<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-820x429.jpg" alt="" class="wp-image-527123" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A small toy figure and gold imitation are seen in front of the Harmony logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



Feb 5 (Reuters) &#8211; Five people were killed in incidents at two of Harmony Gold&#8217;s South African mines, the company reported on Wednesday.



Three employees died on Tuesday after a collapse at Joel Mine in the Free State province, about 290 km (180 miles) southwest of Johannesburg, Harmony said in a statement.



Two other employees died in another incident on Tuesday morning at Doornkop Mine, 30 km (19 miles) west of Johannesburg, the company said.



Harmony, South Africa&#8217;s top gold producer, said the causes of the two incidents were being investigated.



South Africa&#8217;s mining industry reported 42 deaths last year, the lowest number to date and a 24% improvement on the previous year, according to official statistics released last month.



In January, the bodies of 78 miners were pulled from an illegal gold mine after a heavily-criticised police operation lasting several months that tried to force them to the surface.



(Reporting by Nelson Banya; Editing by Ros Russell)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_DORM6MMFZVJAVPOWT5FC26PKGU

South Africa’s Harmony Gold reports five deaths at two mines

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="471" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/SA-INFLATION.avif" alt="" class="wp-image-524647"/><figcaption class="wp-element-caption">Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024. REUTERS/Lelethu Madikane </figcaption></figure>



JOHANNESBURG, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity contracted sharply in January as output fell due to lower sales, a survey showed on Wednesday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) fell to 47.4 in January from 49.9 in December, its lowest since July 2021. A reading above 50 shows growth.



&#8220;New orders dropped solidly, leading to a marked cutback in output, with weakness especially observed among service sector businesses,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



The findings suggest companies struggled to win back customers at the start of the year, which could affect growth in the first quarter, Owen said.



Despite the downturn, the survey showed domestic supply chains improved, with some respondents suggesting that the drop-off in demand provided vendors with additional capacity and eased bottlenecks.



(Reporting by Bhargav Acharya; Editing by Christina Fincher)

SA INFLATION

South Africa business activity contracts again in January, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand firmed against a weaker dollar early on Wednesday, as investors awaited President Cyril Ramaphosa&#8217;s national address on Thursday and closely watched developments between the U.S. and China.



At 0752 GMT, the rand traded at 18.6125 against the U.S. dollar, about 0.3% stronger than its previous close.



The dollar&nbsp;=USD&nbsp;last traded about 0.3% weaker against a basket of currencies after China retaliated to tariffs imposed by U.S. President Trump.



Ramaphosa will on Thursday deliver the annual State of the Nation Address (SONA), the first under his coalition government. Investors will pay particular attention to comments on reforms and fiscal discipline.



&#8220;Rand sentiment hinges on SONA and U.S.-China trade war developments. Stronger messaging on reforms and fiscal discipline could support South African assets,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



&#8220;Investors remain cautious, with global trade tensions keeping risk appetite subdued,&#8221; Cilliers added.



On the stock market, the Top-40 index last traded up about 0.4%.



South Africa&#8217;s benchmark 2030 government bond was firmer in early deals, with the yield down 4.5 basis points to 9.04%.



(Reporting by Tannur Anders and Sfundo Parakozov; Editing by Christina Fincher)

Illustration photo of South African rand

South African rand firms ahead of president’s address

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-820x615.jpg" alt="" class="wp-image-375629" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-1110x833.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-696x522.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-1068x801.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-1920x1440.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Sasol_Garage_in_Boksburg-600x450.jpg 600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via Flickr</figcaption></figure>



Feb 5 (Reuters) &#8211; South African petrochemical firm Sasol forecast a fall of up to 36% in half-yearly earnings on Wednesday, mainly due to a decline in oil prices and lower sales volumes.



Sasol said in a trading update that it expects its headline earnings per share (HEPS), a profit measure widely used in South Africa, to come in between 13 rand and 15 rand ($0.6955-$0.8025), down from 20.37 rand in the same period last year.



The company, which produces chemicals and liquid fuels from coal and gas, said the decline was primarily because of a 13% fall in the average rand Brent crude oil price per barrel, as well as a significant drop in refining margins and fuel price differentials.



A 5% decrease in sales volumes due to lower production and market demand also hurt income, Sasol said.



The company will release its half-yearly results on Feb. 24.



($1 = 18.6923 rand)



(Reporting by Nelson Banya; Editing by Subhranshu Sahu)

Sasol_Garage_in_Boksburg

Sasol sees up to 36% drop in half-yearly profit on lower oil prices

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-573311" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;The following equity and currency market moves may affect South African markets on Wednesday.



<h2 class="wp-block-heading" id="h-south-african-markets">SOUTH AFRICAN MARKETS</h2>



South Africa&#8217;s rand edged higher on Tuesday as markets digested U.S. President Donald Trump&#8217;s changing tariff stance.



On the stock market, the Top-40 index closed about 1.1% higher.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Asian stock markets struggled to make headway as Wall Street futures took a knock from earnings disappointment, and the dollar backtracked on the yen following a fall in Treasury yields.



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



The three major stock indexes closed higher on Tuesday, aided by energy stocks, while investors saw reason for optimism for a trade breakthrough between the U.S. and China after President Donald Trump delayed tariffs for Canada and Mexico.



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Gold prices hit a record high, bolstered by fears of a new trade war between the United States and China after Beijing slapped tariffs on U.S. imports in response to new U.S. duties on Chinese goods.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; World Bank a little more upbeat on SA growth but warns of persistent risks



&#8211; Ramaphosa meets Elon Musk over Trump tirade



(Compiled by Sfundo Parakozov; Editing by Rashmi Aich)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Feb. 5

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/QMAGGFXUKRJORFR6IGW2BMBO3E.avif" alt="" class="wp-image-582706"/><figcaption class="wp-element-caption">Errol Musk, father of Tesla CEO and X owner Elon Musk, gestures as he speaks during an interview with Reuters, in Langebaan, Western Cape, South Africa February 4, 2025. REUTERS/Esa Alexander </figcaption></figure>



LANGEBAAN, South Africa, (Reuters) &#8211; South Africa&#8217;s president needed to call Elon Musk on Monday evening.



The billionaire had publicly accused his post-apartheid government of anti-white racism, and now Musk&#8217;s ally, U.S. President Donald Trump, said he would cut more than $400 million in funding to the country.



So Bejani Chauke, an adviser to Cyril Ramaphosa, the South African president, called Musk&#8217;s father, Errol, a 78-year-old engineer who lives in a luxury double-storey coastal villa&nbsp;a two-hour&nbsp;drive from Cape Town, Musk senior said.



&#8220;I was asked if I can arrange a quick talk between Ramaphosa and Elon last night &#8230; so I did and then they spoke a few minutes later,&#8221; Errol Musk told Reuters at his home in Langebaan, a&nbsp;mostly white&nbsp;enclave looking onto a lagoon fed by the Atlantic Ocean where he keeps a Bentley and a&nbsp;Rolls-Royce.



He briefly showed an exchange of WhatsApp messages between himself and Chauke that&nbsp;backed&nbsp;up his account. Chauke did not respond to questions by Reuters about his role in contacting Musk&#8217;s father. Ramaphosa&#8217;s office confirmed the phone conversation with Elon Musk, who was born in South Africa, in a post on the tycoon&#8217;s X social media platform.



Contacted by Reuters, Ramaphosa&#8217;s spokesperson declined to comment on how the conversation with Elon Musk came about or on its content, only saying: &#8220;Errol Musk is a private citizen, his views are his personal views.&#8221;



Elon Musk did not reply to multiple requests for comment from Reuters.



The trigger for the sudden flurry of backdoor diplomacy was a post on Sunday by Trump who said &#8211; without citing evidence &#8211; that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221;.



He added that he would cut off funding to the country in response, prompting a nearly 2% slide in South Africa&#8217;s rand in early trading on Monday, and a fall in stocks and government bonds. The cost of insuring South African debt against default rose to its highest since early August.



Trump was referring to a bill signed into law by Ramaphosa last month with the aim of addressing racial disparities in land ownership that have persisted in South Africa since apartheid ended 30 years ago &#8212; a target of public criticism by Elon Musk and many white farmers.



The law allows the state to expropriate land &#8220;in the public interest&#8221;, in some cases without compensating the owner. South Africa had previously set a target for the government to transfer 30% of farmland to Black hands that has been repeatedly pushed&nbsp;back. As&nbsp;of 2018, only 8% had been transferred, according to a government survey of title deeds.



White landowners possess three quarters of South Africa&#8217;s freehold farmland, compared with 4% for Black landowners, according to the most recent state audit. Black people make up about 80% of South Africa&#8217;s total population, while about 8% are white.



Ramaphosa responded to Trump&#8217;s comments on Monday, saying the government had not confiscated any land and he looked forward to engaging with Trump to foster a better understanding of a policy designed to ensure equitable public access to land.



Trump&#8217;s attack was echoed by backer Elon Musk, who addressed Ramaphosa in a post on X on Monday accusing South Africa of having &#8220;openly racist ownership laws.&#8221;



Errol Musk, an engineer who said he works in property development and for his son&#8217;s U.S. satellite company Starlink, said Trump would be right to cut funding to South Africa.



He said he did not know if his son had exerted influence over Trump on the issue, but did not think that was necessary as he said Washington was right to scrutinise how U.S. funding was being used abroad.



&#8220;He (Elon) would point out things about South Africa, but the Americans themselves are not stupid &#8230; Everyone wants money from them, that is what it boils down to,&#8221; he said.



&#8220;I would like to know why American taxpayers have to pay nearly $500 million a year for treatment for South African HIV sufferers. Why?&#8221;



Washington committed $440 million in assistance to South Africa in 2023, of which $315 million was for HIV/AIDS. Ramaphosa said U.S. funding accounted for 17% of South Africa&#8217;s programme to prevent and treat HIV/AIDS, which disproportionately affects poor and Black people.



&#8220;I can only imagine that Elon would have said (to Ramaphosa) &#8216;we want to help you but you have to quit this war on white people in South Africa&#8217;,&#8221; said Musk senior.



&#8220;I&#8217;d imagine he&#8217;d be saying &#8216;do you want Zimbabwe here?&#8217;,&#8221; he said.



Violent seizures of white-owned farms instigated by late Zimbabwean president Robert Mugabe in the 2000s prompted an exodus of thousands of white farmers. Their departure was widely seen as having been a disaster for the country&#8217;s agriculture and wider economy. Reuters could not establish if Zimbabwe arose in Elon Musk&#8217;s conversation with Ramaphosa.



South Africa&#8217;s land reform policies since the end of apartheid in 1994 have never involved the forced seizure of white-owned land.



(Reporting by Wendell Roelf and Sisipho Skweyiya; Additional reporting by Alexander Winning, Bhargav Acharya, Tannur Anders, Sfundo Parakozov and Olivia Kumwenda-Mtambo in Johannesburg; Editing by Estelle Shirbon, Silvia Aloisi and Lisa Shumaker)

QMAGGFXUKRJORFR6IGW2BMBO3E

Musk’s dad says he arranged son’s call with South African leader

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GAJOROW4UVLYLPNNLHMSHRLWIU-1-820x547.jpg" alt="" class="wp-image-556534" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GAJOROW4UVLYLPNNLHMSHRLWIU-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GAJOROW4UVLYLPNNLHMSHRLWIU-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GAJOROW4UVLYLPNNLHMSHRLWIU-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GAJOROW4UVLYLPNNLHMSHRLWIU-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GAJOROW4UVLYLPNNLHMSHRLWIU-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GAJOROW4UVLYLPNNLHMSHRLWIU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa&#8217;s President Cyril Ramaphosa gives a statement on the coronavirus disease (COVID-19) vaccination, during a European Union &#8211; African Union summit, in Brussels, Belgium February 18, 2022. REUTERS/Johanna Geron/Pool/File Photo</figcaption></figure>



JOHANNESBURG, Feb 4 (Reuters) &#8211; South African President Cyril Ramaphosa spoke to Elon Musk on the subject of misinformation about South Africa, the presidency said on Tuesday, after U.S. President Donald Trump said he would suspend aid to the country over its land reform policy.



Trump on Sunday accused South Africa of confiscating land and badly treating &#8220;certain classes of people&#8221;. Ramaphosa responded on Monday that the government had not confiscated any land and the policy was aimed at ensuring equitable public access to land.



South African-born billionaire Musk, who is close to Trump, had waded into the dispute on Monday with a post on X accusing South Africa of having &#8220;openly racist ownership laws&#8221;, suggesting white people were the victims.



The presidency said on X that Ramaphosa and Musk had spoken on Monday &#8220;on issues of misinformation and distortions&#8221; about South Africa.



&#8220;In the process, the President reiterated South Africa&#8217;s constitutionally embedded values of the respect for the rule of law, justice, fairness and equality,&#8221; it said, giving no further details.



(Reporting by Bhargav Acharya; Writing by Estelle Shirbon; Editing by Alexander Winning)

FILE PHOTO: South Africa’s President Cyril Ramaphosa

South African leader spoke to Elon Musk about misinformation after Trump attack

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3694" height="2271" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/J5PMZMRCRFI65GQ2B62NYABQDM.avif" alt="" class="wp-image-574712"/><figcaption class="wp-element-caption">The Standard Chartered bank logo is seen at their headquarters in London, Britain, July 26, 2022. REUTERS/Peter Nicholls/File Photo</figcaption></figure>



LONDON, Feb 4 (Reuters) &#8211; Standard Chartered has appointed former South African bank CEO Maria Ramos as chair to succeed Jose Vinals, who is approaching the end of his nine-year term, the lender said on Tuesday.



Ramos, 65, joined StanChart&#8217;s board as an independent non-executive director in January 2021 and was the head of South African bank ABSA Group Ltd from 2009 to 2019, overseeing its exit from the ownership of Britain&#8217;s Barclays.



She will take on her new role as StanChart prepares to deal with rising trade tensions worldwide, particularly between the United States under President Donald Trump and Asian markets such as China where the bank&#8217;s strategy is focused.



The most important task in Ramos&#8217;s in-tray will be to oversee succession planning for CEO Bill Winters, who is nearing 10 years at the helm, by far the longest tenure among major British bank chiefs.



StanChart in October announced it would pare back retail banking to fund investment in its wealth business as, like rivals, it seeks more steady fee-based income to compensate for falling lending revenue as global interest rates dip.



Vinals oversaw a turbulent period for StanChart that included the COVID pandemic, and a subsequent period of sluggish share price performance when rumours the bank would be taken over resurfaced.



First Abu Dhabi Bank, the United Arab Emirates&#8217; biggest lender, said in January 2023 it had considered a bid for StanChart before abandoning the idea.



StanChart&#8217;s share price has since rallied sharply, rising nearly 80% in the past 12 months as the bank improved income across its business lines and returned more cash to shareholders.



Ramos will relocate to Britain to take up her new role, the bank said, and receive a salary of 1.3 million pounds ($1.6 million) per year.



Her appointment also improves gender diversity among the still heavily male-dominated top echelons of major European banks.



Vinals will step down at StanChart&#8217;s annual shareholder meeting on May 8, the bank said.



($1 = 0.8043 pounds)



(Reporting by Lawrence White in London and Yadarisa Shabong in Bengaluru. Editing by Susan Fenton and Mark Potter)

J5PMZMRCRFI65GQ2B62NYABQDM

StanChart picks former South African bank boss Ramos as new chair

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg" alt="" class="wp-image-505639" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Feb 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand weakened early on Tuesday against a buoyant U.S. dollar as markets digested U.S. President Donald Trump&#8217;s changing tariff stance.



At 0555 GMT, the rand traded at 18.79 against the dollar, about 0.4% lower than Monday&#8217;s close. The dollar last traded about 0.3% firmer against a basket of currencies.



Trump on Monday suspended his threat of steep tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.



The U.S. imposed tariffs on Chinese imports on Tuesday and China quickly responded.



&#8220;What we are seeing is that Trump is looking for concessions, while he negotiates,&#8221; said Adam Phillips, treasury specialist at Umkhulu Treasury.



&#8220;What is clear is that a risk premium is being added into the foreign exchange market and this is going to be around for a while.&#8221;



The rand traded turbulently on Monday, slumping almost 2% in early trade on news that Trump would suspend funding to South Africa, but staged a recovery later to close roughly flat.



South Africa&#8217;s benchmark 2030 government bond was stronger in early deals on Tuesday, with the yield down 5.5 basis points to 9.09%.



(Reporting by Tannur Anders; Editing by Sumana Nandy)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand weaker on Trump’s changing tariff stance

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3467" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/33NPQPB6S5KGJPHSP3RWXXTEIM.avif" alt="" class="wp-image-582009"/><figcaption class="wp-element-caption">U.S. President Donald Trump speaks to reporters after stepping from Air Force One upon his return to Washington, at Joint Base Andrews in Maryland, U.S., February 2, 2025. REUTERS/Kevin Lamarque </figcaption></figure>



JOHANNESBURG, Feb 3 (Reuters) &#8211; President Cyril Ramaphosa defended South Africa&#8217;s land policy on Monday after Donald Trump&#8217;s threat to cut off funding because of what he said were land confiscations.



Trump said the previous day, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221;. He would cut funding until the matter was investigated, he said.



<h2 class="wp-block-heading" id="h-what-is-trump-talking-about">WHAT IS TRUMP TALKING ABOUT?</h2>



The U.S. president did not specify who was being &#8220;treated badly&#8221;, but the land reference suggests he&#8217;s referring to white landowners who still possess three quarters of South Africa&#8217;s freehold farmland.



This contrasts with 4% owned by Blacks, according to the latest 2017 land audit, who make up 80% of the population, compared with about 8% for whites.



Partly in an effort to redress this imbalance, Ramaphosa signed a law last month allowing the state to expropriate land &#8220;in the public interest&#8221;, in some cases without compensating the owner, despite objections from the main partner in his coalition government, the mostly white-led Democratic Alliance.



No land has yet been expropriated under the act.



<h2 class="wp-block-heading" id="h-how-did-we-get-here">HOW DID WE GET HERE?</h2>



South Africa has a history of colonial conquest and dispossession which pushed the Black majority into crowded urban townships and rural reserves.



The country&#8217;s British imperial masters gave most farmland to whites. In 1950, the Afrikaner National Party, representing descendants of Dutch settlers, passed a law taking 85% of territory for themselves and kicking 3.5 million Black people off their ancestral homelands.



In the 30 years that the African National Congress (ANC) has been in power, some land restitution has happened under a &#8220;willing buyer, willing seller&#8221; model, but critics have denounced it as painfully slow and accuse white landowners of hoarding.



<h2 class="wp-block-heading" id="h-what-is-the-expropriation-act-and-why-is-it-controversial">WHAT IS THE EXPROPRIATION ACT AND WHY IS IT CONTROVERSIAL?</h2>



The law has been the subject of lengthy and often acrimonious debate for years. It repeals a past expropriation act that South Africa&#8217;s apartheid rulers had used to seize land off the Black majority.



The ANC&#8217;s most powerful rival in its increasingly fractious coalition, the DA, argues that land expropriation is unconstitutional, violates basic property rights and will deter badly-needed foreign investment.



However, the party put out a statement on Monday expressing concern over Trump&#8217;s threat and correcting a misconception that the act allows land to be seized arbitrarily.



After years of exhaustive parliamentary debate, the law is carefully worded. It forbids seizing land unless it can be demonstrated it is in the public interest. It also requires authorities to first try to reach an agreement with the owner.



<h2 class="wp-block-heading" id="h-what-can-trump-do-to-south-africa">WHAT CAN TRUMP DO TO SOUTH AFRICA?</h2>



The United States committed nearly $440 million in assistance to South Africa in 2023, according to the most recent U.S. government data.



Ramaphosa said U.S. funding accounted for 17% of South Africa&#8217;s HIV/AIDS programme but it was reliant on &#8220;no other significant funding&#8221; from the United States.



U.S. data backs that up, with $315 million going to HIV/Aids, and much smaller sums going to other health issues, farming, education, trade policy and energy.



A much bigger worry than aid is trade: a quarter of South Africa&#8217;s $15 billion exports to the U.S. get preferential tariffs under the African Growth and Opportunities Act (AGOA), according to a 2023 AGOA factsheet, while South Africa estimates AGOA makes up 2% of its total exports.



<h2 class="wp-block-heading" id="h-white-genocide">&#8216;WHITE GENOCIDE&#8217;?</h2>



During his first administration, Trump said the U.S. would investigate large-scale killings of white farmers in South Africa and violent takeovers of land.



There is no evidence of such killings or takeovers of land, of the sort that did happen in Zimbabwe in 2000.



In 2023, Trump&#8217;s ally, South African-born Elon Musk accused the government of seeking a &#8220;genocide of white people.&#8221;



That notion, which circulates in far-right chat rooms, attempts to link land reform to murders of white farmers during robberies, saying the killings are acts of state-sponsored ethnic cleansing aiming to scare them off their land.



Of the roughly 20,000 murders committed in South Africa every year, around 50 of them are of white farmers.



Most of the victims are Black.



(Reporting by Tim Cocks; Editing by Ros Russell)

33NPQPB6S5KGJPHSP3RWXXTEIM

What is behind Trump’s aid threat to South Africa over land?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-820x547.jpg" alt="" class="wp-image-581989" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Former U.S. President Donald Trump speaks to an audience at the &#8220;American Freedom Tour&#8221; event in Memphis, Tennessee, U.S., June 18, 2022. REUTERS/Karen Pulfer Focht/File Photo</figcaption></figure>



JOHANNESBURG, Feb 3 (Reuters) &#8211; South African President Cyril Ramaphosa defended his land reform policy on Monday against an attack by Donald Trump that laid bare deep divisions within South Africa over racial disparities in ownership, an issue festering since apartheid.



The U.S. president said on Sunday, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221;, adding that he would cut off funding to the country in response.



Ramaphosa said the government had not confiscated any land and he looked forward to engaging with Trump to foster a better understanding over a policy he said ensures equitable public access to land.



Trump&#8217;s attack was echoed by his South African-born billionaire backer Elon Musk, who said in a post on X the country had &#8220;openly racist ownership laws&#8221;, suggesting white people were the victims.



White landowners possess three quarters of South Africa&#8217;s freehold farmland, compared with 4% for Black landowners. Black people make up about 80% of South Africa&#8217;s total population, while about 8% are white.



Ramaphosa signed into law a bill last month aimed at addressing the disparity by making it easier for the state to expropriate land in the public interest.



His African National Congress, the biggest party in the ruling coalition, accused Trump of amplifying misinformation propagated by AfriForum, a right-wing lobby group that promotes what it sees as the interests of white Afrikaans speakers.



The ANC said Trump&#8217;s attack was &#8220;a direct result of the lobby group&#8217;s ongoing efforts to mislead the global community and protect apartheid-era land ownership&#8221;.



AfriForum CEO Kallie Kriel said his group would ask the U.S. government &#8220;to directly punish senior ANC leaders and not the people of South Africa&#8221; over land reform. A spokesperson confirmed the group had lobbied in the United States.



<h2 class="wp-block-heading" id="h-worries-over-trade-deal">WORRIES OVER TRADE DEAL</h2>



The mostly white-led Democratic Alliance, the second-biggest party in the coalition government, said it wanted the land reform law to be amended to address certain flaws, but nevertheless corrected Trump on the specifics.



&#8220;It is not true that the Act allows land to be seized by the state arbitrarily, and it does require fair compensation for legitimate expropriations,&#8221; the DA said.



The mining minister, Gwede Mantashe of the ANC, said African countries should &#8220;withhold minerals&#8221; from the United States in response to any aid cut. Ramaphosa&#8217;s spokesperson Vincent Magwenya told Reuters those words should be &#8220;taken in jest&#8221; and the government was not seriously advocating such a policy.



Washington committed $440 million in assistance to South Africa in 2023, of which $315 million was for HIV/AIDS. Ramaphosa said U.S. funding accounted for 17% of South Africa&#8217;s HIV/AIDS programme but was not significant in other areas.



Bilateral relations were already strained because of South Africa&#8217;s warm relations with China and Russia, and its legal action against Israel, a staunch U.S. ally, which Pretoria accuses of genocide.



South Africa&#8217;s rand, stocks and government bonds fell after Trump&#8217;s comments, and economists said any U.S. measures against it could hurt the economy at a time when the U.S./Africa AGOA trade deal is due for renewal and Ramaphosa has been struggling to boost growth and attract investors.



&#8220;Do you want to set up a factory in a country where today, Trump&#8217;s cutting off all aid? Maybe tomorrow, he&#8217;s ripping up AGOA and maybe on Wednesday, he&#8217;s adding 25% tariffs because they&#8217;re too close to China&#8221; said Charles Robertson, an emerging markets specialist at FIM Partners.



South African exports to the U.S. through AGOA represented 1% of GDP in 2023, of which about half was transportation equipment, according to research by economist David Omojomolo of Capital Economics. He said 56% of exports from South Africa&#8217;s automotive sector were AGOA-eligible.



Trade Minister Parks Tau said the government would engage with the U.S. administration and both parties represented in Congress on the continuation of AGOA, which expires this year.



&#8220;We are optimistic that we will remain part of AGOA,&#8221; he told Reuters on the sidelines of an African mining conference in Cape Town.



(Additional reporting by Tannur Anders and Sfundo Parakozov in Johannesburg, Thando Hlophe in Pretoria, Wendell Roelf and Nqobile Dludla in Cape Town and Libby George in London; Writing by Estelle Shirbon; Editing by Andrew Cawthorne)

FILE PHOTO: “American Freedom Tour” event in Memphis, TN

Trump attack on South Africa exposes divisions over race and land

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/R565IRQJ2ZMVPBNPTB2P6AQWL4.avif" alt="" class="wp-image-581931"/><figcaption class="wp-element-caption">A view shows the Taipei Liaison Office in South Africa which is Taiwan&#8217;s representative office in South Africa&#8217;s administrative capital, Pretoria, South Africa, October 22, 2024. REUTERS/Alet Pretorius/File Photo</figcaption></figure>



TAIPEI, Feb 3 (Reuters)&nbsp;&#8211;&nbsp;The South African government has given Taiwan a deadline of the end of March to relocate the island&#8217;s de facto embassy outside of the capital city Pretoria, the Taiwanese Foreign Ministry said, blaming Chinese pressure for the move.



South Africa severed official diplomatic ties with Taiwan in 1997 and only maintains formal &#8211; and very close &#8211; relations with China, which views the democratically governed island as Chinese territory with no right to the trappings of a state.



In a statement late on Sunday, Taiwan&#8217;s Foreign Ministry said South Africa&#8217;s government had sent a letter in late January demanding the de facto Taiwanese embassy leave Pretoria before the end of March and &#8220;even be renamed as a trade office&#8221;.



The demand &#8220;shows China&#8217;s suppression against us in South Africa is becoming more serious&#8221;, it added, saying, however, that negotiations between Taiwan and South Africa were ongoing.



China&#8217;s foreign ministry said South Africa was a &#8220;good friend and partner&#8221; of China, and the country was doing exactly what it should when it comes to upholding the &#8220;one China principle&#8221; &#8211; which states Taiwan is part of China.



&#8220;Taiwan independence does not enjoy popular support, and will fail,&#8221; the ministry said in a statement to Reuters.



South Africa made a request last year for what is called the Taipei Liaison Office to leave Pretoria.



&#8220;Our department is coordinating with the Taipei liaison office regarding administrative matters related to accurately representing its diplomatic classification in South Africa,&#8221; a spokesperson for the South Africa&#8217;s foreign ministry told Reuters.



China is South Africa&#8217;s largest trading partner globally and one with which it is looking to expand cooperation in areas such as renewable energy.



Taiwan&#8217;s government rejects China&#8217;s sovereignty claims and says it has a right to forge ties with other countries.



Taiwan only has formal diplomatic ties with 12 countries, and in Africa it only has a single ally left, Eswatini, which is almost entirely surrounded by South Africa.



(Reporting by Ben Blanchard; Additional reporting by Ryan Woo in Beijing and Tannur Anders in Johannesburg; Editing by Sandra Maler and Toby Chopra)

R565IRQJ2ZMVPBNPTB2P6AQWL4

Taiwan says S.Africa gives March deadline to move office from Pretoria

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg" alt="" class="wp-image-568119" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Feb 3 (Reuters) &#8211; South Africa&#8217;s rand, stocks and government bonds slumped on Monday after U.S. President Donald Trump said he would suspend aid to the country.



Trump said, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221; on Sunday, adding that he would cut off funding until the matter was investigated.



South African President Cyril Ramaphosa, who recently signed into law legislation allowing land to be expropriated under specific conditions, said his government had not confiscated any and he would talk to Trump to foster a better understanding.



At 1330 GMT, the rand traded at 18.8450 against the U.S. dollar, 0.7% weaker than its closing level on Friday. Earlier in the day it was down almost 2%.



On the Johannesburg Stock Exchange, the Top-40 index was 0.5% lower, while the benchmark 2030 government bond price slid and the cost of insuring South African debt against default rose to its highest since early August.



U.S. funding to South Africa mainly involves supporting its HIV/AIDS programme, but Trump&#8217;s comments caused investor unease about the potential for a broad review of diplomatic and economic ties.



Casey Sprake, an investment analyst at Anchor Capital, said the autos and agriculture sectors were especially vulnerable as South Africa currently enjoys duty-free access to the U.S. market under a Clinton-era trade initiative.



Annabel Bishop, an Investec economist, said the rand was also under pressure due to Trump&#8217;s tariffs on Canada, Mexico and China, which sent global currencies to multi-year lows.



South African manufacturers, meanwhile, posted a deterioration in business conditions for a third month in a row.



(Additional reporting by Sfundo Parakozov in Johannesburg and Libby George in London; Editing by Alexander Winning, Bernadette Baum, Barbara Lewis and Alexander Smith)

rand2 (1)

South African markets slump after Trump suspends US aid

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="802" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PBSZKGKRDNKNFGBHZ3LDMDSHTQ.avif" alt="" class="wp-image-581857"/><figcaption class="wp-element-caption">People wearing face masks walk past a logo of South African pharmaceutical major Aspen Pharmacare, at its Johnson &amp; Johnson COVID-19 vaccine facility in Gqeberha, South Africa, October 25, 2021. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



Africa&#8217;s pharmaceutical future is at a critical juncture with developments shedding light on the continent&#8217;s reliance on external aid for vaccine access.



The Trump administration&#8217;s initial freeze on foreign aid this week had sparked concerns about the fate of US-funded HIV/AIDS programs, which provide life-saving treatment. However, US Secretary of State Marco Rubio&#8217;s waiver partially lifting&nbsp;of&nbsp;the freeze offered a reprieve for these programs.



In a recent discussion with CNBC Africa, Stavros Nicolaou, Group Senior Executive at Aspen Pharmacare, accentuated the prominence of technology transfer for local manufacturing in Africa. &#8220;This calls for a refinement of the technology transfer model for Africa to make it fit for purpose for Africa and African purposes,’’ Nicolaou said.



Aspen Pharmacare, Africa&#8217;s largest pharmaceutical manufacturer, has been at the forefront of promoting local manufacturing and technology transfer. The company has made significant strides in producing generic antiretroviral (ARV) medications, which have saved hundreds of thousands of lives in South Africa and across the continent.



The Covid-19 pandemic served as a wake-up call for Africa to develop its own pharmaceutical manufacturing capabilities. According to Nicolaou, the continent has made some strides in this direction, with regulatory reforms and international procurement agencies now committing to purchase vaccines from African companies. However, Nicolaou cautioned that despite these gains, Africa is still relearning the lessons of the pandemic, highlighting the need for sustained progress and self-sufficiency in the pharmaceutical sector. &#8220;We&#8217;re at least better suited to deal with it. We&#8217;ve learned a multitude of lessons. Unfortunately, we&#8217;re learning them again,&#8221; he said.

PBSZKGKRDNKNFGBHZ3LDMDSHTQ

Can Africa Fill Its Own Prescription?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-820x547.jpg" alt="" class="wp-image-581853" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">WASHINGTON, DC &#8211; JANUARY 31: U.S. President Donald Trump talks to reporters after signing an executive order, &#8220;Unleashing prosperity through deregulation,&#8221; in the Oval Office on January 31, 2025 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)</figcaption></figure>



WASHINGTON, Feb 2 (Reuters) &#8211; U.S. President Donald Trump said on Sunday, without citing evidence, that &#8220;certain classes of people&#8221; in South Africa were being treated &#8220;very badly&#8221; and that he would cut off funding for the country until the matter is investigated.



&#8220;South Africa is confiscating land, and treating certain classes of people VERY BADLY,&#8221; Trump said in a Truth Social post.



&#8220;The United States won&#8217;t stand for it, we will act. Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!&#8221; he said.



It is unclear what led to Trump&#8217;s post.



The South African embassy in Washington D.C. did not respond to a request for comment outside of regular business hours.



The United States obligated nearly $440 million in assistance to South Africa in 2023, the most recent U.S. government data showed.



South Africa currently holds the G20 presidency, after which the U.S. takes over.



Last month, South African President Cyril Ramaphosa&nbsp;<a href="https://www.reuters.com/world/south-africa-not-worried-about-relationship-with-us-under-trump-ramaphosa-says-2025-01-22/">said</a>&nbsp;he was not worried about the country&#8217;s relationship with Trump. He said he had spoken to Trump after the latter&#8217;s election victory and looked forward to working with his administration.



During his&nbsp;<a href="https://www.reuters.com/article/world/trump-and-land-fears-boost-south-africas-white-right-state-idUSKCN1NQ0GG/">first</a>&nbsp;administration, Trump said the U.S. would investigate unproven large-scale killings of white farmers in South Africa and violent takeovers of land. Pretoria at the time said Trump was misinformed. It is unclear whether the Trump administration carried out an investigation.



Trump&#8217;s close ally Elon Musk was born in South Africa. In 2023, Musk replied on X to a video of a far-left South African political party singing an old anti-apartheid song, &#8220;Kill the Boer&#8221;, by stating: &#8220;They are openly pushing for genocide of white people in South Africa.&#8221;

President Trump Signs Executive Orders In The Oval Office

Trump to cut off funding for South Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="779" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Z2U72NBTFJOA7NYCF4R6FI2NFM.avif" alt="" class="wp-image-580922"/><figcaption class="wp-element-caption">Maria Modiba cooks by a candlelight during one of the frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Soweto, South Africa November 11, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;South African businesses and households will experience scheduled power cuts for the first time in 10 months due to a series of breakdowns at state power utility Eskom&#8217;s coal-fired power stations, officials said on Friday.



Energy minister Kgosientsho Ramokgopa told reporters that Eskom would implement &#8220;Stage 3&#8221; power cuts.



The outages will require up to 3,000 megawatts (MW) to be shed from the grid, starting from 1700 (1500 GMT) on Friday.



The utility&#8217;s power cuts, known locally as loadshedding, have curbed South Africa&#8217;s economic growth for more than a decade.



But there had been no blackouts since March last year after a dramatic turnaround in Eskom&#8217;s electricity supply, leading to over 300 days without outages.



(Reporting by Tannur Anders, Sfundo Parakozov and Bhargav Acharya; Editing by Alexander Winning)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Z2U72NBTFJOA7NYCF4R6FI2NFM

South African power cuts return after 10 months of uninterrupted supply

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-820x547.jpg" alt="" class="wp-image-580544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/E6VGTQJGT5PWVIY65GTH6X443Q-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Governor of the South African Reserve Bank, Lesetja Kganyago, gestures during an interview with Reuters in Centurion, South Africa April 3, 2024 REUTERS/James Oatway/File Photo</figcaption></figure>



PRETORIA, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago at a news conference to announce the central bank&#8217;s latest interest rate decision.



<h2 class="wp-block-heading" id="h-inflation">INFLATION</h2>



&#8220;Moving to consumer prices, headline inflation averaged 4.4% last year, near the middle of our target range. Inflation slowed to 3% in December, having started the year above 5%.&#8221;



&#8220;This was mainly due to favourable goods-price developments, including food inflation reaching 15-year lows, as well as lower fuel costs.&#8221;



&#8220;Because of these transitory factors, inflation is likely to remain in the bottom half of our target range through the first half of this year.&#8221;



&#8220;Headline inflation should revert to around 4.5% thereafter, aided by core inflation which remains at or below the midpoint over the forecast horizon.&#8221;



&#8220;The risks to the inflation outlook are assessed to the upside.&#8221;



&#8220;In the near term, inflation appears well contained. However, the medium-term outlook is more uncertain than usual, with material risks from the external environment. Domestic factors such as administered prices are also problematic.&#8221;



<h2 class="wp-block-heading" id="h-economic-growth">ECONOMIC GROWTH</h2>



&#8220;For the fourth quarter, we anticipate a rebound. This will be supported by more normal agricultural production, as well as strong household spending, given tailwinds including lower inflation and Two-Pot pension withdrawals.&#8221;



&#8220;We expect potential growth to trend higher over the next few years. This gets growth to about 2% by 2027.&#8221;



&#8220;As growth picks up, we expect some rebalancing, with a recovery in investment, as well as improvements in the primary and secondary sectors.&#8221;



&#8220;The risks to the growth forecast are assessed as balanced.&#8221;



<h2 class="wp-block-heading" id="h-decision">DECISION</h2>



&#8220;The Monetary Policy Committee (MPC) decided to reduce the policy rate by 25 basis points, with effect from 31 January 2025. Four members preferred this action, while two supported an unchanged stance.&#8221;



&#8220;The committee ultimately agreed that it was possible to reduce the degree of policy restrictiveness, making the stance somewhat more neutral. However, all members were concerned about the uncertain global outlook.&#8221;



(Compiled by Sfundo Parakozov; Editing by Alexander Winning)

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Trump to cut off funding for South Africa

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South Africa

South Africa’s Harmony Gold reports five deaths at two mines

South Africa business activity contracts again in January, PMI shows

South African rand firms ahead of president’s address

Sasol sees up to 36% drop in half-yearly profit on lower oil prices

South African Markets – Factors to watch on Feb. 5

Musk’s dad says he arranged son’s call with South African leader

South African leader spoke to Elon Musk about misinformation after Trump attack

StanChart picks former South African bank boss Ramos as new chair

South African rand weaker on Trump’s changing tariff stance

What is behind Trump’s aid threat to South Africa over land?

Trump attack on South Africa exposes divisions over race and land

Taiwan says S.Africa gives March deadline to move office from Pretoria

South African markets slump after Trump suspends US aid

Can Africa Fill Its Own Prescription?

Trump to cut off funding for South Africa

South African power cuts return after 10 months of uninterrupted supply

South African central bank governor’s comments on rate decision

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