<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="2986" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/FFF7V4LQRJNTLLSYNGSJLO2CEU.avif" alt="" class="wp-image-572748"/><figcaption class="wp-element-caption">An employee sorts out clothing at a retail store in Sandton, near Johannesburg, South Africa, October 15, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Jan 6 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s private sector activity contracted in December for the first time since August, as muted demand and rising inflationary pressures weighed on growth, a survey showed on Monday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) fell to 49.9 in December from 50.9 in November, slipping below the 50.0 threshold that separates growth from contraction.



New orders stalled, ending a four-month growth streak, as subdued market conditions and a further decline in export business dampened sales.



&#8220;December&#8217;s PMI data suggest that the South African economy may have lost a little bit of steam at the end of 2024,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



He highlighted a &#8220;more muted demand environment&#8221; and &#8220;accelerated cost pressures&#8221; as key challenges.



Inflationary pressures intensified, with input costs rising at the fastest rate in four months, driven by higher wages and increased material and transport prices. However, the rate of inflation remained below long-term trends.



Despite the downturn, supply chain pressures eased, encouraging firms to increase input purchases for the third consecutive month.



Employment remained stable, following a slight increase in November, while output and sales contracted across most sectors, particularly in construction. The services sector, however, showed a slight uptick in new work.



Overall, the PMI&#8217;s fourth quarter average of 50.5 was the strongest since third quarter in 2022, providing some optimism for gross domestic product growth recovery after a contraction last quarter.



(Reporting by Johannesburg bureau; Editing by Hugh Lawson)

FFF7V4LQRJNTLLSYNGSJLO2CEU

South African business activity slips into contraction in December, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="439" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand-Dec.avif" alt="" class="wp-image-568249"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Dec 20 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand recovered some losses on Friday after a slight improvement in risk sentiment.



At 1406 GMT, the rand traded at 18.355 against the dollar&nbsp;ZAR=D3, about 0.3% stronger than its previous close.



Trade in the rand, like most emerging market currencies, has been volatile this week after the U.S. Federal Reserve on Wednesday struck a hawkish tone in its interest rate outlook for the year ahead.



Andre Cilliers, currency strategist at TreasuryONE, said liquidity constraints during the holiday season could amplify swings in the local currency.



&#8220;Near-term volatility (is) likely to persist,&#8221; Cilliers said.



There are no major local economic data releases scheduled for next week.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was little changed.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was weaker, with the yield up 2 basis points to 9.135%.



(Reporting by Bhargav Acharya; Editing by Angus MacSwan and Shailesh Kuber)

rand Dec

South African rand recovers some ground against dollar

<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, Dec 20 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Friday.



ECONOMIC EVENTS



Energy regulator Nersa meeting on Eskom&#8217;s tariff application



SOUTH AFRICAN MARKETS



South Africa&#8217;s rand slipped on Thursday, a day after the Federal Reserve struck a hawkish tone on interest rate cuts in the coming year.&nbsp;.JZAR/



GLOBAL MARKETS



Asian shares hit a fresh three-month low on Friday as investors awaited key U.S. inflation data that could either ease or worsen concerns about stubbornly high price pressures, while the dollar towered at two-year peaks.&nbsp;MKTS/GLOB



WALL STREET



U.S. stocks ended little changed on Thursday, giving up an initial rebound from a sharp drop in the prior session after the Federal Reserve forecast fewer-than-expected interest rate cuts and higher inflation next year.&nbsp;.N



GOLD



Gold prices were set for a weekly decline on Friday after the Federal Reserve&#8217;s verdict on its monetary policy-easing cycle signalled a slowdown in rate cuts, while focus shifted to U.S. Personal Consumption Expenditure data later in the day.&nbsp;GOL/



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



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



BUSINESS DAY



&#8211; Treasury makes proposals to tighten laws in bid to exit greylist



&#8211; Grindrod hit hard by disruption after Mozambican election



FIN 24



&#8211; As power theft cripples Eskom, it discovers a massive racket involving its staff



(Compiled by Alexander Winning)

rand2 (1)

South African Markets – Factors to watch on Dec 20

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-820x546.jpg" alt="" class="wp-image-412999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-462743612-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the headquarter of the embattled South African main electricity provider ESKOM is pictured on February 4, 2015 in Johannesburg. South Africa power supply was under &#8220;extreme&#8221; pressure on February 2, 2015 and likely to remain so until end of the week after a technical fault at the country&#8217;s sole nuclear plant, electricity utility Eskom said. AFP PHOTO/GIANLUIGI GUERCIA (Photo by Gianluigi GUERCIA / AFP) (Photo by GIANLUIGI GUERCIA/AFP via Getty Images)</figcaption></figure>



JOHANNESBURG, Dec 19 (Reuters)&nbsp;&#8211;&nbsp;South African state power utility Eskom on Thursday reported a higher loss after tax of 55 billion rand ($3 billion) in the financial year to the end of March because of an accounting adjustment linked to the separation of its transmission unit.



The loss after tax was up from 26.1 billion rand in the year to the end of March 2023.



Revenue in the year to end-March 2024 grew 14% to 295.8 billion rand, a presentation on the company&#8217;s website showed. Sales volumes dipped 3% to 183.3 Terawatt hours, as the company implemented power cuts on 329 days during the reporting year.



($1 = 18.2461 rand)



(Reporting by Nqobile Dludla and Bhargav Acharya; Editing by Alexander Winning)

SAFRICA-ELECTRICITY-NUCLEAR-ECONOMY-ENERGY

South Africa’s Eskom reports $3 bln loss on split of transmission unit

<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, Dec 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand slipped against a stronger dollar on Tuesday, as investors turn their attention to the Federal Reserve&#8217;s interest rate decision.



At 0820 GMT, the rand traded at 17.93 against the greenback, about 0.4% weaker than its previous close.



The dollar index was last trading up about 0.2% against a basket of currencies.



The Fed will announce its interest rate decision on Wednesday, with markets expecting a 25 basis point cut, but the focus will also be on the central bank&#8217;s tone on rates for the year ahead.



&#8220;A conservative tone will likely support the USD and pressure EM (emerging market) currencies, including ZAR,&#8221; said Andre Cilliers, Currency Strategist at TreasuryONE.



On the stock market, the Top-40 index was down about 0.9%.



South Africa&#8217;s benchmark 2030 government bond was slightly weaker, with the yield up 1 basis point at 8.93%.



(Reporting by Bhargav Acharya; Editing by Kirsten Donovan)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand weakens ahead of Fed decision

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-524583" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Dec 17 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, equity and currency market moves may affect South African markets on Tuesday.



<h2 class="wp-block-heading" id="h-economic-event">ECONOMIC EVENT</h2>



South African leading business cycle indicator up 1.1% in October



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



Asian stocks wobbled while the dollar held firm on Tuesday as traders braced for a slate of central bank meetings this week that is likely to see the U.S. Federal Reserve deliver a rate cut and the Bank of Japan stand pat for now.



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



The Nasdaq closed at a record high on Monday and the S&amp;P 500 also rose as investors gauged the latest economic data while looking toward the Federal Reserve&#8217;s final policy announcement of the year later in the week to gauge the path of interest rates.



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



Gold prices steadied on Tuesday ahead of the Federal Reserve policy meeting as the market keenly awaited the U.S. central bank&#8217;s outlook for cues on its interest rate path in 2025.



&#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; Telkom gets Icasa nod for sale of masts business



&#8211; Jubilee’s Roan facilities hit by unplanned Zambia power outages



(Compiled by Bhargav Acharya)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Dec 17

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-501467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Friday.



ECONOMIC EVENTS



South Africa shifts to FDI outflows in third quarter, central bank says



South African inflation-linked bond auction



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



The South African rand was steady against the dollar on Thursday, after the release of third quarter employment data and producer inflation figures.



On the Johannesburg Stock Exchange, the Top-40 index closed about 0.2% lower.



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



Asia shares fell on Friday as a strong dollar weighed on risk sentiment, while longer-dated Treasury yields are headed for their biggest weekly rise in a year on receding U.S. rate cut expectations for 2025.



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



Wall Street pulled back on Thursday as investors evaluated key economic indicators ahead of the Federal Reserve&#8217;s meeting next week.



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



Gold prices edged higher on Friday and were set for a weekly gain, driven by recent reports of top consumer China resuming gold purchases, and heightened expectations of an interest rate reduction by the Federal Reserve at its Dec. 17-18 meeting. 



&#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; Lesotho and SA clash over appointment of water project CEO



&#8211; VBS liquidator pays R458m to creditors as hunt for looted cash continues



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



&#8211; Claims of spiralling costs and coal theft emerge as corporate chaos rips through Exxaro



&#8211; Former finance minister Trevor Manuel to head G20 expert panel on Africa



(Compiled by Bhargav Acharya)

South African Markets – Factors to watch on Dec 13

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg" alt="" class="wp-image-425628" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-1536x1013.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of South Africa&#8217;s central reserve bank is seen during the delivery of a keynote address by South Africa&#8217;s central bank governor, Lesetja Kganyago, at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, Dec 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa recorded foreign direct investment outflows of 3.2 billion rand ($179.87 million) in the third quarter, compared to inflows of 16.6 billion in the second quarter, central bank data showed on Friday.



The South African Reserve Bank (SARB) said in its Quarterly Bulletin that the outflows were due to domestic subsidiaries of multinational companies paying back their loans to the parent companies.



For the first time in two years, portfolio investments recorded inflows of 45.6 billion rand in July-September, from outflows of 20.1 billion rand in the second quarter.



Nthabiseng Molemoeng, head of balance of payments at the SARB, said the inflows were mainly due to an increase in foreign purchases of publicly traded government bonds following eight consecutive quarters of equity outflows.



&#8220;I think it was just a general decline in investor sentiment towards emerging markets,&#8221; she said. &#8220;Now with this quarter the inflow is mainly from debt securities.&#8221;



($1 = 17.7908 rand)



(Reporting by Kopano Gumbi, Editing by Bhargav Acharya)

FILE PHOTO: South Africa’s central bank governor to delivers keynote address

South Africa shifts to FDI outflows in third quarter, central bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-820x515.jpg" alt="" class="wp-image-526361" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-820x515.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-1536x965.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/NKYFZRFDD5MS5NQEZSVZ6PYNTI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Shoppers are seen outside the Shoprite store at the Garden City mall along Thika Road in Nairobi, Kenya November 13, 2020. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



JOHANNESBURG, Dec 12 (Reuters)&nbsp;&#8211;&nbsp;South African analysts, business people and trade unions have lowered their inflation expectations through to 2026, taking them to the midpoint of the central bank&#8217;s inflation target range, a quarterly survey showed on Thursday.



The findings are likely to encourage the South African Reserve Bank (SARB) to forge ahead with its monetary easing cycle, potentially by cutting interest rates in larger increments.



The fourth-quarter survey conducted by the Bureau for Economic Research found that the average inflation forecast of analysts, business people and labour unions was for headline consumer inflation of 4.6% in 2024, 4.5% in 2025 and 4.6% in 2026.



That is down from average forecasts of 5.1%, 4.8% and 4.8% in the third-quarter survey and the lowest expectations have been in more than three years.



The SARB likes to see inflation around 4.5%, the midpoint of its 3% to 6% target band.



It has lowered its main lending rate by 25 basis points (bps) at each of its last two meetings.



But some analysts believe there is room for a 50 bp cut at the next policy meeting in January.



Data on Wednesday showed headline consumer inflation stood at 2.9% year on year in November, below the target band for the second month in a row thanks to food inflation slowing to its lowest level in almost 14 years.



(Reporting by Kopano Gumbi; Editing by Alexander Winning, Kirsten Donovan)

Shoppers are seen outside the Shoprite store at the Garden City mall along Thika Road in Nairobi

South African inflation expectations fall to midpoint of central bank range

<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, Dec 11 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s&nbsp;inflation rate&nbsp;rose less than expected in November,&nbsp;staying&nbsp;just below the central bank&#8217;s target range&nbsp;thanks to food inflation slowing&nbsp;to its lowest level in almost 14 years.



Headline consumer inflation was 2.9% year on year in November from 2.8% in October. In month-on-month terms, inflation was at 0.0% in November, compared with -0.1% in October, Statistics South Africa data showed.



Economists polled by Reuters had forecast headline inflation would accelerate to 3.1%&nbsp;in annual terms.&nbsp;The South African Reserve Bank&nbsp;targets inflation of between 3% and 6%, aiming for the midpoint of that band.



&#8220;We expect inflation will continue to edge higher over the coming months. But it is likely to remain contained and stay below the 4.5% target midpoint,&#8221; Jason Tuvey, deputy chief emerging markets economist at Capital Economics,&nbsp;said.



The central bank last month cut its main lending rate by 25 basis points (bps) for the second meeting in a row, after inflation dropped below the target range in October for the first time in years.



Tuvey said a&nbsp;50-bps cut was not out of the question at the central bank&#8217;s next policy meeting&nbsp;in January.



Food and non-alcoholic beverages&nbsp;inflation&nbsp;slowed to 2.3%&nbsp;year on year&nbsp;in November from 3.6% one month earlier, the lowest rate&nbsp;of price increases for that&nbsp;category since December 2010, the statistics agency said.



But&nbsp;a month-on-month increase in fuel prices pushed the November headline inflation figure higher in annual terms.



Annual core inflation, which excludes food and fuel prices, also came in below expectations at 3.7% in November compared with 3.9% one month earlier.



(Reporting by Tannur Anders; Editing by Alexander Winning and Kate Mayberry)

SA INFLATION

South Africa inflation rises less than expected, helped by food

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg" alt="" class="wp-image-536645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/rand2-135x90.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, Dec 10 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand softened early on Tuesday, at the start of a day packed with local economic data releases.



At 0626 GMT, the rand traded at 17.81 against the U.S. dollar, about 0.2% weaker than Monday&#8217;s close.



South Africa-focussed investors will look to October&#8217;s mining production data at 0930 GMT and the manufacturing output figures for the same month at 1100 GMT.



Although the releases will not be market-moving individually, together they are important indicators of economic performance, analysts said.



Also on the investors&#8217; radars will be November&#8217;s Business Confidence Index, due at 0930 GMT, for signs of private sector sentiment towards Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond was little changed in early deals, with the yield at 8.895%.



(Reporting by Tannur Anders; Editing by Sumana Nandy)

New South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg

South African rand softens at start of data-filled day

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3345" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QBEYZAZEXFJCNHYDTQA5BDKG2M.avif" alt="" class="wp-image-562813"/><figcaption class="wp-element-caption">The logo of consulting firm McKinsey and Company is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau/File Photo</figcaption></figure>



WASHINGTON/NEW YORK, Dec 5 (Reuters) &#8211; McKinsey and Company Africa Ltd, a subsidiary of McKinsey &amp; Company, will pay more than $122 million to resolve a U.S. investigation into a bribery scheme in South Africa, the Justice Department said on Thursday.



Privately owned McKinsey Africa was charged with one count of conspiracy to violate the Foreign Corrupt Practices Act for agreeing to pay bribes to officials at state-owned energy company Eskom and port and freight rail operator Transnet in exchange for non-public information about consulting contracts.



McKinsey Africa entered into a three-year deferred prosecution agreement with the Justice Department.



&#8220;McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits,&#8221; said Nicole M. Argentieri, head of the Justice Department’s Criminal Division.



Vikas Sagar, a senior former partner at McKinsey, previously pleaded guilty to one count of conspiracy to violate the act. He could not immediately be reached for comment.



In a statement, McKinsey said Sagar had concealed his conduct from the company, and that it fired him soon after it learned about the issues.



McKinsey and McKinsey Africa earned around $85 million in profits through the bribery scheme, the Justice Department said. Eskom had hired McKinsey to help it execute a &#8220;turnaround plan.&#8221;



Inefficiencies at Eskom and Transnet have constrained growth in Africa&#8217;s most industrialized economy for more than a decade.



The Justice Department said McKinsey Africa had received credit for cooperating with its investigation and conducting anti-corruption training for employees. The $122,850,000 McKinsey has agreed to fork up includes a penalty it will pay in South Africa.



McKinsey is also in talks with the Justice Department to pay more than $600 million to resolve a separate investigation into the consulting firm&#8217;s work helping opioid manufacturers boost sales that allegedly contributed to a deadly addiction epidemic, people familiar with the matter have told Reuters.



(Reporting by Doina Chiacu and Ismail Shakil; additional reporting by Nate Raymond; Writing by Luc Cohen; Editing by Caitlin Webber and Jonathan Oatis)

QBEYZAZEXFJCNHYDTQA5BDKG2M

McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="755" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/ZIJ3HNNBURIB3GCTMDH2DSOPEQ.avif" alt="" class="wp-image-562383"/><figcaption class="wp-element-caption">People queue in front of the South African Airways (SAA) counters at Cape Town International Airport, amid SAA pilots planning to strike following a deadlock in pay rise negotiations, in Cape Town, South Africa, December 5, 2024. REUTERS/Esa Alexander</figcaption></figure>



JOHANNESBURG, Dec 5 (Reuters)&nbsp;&#8211;&nbsp;South African Airways said it had cancelled flights to Perth and Sao Paulo on Thursday after receiving confirmation from the SAA Pilots Association that they planned to strike following a deadlock in pay talks.



The company decided to cancel the Perth and Sao Paulo routes last night after being told the strike planned for Thursday would go ahead, Khaya Buthelezi, the airline&#8217;s senior manager of corporate relations, told Reuters.



&#8220;That&#8217;s the decision we took last night since we could not find partner airlines that we can transfer our customers to, it became clear that those two routes must be cancelled,&#8221; he said.



Early on Thursday, there were no disruptions to domestic flights and routes across Africa as the airline had made contingency plans, he said.



Some pilots were seen picketing outside the SAA office at the OR Tambo International Airport in Johannesburg, Buthelezi said.



The SAA Pilots Association (SAAPA) did not immediately respond to a request for comment.



SAAPA&#8217;s initial demand proposed in May was for a 30% increase in pilot salaries, which was subsequently reduced to 15.7%, including associated benefits, SAA said in a statement earlier this week.



The company&#8217;s interim Chief Executive Officer John Lamola said in that statement that the demand for a 15.7% pay rise would trigger the company&#8217;s decline into bankruptcy.



The airline has offered an 8.46% pay increase backdated to April.



The national carrier was on the verge of being liquidated before it entered a form of bankruptcy protection in 2019.



(Reporting by Sfundo Parakozov, Editing by Bhargav Acharya and Jane Merriman)

ZIJ3HNNBURIB3GCTMDH2DSOPEQ

South African Airways cancels some flights as pilots go on strike

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SMGPRUOGTVKQFGJ7HDZKUUAZQQ.avif" alt="" class="wp-image-558475"/><figcaption class="wp-element-caption">Shoppers stand at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



Dec 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s consumer confidence slipped one point in the fourth quarter, although retail sales during the festive season are still expected to be their best levels last seen in 2019, a survey showed on Wednesday.



The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), edged down to minus 6 points in the reported period from minus 5 a quarter ago.



A marked depreciation in the rand exchange rate along with higher petrol prices and trade uncertainties following the re-election of Donald Trump as U.S. president affected consumer confidence in the quarter.



Still, a rise in consumer spending due to lower inflation and interest rate cuts points to a festive season as strong as pre-pandemic levels.



&#8220;A string of favorable developments has seen consumer confidence riding much higher since the second quarter of 2024, including the formation of a government of national unity, the termination of load-shedding, a substantial deceleration in inflation, two interest rate cuts and the implementation of the two-pot retirement system,&#8221; said FNB Chief Economist Mamello Matikinca-Ngwenya.



(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips)

SMGPRUOGTVKQFGJ7HDZKUUAZQQ

S.African consumer confidence drops, but signals strong festive season

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1333" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-scaled.jpg" alt="" class="wp-image-483474" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-820x534.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ULFSMF35VNITNPEOTI7CQNT7FU-1536x1000.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">File photo: A man looks at an item before buying at a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



PRETORIA, Dec 3 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economy unexpectedly&nbsp;shrank&nbsp;in the third quarter of this year&nbsp;as a drought caused&nbsp;a big drop in agricultural production,&nbsp;but analysts said they expected a return to modest growth in the coming quarters.



Data from Statistics South Africa showed gross domestic product (GDP) fell 0.3% in seasonally-adjusted quarter-on-quarter terms, whereas economists polled by Reuters had predicted an expansion of 0.5%.



Agriculture, forestry and fishing&nbsp;contracted 28.8%&nbsp;quarter on quarter,&nbsp;primarily due to field crops.



&#8220;Maize and soy account for about 70% of field crops and we know they have had a difficult quarter due to drought,&#8221;&nbsp;statistician Joe&nbsp;de Beer told a&nbsp;news conference.



Southern Africa has faced&nbsp;its&nbsp;worst drought in decades this year, hurting economic output across the region.



De Beer said the contraction in agriculture had pulled economic growth into negative territory.



&#8220;If we for a moment ignore the agricultural contraction&#8230; then you end up with a GDP figure of 0.4%, which is very much closer to what we&#8217;ve seen from consensus estimates,&#8221; he said.



Capital Economics analyst David Omojomolo said in a research note that the downside surprise could encourage the South African Reserve Bank to continue with its monetary easing cycle.



Razia Khan, chief economist for Africa and the Middle East at Standard Chartered, said the outlook for Africa&#8217;s most industrialised economy remained positive despite the third-quarter contraction.



&#8220;This does not alter our big picture outlook,&#8221; she said, highlighting that mining, manufacturing and construction all grew in the latest quarter.



Of the 10 industries tracked by Stats SA, only four contracted, a presentation by the agency showed.



South Africa&#8217;s third-quarter GDP grew 0.3% on a year-on-year basis, also worse than the 1.2% growth predicted by economists.



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders; Editing by Alexander Winning and Sharon Singleton)

A man looks at an item before buying at a spaza shop

South African economy unexpectedly shrinks due to drought

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-820x526.jpg" alt="" class="wp-image-499905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-768x493.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/RQ6Y27JM7RJZXG4XPHIK3JJ37I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Naspers&#8217; logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Dec 2 (Reuters) &#8211; South African technology investor Naspers said on Monday its Prosus e-commerce subsidiary plans more listings after last month&#8217;s Indian IPO of Swiggy, as it posted a 74% jump in half-year core earnings.



Naspers said the aim is for Amsterdam-listed Prosus, which holds international investments including a 24.3% stake in Chinese software and gaming giant Tencent 0700.HK, to deliver profit of $400 million and revenue of $6.2 billion, in the financial year to the end of March, 2025.



&#8220;We had strong growth and strong profitability across the portfolio and we&#8217;re quite confident that we&#8217;re going to keep this growth rate,&#8221; Fabricio Bloisi, CEO of Naspers and Prosus said in an earnings call.



The $400 million forecast in adjusted earnings before interest, tax (EBIT) is a large improvement on the $38 million in the previous financial year at Prosus.



Prosus hopes to list PayU next year and other Indian investments, including e-commerce startup meesho and online jewellery retailer Bluestone, in the next 18 months, it said.



There are many more potential listings in India even after the 18 month target, added Ervin Tu, Naspers and Prosus group chief investment officer.



The company identified one future potentials as Captain Fresh, a seafood company from India.



The e-commerce portfolio includes food delivery firms iFood of Brazil and Delivery Hero&nbsp;DHER.DE, online marketplaces such as OLX, educational software firms such as SkillSoft and Stack Overflow, and payments companies such as India-focused PayU.



Naspers said its core headline earnings for continuing operations rose to $1.5 billion in the six months ended Sept. 30, up from $866 million, while Prosus reported core headline earnings of $3.5 billion, up from $2 billion.



Group revenue rose by 23% to $3.4 billion, while adjusted EBIT swung to a profit of $36 million from a loss of $121 million as its e-commerce business turned profitable.



Consolidated e-commerce revenue at Prosus grew by 26% to $3 billion, driven by continued strong revenue growth in payments and fintech, e-tail and food delivery, Naspers said.



E-commerce adjusted EBIT swung to a profit of $181 million, from a loss of $36 million.



(Reporting by Nqobile Dludla; Editing by Rashmi Aich, Jason Neely and Alexander Smith)

FILE PHOTO: Illustration shows smartphone with Naspers’ logo

South Africa’s Naspers plans more IPOs in next 18 months after Swiggy success

<figure class="wp-block-image size-large is-resized"><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" style="width:840px;height:auto" 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, Dec 2 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand weakened early on Monday, ahead of a purchasing managers&#8217; index (PMI) survey for the domestic manufacturing sector.



At 0620 GMT, the rand traded at 18.15 against the dollar, 0.64% softer than its previous close.



The Absa PMI for November is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa&#8217;s most industrialised economy.



Local investors will also turn their focus towards last month&#8217;s vehicle sales data later in the day.



South Africa&#8217;s benchmark 2030 government bond slipped in early deals, with the yield up 4.5 basis points to 8.96%.



(Reporting by Bhargav Acharya; Editing by Tom Hogue)

South Africa

South African business activity slips into contraction in December, PMI shows

South African rand recovers some ground against dollar

South African Markets – Factors to watch on Dec 20

South Africa’s Eskom reports $3 bln loss on split of transmission unit

South African rand weakens ahead of Fed decision

South African Markets – Factors to watch on Dec 17

South African Markets – Factors to watch on Dec 13

South Africa shifts to FDI outflows in third quarter, central bank says

South African inflation expectations fall to midpoint of central bank range

South Africa inflation rises less than expected, helped by food

South African rand softens at start of data-filled day

McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

South African Airways cancels some flights as pilots go on strike

S.African consumer confidence drops, but signals strong festive season

South African economy unexpectedly shrinks due to drought

South Africa’s Naspers plans more IPOs in next 18 months after Swiggy success

South African rand weaker ahead of manufacturing PMI

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South Africa

South African business activity slips into contraction in December, PMI shows

South African rand recovers some ground against dollar

South African Markets – Factors to watch on Dec 20

South Africa’s Eskom reports $3 bln loss on split of transmission unit

South African rand weakens ahead of Fed decision

South African Markets – Factors to watch on Dec 17

South African Markets – Factors to watch on Dec 13

South Africa shifts to FDI outflows in third quarter, central bank says

South African inflation expectations fall to midpoint of central bank range

South Africa inflation rises less than expected, helped by food

South African rand softens at start of data-filled day

McKinsey Africa to pay $122 million in South Africa bribery scheme, US Justice Department says

South African Airways cancels some flights as pilots go on strike

S.African consumer confidence drops, but signals strong festive season

South African economy unexpectedly shrinks due to drought

South Africa’s Naspers plans more IPOs in next 18 months after Swiggy success

South African rand weaker ahead of manufacturing PMI

News Tips

Advertise With Us

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