Ramaphosa announced Investment Conference to attract 1 Trillion Rand Investments over 5 Years
President Cyril Ramaphosa announced on Monday evening that South Africa would host a major investment conference in August or September 2018, which would aim to raise over R1trn in new investments over five years.
“The investment conference, which will involve domestic and international investors in equal measure, is not intended merely as a forum to discuss the investment climate,” said Ramaphosa, according to his prepared notes. He was speaking at OR Tambo International Airport, before leaving for a Commonwealth Heads of Government Meeting in London.
“Rather, we expect the conference to report on actual investment deals that have been concluded and to provide a platform for would-be investors to seek out opportunities in the Sou…
South African Airways: Gordhan to the Rescue?
In February, a few hours after the announcement that Pravin Gordhan would be sworn in as South Africa’s new public enterprises minister, he described himself in a radio interview as a “used car”, in reference to his various government deployments by the ANC over the years.It’s clear Gordhan has a reputation as a “Mr Fix-It”, and he didn’t hesitate to place the “rampant corruption” that has infested South Africa’s state-owned entities (SOEs) at the top of his to-do list.
Reform of SOEs was also a major theme in both President Cyril Ramaphosa’s State of the Nation Address and in former finance minister Malusi Gigaba’s Budget Speech.The South African public is very aware that SOEs are a crucial part of our economy and our fiscal system…
Winnie Mandela has passed away at the Age of 81
Struggle veteran Winnie Madikizela-Mandela has died at the age of 81, her family confirmed in a statement today.
“It is with profound sadness that we inform the public that Mrs Winnie Madikizela-Mandela passed away at the Netcare Milpark Hospital, Johannesburg, South Africa on Monday the 2nd of April 2018, the statement said.
She died after a long illness, for which she had been in and out of hospital since the start of the year. She succumbed peacefully in the early hours of this afternoon surrounded by her family and loved ones.
Madikizela-Mandela was one of the greatest icons of the struggle against apartheid. She fought valiantly against the apartheid state and sacrificed her life for the freedom of the country. Her activis…
Reserve Bank cuts Interest Rates by 0.25%
A welcome breather from consumers’ perspective, especially in light of the looming VAT and Petrol price Hikes, as the monetary policy committee of the SA Reserve Bank has decided today to cut interest rates by 25 basis points. This means the repo rate is now 6.5% and the prime lending rate 10%. The last time the central bank cut the repo rate was in July 2017, when the MPC reduced the rate by 25 basis points from 7% to 6.75%.
The repo rate is the benchmark interest rate at which the Reserve Bank lends money to commercial banks and the prime rate the rate at which commercial banks lend money to borrowers. SARB governor Lesetja Kganyago, speaking in Pretoria on Wednesday after the conclusion of the three-day meeting of the bank’s Moneta…
Rating Agency Moody's keeps Debt rating above Investment Grade
In a surprise decision, Ratings Agency Moody’s Corporation kept South Africa’s rating for sovereign debt above investment grade (Baa3)and refrained from downgrading the country’s ability to service debt unlike their counterparts at Standard & Poors! However, the outlook changed from stable to negative, which – in line with most recent discussions around corruption, land appropriation without compensation and missing dynamics in restructuring State Companies – did not come as a surprise.
A downgrade by Moody’s to sub-investment grade (junk status) would have removed South Africa from the Citi World Government Bond Index which would have forced many asset managers and pension funds to sell South African bonds, hiking the cost of debt. B…
Business Confidence on Three-Year-High
Business confidence climbed to the highest since the start of 2015 in the fourth quarter as the appointment of President Cyril Ramaphosa boosts prospects for industry-friendly policies.
The RMB/BER business confidence index rose 11 points, the most since the first quarter of 2012, to 45, FirstRand’s [JSE: FSR] Rand Merchant Bank unit and the Stellenbosch-based Bureau for Economic Research said in an emailed statement on Wednesday. “The widespread rise in the BCI had one common cause: the recent turn for the better in domestic politics,” they said. “In the absence of the appointment of Cyril Ramaphosa as the country’s new president and his subsequent Cabinet reshuffle, among other factors, developments around business activity – and pr…
Land Grabs without Compensation - EFF and ANC change Constitution
Just weeks after being sworn in as South Africa’s new President, Cyril Ramaphosa has already followed through on his promise to see “the return of the land to the people from whom it was taken”. Yesterday, South Africa’s parliament voted on a motion to change the constitution to allow land to be confiscated and repatriated from white to black owners without compensation. The controversial motion passed by 241 votes in favour versus 83 against and will be reviewed by a committee by August 30th.
In an address to parliament in Cape Town last week, President Ramaphosa clarified that his goal is to right injustices of the past, as far back as European colonization in the 17th century, by forceful redistribution of land ownership to South A…
President Ramaphosa reshuffles Cabinet - The Good, the Bad and the Ugly
President Cyril Ramphosa announced significant changes to his Cabinet late last night after his announcement was postponed twice. He failed to honour his commitments to reduce the Departments for now but promised a review of same. What does the new cabinet and the appointments mean for the foreign investors to South Africa?
In a nutshell: this cabinet is a dangerous compromise, which could destabilise Ramaphosa’s integrity at a very early stage. Why? Well, here is the Good, the Bad and the Ugly:
A huge “Kudos” for this decision, which finally ends the reigns of one of the worst Zuma-Puppets in cabinet, the incompetent and corrupt Lynne Brown, and seeing her replaced with returning *Pravi…
Budget Speech 2018 - VAT and Reason slaughtered on the Altar of Ignorance
Building on the sense of a new beginning created by President Cyril Ramaphosa’s State of the Nation Address, Zma Sycophant and “still-” Finance Minister Malusi Gigaba’s Budget Speech in the National Assembly on 21 February was all about rebuilding and restoration in challenging times. “This is a tough but hopeful budget," he said at the start of his speech. This is probably a fair comment, seeing that the risks and pressures were also acknowledged by a Finance Minister, who is still in his position based on nepotism and not on qualification or merit. But Ramaphosa saw it fit not to replace the Zuma-Puppets before the delivery of the Budget Speech.
The finance minister noted at first that the economic outlook and indicators have improv…
State of the Nation Address
On 16 February 2018, President Cyril Ramaphosa gave his first State of the Nation Address, only 30 hours after having been sworn in as the new president of South Africa.
Not much time to prepare, but clearly tasked with guiding the country out of state capture, economic stand-still and to free the people form a corrupt and inept leadership. The speech was long and had its moments, where even the opposition applauded, but otherwise, it lacked the long-awaited spark, the light at the end of the tunnel in form of goalposts, targets and tasks at hand.
Some passages awkwardly reminded of past president Zuma, might even been written for him with no time to be replaced.
So what can South Africa expect?
Ramaphosa’s intention to reduc…