South Africa

South Africa’s central bank stood by its main interest rate Thursday, as the threat of near-recession outweighed intensifying inflation risks facing the continent’s most developed economy, the Wall Street Journal reported today. South African Reserve Bank Governor Lesetja Kganyago said the risks to growth were too great raise the bank’s main “repo” rate above 7.0 percent. Kganyago has raised rates three times in the past year in an effort to curb inflation that has shot above the bank’s 6 percent target ceiling.

South Africa will narrowly avoid slipping into recession this year, the International Monetary Fund said, as lackluster leadership and the global commodity rout drag down a longlisting economy, The Wall Street Journal reported. The IMF said Thursday that Africa’s most developed economy will expand just 0.1% this year, down from its previous forecast for a 0.6% expansion. Growth of just 1.1% in 2017 will do little to make up for the a multiyear slump that pushed unemployment and the current-account deficit to record highs.

South Africa's economy looked set on Tuesday for its first quarterly contraction in a year after measures of business sentiment tumbled, dragged down by shrinking consumer spending that has sunk hopes of a retail-led recovery, Reuters reported. Rising inflation due to severe drought and a weakening currency have triggered a steep rise in lending rates over the past two years, strangling sentiment among businesses and consumers in Africa's most industrialised economy.

When Pravin Gordhan, South Africa’s finance minister, gives his budget on Wednesday, he not only has to deliver on the task of rebalancing revenues and spending, but also restore the credibility of one of the most traded emerging markets, the Financial Times reported. Analysts say the budget will arguably be the most intensely watched of South Africa’s democratic era as investors seek to gauge the trajectory the country is taking as an economic crisis grips.

Anglo American said on Tuesday it plans to sell its iron ore, coal and nickel units as part of a sweeping strategic overhaul to cope with a commodities rout that has triggered a fight for survival even among heavyweight miners, the Irish Times reported on a Reuters story. The global mining group plans to concentrate on its De Beers diamond business as well as platinum and copper operations as it dumps loss-making bulk commodities.

Jacob Zuma has vowed urgent “concrete action” to prevent South Africa’s debt from being downgraded to junk as pressures mount on the country’s $350bn economy. In an indication of the difficulties facing the bellwether emerging market, the South African president told the Financial Times the government needed to change tack on issues such as co-operating with business and curbing spending.

South Africa’s unraveling economy and a string of corruption scandals are coalescing into the gravest challenge for President Jacob Zuma in seven years in office, The Wall Street Journal reported. Those pressures transformed Mr. Zuma’s state-of-the-nation address Thursday into a chaotic condemnation of his policy blunders and a reflection of mounting public discontent, underscored by opposition calls to impeach him. Lawmakers from the firebrand Economic Freedom Fighters party shouted down Speaker Baleka Mbete before she could invite Mr. Zuma to speak.

Anglo American plc has announced to sell high-quality Brazil-based niobium and phosphate mine for $1 billion. The company is taking steps to reorganize its portfolio before year-end financial results announcement, Business Finance News reported. According to the news released by The Sunday Times, the company is intended to sell its operations in the current week. This step will be a part of its restructuring program through, which the company has opted to repair its balance sheet and reduce the debt. During 2015, Anglo American faced severe crisis, mainly due to China’s economic disturbance.

Pravin Gordhan, South Africa’s third finance minister in less than a week, insisted on Monday that the government was committed to fiscal discipline as he sought to reassure investors following days of extraordinary turmoil that wiped billions of dollars from the value of the nation’s equity and bond markets, the Financial Times reported.

South Africa's Evraz Highveld Steel and Vanadium will defend its business rescue proceedings in court against British parent Evraz , the company said in a statement on Friday. The South African steelmaker, seeking protection from creditors after heavy losses due to cheap imports from China, said East Metals AG and Mastercroft S.A.R.L had instituted court proceedings to have a vote by creditors earlier this month declared invalid. Both are subsidiaries of the London-listed parent company, which acquired the South African steelmaker in 2008.