Tito Mboweni succeeds Nhlanhla Nene and Rand Gains manifest
The rand held gains made ahead of President Cyril Ramaphosa’s announcement on Tuesday afternoon that former Reserve Bank Governor Tito Mboweni would be the new finance minister. Ramaphosa made the announcement from Tuynhys in Parliament. Mboweni is replacing Nhlanhla Nene with immediate effect.
Mboweni replaces Nene
The president said that Nene submitted his letter of resignation this morning. Last week Nene testified at the State Capture Inquiry that he had met with members of the Gupta family several times between 2009 and 2014. He had not previously acknowledged these meetings.
The rand was trading 0.67% stronger at R14.75 ahead of Ramaphosa’s announcement, having firmed on speculation that Mboweni …
Unemployment in Figures
Employment in SA’s non-agricultural formal sector dropped by 69 000 between March and June 2018, Statistics SA announced on Wednesday in its latest Quarterly Employment Statistics (QES) bulletin. The QES results are based on a sample survey conducted by Stats SA and include findings on employment in the non-agricultural formal sector. Stats SA reported that non-agricultural formal sector employment dropped from 9 817 000 in March 2018 to 9 748 000 in June 2018.
This was largely due to decreases in:
- community services (-67 000 or -2.5%);
- manufacturing (-13 000 or -1.1%);
- mining and quarrying (-2 000 or -0.4%) and
*transport (-2 000 or -0.4%).
Increases were reported in:
- trade (7 000 or 0.3%);
- business services (7…
180 degree turn by Gigaba: New Immigration Rules to be introduced
Minister of Home Affairs, Malusi Gigaba, surprised yesterday when announcing new visa rules to come, easing the access to South Africa for skilled workers, reverse some of the documentation required for travelling children and implementing negotiations with other countries for visa-free access to South Africa.
Has Playboy Gigaba turned from Saulus to Paulus? Surely not! His hand had to be forced by President Ramaphosa to contribute to the government’s efforts to stimulate economy and to stop boycotting Tourism and Businesses in need of critical skills. We all need to remember that it was Gigaba, who introduced insane conditions for travelling children and thereby costing the tourism sector billions of Rand in revenue, only justified b…
Heritage Day - Braai Day - Shaka Day
Heritage Day is one of the newly created South African public holidays. It is a day in which all are encouraged to celebrate their cultural traditions in the wider context of the great diversity of cultures, beliefs, and traditions that make up the nation of South Africa. The question of National or Cultural heritage is, however, not without its complications.
In a country of eleven different official languages and a turbulent recent political past, one is obliged to ask, for instance, whose heritage it is that South Africans are being called to celebrate. Another point of contention is that in a former settler colony such as South Africa, one person’s heritage is another person’s trauma. For example, whilst for some, the Great Trek …
Ramaphosa reveals Stimulus Plan to further Economic Growth
Earlier today, an excited and upbeat President Cyril Ramaphosa announced the government’s much-vaunted economic stimulus plan at the Union Buildings in Pretoria on Friday.
Here is what you need to know:
- There is no big number to the plan and it is difficult to determine exactly how much money the state will pump into the economy in an effort to jump-start growth. The plan rather centres around the reprioritisation of existing budgets.
- R50bn, however, is a one hard number mentioned the the president. This is the amount in the existing budget, presented to Parliament in February by then-finance minister Malusi Gigaba, which will be shifted around in this financial year.
- R400bn is another. That is the amount which will be …
Reserve Bank keeps Interest Rates and Ramaphosa to announce Stimulus Package
Exciting times ind the fiscal world surrounding South Africa#s technical recession. While SARB acted in the interest of preserving what there is in growth without deterring any investors, Ramaphosa has the more difficult job when addressing the nation this afternoon to announce the upcoming “Stimulus Package” to drive the economy out of its negative corner.
The SA Reserve Bank (“SARB”) announced yesterday afternoon that it will keep the repo rate unchanged at 6.5%, but the decision was apparently a close call. Governor Kanyago said that four members of the bank’s monetary policy committee (“MPC”) preferred an unchanged stance, while three members advocated for a 0.25% increase.
Ahead of the announcement, Into …
Inflation Rate down slightly, Rand braces for SARB decision
Stats SA announced this morning that annual consumer inflation for August was 4.9%, marginally lower than what most analysts had expected, but still 0.2% lower than in July 2018. It seems the current Rand weakness, which leads to price hikes for imported goods has not yet caught up with the consumer price levels, hence a last breather before the inflation rate will shift upwards again, but still a comfortable 1.1% from the target corridor of between 3% and 6%.
But is it is also good news for tomorrow’s meeting of the Monetary Policy Committee of the South African Reserve Bank (SARB) as it takes some pressure off any motivation to hike rates? Not really! The MPC needs to decide proactively rather than reactively and the Rand Exchange r…
New Expropriation Bill tabled in Parliament
A new expropriation bill, set to be tabled in Parliament in the next two months, will set out a clear procedure for land expropriation without compensation and ensure it is an “administratively just process”, according to Deputy Minister of Public Works Jeremy Cronin. Earlier this month a draft expropriation law was withdrawn from Parliament to make way for a new bill that will set out a system of expropriation based on the ANC’s decision to amend the Constitution to allow for more muscular land reform. “It will be a process to prevent arbitrary deprivation,” says Cronin, who says the draft law will be light-touch legislation. The Department of Public Works is currently drafting the bill which will soon be complete.
This will be the…
Constitutional Court confirms the private growing and consuming of Marijuana to be legal
The Constitutional Court has upheld that it should be legal for citizens to cultivate and consume marijuana for personal use in the privacy of their own homes.
In a unanimous judgement, the country’s highest court effectively decriminalised the private use of dagga.
The ruling upheld a March 2017 High Court judgement, which said that the banning the personal use of dagga by adults in their homes was against the constitutional right to privacy.
The court ordered at the time that Parliament had 24 months to amend the current drug laws to bring them in line with the constitution.
In the Constitutional Court ruling, Deputy chief justice Raymond Zondo did not specify the amount that can be used by adults in private use, saying t…
Nene and his Plan to appease Moody's Rating Agency
The role of the decisions of international Rating Agencies is by now known even to the Minister of Finance. Insulting them Gigaba-sytle did not really bring the country forward, hence a more careful stance has to be chosen to appease them. Past and present Finance Minister Nhlanhla Nene has therefore promised both, a fiscally conservative mini-budget and a rather generous stimulus package for the up-coming “Mini-Budget” in October. Nene was speaking at the Moody’s Investors Service sub-Saharan conference in Johannesburg yesterday. Here are five highlights from his address:
1. Conservative Mini-Budget combined with Presidential Stimulus Package
“Fiscal sustainability must remain the focus of government’s efforts. There will be a…