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South Africa Reserve Bank Sees Medium to High Risk of Credit-Rating Cut to Junk

Johannesburg, South Africa, Capital Markets in Africa — There is a medium to high probability that South Africa’s debt will be downgraded to non-investment status, according to the country’s central bank. A cut may lead to capital outflows, affect the government’s rand-denominated debt, increase the cost of funding and reduce credit to the private sector, the Pretoria-based South African Reserve Bank said in its Financial Stability Review on Tuesday. Spreads on credit-default swaps would also widen, corporate profits…

S&P sees South Africa’s banks up against growing credit risks

Posted on by The Editorial Team

Johannesburg, South Africa, Capital Markets in Africa — South Africa’s banks will find it tougher to turn a profit as the economy remains feeble for the next few years and credit risks rise, credit ratings agency Standard & Poor’s said on Thursday. Consumers, squeezed by rising interest rates, unemployment of around 25 percent and high debt levels, are a growing headache for lenders in Africa’s most advanced economy which is forecast by the government to…

Black South African Investors Bidding for PIC Stake in Vodacom

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Johannesburg, South Africa, Capital Markets in Africa — The Public Investment Corp., which manages the bulk of the pension money of South African government workers, is in talks with various black investors who are seeking to buy a stake in Vodacom Group Ltd., PIC Chief Executive Officer Dan Matjila said. The government last year sold its 14 percent stake in Johannesburg-based Vodacom, the largest wireless operator in South Africa, for about 25 billion rand ($1.8 billion) to raise funds…

South Africa’s Reserve Bank Raises Repo rate by 25 basis points in March

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Johannesburg, South Africa, Capital Markets in Africa — The South Africa Reserve Bank’s Monetary Policy Committee (MPC) raised the Repo rate by 25 basis points to 7.00%, as a result of inflation rise concern. This takes the cumulative increases to 2.00 percentage points since the MPC started tightening policy in January 2014. Regarding inflation, the MPC commented that since the previous MPC meeting in January, headline inflation has exceeded the upper end of the target…

South African Reserves Bank to keep rate at 6.50% says Merrill Lynch

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Johannesburg, South Africa, Capital Markets in Africa — The South African Reserve Bank (SARB) will be meeting tomorrow to determine policy rate. Given the current outlook of the economy, threatened with recession and inflation above the 3 percent to 6 percent target, economists and traders are divided which way SARB will go interest rate move. Some economists predict the Monetary Policy Committee will keep the benchmark rate unchanged at 6.75% and some expect a 25 basis-point of tightening. Matthew…

South Africa national budget remains one of the most transparent in the world.

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Johannesburg, South Africa, Capital Markets in Africa — The Open Budget Index (OBI) is the world’s only independent, comparative measure of central government budget transparency. The OBI assigns countries covered by the Open Budget Survey a transparency score on a 100-point scale. The survey focuses specifically on whether the government provides the public with timely access to comprehensive information in accordance with international good practice standards. According to the findings of the latest survey (2015), the…

MTN Group proposes to pay US$1.5 billion to settle Nigerian penalty

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LAGOS, Nigeria, Capital Markets in Africa — MTN Group Limited has proposed to pay 300 billion naira ($1.5 billion) to settle a record $3.9 billion fine in Nigeria for missing a deadline to disconnect unregistered subscribers, according to a document handed to reporters in the Nigerian Senate. Africa’s biggest mobile-phone company made the offer in order to settle a dispute that has been running since the fine was first imposed by Nigerian regulators in October. The country’s…

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