South Africa’s Inflation Rate Falls to a 19-Month Low in June

South Africa’s Inflation Rate Falls to a 19-Month Low in June

JOHANNESBURG (Capital Markets in Africa) – South Africa’s inflation rate fell to its lowest in 19 months in June, creating room for the central bank to shift toward looser monetary policy. Inflation slowed to 5.1 percent from 5.4 percent in May, Pretoria-based Statistics South Africa said Wednesday in a report on its website. That’s the lowest rate since November 2015. The median of 21 economists’ estimates compiled by Bloomberg was for 5.2 percent. Prices increased 0.2 percent in…

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Taste Is Said to Delay Luxury Unit Sale as Buyers Balk at Price

Taste Is Said to Delay Luxury Unit Sale as Buyers Balk at Price

JOHANNESBURG (Capital Markets in Africa) – Taste Holdings Limited has suspended the auction of its business selling jewelery and high-end watches after failing to find a buyer willing to pay an asking price of as much as 400 million rand ($31 million), according to two people familiar with the matter. The South African company said in April it planned to fully focus on expanding its food unit, which includes the local franchises for U.S. brands Starbucks Corp. and…

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Zimbabwe Capital City Plans $100 Million Housing Bond This Year

Zimbabwe Capital City Plans $100 Million Housing Bond This Year

HARARE (Capital Markets in Africa ) – Zimbabwe’s capital city plans to raise a $100 million bond this year to finance the building of new homes and end a decades-long housing shortage, its mayor said. The capital, Harare, has “outgrown itself and the population has grown beyond the city’s initial designs,” mayor Bernard Manyenyeni said Tuesday in an interview. An original plan to obtain $150 million through the central government became “entangled in politics,” he said, without…

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Mozambique Government Says Won’t Make Interest Payment Due July 18

Mozambique Government Says Won’t Make Interest Payment Due July 18

MAPUTO (Capital Markets in Africa) – Mozambique won’t meet its obligations to holders of $726.5m notes due 2023, Ministry of Economy and Finance says in an emailed statement. Challenging macroeconomic, fiscal situation have affected public finances; “debt payment capacity of the republic remains extremely limited in 2017, and does not allow the republic room to make the scheduled interest payment on the notes”. While government is committed to resolving financial crisis through dialogue, it will…

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Analysts Eye South Africa Rate, Even If No Change Seen: Street Wrap

Analysts Eye South Africa Rate, Even If No Change Seen: Street Wrap

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Reserve Bank faces a tricky interest-rate decision on Thursday. The nation’s economy unexpectedly fell into recession in the first quarter. Combating the slump with looser monetary policy may fan inflation, which slowed to within the central bank’s 3 percent to 6 percent target in April for the first time in eight months. It would also be problematic for international investors, given that the rand already has one of the worst…

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Years of Gridlock Face South Africa as Rules Paralyze Mining

Years of Gridlock Face South Africa as Rules Paralyze Mining

JOHANNESBURG (Capital Markets in Africa) – Executives from Sibanye Gold Ltd., South Africa’s biggest gold miner, were in Los Angeles in the final stages of a roadshow with U.S. bond fund managers last month when a bombshell hit from back home. The government had introduced shock new rules requiring local mines to be 30 percent black-owned in perpetuity, toughening existing requirements and implying hefty dilution for shareholders. South African stocks tumbled and bond yields rose that day. The…

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South Africa Graft Ombudsman Won’t Fight Central Bank Court Bid

South Africa Graft Ombudsman Won’t Fight Central Bank Court Bid

JOHANNESBURG (Capital Markets in Africa) – South Africa’s anti-graft ombudsman won’t oppose the Reserve Bank’s court application to review and set aside her instruction to parliament to change the constitution and amend the central bank’s primary role. Public Protector Busisiwe Mkhwebane considered legal advice and decided not to oppose the application the central bank filed on June 28, her office said in an emailed statement on Monday. In a report last month, Mkhwebane instructed the legislature to start…

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