Southern Africa |

Gigaba in `Hard Place’ With South Africa’s $2.9 Billion Tax Hole

JOHANNESBURG (Capital Markets in Africa) – South African Finance Minister Malusi Gigaba faces a gaping budget hole — and will have to consider cutting spending, raising taxes and selling state assets if he wants to avoid further ratings downgrades. The economy he oversees is hampered by a deteriorating growth outlook, partly stemming from a battle for control of the ruling party that’s stoked political uncertainty and deterred hiring and investment. Gigaba will outline policy changes in his first mid-term budget…

Ramaphosa Damns South African Graft Amid Rumors He’ll Be Fired

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South African Deputy President Cyril Ramaphosa said mounting allegations that the state has been “captured” by private business interests is damaging the nation’s international reputation, as rumors swirled that he’s about to be fired amid a battle for control of the ruling party. “Our state, comrades, is now being talked about in the most negative terms all over the world,” Ramaphosa said Friday in a speech to members of the National…

South Africa’s Rand Slumps as Ramaphosa Speculation Raises Risks

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JOHANNESBUR (Capital Markets in Africa)- South Africa’s rand led emerging-market currency declines against the dollar amid speculation that President Jacob Zuma is preparing to fire his deputy Cyril Ramaphosa days after removing another critic from his cabinet. The rand dropped as much as 1.3 percent and traded 1.1 percent weaker at 13.6309 per dollar by 9:37 a.m. in Johannesburg, bringing its slump this week to 2.7 percent, the most since the five days ending Aug….

Moody’s Sees Angola as No-Go Zone for U.S. Banks as Risks Remain

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LUANDA (Capital Markets in Africa) – Angola is still a long way off from tempting U.S. banks into resuming dollar-clearing services despite making progress in combating money laundering, according to Moody’s Investors Service. “American banks are unlikely to come back to Angola anytime soon,” Akin Majekodunmi, a London-based senior analyst at Moody’s, said in an interview on Wednesday. “This industry, if you like, doesn’t make much commercial sense for them anymore.” Bank of America Corp….

South Africa Urges PIC to Invest in Social Development Projects

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JOHANNESBURG (Capital Markets in Africa) – The Public Investment Corporation, which manages South African state-worker pensions, should consider investing a portion of its 1.93 trillion rand ($143 billion) in assets into projects that will boost job creation and support people on lower incomes, a parliamentary committee said. That shouldn’t include providing funds for ailing and mis-managed state-owned companies that won’t deliver a return on investment, the standing committee on finance said in an emailed statement…

AngloGold Ashanti to raise $307 mln with South African mine sales

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s AngloGold Ashanti is to sell its newest mine to Harmony Gold for $300 million and another mine for 100 million rand ($7.4 million) to China’s Heaven-Sent SA Sunshine Investment Company, the company said on Thursday. AngloGold, after suffering heavy losses in its home market, said in June it would restructure its South African mines which could see 8,500 workers, around 30 percent of its workforce, laid off….

Zimbabwe says to slash budget deficit despite looming elections

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HARARE (Capital Markets in Africa) – Zimbabwe plans to cut its budget deficit by half next year to 4 percent of GDP, the national Treasury said, an ambitious goal at a time when the country is expected to hold a presidential vote that veteran President Robert Mugabe is set to contest. The southern African country has over the last four years failed to cut its deficit despite promises to do so, mainly due to high…

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