Global Courant 2023-05-10 11:07:52
Here’s what’s happening in and affecting South Africa today:
Energy fund for farmers: Agriculture minister Thoko Didiza says an “agro-energy fund” of R2.5 billion will be created by the land bank, allowing farmers to apply for funding for alternative energy sources. The fund said farmers could receive grants of between R500,000 and R1.5 million, depending on the size of their farm’s operations. Didiza said the fund will focus on energy-intensive agricultural activities, such as irrigation, exhaustive agricultural production systems and cold chain logistics activities. (Business day) Bitcoin scam relief: The SA Revenue Service (SARS) and the liquidators of Mirror Trading International (MTI) – a collapsed bitcoin Ponzi scheme – have settled for less than R300 million, despite the tax collector initially asking for R900 million. This could be positive news for global investors and creditors who have been defrauded of $1.7 billion (R30 billion) as the smaller settlement will give them a larger pool to recover their losses. (Business day) Steinhoff Big Sale: Steinhoff International will sell Mattress Firm to US company Tempur Sealy next year in a cash and stock transaction worth $4 billion (over R74 billion). Steinhoff bought Mattress Firm for $3.8 billion (R70 billion) in 2016 during the takeover wave. Steinhoff has sold stock in many of its units in an effort to pay off its debt since an accounting scandal hit the company in 2017. The sale to Tempur Sealy is the first since Steinhoff tried to avoid bankruptcy. (Bloomberg) Gauteng Coalition Chaos: Despite the ANC and EFF working together in recent months to overthrow the DA in several metros in Gauteng, coalitions between the two parties could quickly collapse due to differing attitudes to governance. In Ekurhuleni, where the two sides agreed to install AIC’s Sivuyile Ngodwana as mayor, the EFF has accused the ANC of corruption, while the ANC has accused the EFF of using municipal funds for political campaigns. (News24) Markets: The South African rand and equities fell on Tuesday as the dollar moved sharply higher ahead of closely watched US inflation data expected this week. Investors are keenly focused on US consumer inflation data after Federal Reserve Chairman Jerome Powell said last week that policy decisions will be “driven by incoming data,” signaling a likely pause in the cycle of rate hikes. On Wednesday (May 10), the rand traded at R18.63/$, R20.44/€ and R23.51/£. Brent oil is trading at $76.94 a barrel. (Nasdaq)
