Category: Southern Africa
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South Africa:Rand shows muscle after oversold levels of Brexit
The rand clawed back further ground against the dollar on Wednesday, pulling back from recent oversold levels after a British vote to exit the European Union triggered a flight from risky assets. Government bonds also firmed, and the yield for the 2026 benchmark instrument fell 12.5 basis points to 8.785%, its lowest in nearly 7…
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Angola’s central bank sanctions seven banks
Angola’s central bank said on Tuesday it will sanction seven financial institutions for failing to comply with foreign exchange rules, but did not state the specific breaches or the sanctions it would take. In a statement posted on its website, the central bank named the banks, which include Angolan Bank SA Investments and the local…
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S.A:Brexit hits businesses with overseas operations
The share price of South African businesses with overseas operations will for the foreseeable future continue to be affected by the relative exchange rate in the aftermath of Brexit, says Pieter Fourie, Sanlam Private Wealth’s head of global equities. “Ultimately, the business fundamentals will determine if a dual-listed stock performs well in the long term,…
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Zimbabwe: Allied Timbers Re-Hires Milling Contractors
ALLIED Timbers has re-hired milling contractors to argument production after lifting the suspension, which was also meant to eliminate indiscriminate harvesting of trees. Allied, the State owned company with more than 10 estates in Manicaland, Madlands and Matabeleland provinces, suspended contract milling in January this year.The move was meant to ensure resource sustainability. Allied had…
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South Africa:Rand recovers after two days of Brexit volatility
The rand recovered its footing against the dollar today (Tuesday) after two days of volatile trading spurred by Britain’s decision to leave the European Union. The stock market also got off to a firm start at 08:00, with the Top-40 index adding 1.3%, while the All-share index was up 1%. The rand scaled a session high…
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Zimbabwe: Tobacco Farmers Wipe Out Cash From Banks
The Reserve Bank of Zimbabwe (RBZ)’s decision to channel all tobacco payments through banks as part of a financial inclusion strategy has backfired amid indications producers of the golden leaf are wiping out financial institutions with large withdrawals. A snap survey by businessdigest this week revealed that as cash shortages continue unabated, tobacco farmers are…
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South African black lobby disappointed by MTN’s new white CEO
South Africa’s Black Management Forum (BMF) said it was disappointed by the appointment of white South African Rob Shuter as MTN Group’s new CEO and viewed it as a serious blow to giving blacks a larger role in business. The forum, which lobbies for black rights, criticised the mobile phone operator’s decision saying it was…
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SA’s financial institutions can withstand Brexit shock – Zuma
President Jacob Zuma has said government will “advise the South African public” about unfolding developments where necessary around the outcome of the Brexit referendum. He also said South Africa would continue with strong trade and financial relations with Britain and the European Union. Just under 52% of the electorate in Britain voted on Thursday to…
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South Africa:Brexit sends rand diving worse than Nene firing
The rand plunged more than the day President Jacob Zuma fired former finance minister Nhlanhla Nene on Friday as the UK voted to leave the European Union (EU).’ The rand dropped over 7.8% from midnight to Friday morning at 6:30 from R14.33 to R15.45, according to Adam Phillips of Umkhulu Consulting. The rand plunged just…
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Zim poses high risk for trade and investment – survey
Zimbabwe has been ranked 31st out of 53 countries across Africa in BMI Research’s latest operational risk index. According to BMI Research, a Fitch Group company, the highest risk in Zimbabwe is related to trade and investment. “The combination of endemic corruption, weak rule of law, restrictions of foreign investment and a lack of its…