The South African Reserve Bank cut its main repo rate by a quarter percentage point to 7% on Thursday, as inflation remains low in the midst of continuing global uncertainty, the Wall Street Journal reported. The decision continues the cutting cycle begun in September when the bank started to reduce rates from a 15-year high of 8.25%. Headline inflation in South Africa was 3% in June, up slightly from 2.8% in May, but at the bottom of the SARB’s target range of 3% to 6%. If inflation remains around 3%, SARB Gov.
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Walk down the aisles of a Trader Joe’s or Whole Foods Market in the U.S., and chances are many of the piles of oranges, lemons, limes and grapefruit will be labeled “Produce of South Africa,” Bloomberg reported. They have become a staple in the U.S. — the world’s largest citrus importer — especially during the off-season summer months when in the southern hemisphere the South African winter harvest is at its peak. But now, those supplies are threatened by a potential 31% tariff President Donald Trump has slapped on the country.
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South Africa is considering offering additional incentives to automakers to help cushion the impact of U.S. President Donald Trump's tariffs on cars, Trade, Industry and Competition Minister Parks Tau said on Thursday, Reuters reported. "What we're currently considering is the possibility of expanding the automotive industry production plan so that we're able to mitigate the impact in our industry," Tau said in an interview with radio broadcaster Power FM.
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South Africa’s central bank paused its easing cycle while it assesses the impact US President Donald Trump’s trade policies may have on inflation, Bloomberg News reported. The monetary policy committee maintained the benchmark interest rate at 7.5%, Governor Lesetja Kganyago told reporters at a briefing north of Johannesburg on Thursday. That matched the median estimate of 21 economists in a Bloomberg survey, in which 14 predicted the hold and the rest expected a cut.
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South Africa's largest airline, FlySafair, has been given a year to reduce its foreign shareholding, or it risks having its license suspended, Business Insider Africa reported. If the airline fails to meet the deadline of a year from Jan. 23, it will be required to appear before the Domestic Air Services Council to explain why its license should not be revoked, according to a statement from the Department of Transport on Wednesday.
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Military company Paramount Industrial Holdings (PIH), a part of the Paramount group of companies, has filed for business rescue amid legal disputes within another division of the Paramount group. Despite this, other subsidiary companies in South Africa are expected to continue operating normally, Military.Africa reported. The PIH board made the decision to enter business rescue on 11 November.
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South Africa’s State airline is being approached by banks keen to discuss lending the carrier money, aided by a turnaround in the company’s finances, interim Chief Executive Officer John Lamola said, Bloomberg News reported. South African Airways (SAA) needs to finance a growth strategy that envisages its fleet more than doubling to 43 planes over the next five years. The company is constrained from seeking funds from the government, which is limiting bailouts to state-owned enterprises as it focuses on stabilising the nation’s debt.
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