Minerals Council calls for intervention to ‘salvage and revive’ South Africa

The Minerals Council South Africa has urged President Cyril Ramaphosa and other government leaders to “salvage and revive” South Africa’s economy after noting the “increasing urgency of a range of critical steps needed”. In a statement released ahead of the Business Economic Indaba (BEI), which is hosted by Business Unity South Africa (Busa), Minerals Council CEO Roger Baxter lamented declining investor and business confidence levels in the country.The Minerals Council cited power security and embattled State-owned power utility Eskom, the country’s fiscal crisis, as well as macroeconomic related policy initiatives as some of the areas that needed focus. With regard to power security and Eskom, the Minerals Council believes that the electricity supply crisis is “the biggest single risk to the South African economy”.

Load-shedding raises risk of another South African recession

South Africa’s flagging economy could face a second recession in as many years due to a new wave of nationwide power cuts. Eskom Holdings, the State-owned power utility seen by Goldman Sachs Group as the biggest threat to the country’s economy, started a fifth day of rolling blackouts on Monday due to further losses of generating capacity at its plants. While the power cuts are implemented to prevent a collapse of the electricity grid, they have a debilitating effect on the economy by curtailing mining activity and factory output and causing crippling traffic delays.

IMF says $10bn Congo budget unrealistic as mining slows

The International Monetary Fund (IMF)said the Democratic Republic of Congo’s proposed $10.2-billion budget is “unrealistic,” amid slowing output from the country’s copper and cobalt mines. The government is seeking a budget of 16.9-trillion francs ($10.2-billion) next year, with revenue expected to climb 63% compared to this year. The IMF projects that Congo’s actual revenue this year will only be about $5.5-billion, including grants, and will rise to about $6.32-billion next year.

Urgent calls for reform as South Africa’s GDP contracts 0.6% in third quarter

South Africa’s gross domestic product contracted by 0.6% in the third quarter. However, on a year-on-year basis, the economy grew by 0.1%, Statistics South Africa statistician-general Risenga Maluleke told media on Tuesday. Previously, Stats SA had revealed that the GDP, in the first quarter of the year, had dropped by 3.1%. The second quarter, however, saw a 3.1% growth - basically putting the country where it was at the start of the year. The unadjusted real GDP at market prices for the first nine months of this year increased by 0.3% year-on-year. Nominal GDP was estimated at just under R1.3-trillion for the quarter, up R31-billion from the second quarter.

Urgent calls for reform as South Africa’s GDP contracts 0.6% in third quarter

South Africa’s gross domestic product contracted by 0.6% in the third quarter. However, on a year-on-year basis, the economy grew by 0.1%, Statistics South Africa statistician-general Risenga Maluleke told media on Tuesday. Previously, Stats SA had revealed that the GDP, in the first quarter of the year, had dropped by 3.1%. The second quarter, however, saw a 3.1% growth - basically putting the country where it was at the start of the year. The unadjusted real GDP at market prices for the first nine months of this year increased by 0.3% year-on-year. Nominal GDP was estimated at just under R1.3-trillion for the quarter, up R31-billion from the second quarter.

Urgent calls for reform as South Africa’s GDP contracts 0.6% in third quarter

South Africa’s gross domestic product contracted by 0.6% in the third quarter. However, on a year-on-year basis, the economy grew by 0.1%, Statistics South Africa statistician-general Risenga Maluleke told media on Tuesday. Previously, Stats SA had revealed that the GDP, in the first quarter of the year, had dropped by 3.1%. The second quarter, however, saw a 3.1% growth - basically putting the country where it was at the start of the year. The unadjusted real GDP at market prices for the first nine months of this year increased by 0.3% year-on-year. Nominal GDP was estimated at just under R1.3-trillion for the quarter, up R31-billion from the second quarter.

PwC warns third-quarter GDP data likely to be ‘disappointing’

Of the 14 indicators in analyst firm PwC’s sectoral insights, published ahead of the release of gross domestic product (GDP) data on Tuesday, only wholesale trade and civil construction showed improvements in the third quarter. This, PwC said, “sends a clear warning” that GDP data for the third quarter would likely be disappointing, a situation that would also probably continue into the fourth quarter.

Bond fund exodus from South Africa well under way as credit rating teeters

South Africa's struggle to safeguard its last investment grade credit rating has failed to convince the most credit-sensitive global investors and many active fund managers have already voted with their feet. The precarious credit rating of the continent's most industrialised nation was put back in play once again last month after the government issued a bleak mid-term budget statement that slashed the growth forecast and showed government debt racing to more than 70% of gross domestic product by 2023.