<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Nov 11 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was little changed in early trade on Monday, with local unemployment figures a highlight among this week&#8217;s economic data releases.



At 0707 GMT, the rand traded at 17.5850 against the dollar, within touching distance of Friday&#8217;s closing level of 17.5875.



The rand was highly volatile last week as global financial markets digested Donald Trump&#8217;s U.S. election victory and the Federal Reserve&#8217;s latest monetary policy decision.



This week, local factors may be back in the driving seat, analysts say.



Statistics South Africa will publish third-quarter unemployment numbers on Tuesday, with September manufacturing output also due on Tuesday and September mining production on Thursday.



The benchmark 2030 government bond was slightly weaker in early deals, with the yield up 1 basis point to 9.18%.



(Reporting by Tannur Anders; Editing by Alexander Winning)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand stable; local jobs data in focus this week

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/77VC4ZKBPBPJFFYBYJIHNWEQ6I-820x562.jpg" alt="" class="wp-image-427280" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/77VC4ZKBPBPJFFYBYJIHNWEQ6I-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/77VC4ZKBPBPJFFYBYJIHNWEQ6I-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/77VC4ZKBPBPJFFYBYJIHNWEQ6I-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/77VC4ZKBPBPJFFYBYJIHNWEQ6I-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1536x1052.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/77VC4ZKBPBPJFFYBYJIHNWEQ6I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Nov 11 (Reuters) &#8211; South African retailer Pick n Pay gave a price range of 42 rand to 54 rand ($2.39 to $3.07) per share for the initial public offering (IPO) of up to 40% of its discount grocery chain Boxer.



The IPO is part of Pick n Pay&#8217;s two-step recapitalisation plan to lower its debt and fix its loss-making core Pick n Pay supermarkets business.



Boxer, with 489 stores, is South Africa&#8217;s fastest-growing discount grocery chain.



Pick n Pay said in a statement that the offer would open at 9 a.m. (0700 GMT) on Monday and close at noon (1000 GMT) on Friday, Nov. 22.



The offer is for up to 202,380,953 shares, or 40.3%, of the issued share capital of Boxer. The shares are expected to be listed on the Johannesburg Stock Exchange on Nov. 28.



($1 = 17.6034 rand)



(Reporting by Alexander Winning; Editing by Christopher Cushing and Kim Coghill)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

Pick n Pay gives price range for IPO of up to 40% of Boxer

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/2I5GGBSV3RLKLARXG4AKQ6YF4I-820x573.jpg" alt="" class="wp-image-551746" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/2I5GGBSV3RLKLARXG4AKQ6YF4I-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/2I5GGBSV3RLKLARXG4AKQ6YF4I-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/2I5GGBSV3RLKLARXG4AKQ6YF4I-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/2I5GGBSV3RLKLARXG4AKQ6YF4I-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/2I5GGBSV3RLKLARXG4AKQ6YF4I-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/2I5GGBSV3RLKLARXG4AKQ6YF4I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A municipal worker attempts to unclog a flooded road in Newlands during heavy rains in Cape Town, South Africa, July 9, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa is concerned by the impact Donald Trump&#8217;s election as the next president of the United States may have on talks to tackle climate change, its environment minister said on Friday.



Trump&#8217;s election and the collapse of Germany&#8217;s coalition government this week have come right before COP29 talks aimed at curbing global warming, which scientists blame for destructive hurricanes, floods and heatwaves across the world this year.



&#8220;We are concerned about America because we don&#8217;t know what they&#8217;re going to do &#8230; how (it) is going to approach COP,&#8221; South African Environment Minister Dion George told Reuters.



&#8220;Mr. Trump said that he would withdraw from the Paris Agreement, but we don&#8217;t know what will happen,&#8221; George added in a telephone interview on Friday.



International partners are concerned that the prospect of an administration led by Trump, who has called climate change a hoax, will de-motivate poor and middle-income countries who want rich nations to shoulder more of its financial burden.



South Africa, which is one of the world&#8217;s top 15 greenhouse gas emitters and accounts for 30% of the continent&#8217;s emissions, has accepted $11.6 billion from rich nations, mainly in loans, for a switch from coal to renewable energy.



This is seen as a potential model for other &#8216;Global South&#8217; countries who say financing pledges of $100 billion, which took years to come through, are insufficient.



&#8220;It&#8217;s certainly not enough. We need another target,&#8221; George said. &#8220;But then the question is: as the voter base is shifting in developed economies, are they actually going to pay it?&#8221;



The South African minister said he had been reassured by German officials that Europe&#8217;s stance at the COP29 climate talks will not be hurt by Berlin&#8217;s political crisis.



George said that Jennifer Morgan, Germany&#8217;s state secretary for international climate action, had contacted him to say it will be up to the European Union to maintain leadership.



&#8220;Their position is not changed and that is how they will approach COP,&#8221; George said, adding: &#8220;They&#8217;re on Team Europe. The European Union and German have clearly set out their objectives.&#8221;



(Reporting by Tim Cocks; Editing by Alexander Smith)

Cold front in Cape Town

South Africa concerned Trump election will impact climate talks

<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, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was slightly weaker in early trade on Friday, tracking the dollar which was back on the front foot.



At 0700 GMT, the rand traded at 17.3650 against the dollar, down 0.2% on its previous close.



The dollar was up 0.1% against a basket of global currencies.



It has been a wild week for currency markets.



The rand tanked on Wednesday when U.S. election results showed Donald Trump had won the presidential race, but it reversed direction on Thursday and closed stronger than Wednesday&#8217;s market open.



With no major domestic economic data due on Friday, the rand is likely to take its cue from offshore drivers.



Inflation-linked government bonds will be auctioned as usual on Friday by South Africa&#8217;s central bank.



The benchmark 2030 government bond was marginally stronger in early deals, with the yield down 2 basis points to 9.175%.



(Reporting by Alexander Winning; Editing by Christopher Cushing)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand slips against stronger dollar

<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-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Nov 8 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Friday.



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



Inflation-linked bond auction



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



Fashion retailer TFG reports half-year results



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



South African assets recouped the previous day&#8217;s losses on Thursday ahead of a Federal Reserve interest rate announcement as the dollar gave back some of its gains linked to Donald Trump&#8217;s U.S. election win.



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



Asian stocks rose broadly on Friday as investors digested the Federal Reserve&#8217;s message for careful interest rate cuts even with expectations for big fiscal spending under incoming President Donald Trump. 



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



U.S. stocks closed higher on Thursday, after the Federal Reserve announced a cut of 25 basis points in interest rates, extending a sharp rally sparked by Donald Trump&#8217;s return as U.S. president.



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



Gold prices eased on Friday but hovered around the $2,700 level, as traders assessed the impact of Donald Trump&#8217;s presidency and its implications for the U.S. interest rate outlook.



&#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; Clicks and Dis-Chem lead recovery in retail sector



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



&#8211; Pick n Pay has 100 new malls in its sights



&#8211; Mantashe seeks partners for SA&#8217;s new oil company



(Compiled by Alexander Winning)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Nov 8

<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, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand recouped some losses on Thursday, a day after emerging market assets took a hit following Donald Trump&#8217;s win in the U.S. election.



At 0820 GMT, the rand traded at 17.5175 against the dollar, over 0.7% stronger than its previous close. The local currency fell about 2.5% against the greenback at one point on Wednesday amid volatile trading.



The dollar slipped from a four-month high and was last down 0.3% against a basket of currencies, ahead of an interest rate decision by the Federal Reserve later in the day.



The Fed is expected to reduce rates by 25 basis points, while market focus will also be on further clues from the U.S. central bank on the way forward.



Locally, data released by South Africa&#8217;s central bank earlier showed the country&#8217;s net foreign reserves rose to $61.197 billion at the end of October from $61.029 billion in September.



On the stock market, the Top-40 index was last up 0.7%.



South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 10 basis points to 9.3%.



(Reporting by Bhargav Acharya; Editing by Christina Fincher)

Illustration photo of South African rand

South African rand recoups some losses against dollar

<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-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Nov 7 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, equity and currency market moves may affect South African markets on Thursday.



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



October reserves data



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



The South African rand plunged against a buoyant dollar on Wednesday as &#8220;Trump trades&#8221; surged, after Donald Trump won the U.S. election.



On the Johannesburg Stock Exchange the blue-chip Top-40 index closed about 1.6% down.



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



Asia-Pacific equity markets were mixed on Thursday as investors weighed the implications of a Donald Trump presidency, while also eyeing monetary policy decisions from the U.S. Federal Reserve and other major central banks later in the day. 



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



U.S. stocks rallied sharply to close at record highs on Wednesday after Republican Donald Trump won the 2024 U.S. presidential election in a stunning comeback four years after being voted out of the White House. 



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



Gold prices touched a more than three-week low on Thursday, as the dollar strengthened after Donald Trump&#8217;s win in the U.S. presidential election, while focus was also on the Federal Reserve&#8217;s interest rate decision later in the day.



&#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; Chinese firm set to complete buyout of SA’s largest geyser maker



&#8211; FNB partners with BankservAfrica for real-time cross-border payments



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



&#8211; Trump’s incoming trade tirade could cause trouble for SA



&#8211; &#8216;Enormous&#8217; impact: Millions lost daily as SA mineral exports blocked from entering Mozambique



(Compiled by Bhargav Acharya)

South African Markets – Factors to watch on Nov 7

<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/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-820x547.jpg" alt="" class="wp-image-550516" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/LXEWBEEOYBIMNLXCE2JBHD6CJY-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Prince William, Prince of Wales, meets the President of South Africa, Cyril Ramaphosa, at his Official Residence in Cape Town, South Africa, November 5, 2024. Victoria Jones/Pool via REUTERS</figcaption></figure>



CAPE TOWN, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;Britain&#8217;s Prince William paid a visit to South African President Cyril Ramaphosa on Tuesday in Cape Town after taking a nature walk with rangers and conservationists at Table Mountain National Park.



The Prince of Wales is on a four-day&nbsp;trip to South Africa&nbsp;for the annual awards ceremony of his Earthshot Prize, which will be held on Wednesday. He will also attend a global wildlife summit and hold other climate-focused engagements.



Video footage shared by Ramaphosa&#8217;s office showed William and Ramaphosa shaking hands and exchanging pleasantries at the start of their meeting.



&#8220;The visit is indicative of the strong ties the United Kingdom, including the Royal Family, share with South Africa, and also another step towards the deepening of these historic ties,&#8221; South Africa&#8217;s presidency said in a statement.



The presidency said South Africa was pleased to host this year&#8217;s Earthshot Prize awards because it highlights the impact climate change and environmental degradation have in Africa.



Launched in 2020, the prize aims to find innovations to combat climate and other green issues, and awards five winners 1 million pounds ($1.3 million) each to drive their projects.



(Writing by Nellie Peyton; Editing by Alexander Winning and Alison Williams)

Britain’s Prince William’s four-day visit to South Africa

Prince William meets President Ramaphosa on South Africa trip

<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-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Tuesday.



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



S&amp;P Global Whole Economy PMI for October



South Africa&#8217;s weekly auction of long-term bonds



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



South Africa&#8217;s rand gained on Monday against a weaker dollar, as investors geared up for the U.S. to elect its next president and the Federal Reserve&#8217;s interest rate announcement this week.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed little changed.



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



Stock markets moved sideways and an uneasy calm settled over currencies and bonds as investors waited for the United States to choose a new leader with polls showing the contest on a knife edge.



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



U.S. stocks closed slightly lower after a choppy session on Monday, as investors prepared for a crucial week in which Americans will elect a new president and the Federal Reserve will announce its policy statement.



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



Gold traded in a narrow range on Tuesday as investors stayed away from taking big positions ahead of the U.S. presidential election and the Federal Reserve policy meeting later this week.



&#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; SA efforts to tackle child poverty miss the mark



&#8211; Treasury may tap PIC for health funding



(Compiled by Tannur Anders)

South African Markets – Factors to watch on Nov 5

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="522" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-820x522.jpg" alt="" class="wp-image-550420" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-820x522.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-768x489.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-1536x977.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/KZ4R5MANMJIQPBC4GDTYRR7RTA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A teller is seen at a Pick n Pay store at Maponya mall in Soweto, South Africa, October 20, 2022. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, Nov 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s private sector maintained its growth trajectory in October, bolstered by a decline in business costs and selling prices, a Purchasing Managers&#8217; Index (PMI) survey showed on Tuesday.



The S&amp;P Global South Africa PMI recorded a reading of 50.6, slightly down from September&#8217;s 51.0, but still above the 50.0 mark that indicates growth.



The PMI has now signalled expansion for three consecutive months.



New orders continued to grow, marking the longest period of expansion since mid-2022, although the pace slowed to a marginal rate. The growth was primarily driven by the industry and wholesale &amp; retail sectors, while construction and services lagged.



A notable development was the first drop in input costs in over four years, driven by a strong rand, lower fuel prices and reduced interest rates. This allowed firms to cut selling prices, boosting customer spending.



&#8220;October was another strong month for the South African economy,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



&#8220;The survey data also provided further evidence that inflationary pressures are falling.&#8221;



Despite rising sales, employment decreased for the fifth consecutive month as firms remained cautious about costs. However, input purchases rose for the first time since May, with firms increasing inventories amid improving demand and lower borrowing costs.



Business confidence improved, with 52% of respondents expecting output to rise over the next year, citing political stability and improved power availability as key factors. Nonetheless, challenges remain, with delivery delays persisting due to domestic port congestion.



(Reporting by South Africa bureau; Editing by Toby Chopra)

A teller is seen at a Pick n Pay store

South Africa’s private sector growth sustained in October as costs fall, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-820x574.jpg" alt="" class="wp-image-550158" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/SN44UK6HYFKKVFUVO3DEF3KYNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Britain&#8217;s Prince William arrives at Cape Town International Airport for a 4 day visit where he will present the 4th annual Earthshot Prize in Cape Town, South Africa, November 4, 2024.REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, Nov 4 (Reuters) &#8211; Britain&#8217;s Prince William landed in Cape Town on Monday for a four-day trip to South Africa centred on his annual Earthshot Prize for environmental innovators.



The heir to the British throne will attend a global wildlife summit and meet with South African President Cyril Ramaphosa during the trip, which is his first to South Africa since 2010.



On Wednesday he will participate in the awards ceremony for the Earthshot Prize, which gives five winners 1 million pounds ($1.3 million) each to pursue projects addressing climate change and other environmental issues.



William launched the prize in 2020, inspired by a visit to Namibia. Its name is a nod to former U.S. President John F. Kennedy&#8217;s ambitious &#8220;moonshot&#8221; project which led to the 1969 lunar landing.



&#8220;By the end of the week, I want The Earthshot Prize to have provided a platform to all those innovators bringing about change for their communities, encouraged potential investors to speed African solutions to scale and inspired young people across Africa who are engaged in climate issues,&#8221; he said in a statement ahead of the visit.



The Prince Of Wales is making the trip alone as his wife Kate is still managing a return to work after finishing a course of preventative chemotherapy for cancer.



South Africa is a former British colony and some people there have called for the return of diamonds originally discovered in the country and then set in the British crown jewels.



($1 = 0.7717 pounds)



(Reporting by Esa Alexander; Writing by Nellie Peyton; Editing by Olivia Kumwenda-Mtambo and Gareth Jones)

Britain’s Prince William arrives in South Africa

UK’s Prince William arrives in South Africa for climate-focused trip

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Nov 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand gained in early trade on Monday against a weaker dollar, as investors geared up for the U.S. to elect its next president and the Federal Reserve&#8217;s interest rate announcement this week.



At 0613 GMT, the rand traded at 17.5250 against the U.S. dollar, about 0.8% stronger than its previous close.



The dollar last traded about 0.2% weaker against a basket of currencies.



&#8220;The US presidential election on Nov. 5 is the main event this week, eclipsing even the Federal Reserve&#8217;s interest-rate decision two days later,&#8221; said Jee-A van der Linde, senior economist at Oxford Economics in a research note.



As the world&#8217;s biggest economy heads to the polls on Tuesday, Republican candidate Donald Trump and Democratic candidate Kamala Harris are virtually tied in opinion polls.



On Thursday, markets will look to the Fed&#8217;s latest rate decision, where investors expect a 25-basis-point rate cut.



&#8220;These developments will be the main driving forces for financial market,&#8221; van der Linde added.



South Africa&#8217;s benchmark 2030 government bond was unchanged in early deals, with the yield 9.32%.



(Reporting by Tannur Anders; Editing by Rashmi Aich)

South African rand gains as markets brace for US election, rate decision

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="590" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-820x590.jpg" alt="" class="wp-image-550088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-820x590.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-300x216.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-768x553.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-1536x1105.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/5U27LJVU5BN7XKS2NTCXPR65SQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A branch of South African mobile communications provider Vodacom in Cape Town is shown in this picture taken November 10, 2015. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, Nov 4 (Reuters)&nbsp;&#8211;&nbsp;The Competition Tribunal&#8217;s decision to block a merger between Vodacom and a major fibre operator will likely derail a push by South African telecoms firms to use big M&amp;A deals as a shortcut to digital infrastructure expansion, analysts said.



The ruling,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3M50FV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">which blocked</a>&nbsp;South Africa&#8217;s top telco from taking a 30% stake in major fibre operator Maziv, could force companies to build their own networks or pursue smaller, less controversial tie-ups, delaying much-needed investment by years.



For Andrew Bahlmann of M&amp;A advisory firm Deal Leaders International, it is a setback for the entire industry.



&#8220;For telcos and fibre network operators contemplating future mergers, this prohibition of a merger for which the business case was clearly positive indicates that the path to consolidation is fraught with challenges,&#8221; he said.



The communications sector in Africa&#8217;s most advanced economy needs significant capital injections to ramp up infrastructure development, particularly if connectivity is to be improved in low income and rural areas.



Dominant companies like Vodacom&nbsp;VODJ.J&nbsp;and MTN&nbsp;MTNJ.J&nbsp;say mergers would allow them to leverage existing networks as a springboard to extending and improving coverage. And some smaller firms, including fibre operators, say tie-ups would provide the funding they need to grow.



But regulators fear that consolidation could lead to higher prices, less choice and lower quality for consumers.



The tribunal has yet to detail the grounds for Tuesday&#8217;s ruling, and Vodacom, which is majority-owned by Britain&#8217;s Vodafone&nbsp;VOD.L, said it was considering an appeal.



The South African Competition Commission, which testified before the tribunal that the deal would open the door to further consolidation and harm consumers, welcomed the decision.



But Old Mutual Wealth Private Client research analyst Tasneem Samodien said it would likely lead to stagnation.



&#8220;What it does is delay investment by current market participants until they determine a commercially viable path to scale,&#8221; Samodien said.



&#8220;For consumers, particularly those in outlying areas where network connection is relatively poor, the roll out of infrastructure could be delayed.&#8221;



<h2 class="wp-block-heading" id="h-inevitable-consolidation">INEVITABLE CONSOLIDATION?</h2>



Both Vodacom and MTN have been aggressively rolling out fixed-wireless networks that use 4G and 5G, while also investing in their small fibre businesses. But as they do this, they require more access to fibre links that carry mobile traffic from base stations back to the core network.



South Africa&#8217;s existing installed fibre capacity is owned by a number of operators of varying sizes. Tying up with them could give the mobile operators access to fibre networks while providing fibre companies capital to expand to new areas.



MTN has called consolidation in the sector &#8220;inevitable and even desirable&#8221;. But even before last week&#8217;s ruling, mergers were facing challenges, mainly over regulatory concerns.



In 2022, MTN&#8217;s talks to buy out smaller rival Telkom fell through. And last year, Rain&#8217;s push to be bought by Telkom ended without a deal.



Vodacom had pledged that much of the 6-9 billion rand ($342-512 million) in cash it was offering as part of the Maziv bid would go to infrastructure investment. It said a further 10 billion rand over five years would target investment in mainly low income areas.



But that was not enough to win over the tribunal.



That now leaves the company, and the sector more broadly, with slow and costly expansion options.



&#8220;Vodacom can continue with its own fibre network rollout and consider merging with several other small regional fibre operators,&#8221; Peter Takaendesa, head of equities at Mergence Investment Managers, said.



Vodacom&nbsp;declined to&nbsp;comment.



But analysts say that the Competition Tribunal&#8217;s decision will make M&amp;A deals in South Africa&#8217;s telecoms sector much less attractive to capital.



And even with financing, factors including environmental approval timelines and fibre equipment supply chains mean the big mobile operators have a long road ahead if they are to make up ground on existing fibre networks.



&#8220;My guess is five to 10 years,&#8221; Takaendesa said.



($1 = 17.5575 rand)



(Reporting by Nqobile Dludla; Editing by Joe Bavier and Mark Potter)

FILE PHOTO: A branch of South African mobile communications provider Vodacom in Cape Town

Blocked Vodacom merger derails S.African telcos M&A push, analysts say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-820x545.jpg" alt="" class="wp-image-549042" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-1536x1021.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/FN6SHZMGJVMXJICANZS4G326BA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows the Tetra Pak factory floor in Durban, South Africa, April 4, 2024. REUTERS/Rogan Ward/File Photo</figcaption></figure>



JOHANNESBURG, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;South African manufacturing activity grew in October for the second month in a row, a local purchasing managers&#8217; index (PMI) survey showed, the first time since early 2023 that the highly volatile sector has recorded two consecutive months of growth.



The seasonally-adjusted PMI sponsored by South African bank Absa fell to 52.6 points in October from a revised 53.3 in September, staying above the 50-point mark that separates expansion from contraction.



The business activity and new sales orders sub-indices delivered another strong performance, and Absa said there were further positive signs on the horizon.



&#8220;Local demand is expected to pick up pace as some benefits from the interest rate cut (by the central bank in September) come through with a lag,&#8221; Absa said in a statement.



&#8220;Other windfalls, in the form of lower inflation and a boost from withdrawals following the introduction of the two-pot retirement system, could further lift consumer spending,&#8221; Absa added.



The &#8220;two-pot&#8221; pension reform, which from Sept. 1 allowed people to make partial withdrawals from their pension funds before retirement, is expected to spur retail sales and economic growth in the final quarters of the year.



(Reporting by Tannur Anders; Editing by Alexander Winning)

A general view of the Tetra Pak factory floor in Durban

South African factory sector expands for second month, Absa PMI shows

<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-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Friday.



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



South Africa&#8217;s weekly inflation-linked bonds auction



South Africa&#8217;s October vehicle sales



South Africa&#8217;s October manufacturing PMI



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



South Africa&#8217;s rand was broadly steady on Thursday following the release of local producer inflation and trade balance data, a day after the finance minister delivered the mid-term budget.



On the stock market, the Top-40 index closed about 1.7% lower.



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



Asian markets started what could be a momentous month warily, with shares mostly lower and Treasury yields near three-month highs on Friday, while investors wait for U.S. jobs data, although a rate cut next week is largely baked in.



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



All three U.S. stock indexes closed lower on Thursday after Microsoft and Meta Platforms highlighted growing artificial intelligence costs that could hit their earnings, curbing enthusiasm for megacaps that have fuelled the market rally this year.



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



Gold prices ticked up on Friday and headed for a slight weekly gain, while investors braced for the U.S. payrolls data that could provide further clues about the Federal Reserve&#8217;s interest rate outlook.



&#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; Eskom says SA has enough power for the next five years



&#8211; SA sets the pace in Africa’s energy transition



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



&#8211; Standard Bank forced to block Brazilian transactions after fraud attacks



(Compiled by Tannur Anders)

South African Markets – Factors to watch on Nov 1

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-820x546.jpg" alt="" class="wp-image-548948" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-2178136315-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">CALLINGTON, ENGLAND &#8211; OCTOBER 17: Prince William, Prince of Wales, the Duke of Cornwall, arrives at the College Stoke Climsland for a visit and to learn about how the college is providing opportunities for young people in rural areas, on October 17, 2024 in Callington, Cornwall, England. (Photo by Justin Tallis &#8211; WPA Pool/Getty Images)</figcaption></figure>



LONDON, Nov 1 (Reuters)&nbsp;&#8211;&nbsp;Prince William jets to South Africa next week for the start of a four day trip which will take in the annual awards ceremony for the British heir-to-the throne&#8217;s multi-million dollar environmental prize.



William travels to Cape Town on Monday for a series of events to promote his Earthshot Prize, while he will also attend the United for Wildlife Global Summit and have a meeting with South African President Cyril Ramaphosa during his stay.



&#8220;His royal highness is looking forward to spending time with people from South Africa and across the wider continent, as well as celebrating the incredible climate solutions that will be spotlighted,&#8221; Kensington Palace said in a statement.



The trip will be the Prince Of Wales&#8217; first to South Africa since 2010, and he will be making the visit alone as his wife Kate is still managing a return to work after finishing a course of preventative chemotherapy for cancer.



William, who like his father King Charles has become a keen environmental campaigner, set up the Earthshot Prize in 2020, inspired by his last visit to Africa six years ago.



A nod to former U.S. President John F. Kennedy&#8217;s &#8220;moonshot&#8221; project which led to the 1969 lunar landing, its goal is to find innovations to combat climate and other green issues, and awards five winners 1 million pounds ($1.3 million) each to drive their projects.



The ceremony itself will be held on Nov. 6, hosted by U.S. actor Billy Porter and South African TV presenter Bonang Matheba, and will also feature performances by the likes of Nigerian pop star Davido and Tanzanian singer Diamond Platnumz.



Supermodel Heidi Klum and actress Nina Dobrev will be among the celebrities announcing the winners.



&#8220;I can’t wait to be part of an evening that celebrates creativity, human ingenuity, and artistry in all its different forms,&#8221; Porter said.



($1 = 0.7709 pounds)



(Reporting by Michael Holden; Editing by Kate Holton and Alison Williams)

The Duke of Cornwall To Visit Duchy College

Prince William heads to South Africa for green prize ceremony

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-820x547.jpg" alt="" class="wp-image-548267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/GettyImages-2181228229-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Enoch Godongwana, South Africa&#8217;s finance minister, at a news conference ahead of delivering his mid term budget policy statement to the parliament in Cape Town, South Africa, on Wednesday, Oct. 30, 2024. After years of weak growth, economists expect National Treasury to revise its forecasts for the next two years upwards, largely because of improved power supply. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



CAPE TOWN, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s&nbsp;government&nbsp;on Wednesday&nbsp;forecast&nbsp;wider budget deficits and higher debt over the next three years, even&nbsp;as it anticipated better growth prospects due to improved electricity supply.



In the first budget review since the African National Congress&nbsp;(ANC)&nbsp;lost its ruling majority and formed a coalition government, the&nbsp;National Treasury&nbsp;said it saw the consolidated deficit at 5.0% of&nbsp;national output&nbsp;in the fiscal year that ends in March 2025, wider than the 4.5% deficit forecast in February.



For next fiscal year, the Treasury now sees a budget deficit of 4.3% of&nbsp;gross domestic product (GDP),&nbsp;up from&nbsp;a previous forecast of 3.7%.



The projections were worse than expected in a Reuters poll published last week. Economists in that poll predicted that the Treasury would announce a narrower 2024/25 deficit forecast of 4.4% and of 3.9% for 2025/26.



The rand currency turned weaker against the U.S. dollar after the new projections were announced.



The Treasury said&nbsp;in its Medium Term Budget Policy Statementthat&nbsp;&#8220;fiscal consolidation measures have limited, but not prevented, the widening of budget deficits and debt&#8221;.



Revenue collection is expected to be hit by&nbsp;a decline in fuel levy and import value-added tax collections, among&nbsp;other things, it said.



&#8220;In the absence of faster growth and in the face of external risks, tax revenue will remain under pressure, forcing us to make difficult&nbsp;decisions,&#8221; Finance Minister Enoch Godongwana said.



South Africa&#8217;s gross debt is now seen stabilising at 75.5% of GDP in 2025/26.



The economy is expected to expand&nbsp;by&nbsp;1.1% this year, down from a February estimate of 1.3%. Growth is expected to come in at 1.7% in 2025,&nbsp;versus a&nbsp;previous forecast of 1.6%.



<h2 class="wp-block-heading" id="h-infrastructure-focus">INFRASTRUCTURE FOCUS</h2>



Africa&#8217;s most industrialised economy has struggled to grow for more than a decade, constrained by inefficiencies at state power utility Eskom and port and freight rail operator Transnet.



The Treasury said the medium-term growth prospects were improving thanks to a suspension of rolling power blackouts and improved investor confidence following the formation of the coalition government in June, though lingering logistics bottlenecks remained a concern.



President Cyril Ramaphosa has touted infrastructure development as key to economic growth.



The Treasury said the government aimed to transform its approach to public sector infrastructure by doing more to attract private sector participation, including a focus on exploring alternative financing mechanisms.



(Reporting by Kopano Gumbi and Wendell Roelf in Cape Town, and Olivia Kumwenda-Mtambo and Tannur Anders in Pretoria;Additional reporting by Bhargav Acharya in Johannesburg;Writing by Olivia Kumwenda-Mtambo;Editing by Alexander Winning)

South Africa

South African rand stable; local jobs data in focus this week

Pick n Pay gives price range for IPO of up to 40% of Boxer

South Africa concerned Trump election will impact climate talks

South African rand slips against stronger dollar

South African Markets – Factors to watch on Nov 8

South African rand recoups some losses against dollar

South African Markets – Factors to watch on Nov 7

Prince William meets President Ramaphosa on South Africa trip

South African Markets – Factors to watch on Nov 5

South Africa’s private sector growth sustained in October as costs fall, PMI shows

UK’s Prince William arrives in South Africa for climate-focused trip

South African rand gains as markets brace for US election, rate decision

Blocked Vodacom merger derails S.African telcos M&A push, analysts say

South African factory sector expands for second month, Absa PMI shows

South African Markets – Factors to watch on Nov 1

Prince William heads to South Africa for green prize ceremony

South Africa sees wider deficits, higher debt in budget review

News Tips

Advertise With Us

South Africa

South African rand stable; local jobs data in focus this week

Pick n Pay gives price range for IPO of up to 40% of Boxer

South Africa concerned Trump election will impact climate talks

South African rand slips against stronger dollar

South African Markets – Factors to watch on Nov 8

South African rand recoups some losses against dollar

South African Markets – Factors to watch on Nov 7

Prince William meets President Ramaphosa on South Africa trip

South African Markets – Factors to watch on Nov 5

South Africa’s private sector growth sustained in October as costs fall, PMI shows

UK’s Prince William arrives in South Africa for climate-focused trip

South African rand gains as markets brace for US election, rate decision

Blocked Vodacom merger derails S.African telcos M&A push, analysts say

South African factory sector expands for second month, Absa PMI shows

South African Markets – Factors to watch on Nov 1

Prince William heads to South Africa for green prize ceremony

South Africa sees wider deficits, higher debt in budget review

News Tips

Advertise With Us

Newsletters