affected by the severe drought in Malawi. Over 18 million…
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S.A:Bank loans beyond reach for Zimbabwe farmers without land titles
Charles Samuriwo, a farmer from the Odzi area north west of Mutare city, cannot hide his frustration. As a beneficiary of Zimbabwe’s controversial programme to redistribute land taken from white farmers, Samuriwo has been working his tobacco farm since 2001. Today he is struggling because 15 years after taking over the farm, he still has…
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South Africa’s Astral weighs job cuts as drought, imports hurt poultry producers
South African poultry producer Astral has to cut jobs, it said on Wednesday, under pressure from high feed prices due to drought and from an over-supplied domestic market. Maize prices in South Africa have hit record highs as an El Nino triggers the largest rainfall shortages in over a century, while cheap chicken imports flood…
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South Africa generating enough energy to avoid blackouts: Eskom
South Africa’s state power utility Eskom is generating enough electricity to meet demand and avoid chronic power outages that plagued Africa’s most developed economy for most of 2015. “Eskom has sufficient generation capacity to meet peak demand,” Eskom chief executive Brian Molefe told a new conference, adding that the firm expected to avoid blackouts at…
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South Africa’s Implats revises debt facilities up $278 mln
South Africa’s Impala Platinum (Implats) has extended the tenure and amount of its existing debt facilities from certain local banking institutions in order to further strengthen its balance sheet, it said on Tuesday. Implats amended 3.25 billion rand ($225 million) of its existing debt facilities, which was previously available until December 2017, to a revised…
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S.A:Rand at strongest level against pound in over a year
The rand was trading at its highest level in over a year against the pound on Tuesday, as Turkey’s failed coup saw global markets bounce back from their risk-induced levels. The rand was 1% stronger at R14.25 against the dollar on Tuesday at 08:30. It was 1.1% stronger at R18.85 to the pound and 0.85%…