Rand still riding on top of Economy Waves
It is a pleasure to share some positive news for a change as the Rand is currently doing better than most give him credit for.
Only four weeks away from South Africa’s National General Election, the pre-polling campaign machines of each political party are still not in full-swing as the most of the street corners bear lonely witness. Though political efforts are mounting and elevating the levels of tension and discourse, the rhetoric is becoming increasingly polarising and will once again be in full view today as the protests in Alexandra migrate to Gauteng’s business hub of Sandton.
Whether that ultimately impacts on financial market sentiment is at this point uncertain!
If it does, it will only be marginal though. A more like…
Interest Rates remain unchanged
In its second meeting in a row, the Monetary Policy Committee of the South African Reserve Bank showed unity i leaving the interest rates in South Africa unchanged with the Repo Rate at 6.75% dictating a prime lending rate by the major banks of 10.25%.
Fior many it came as no surprise as the the inflation rate hovers steadily below the 5% mark and within the given bandwidth of 3% – 6%. However, one can see a cautious yet conservative MPC. A more future-bound and aiming at clairvoyance MPC could have sent a message by cutting the repo rate by 0.25% i order to anticipate Moody’s postpone rating decision and to therefore cement already an attraction to stay or invest into the Rand; especially in light of the recent rates decision of the …
The TRUTH about South Africa's Power and Load Shedding
Most of the officials at ESKOM and at the power stations, which still produce power, are on holiday, and a skeleton repair team is out to analyse the damages and fix the transmission lines between South Africa and the Hydro Power Plant at Cahora Bassa in Mozambique. Meanwhile and back at the base, South African residents duck and dive between load-shed areas to give their children the school holiday they deserve…..
Ever tried to explain a six-year old that a power plug does not guarantee it also provides electricity? And why Mommy and Daddy do not use the garage remote in the moment and skip their morning coffee at their favourite café around the corner? Maybe not, but we think WE need to explain what is going on in the moment and wha…
ESKOM: Incompetence Level 4 here to stay…..
For those who missed the news, the ANC Clowns responsible for the downgrade and downfall of this beautiful country are still free and playing with your lives as bad as they can.
As easy as 1, 2, 3 and 4 has stopped to be a children’s game, Load Shedding Stages 1, 2, 3 and 4 have now become daily reality….and for now, Stage 4 is here to stay, today, tomorrow, together … in the Dark!
Adding some salt to the wounds, the water levels in Gauteng are now so dangerously low that facing the rainless winter, South Africans are facing beside hour-long power outages also water shortages. But back to EISHKOM:
Level 4 means the country is short of 4 000 MW … yes, you heard right: 4 Giga Watt. That is nothing that happens overnight, that accr…
Budget Speech 2019 ... Delivered!
On 20 February 2019 Finance Minister and former Reserve Bank Governor Tito Mboweni opened his 2019 budget speech in the tradition of former Finance Minister Trevor Manuel, comparing the South African economy with a seedling plant, which is weak and needs a lot of care to grow and become as strong as needed.
This was already an indication of what was to come, every step of the way into the Budget Speech showed where he “learned the ropes” of handling a difficult budget. And a difficult one it was as he had to work with nothing but still tried to ooze confidence.
The minister painted a bleak picture as the country struggles with rising expenditure, failing SOEs (please see the following article in this eBRIEF) …
EISHKOM & HELLKOM - Epic Fails being the Final Nail to the ANC's Coffin?
Are ESKOM and TELKOM the final two nails that are needed to nail the ANC’s re-election coffins shut?
Everybody had to walk down memory lane with a bitter taste as load shedding returned with a vengeance, reaching level 4, a level of severity not seen for four years and analysts say it has blown up into the biggest political threat facing President Cyril Ramaphosa’s ANC just three months away from elections.
Eskom unexpectedly imposed highly-unpopular power rationing last Sunday, with rotational cuts now scheduled every day – plunging shops, offices, factories and home into darkness for hours. This week the government confirmed that troubled state-owned power utility ESKOM, which generates more than 90% of the country’s…
Load Shedding Stage 2 continues ...
While ESKOM is waiting for being unbundled as per SONA 2019 given by President Ramaphosa last week, and in the meantime loosing ZAR 500m per month, load shedding continues.
Eskom announced that it will implement stage 2 load-shedding today, Monday 11 February. The rotational power outages will take place from 09:00 until 22:00, with the objective of shedding 2 000 MW of power nationwide.
Eskom said that while many generating units have been returned to service, other units continue to trip, resulting in a shortage of generating capacity. The power utility advised residents and businesses to use electricity sparingly during this period in an effort to reduce demand.
This is the second day in a row Eskom has implemented stage 2 lo…
Ramaphosa gives State of the Nation Address without Turmoil
Yesterday, President Cyril Ramaphosa delivered an economic-focused State of the Nation Address in front of the Cape Town Parliament. For those, who watched to see just another edition of clowns.com in action where disappointment as the president diffused the usual belligerent atmosphere created by the EFF. By offering to sing the EFF Anthem in parliament in case the EFF wins the elections and to form a band togetehr with Mmusi Maimane, he had the humour in his side and the sympathy of the EFF delegates to stay and listen.
The address was focussed and addressed most heated topics determining the path of the country, but lacked definitive plans of actions or visions for any jind of implementations. However, the following key quotes are …
Ramaphosa to give second SONA, while none of his Promises has been kept
One year into the “new dawn” that South African President Cyril Ramaphosa promised when he took power, the economy is battling many of the same old problems. Growth in Africa’s most-industrialised economy is sluggish, unemployment is still at record levels and the debt of mismanaged state companies such as Eskom is weighing on finances. That’s a challenging backdrop for Ramaphosa, who promised a slew of regulatory reforms when he became leader of the ANC in December 2017.
Ramaphosa, like his predecessor Jacob Zuma, began his presidency with a recession. The country has emerged from that slump, but expansion hasn’t exceeded 2% annually since 2013 and will only reach that level by next year, according to central b…
ESKOM CEO admits to ESKOM failure and considers Unbundling!
It is no secret that ESKOM is in a state that seems almost beyond rescue, just another failure in the concert of State Owned Enterprises.Borrowing money to mainly financing debt, SAA and ESKO are both sad examples for the inability of the current government to govern those enterprises but instead being very much in favour to continue ransacking the state coffers in favour of two elephants that are not able to walk on their own anymore.
The umptieth CEO of ESKOM, Phakami Hadebe, addressing the delegates at the Mining Indaba yesterday, seems the first one though, who admits to reality. Nobody wants to lend money to ESKOM anymore, the coal suppliers hold the utility at ransom, procurement is corrupted beyond comprehension and the adminis…