Browsing: South Africa

On Monday, the South Africa’s rand firmed back to below the key 15.00 per dollar mark, which is mostly on profit-taking and month-end positioning after a sustaining a steep slide triggered by the Wuhan coronavirus shaking the world, Reuters reveals.

At 0700 GMT the rand was 0.43 per cent firmer at 14.9650 per dollar, having ended at 15.0300 on Friday. The coronavirus dragged the currency to its weakest level in three months—traded at 14.4800 last Monday, which was 0.59 per cent lower than its New York Close on Friday, January 24.

Reuters reported that investors concerned about the spread of the coronavirus wiped more than $400 billion off the value of China’s stocks in the first trading session in two weeks after an extended Lunar New Year break as the death toll from the epidemic rose to 361.

READ:Coronavirus and the Implications for Emerging Markets

The rand has tumbled …

Investment in South Africa remains low despite positively changing direction two years ago after the election, Danesh Ranchhod vice president and executive director of the Franklin Templeton Markets Equity said.

“The past two years have seen some change in direction; these include a new president with better intent, an election and subsequent change in cabinet ministers as well as an attempt to change the boards of weak state-owned institutions. While these remain positive developments the deterioration in the economy and state institutions still require serious attention,” said Ranchhod.

Also Read: South Africa’s business confidence index plummets

He said South Africa has endured several years of weak economic growth, state-owned entity mismanagement, rampant corruption and a policy stall. Which he said that much of it originated and accelerated under the previous leadership with proof pointing to middlemen and government officials who mismanaged state entities.

The Franklin Templeton Markets Equity said it …

South Africa is set to increase its tourist arrivals from India, according to Tourism Minister Mmamoloko Kubayi-Ngubane.

Kubayi-Ngubane has hailed as a resounding success her two-day market roadshow to Mumbai in India from January 14 to 16, the tourism department said in a statement.

The roadshow was characterised by “robust engagement” with tour operators, destination management companies, film producers and potential investors.

South Africa increased its efforts to unlock market opportunities for the realisation of the country’s 2030 target of doubling international tourist arrivals from 10.5 million to 21 million.

Also Read: South Africa’s miners decry power crisis crippling business

“India remains one of our key trading partners and [a] priority market for driving arrival numbers to South Africa. We will continue to invest in our marketing and engagement efforts, both with our trade partners and travellers, while providing diversified tourist products,” Kubayi-Ngubane said in the statement.

With the forecasted …

Players in South Africa’s mining sector have called upon the government to fix the power crisis being experienced in the country subsequently devastating business operations in the country.

According to Reuters, the Mineral Council South Africa took the decision on Monday to settle the nation’s power crisis, which saw record-high power cuts crippling business operations, including OR Tambo Airport operating in darkness after transformer shutdown.

The state-owned utility Eskom which supplies 95 per cent of the nation’s power was forced to implement power cuts across the country in 2019.

The Mineral Council South Africa was noted by Reuters that, the insecurity in power supplies plus rapidly increasing costs were at the forefront of the constraints on the economy and mining industry.

Also, the body commented on government intervention towards facilitation of additional power that could be brought on stream to bridge the gap

“The government and Eskom should be contracting …

South Africa which is currently under serious economic situations has also sustained a rather historic slump in the business confidence index in 34 years according to last year’s data.

According to a report by Bloomberg, the statistics compiled by the South African Chamber of Commerce and Industry (SACCI), showed that the business confidence declined to an average of 92.6 from a two-year high record of 95.5 in 2018, that being the lowest record since 1985.

Delays in policy implementation, deteriorating public finances and power cuts which escalated in December 2019 have been associated are crucial factors that define the fate of investment in South Africa and why the index matters.

South Africa’s treasury 2019 budget review shows that real GDP growth in 2019 was expected to grow slowly to 1.5 per cent, and expected to improve moderately to 2.1 per cent in 2021.

On the other mark, Bloomberg highlighted that …

South African Aerospace, Maritime, and Defence Export Council (SAAMDEC) CEO Sandile Ndlovu urged the South Africa defence industry to cultivate a healthy interest in the Egyptian market.

Speaking at the outward trade and investment mission (OTIM) in Egypt, Mr Ndlovu said the export council’s mission was spearheaded on a two-pronged approach.

“The first was to formally introduce the South African defence industry to the market and acknowledging the efforts of individual companies that have been interacting with the Egyptian defence. The second was to identify areas where South Africa and Egypt could cooperate in the defence space8,” he said.

He said that their first interactions with the Egyptian private sector occurred during a defence exhibition held in Egypt last year. Adding that with the interactions they have had during the event, they have found that there is a lot of interest to cooperate with them specifically on promotion and marketing …

South Africa is projected to experience a long haul of power cuts, which have taking new stages over the past 14 years due to several operational failures under the nation’s electricity public utility Eskom Holdings SOC Ltd.

Eskom is a state-owned company, designated for generating, transmitting, and distributing electricity.

According to a Bloomberg report, South Africa’s economy hangs in the balance not only as country but as the beacon of the continent manufacturing industrial complex and diversified economy.  Eskom projects that there would be power outages expected to take away 6,000 megawatts from the grid, beginning this Monday.

This means that the current power cut off has doubled from the earlier announcement aired on 6 December 2019, which cited the deficit of 2,000 megawatts from its generating capacity.

As highlighted by Bloomberg, this is a result of the company losing its hold on additional generating units at its power stations.…

A group of South African business people representing 35 companies is expected to travel to Mozambique in search of investment and trade opportunities, the trade and industry department said.

The group will be participating in an Outward Trade and Investment Mission to Pemba and Maputo organised by the trade and industry department from 24 – 29 November

The trip’s objective is to increase bilateral trade and investment between South Africa and Mozambique by exposing South African companies to available opportunities in Mozambique. Nomalungelo Gina Trade and Industry Deputy Minister will lead the mission.

According to the department, the specific focus of the mission will be on designated industrial and infrastructure projects as stated in the memorandum of understanding (MoU) on economic cooperation between the two countries.

Keitumetse Moumakoe, the executive director of the Steel Tube Export Association of South Africa, said his main objective for travelling to Mozambique is to …

The trial would allow the government to test the resilience of the system and the department has already had successful trials in controlled environments…

South African Airways (SAA) said it does not have the financial capacity to meet workers’ eight-percent salary increase demand.

The airline said it could only pay 5.9 percent from March 2020, assuming funds will available at that time.

The strike at the South African Airways is entering its sixth day, due to a dire financial situation. The airline had initially said the action cost $3.4 million a day, though that figure came down as some canceled flights resumed. The resumed flights were to Accra, Lagos, Lusaka, Maputo, Windhoek and Harare.

On domestic flights, the airline worked with Mango Airlines to accommodate as many customers traveling on domestic services and refunding passengers their flights or travel with other airlines. It promised to resume domestic flights, one between Cape Town and Johannesburg and another one between Johannesburg and Durban.

“We call on all our employees to return to work for the sake …