(Reuters) &#8211; Democratic Republic of Congo’s central bank said on Monday it expected the economy to contract -1.7% in 2020, improving on an earlier forecast of a -2.4% contraction due to higher mining receipts.



The mining sector has performed better than anticipated because of the success of confinement measures introduced to combat the coronavirus, paired with a rise in the global price of copper, one of Congo’s key exports, the central bank said in a statement.

congo franc

Congo central bank raises 2020 GDP forecast to -1.7%

JOHANNESBURG (Reuters) &#8211; The South African rand was slightly firmer against the dollar early on Tuesday, as the U.S. currency extended its fall to new lows on global markets.



At 0642 GMT, the rand traded at 17.4750 versus the dollar, almost 0.2% stronger than its previous close.



Government bonds were flat, with the yield on the 2030 bond at 9.28%.



With no major domestic data releases due this week, the rand is expected to take its cue from global factors.



President Cyril Ramaphosa announced a further easing of the country’s strict coronavirus lockdown over the weekend, but the impact on the local currency has been muted.



Official forecasts predict gross domestic product will contract by at least 7% this year, extending the pain for an economy that was already in recession before the COVID-19 pandemic struck.



The rand had a torrid start to 2020, slumping over 20% against the dollar over the first quarter in the leadup to Moody’s downgrading the country’s sovereign credit rating to “junk” status.



The rand has swung back and forth since and is still down almost 20% against the U.S. currency year to date.

ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

South African rand marginally stronger in early trade

JOHANNESBURG (Reuters) &#8211; The South African rand began the week stronger on Monday after President Cyril Ramaphosa announced a sweeping removal of lockdown restrictions over the weekend.



Ramaphosa said that from midnight on Monday a ban on alcohol and tobacco sales would be lifted, inter-provincial travel would be allowed and restaurants and taverns could return to normal business subject to hygiene protocols.



By 0631 GMT the rand was trading at 17.3400 versus the dollar, roughly 0.3% firmer than its previous close. Dollar weakness on global markets also supported the rand.



Government bonds were little changed in early trade, with the yield on the 2030 bond at 9.16%.



Africa’s most industrialised economy has been hit hard by one of the world’s strictest lockdowns, imposed in late March to curb the spread of the coronavirus, but Ramaphosa said the indications were that the country had reached the peak of COVID-19 infections.



Official forecasts are for gross domestic product to contrac by at least 7% this year, with South Africa having recorded the fifth-highest number of COVID-19 infections worldwide.

101416618-rand

South African rand stronger after Ramaphosa announces lockdown easing

DAKAR (Reuters) &#8211; The central bank of Democratic Republic of Congo has raised the main interest rate to 18.5% from 7.5%, central bank official Plante Kibadhi said on Saturday.



The regulator had lowered the rate from 9% in March in order to cushion the economy from the impact of the coronavirus crisis, following similar actions by African central banks as the virus spread across the continent.



The latest rate hike was carried out to re-anchor inflation expectations, the International Monetary Fund said.



Year-on-year inflation in Congo stood at over 14% as of end-July, around 10 percentage points higher than at the same point last year, according to central bank figures.



The central bank has previously said it expects the economy to contract 2.4% this year compared with growth of over 4% in 2019 partly due to coronavirus-linked disruptions to mining, which accounts for a third of national output.



The pandemic has also dampened global demand for metals and other raw materials.

1280px-Flag_of_the_Democratic_Republic_of_the_Congo.svg

Congo’s central bank makes huge rate hike to 18.5%

Hoteliers and people who make and sell alcohol celebrated tonight as South African president Cyril Ramaphosa eased the COVID-19 lockdown to level two as the number of cases slows down in the country that has borne the brunt of the continent&#8217;s cases.



From midnight on Monday South Africans will be able to visit the next province, drink,smoke, and sleep in a hotel bed.



&#8221; 



&#8220;To say we are delighted by this news would be an understatement,&#8221;says Graham Wood the chief operating officer of hospitality of Sun International one of Africa&#8217;s biggest hospitality groups.



With interprovincial travel restrictions lifted our tourist hotels and resorts such as Sun City will finally be able to reopen.  We will advise of Sun City’s re-opening date in due course.&#8221;



Wood felt that the government could have gone further in easing the restrictions that have shut down large parts of the economy since March.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="636" height="370" src="https://www.cnbcafrica.com/wp-content/uploads/2020/04/ramaphosa.jpg" alt="" class="wp-image-368728" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/04/ramaphosa.jpg 636w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/ramaphosa-300x175.jpg 300w" sizes="auto, (max-width: 636px) 100vw, 636px" /></figure>



&#8220;It is unfortunate that the curfew could not be further relaxed, but we are grateful and relieved that our restaurants can again serve alcohol. But lifting the onerous ban on alcohol will boost footfall to our properties,&#8221; he said.







 Lucky Ntimane, Convener of the National Liquor Traders Council, said:“Our network of some 34 000 taverners across the country is ready to get back to business. We will continue to roll out innovations such as the “click-and-collect” apps to help reduce queues, improve social distancing, and make it safer for consumers to order and collect their purchases.”



President Ramaphosa said bars would only be allowed to operate if they practised sanitizing, social distancing and respected the 10 PM curfew. Bar owners say they will help meet the cost.



“The liquor industry confirmed it is willing to ensure enhanced resources, including funds, people and time, are available to assist the Government in dealing with the burden on the public healthcare system. It will also help ease the pressure on healthcare facilities and to assist with the distribution of personal protective equipment (PPE), leveraging our extensive distribution and retail networks nationwide in support of efforts to combat the spread of COVID-19,” said Kurt Moore, the CEO of the South African Liquor Brandowners Association



Yet the opposition Democratic Alliance thought the easing of the lockdown was too little, too late, for the economy.

beer

“To say we are delighted by this news would be an understatement” alcohol and hotel industry cheers the easing of lockdown

(Reuters) &#8211; A Japanese bulk carrier that ran aground on a reef in Mauritius last month threatening a marine ecological disaster around the Indian Ocean island has broken apart, authorities said on Saturday.



The condition of the MV Wakashio was worsening early on Saturday and it split by the afternoon, the Mauritius National Crisis Committee said.



“At around 4.30pm, a major detachment of the vessel’s forward section was observed,” it said in a statement. “On the basis of the experts’ advice, the towing plan is being implemented.”



The vessel struck a coral reef on July 25, spilling about 1,000 tonnes of fuel oil and endangering corals, fish and other marine life in what some scientists have called the country’s worst ecological disaster.



On Friday, some residual oil from the ship leaked into the ocean, Mauritius Marine Conservation Society President Jacqueline Sauzier told Reuters on Saturday morning.



Authorities deployed booms on Saturday to help with oil absorption around the vessel.



The Crisis Committee said special attention was being given to sensitive sites such as the Blue Bay Marine Park, Ile aux Aigrettes and the Pointe D’Esny National Ramsar Site.



The weather is expected to deteriorate over the next few days with waves of up to 4.5 metres (15 feet), authorities said.



Most of the oil from the vessels have been pumped out, the Mauritian government said on Thursday, but there was still 166 tonnes of fuel oil inside and authorities were working to remove it.



Japanese Environment Minister Shinjiro Koizumi said on Saturday Tokyo planned to send a team of officials from the ministry and other specialists to assess the damage. The MV Wakashio is owned by Japan’s Nagashiki Shipping and chartered by Mitsui OSK Lines.



Scientists say the full impact of the spill is still unfolding, but the damage could affect Mauritius and its tourism-dependent economy for decades.



Removing the ship is likely to take months. Former colonial power France has said it will assist with the cleanup.

Op-Ed: Tourism sector in Mauritius devastated by COVID-19

Japanese ship involved in Mauritius oil spill breaks apart

HARARE (Reuters) &#8211; Zimbabwe’s inflation was 837.53% year-on-year in July compared to 737.26% the previous month, state statistics body Zimstat said on Saturday.



On a monthly basis, prices increased by 35.53% compared to 31.66% in June.



Zimstat did not give a reason for the increase but the local currency, which was reintroduced in June last year without sufficient reserves to back it, has been relentlessly depreciating against the U.S. dollar.

Zimbabwe_$1000_2007_Obverse

Zimbabwe’s July y/y inflation at 837.5%

TUNIS (Reuters) &#8211; Tunisia’s tourism-dependent economy shrank 21.6‮ ‬pct in the second quarter of 2020, compared to the same period last year, due to the coronavirus crisis, the state statistics institute said on Saturday.



Unemployment‮ ‬rose to 18 percent in the second quarter.



The government ended all restrictions on movement and businesses and opened its sea, land and air borders on June 27. However, the pandemic is hammering the tourism sector, which contributes nearly 10% of gross domestic product and is a key source of foreign currency.



Tourism revenue in the first six months of this year fell by more than 50% from the same period of 2019 as western tourists deserted Tunisia’s hotels and resorts.

sidebyside-4604270_960_720

Tunisian economy shrank 21.6% in second quarter of 2020

The covid-19 pandemic is ravaging the world indiscriminately, but a combination of health and economic factors means the pandemic presents a particular set of challenges in Sub-Saharan Africa. Although the continent is reporting far fewer cases of covid-19 than the rest of the world, the pandemic poses far-reaching economic ramifications, particularly for vulnerable populations such as women.



 A slowdown in economic growth has already been felt among small and medium-size enterprises (SMEs)in hard-hit sectors such as tourism, retail, and services and thus likely to create wide-spread job losses.



 SMEs are critical to Africa’s economic growth across the region and represent about 90 percent of Africa’s businesses and provide about 60 percent of jobs on the continent. Access to finance is one of the main challenges facing SMEs in normal times—with the majority of these firms lacking the finance needed to grow. 



Prior to covid-19, SMEs in Sub-Saharan Africa count among the world’s most financially constrained, with the International Finance Corporation estimating that 52 percent of SMEs in the region have an unmet financing need with a credit gap of US $331 billion. It is difficult to grasp the immediate effects of covid-19. SMEs already face challenges in accessing finance and will undoubtedly face unprecedented challenges due to covid-19. Women-led SMEs are the worst affected because they tend to be in the most exposed sectors and receive the fewest amount of support in terms of financing. According to a recent study by the International Trade Centre, 64 percent of women-led firms declared their business operations as strongly affected, compared with 52 percent of men-led companies. 



Policymakers and investors working to address the health and economic challenges posed by covid-19 must go beyond moratoriums and renegotiation of existing loan terms. To better serve women-led SMEs, this will require a concerted effort from multiple stakeholders to include banks, development finance institutions (DFIs), regulators, and government to apply a gender-lens when designing covid-19 related economic recovery efforts.



 First, there is a need for gender-disaggregated data to inform and shape policies and investments. The pandemic presents an unprecedented opportunity to expand gender data collection on women entrepreneurs. Second, there is a need to apply a gender-lens approach when designing Covid-19 responses to support SMEs. This includes designing specific digital solutions and financial instruments that better meets women’s needs. The financial exclusion of women is a global problem, with approximately 1 billion women that do not have formal financial services, due to persistent barriers in access to identification documents, mobile phones, digital skills, financial capability, as well as inappropriate products and more. 



The situation is reflective in Sub-Saharan Africa where according to the World Bank, only 37 percent of women have a bank account, compared with 48 percent of men, a gap that has only widened over the past several years. Therefore, it is critical for DFIs, investors and other financial intermediaries to apply a gender-lens in investment analysis and decision-making, not just as a “nice-to-have,” but core to any strategic action. Furthermore, the pandemic has underscored the need for robust digital infrastructure as a platform to support financial inclusion and women’s economic empowerment. Third, there is a need for technical assistance facilities to provide women-led SMEs with advisory services to help them make more informed decisions and adjust their business models, enabling them to survive the pandemic while setting themselves up for post-pandemic growth.



 The covid-19 pandemic is not only a health crisis but also an economic crisis that could cause Sub-Saharan Africa’s GDP growth rate to drop down to -5.1 percent in 2020. Implementing a targeted gender-lens approach to increase support to women-led SMEs will be critical to bridging the financing gap for women estimated at US $42 billion and for Africa’s covid-19 economic recovery efforts.



<hr class="wp-block-separator"/>



Iftin Fatah is a Senior Investment Officer at the U.S. International Development Finance Corporation. The views expressed herein are her own.

Iftin Fatah pic

Opinion: Now is the time for the world to rally behind women in business

WASHINGTON/BEIJING (Reuters) &#8211; Top U.S. and Chinese trade officials are expected to recommit to a Phase 1 trade deal during a review on Saturday, even though China’s promised purchases of U.S. exports are far behind schedule.FILE PHOTO: U.S. and Chinese flags are seen before Defense Secretary James Mattis welcomes Chinese Minister of National Defense Gen. Wei Fenghe to the Pentagon in Arlington, Virginia, U.S., November 9, 2018. REUTERS/Yuri Gripas



Current and former U.S. government officials and trade experts in both countries say the Phase 1 deal, signed in January after nearly two years of tit-for-tat tariffs and angry rhetoric, is the one area where the world’s two largest economies are still cooperating.



The Trump administration has sanctioned companies and individuals linked to a security crackdown in Hong Kong and human rights, banned a Chinese owned video app, penalized Chinese academics and closed Beijing’s consulate in Houston in recent months.



Beijing has responded by closing the U.S. consulate in Chengdu and sanctioning some members of Congress.



Despite the escalating conflict, the Phase 1 trade deal won’t be dismantled, U.S. officials say.



“They have said they intend to implement the plan and we are engaged with them,” White House economic adviser Larry Kudlow said Thursday. “We have big differences with China on other matters, but regarding the Phase 1 trade deal, we are engaging.”



Chinese trade advisors say the slowing of both economies because of coronavirus-related lockdowns has made it difficult to meet purchase targets, but they don’t expect the White House to walk away.



“Being able to sit down and communicate with each other is a good thing,” said a Chinese state think tank economist who has advised Beijing on the trade deal, while cautioning there was little optimism about further trade breakthroughs.



“It’s hard for things to get even worse, while a best case scenario is hard to achieve,” said the economist, who spoke on condition of anonymity. “How can flowers grow in such a bad environment?”



China is falling far short of a promised additional $77 billion in purchases of U.S. farm and manufactured products, energy and services, although it has ramped up purchases of U.S. farm goods including soybeans and corn in recent weeks.



Imports of farm goods have been lower than 2017 levels, far behind the 50% increase needed to meet the 2020 target of $36.5 billion.



Beijing has bought only 5% of the energy products needed to meet the Phase 1 first year goal of $25.3 billion.



How to close or explain away this gap will be the biggest challenge for U.S. Trade Representative (USTR) Robert Lighthizer and Chinese Vice Premier Liu He during Saturday’s video call.



<h3 class="wp-block-heading">BEST OF A BAD SITUATION</h3>



Trade experts said there is little political upside for U.S. President Donald Trump to abandon the deal at this stage, which would admit one of his biggest trade initiatives &#8211; already being hammered by Democratic rival Joe Biden &#8211; had failed.



And even some Trump administration officials have been wary of reigniting a tariff war that would roil markets and likely knock down the S&amp;P 500&nbsp;<a href="https://www.reuters.com/finance/markets/index?symbol=.SPX">.SPX</a>, which traded close to record highs this week.



“At the moment, the agreement serves the interests of the Trump administration and Chinese leaders,” said former acting USTR Miriam Sapiro, now a managing director at communications firm Sard Verbinnen, adding the requirements set in the deal were “never realistic.”



Trump, who has said the trade deal no longer means as much to him because of China’s handling of the coronavirus pandemic, has expressed support for the deal this week, saying it should continue and purchases should surge in 2021..



Stephen Vaughn, former USTR general counsel and a legal architect of punitive tariffs on Chinese goods, said compliance with the deal also benefits China by keeping its U.S. relationship from deteriorating further. Now that its economy is recovering strongly from the coronavirus pandemic, Beijing has little excuse not to ramp up its purchases, he added.



“I don’t see what China would gain from a failure to comply.&nbsp;My guess is that will not happen,” said Vaughn, a trade partner with the King and Spalding law firm in Washington.



Claire Reade, a former USTR official and senior fellow at the Center for Strategic and International Studies, said the agreement does offer some incremental progress for U.S. firms seeking access to the lucrative Chinese market.



“If the administration lets the Phase 1 deal die, it becomes difficult to justify the pain caused by the lengthy trade war,” she wrote in an essay this week.



Nearly 90% of firms surveyed by the U.S.-China Business Council have a positive view of the trade deal, but only 7% say its benefits outweigh the costs of tariffs incurred along the way.

Trump’s Renewed Fight With China Explained

A faltering U.S.-China trade deal is now the nations’ strongest link

The full impact of the toxic spill is still unfolding, scientists say. As the Indian Ocean island’s residents scramble to mop up the oil slicks and clumps, they are seeing dead eels and fish floating in the water, as fuel-soaked seabirds limp onto shore.



Satellite images also show the 1,000 tonnes of spilled oil spreading northward along the coastline from the spill site in the turquoise waters of Blue Bay Marine Park.



<h4 class="wp-block-heading">RELATED COVERAGE</h4>



<ul class="wp-block-list"><li><a href="https://www.reuters.com/article/us-mauritius-environment-japan/japanese-shipping-company-says-mauritius-government-has-requested-compensation-idUSKCN25A009">Japanese shipping company says Mauritius government has requested compensation</a></li></ul>



The damage, scientists say, could impact Mauritius and its tourism-dependent economy for decades.



“This oil spill occurred in one of, if not the most, sensitive areas in Mauritius,” oceanographer and environmental engineer Vassen Kauppaymuthoo told Reuters by telephone from the island, where he was surveying the disaster. “We are talking of decades to recover from this damage, and some of it may never recover.”



The wildlife at risk include the seagrasses blanketing sand in the shallow waters, clownfish darting around coral reefs, mangrove trees corralling the coastline with their tangled root systems, and the critically endangered Pink Pigeon, endemic to the island.



Giant tortoises slow-walk through a nature reserve on the nearby islet, Ile-aux-Aigrettes, where there is also a scientific research station. Altogether, Blue Bay Marine park counts 38 types of coral and 78 species of fish.



The spill brings “a massive poisonous shock to the system,” said Adam Moolna, an environmental scientist from Mauritius who lectures at Keele University in Britain. “This oil will have cascading effects across the webs of life.”



<h3 class="wp-block-heading">STILL UNCONTAINED</h3>



The spill came from the Japanese-owned MV Wakashio, which rammed into a reef in the marine park on July 25. It is still unclear why the ship was sailing so closely to the coast. About a week later, oil began gushing from the cracked vessel.A general view shows the bulk carrier ship MV Wakashio, belonging to a Japanese company but Panamanian-flagged, ran aground on a reef, at the Riviere des Creoles, Mauritius August 13, 2020. REUTERS/Reuben Pillay



However, the flow had been stopped, authorities say, after they pumped the remaining oil from the ship.



On Thursday, the ship’s owner Nagashiki Shipping said it would face up to its liability and assess compensation for the disaster.



Already, about 15 km of coastline have been affected by the spill, said Mauritius Marine Conservation Society President Jacqueline Sauzier.



“We don’t have the equipment or the expertise to remove the oil, and time is of the essence to limit the damage,” she told Reuters.



Local residents are wading unprotected into the toxic waters, while using human hair as well as husks from sugar cane factories to quickly soak up as much of the spill as they can.



For both people and wildlife, the spill will have a “resonating and resounding impact for the next 10 to 20 years,” said environmental toxicologist Craig Downs, who assesses oil spills but has not studied the spill in Mauritius.



<h3 class="wp-block-heading">SPIRALING IMPACT</h3>



Coral reefs and fish are likely to suffer first. That’s especially rough for Mauritius, where tourism and fishing are mainstays of the economy.Slideshow&nbsp;(4 Images)



Corals that survive could have weakened resistance to marine heat waves, which are hitting the area due to climate change and have already caused some coral bleaching, experts say.



“If things continue to go the way they are the future prospects for coral reefs look very, very bleak indeed,” said Alex Rogers, a visiting professor at Oxford University and science director of REV Ocean, a not-for-profit company.



Conservationists are also anxious about oil washing into mangrove forests, where roots serve as nurseries for fish.



Oil also could sink into sediments around mangroves, where it could smother molluscs, crabs and fish larvae, said Callum Roberts, a professor of marine conservation at the University of Exeter in Britain.



“It’s very hard to remove once it’s sunk into the sediment,” Roberts said. “Trees can become sick and die.”



Birds nesting in the mangroves, or migrating via nearby mudflats, are also vulnerable. Ingesting oil can make it hard for birds to fight disease or even to fly, said environmental toxicologist Christopher Goodchild at Oklahoma State University.



Research has shown that “just a small amount of oil being transferred to a bird’s egg — as small as a droplet of blood — can actually cause a change in the bird embryo’s physiology,” he said.



Beds of seagrass, which like mangroves store vast quantities of climate-warming carbon dioxide, play a vital role in protecting coasts from waves.



On land, some scientists warn that washed up oil deposits could harden and lead to lasting change.



“In the long term, we could see an asphalt-like coast as the oil dissipates and degrades, as the oil puddles,” said Ralph Portier, an environmental scientist at Louisiana State University who studied the aftermath of the 2010 Deepwater Horizon spill in the Gulf of Mexico.



“It’s a real tragedy,” Portier said.

‘Massive poisonous shock’: Scientists fear lasting impact from Mauritius oil spill

JOHANNESBURG (Reuters) &#8211; In an Italian bistro in an upmarket Johannesburg neighbourhood, smiling patrons chat at candle-lit tables in a scene reminiscent of less-troubled times before the COVID-19 pandemic.



But there’s no alcohol on the menu. Instead, diners order red or white “coffee” served in grey mugs, the tell-tale sign of a modern-day South African speakeasy.



Under one of the world’s strictest lockdowns, South Africa banned alcohol to lower hospital admissions for injuries from drink-related violence and accidents and ease the burden on healthworkers facing the worst coronavirus outbreak in Africa.



But businesses from wine makers to restaurants to informal taverns say the ban is costing jobs at a time when the economy is on its knees and President Cyril Ramaphosa is coming under pressure to end the prohibition as infection rates fall.



“Am I happy with what I’m doing? No,” said the bistro owner, who asked not to be named, adding that alcohol sales had saved him from firing half a dozen staff. “They’ve turned everybody into criminals.”



Restaurant workers, among the hardest hit by layoffs, protested last month calling for the right to sell alcohol while lobby group Agri SA said the ban had cost the wine industry 3.3 billion rand ($189 million) and 117,000 jobs.



Local media reported this week that the government body charged with managing the health crisis has recommended loosening lockdown restrictions and that has fueled speculation the ban might be lifted, possibly as soon as this weekend.



The presidency did not immediately respond to requests for comment.



‘NON-ALCOHOLIC?’



Introduced in March, restrictions on alcohol sales have spawned a thriving underground industry, complete with bootleggers and online traders offering doorstep delivery.



More recently, as authorities allowed sit-down dining to resume, some restaurants have joined the illicit trade.



Just doors down from the Italian bistro, Reuters found at least two more restaurants flouting the ban, seating drinkers in back rooms or serving wine in bottles labelled “non-alcoholic”.



According to statistics through July, South African police had arrested over 6,000 people on charges related to the ban.



But with alcohol now so readily available to thirsty South Africans, some question whether the measure is still enforceable &#8211; and bootleggers who once thrived under the ban are taking a hit to their business.



“A lot of people have their own contacts now,” one 27-year-old bootlegger told Reuters.



As the underground trade flourishes, however, legitimate businesses complain they are paying the price.



Since the ban came in, Dutch beer maker Heineken has dropped plans to build a new 6 billion rand ($345 million) brewery while Anheuser-Busch InBev’s South African Breweries has postponed a 5 billion rand investment.



In recession even before the pandemic, South Africa’s economy is now set to contract by more than 7% this year with a unemployment rate above 30%.



The growing economic fallout, coupled with indications the outbreak may be receding, have piled pressure on President Ramaphosa to end the prohibition.Slideshow&nbsp;(2 Images)



“Illicit alcohol trading is shooting through the roof and government is losing billions in tax and excise income,” Mihlali Xhala, head of the corporate chamber of Agri SA, said in a statement this week. “If our main priority is economic recovery, this is definitely not helping.”



<h3 class="wp-block-heading">‘TRAUMA CARNAGE AS USUAL’</h3>



South Africa has recorded more than 560,000 coronavirus cases and more than 10,700 deaths, by far the highest recorded total on the African continent. Daily new cases have now fallen to their lowest level since mid-June.



But despite progress in curbing the spread of the disease, some experts warn that repealing the alcohol ban risks eroding the benefits that have allowed the health system to cope.



“Going back to business as usual will go back to trauma carnage as usual,” said Professor Leslie London, head of public heath medicine at the University of Cape Town.



Before the lockdown, alcohol-related cases accounted for roughly 40% of hospital trauma admissions, according to the South African Medical Research Council.



In the two months after the ban was introduced, the health department in Western Cape province &#8211; an early epicentre of the virus &#8211; recorded a 40% to 50% drop in trauma cases.



“It substantially removed an unnecessary burden on the health services, which enabled hospitals to ready themselves for COVID-19. There is no dispute possible about that,” said the University of Cape Town’s London.



Four months into the lockdown, however, some South Africans now say they too need relief.



“You’re locked up in one space,” said one drinker, who asked not be named, served wine from a bottle labelled “non-alcoholic” at a tapas bar down the road from the Italian bistro.



“The main reason for buying alcohol is just to kind of regain some of those moments of just letting loose.”

How Coronavirus Decimated The Restaurant Industry Overnight

South African speakeasies boost calls for end to COVID booze ban

As President Cyril Ramaphosa ponders whether to allow South Africans to smoke and drink again,the Commissioner for the South African Revenue Service revealed that the lockdown booze ban had already cost government coffers R15 billion, at a time when it can ill afford it. He also lamented the back street sales that have grown during the pandemic claiming it will take years to stamp them out. 



This was the word from SARS Commissioner Edward Kieswetter as he told CNBC Africa that the country had fallen short of its R321 billion tax target, set for the end of July, collecting a mere R316.8 billion- a shortfall of more than R4 billion.



&#8220;The real concern is that, year on year, we are already 21% down, which is R86 billion down.If you look at where that comes from, employment taxes are down by R14.5 billion, which is some 9%. That is a concern because many of these jobs may not return. CIT (corporate income tax) is down R16 billion, or 28%, and again there is a concern that some of the businesses that are trading may not also come back,&#8221;says Kieswetter. 



 



<figure class="wp-block-embed-wordpress wp-block-embed is-type-wp-embed is-provider-cnbc-africa"><div class="wp-block-embed__wrapper">
https://www.cnbcafrica.com/videos/2020/08/13/heres-how-much-tax-sa-lost-due-to-covid-19-induced-alcohol-tobacco-ban/
</div></figure>



VAT was down 11 %, by R14.5 billion; customs duty down by 16.7 billion, 26%, he said. Tax from alcohol was down by R 7 billion, 75% down year-on-year; cigarettes by R3 billion. 



&#8220;Ïf you then add the downstream taxes from those companies you will also add the loss in corporate income tax and employment taxes that gets you to a shortfall of R15 billion,&#8221; says Kieswetter. 



Kieswetter admitted that it was difficult for the government to balance the impact of the sale of alcohol on the health of the nation, with the impact on the economy. He lamented the black market that had grown during the ban. 



&#8221; It is going to take us years to root out the corruption and illegal activity that has taken root in this pandemic, &#8220;says Kieswetter.



The only bright spot on the horizon, says Kieswetter, was that the downtime gave SARS time to rebuild after years of taxes failing get back to the taxpayer. 



&#8220;&#8221;We are hopeful, if we worked hard on overall project in rebuilding SARS, that even though not all of the gap would be plugged, but we can handle the decline. We have to try our best We can&#8217;t let a good crisis go to waste and we must do what we can to rebuild SARS,&#8221;Kieswetter told Power Lunch on CNBC Africa.

How no beer and cigarettes has cost South Africa R15 billion.

JOHANNESBURG (Reuters) &#8211; South Africa’s rand weakened slightly early on Thursday, pausing an advance in the previous session that saw the currency trade at its firmest in three days, with investors cautiously watching developments in the global economy.



At 0600 GMT the rand was 0.07% weaker at 17.4800 per dollar, having rallied to 17.3500 on Wednesday as souring diplomatic relations between the United States and China felled the greenback.



Recent tensions between Washington and Beijing over U.S. allegations of spying against the Asian superpower have overshadowed local issues, driving demand into riskier assets as investors searched for short-term returns.



With lending rates still relatively high in South Africa, despite deep cuts by the central bank, the rand and local bonds have seen inflows from investors ditching safe-havens but analysts have said these may offer only short-term relief.



“The rand posted meaningful short-term gains yesterday as apparent stop-losses were triggered below 17.5000, and this provided the catalyst for some exporter activity that saw the local unit reach the mid-17.30s,” analysts at Nedbank wrote.



“However, it has not been able to sustain these gains; it currently holds at sub-17.5000. Local markets are likely to be cautious, as Eskom has announced the resumption of stage 2 load-shedding.”



State power firm Eskom said breakdowns of some its generating units had forced it to resume countrywide blackouts, or loadshedding, with “stage 2” seeing it slash up to 2,000MW from the national grid.

money-coins-currency-business-royalty-free-thumbnail

South Africa’s rand backtracks as relief rally pauses

JOHANNESBURG (Reuters) &#8211; Formally adding unemployment or economic growth to the South African central bank’s mandate would risk policy mistakes and hurting its credibility, Governor Lesetja Kganyago said on Wednesday.



The Reserve Bank (SARB) has long been under pressure to take more drastic measures to revive growth in Africa’s most advanced economy, with calls for the bank to slash lending rates and finance government through quantitative easing (QE).



The bank has cut rates by 300 basis points in 2020 to a record-low 3.50%.



ADVERTISEMENT



<figure><iframe width="755" height="129"></iframe></figure>



And in March it launched a bond-buying program, purchasing government debt in the secondary market to ease a liquidity collapse in the capital markets prompted by the COVID-19 pandemic.



But with the economy, already in recession before the coronavirus and set to contract by more than 7% this year, and the government budget nearing double-digits deficit, labour and some politicians have called for more drastic action, including a widening of the bank’s mandate.



“The problem is that formally adding an extra mandate, in the context of our propensity to stagflation, could encourage policy mistakes and weaken credibility,” Kganyago said in a speech broadcast virtually by the University of Pretoria.



“While we would all like South Africa to reach permanently high growth, this is beyond the powers of a central bank,” Kganyago said, adding the bank would stick to inflation-targeting policy.



“We are in very difficult circumstances, but QE isn’t the answer. We need to focus on real solutions.”

South African Reserve Bank Governor Lesetja Kganyago Interview

S.Africa’s economic woes bigger than monetary policy -cenbank governor

JOHANNESBURG (Reuters) &#8211; South African business confidence recovered from a 35-year low in July, boosted by improving global economic activity, but the measure remained well-below average, over worries about the slow re-openinng of the economy and soaring local infections.



On Wednesday the South African Chamber of Commerce and Industry’s (SACCI) monthly business confidence index (BCI) rose to 82.8 in July from 81.4 in June.



The sentiment gauge had crashed to 70.1 in May, its lowest since the inception of the survey in 1985, and below last year’s average of 92.6.

South African business confidence recovers from 35-year low

NEW YORK/WASHINGTON (Reuters) &#8211; President Donald Trump’s executive order banning China’s TikTok could prevent U.S. app stores from offering the popular short-video app and make advertising on the platform illegal, according to a White House document seen by Reuters.



Trump signed an order last week prohibiting transactions with TikTok if its parent ByteDance does not reach a deal to divest it in 45 days. It did not specify the scope of the ban, stating only that the U.S. Department of Commerce would define which transactions would be barred at the end of the 45-day period.



The White House document, sent out to supporters last week, provides insight into the Trump administration’s thinking. It shows the U.S. government is considering disrupting key aspects of TikTok’s operations and funding, amid concerns over the safety of personal data that the app handles.



“Prohibited transactions may include, for example, agreements to make the TikTok app available on app stores &#8230; purchasing advertising on TikTok, and accepting terms of service to download the TikTok app onto a user device,” the document states.



A source familiar with the White House document verified its authenticity. TikTok did not immediately respond to a request for comment.



Some technology industry experts said eliminating TikTok’s ability to be offered on Apple Inc (<a href="https://www.reuters.com/companies/AAPL.O">AAPL.O</a>) and Google owner Alphabet Inc’s (<a href="https://www.reuters.com/companies/GOOGL.O">GOOGL.O</a>) app stores, which in turn allow it to be downloaded on iPhone and Android smartphones, could cripple the app’s growth.“That kills TikTok in the U.S,” said James Lewis, a cyber security expert with the Washington-based Center for Strategic and International Studies. “If they want to grow, these rules are a huge obstacle.”



He added, though, that the U.S. government may not be able to prevent Americans from downloading TikTok from foreign websites.



Apple and Alphabet did not immediately respond to requests for comment.



Following Trump’s executive order last week, TikTok told advertisers it would continue to honor planned ad campaigns, refund any that it cannot fulfill, and work with major influencers to migrate to other platforms in the event of a ban. Some advertisers told Reuters they were drafting contingency plans and considering other apps for their marketing.



It is not clear whether Trump’s order will be implemented. Microsoft Corp (<a href="https://www.reuters.com/companies/MSFT.O">MSFT.O</a>) has been leading negotiations to acquire the North America, Australia and New Zealand operations of TikTok under the supervision of the Trump administration. A successful deal would make banning transactions with TikTok moot.



The White House document seen by Reuters is not clear on whether the United States would implement a similar crackdown on WeChat, the social media app owned by China’s Tencent Holdings Ltd (<a href="https://www.reuters.com/companies/0700.HK">0700.HK</a>) that Trump also sought to ban in an executive order on last week.



TikTok, which has said is exploring legal challenges to Trump’s order, has 100 million active users in the United States, and is especially popular with teenagers. It has said U.S. user data is safely stored in the United States and Singapore, and that it would not hand over such information to the Chinese government.

Economy

Congo central bank raises 2020 GDP forecast to -1.7%

South African rand marginally stronger in early trade

South African rand stronger after Ramaphosa announces lockdown easing

Congo’s central bank makes huge rate hike to 18.5%

“To say we are delighted by this news would be an understatement” alcohol and hotel industry cheers the easing of lockdown

Japanese ship involved in Mauritius oil spill breaks apart

Zimbabwe’s July y/y inflation at 837.5%

Tunisian economy shrank 21.6% in second quarter of 2020

Opinion: Now is the time for the world to rally behind women in business

A faltering U.S.-China trade deal is now the nations’ strongest link

‘Massive poisonous shock’: Scientists fear lasting impact from Mauritius oil spill

South African speakeasies boost calls for end to COVID booze ban

How no beer and cigarettes has cost South Africa R15 billion.

South Africa’s rand backtracks as relief rally pauses

S.Africa’s economic woes bigger than monetary policy -cenbank governor

South African business confidence recovers from 35-year low

Exclusive: U.S. ban on TikTok could cut it off from app stores, advertisers – White House document

News Tips

Advertise With Us

Economy

Congo central bank raises 2020 GDP forecast to -1.7%

South African rand marginally stronger in early trade

South African rand stronger after Ramaphosa announces lockdown easing

Congo’s central bank makes huge rate hike to 18.5%

“To say we are delighted by this news would be an understatement” alcohol and hotel industry cheers the easing of lockdown

Japanese ship involved in Mauritius oil spill breaks apart

Zimbabwe’s July y/y inflation at 837.5%

Tunisian economy shrank 21.6% in second quarter of 2020

Opinion: Now is the time for the world to rally behind women in business

A faltering U.S.-China trade deal is now the nations’ strongest link

‘Massive poisonous shock’: Scientists fear lasting impact from Mauritius oil spill

South African speakeasies boost calls for end to COVID booze ban

How no beer and cigarettes has cost South Africa R15 billion.

South Africa’s rand backtracks as relief rally pauses

S.Africa’s economic woes bigger than monetary policy -cenbank governor

South African business confidence recovers from 35-year low

Exclusive: U.S. ban on TikTok could cut it off from app stores, advertisers – White House document

News Tips

Advertise With Us

Newsletters