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…
Latest Crime Statistics show Country becoming a "War Zone"
The newly released crime statistics for South Africa came as a shock to say the least. While even the last person in South Africa has by now realised that the government is absent in almost all portfolios, busy campaigning for the up-coming elections to protect the golden cow they have milked for decades now. But what was a fact duly noted in every aspect of administration, municipal management and idiotic drafts of new legislation without any proper research, turned now a corner and came very close to everyone’s life and health!
Police Minister Bheki Cele himself was still shaken, when reporting the latest crime figures that show a 6.9% increase in murder over the 2017/2018 period, an estimated 20,336 people were killed during the pe…
Zuma Plot to oust Ramaphosa uncovered
Former president Jacob Zuma and several top ANC figures are plotting to remove President Cyril Ramaphosa, according to a report in the Sunday Times.
The Sunday Times stated that Zuma held a meeting with ANC secretary-general Ace Magashule, former North West premier Supra Mahumapelo, ANC Women’s League secretary-general Meokgo Matuba, and ANC Youth League KwaZulu-Natal secretary Thanduxolo Sabelo at the Maharani hotel in Durban on Thursday. “So secret was the Maharani meeting that those who were present denied having met Zuma, even though the Sunday Times is in possession of pictures of them together inside the hotel, and outside when they left,” stated the report.
The meeting was said to be about a strategy to “challenge the outcom…
Rand slightly recovered, outlook ambiguous
The Rand is currently slightly recovering, mainly in wake of positive outlooks within the emerging markets and despite a stronger Dollar in light of better employment figures showing a quarter of a million more jobs, a drop in long-term unemployment and a better than expected seasonal unemployment.
The Rand remains susceptible to the “trade-war” developments between the US and China / Turkey … most likely soon Africa as well as the pre-election campaigns and news pertaining to developments within parties, coalition prospects and cooperation failures.
The Rand will most likely hover at the current levels for a while, absorbing bad news from within South Africa through speculants, who did sell Rand positions empty and need to recov…
Rand in Free Fall as SA enters Recession
It was to be rather feared than expected, but watching clowns.com pretending to play “Government” had to prompt the bitter reality sooner or later. Well, “sooner” is now and South Africa is officially in a RECESSION!
After starting the week on the back foot, the rand continued to fall in early trade on Tuesday following the announcement by Stats SA that the country was in a technical recession. The local currency, which lost 1.5% against the dollar at the start of the week, fell below R15/$. At 10:15, it was changing hands at R15.06 to the greenback, down 1.3% on the day. It has fallen by over 2.5% against the dollar this week alone. At 11:30, Stats SA announced that the country’s real gross domestic product had contracted by 0.7% in…