<figure class="wp-block-image size-large"><img decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2017/06/Ethiopian_Airlines_Wikimedia-1024x683.jpg" alt="" class="wp-image-129387"/><figcaption>The accident killed all 157 people on board when the new Boeing plunged into farmland six minutes after taking off from the capital. It was the second accident involving the 737 MAX in five months and led to the plane being grounded worldwide. </figcaption></figure>



ADDIS ABABA (Reuters) &#8211; Families who lost loved ones aboard Ethiopian Airlines Flight 302 visited the crash site on Tuesday to mark the first anniversary of the tragedy, a day after interim results of a probe focused on faulty systems on the Boeing 737 MAX jet.



The accident killed all 157 people on board when the new Boeing plunged into farmland six minutes after taking off from the capital. It was the second accident involving the 737 MAX in five months and led to the plane being grounded worldwide.



People from 33 nations were aboard Flight 302, many of them working with the United Nations, and hundreds of relatives and friends from across the world travelled to Ethiopia for the memorial.



Families from countries including Canada, the United States, Ethiopia, Kenya, Uganda, Italy and France attended the ceremony at the crash site, about a three-hour drive from the capital, Addis Ababa.



The programme included a tree planting and the reading out of victims’ names, organisers said. Police set up a roadblock a kilometre from the site to prevent the public from attending.



At the United Nations offices in Addis Ababa, friends and families lit candles in front of wreaths in honour of loved ones and colleagues.



“We are traumatized all over again,” said Huguette Debets, who lost her husband Jackson Musoni, father of their three children.



“I want the world to never forget these horrific plane crashes…it could happen to any of us and it should never happen again.” 



In a separate event, employees of Ethiopian Airlines gathered at the pilots’ association, where pictures of the dead were lined by arrangements of white roses, the traditional colour of mourning in Ethiopia.



 A small string orchestra played as a slideshow displayed pictures of the dead in happier times.



Getachew Tessema, the father of the captain, said his family had been filled with pride when his son began working for the airline.



“He died at the tender age of 29. The only hope I have is to see him in the afterlife. Our wounds will never heal.”



The 737 MAX, Boeing’s best-selling aircraft, remains grounded. The plane maker has lost billions of dollars since the Ethiopian crash and an October 2018 accident involving Indonesia’s Lion Air, which killed all 189 people aboard.



 Boeing’s CEO was forced to step down and the company is facing hundreds of lawsuits from bereaved families.



Monday’s interim report from Ethiopia’s Aircraft Accident Investigation Bureau bolstered the findings of Ethiopia’s initial assessment, which linked the crash to the plane’s MCAS anti-stall software.



It identified no issues with the airline or the pilots’ handling of the plane. 



Inaccurate sensor readings activated the plane’s MCAS anti-stall system, pushing the nose of the aircraft lower as the pilots struggled to control it, the report said.



Reporting by Giulia Paravicini; additional reporting by Kumerra Gemechu in Addis Ababa; writing by Omar Mohammed and Katharine Houreld; editing by Jason Neely, David Goodman and Mike Collett-White

Memorial marks first anniversary of Ethiopian 737 MAX crash

<figure class="wp-block-image size-large"><img decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2018/10/HIV_AIDS_Shutterstock.jpg" alt="" class="wp-image-321255"/><figcaption>The number of countries in sub-Saharan Africa of which have been impacted by the epidemic, including the Democratic Republic of Congo, currently sits at seven.</figcaption></figure>



KINSHASA, March 10 (Reuters) &#8211; Democratic Republic of Congo confirmed its first case of coronavirus on Tuesday, bringing the number of countries in sub-Saharan Africa hit by the epidemic to seven.



The patient is a Belgian citizen who had been in Congo for several days. He and others with him have been placed in quarantine, Congolese health minister Eteni Longondo said on Radio Okapi.



&#8220;What I&#8217;d like to tell people is not to panic,&#8221; he said.



The outbreak has largely spared sub-Saharan Africa so far, but since February a few cases have been registered in Nigeria, Senegal, South Africa, Cameroon, Togo and Burkina Faso. North African countries have registered dozens of cases.



Congo&#8217;s first coronavirus case comes as its long-running Ebola epidemic appears to be on the wane. The last patient being treated for Ebola was discharged on March 3 &#8211; the first time there have been no active cases since the outbreak was declared in August 2018.



(Reporting by Stanys Bujakera and Djaffar Al Katanty Writing by Alessandra Prentice Editing by Edward McAllister)

Democratic Republic of Congo confirms first coronavirus case

MINI_YOUTUBE_PENRESA 09

Tanzania: The soul of a New Africa

By Dr Zwelini Mkhize, Minister of Health, SA



Press statement The Minister of Health wishes to advise all South Africans that a second case of COVID-19 has now been confirmed in South Africa. The 39 year old lady who is from Gauteng is a direct contact to the first case from KwaZulu-Natal. She was part of the group of 10 that had travelled to Italy. The public must be notified that we have information and know the whereabouts of all the other 10 people who were part of the group that had travelled to Italy. All those who came back to South Africa, are currently being tested. We are now awaiting their test results to come out. Since being traced, they have remained in isolation to avoid any further contact with third parties. The second patient who has now tested positive for COV-19 will now be immediately admitted to a public health facility in Gauteng that government has identified as one of the hospitals that are ready to receive COVID-19 positive patients. We are now following all the protocols that we have already publicly announced to the public in dealing with this case. We will keep the public fully informed on all relevant developments. We also wish to notify the public that our embassy has advised us that a 39 year old male South African who works in Daegu, South Korea has also tested positive for COVID-19. He was due to return to South Africa and has since remained in South Korea. We are now following up with the South Korean authorities firstly to obtain formal confirmation of this case and also the details of where our citizen is being treated. We continue to call for calm and cooperation from the public and the media during this period. We also request that the privacy of the patients, the affected individuals and families be respected. Our commitment to do everything in our power to mitigate against the uncontrollable spread of COVID-19 in our country, remains.

SA’s richest province reports first case of COVID-19

By Moody&#8217;s 



Summary » The global spread of the coronavirus is resulting in simultaneous supply and demand shocks. We expect these shocks to materially slow economic activity, particularly in the first half of this year. We have therefore revised our 2020 baseline growth forecasts for all G-20 economies. We expect these countries, as a group, to grow by 2.1% in 2020, 0.3 percentage point lower than our previous forecast. We have lowered our 2020 forecast for China&#8217;s growth to 4.8% from our previous estimate of 5.2%. For the US, we now expect real GDP to grow by 1.5% in 2020, down from our previous estimate of 1.7%. » The full extent of the economic costs will be unclear for some time. Fear of contagion will dampen consumer and business activity. The longer it takes for households and businesses to resume normal activity, the greater the economic impact. » Global recession risks have risen. The longer the outbreak affects economic activity, the demand shock will dominate and lead to recessionary dynamics. In particular, a sustained pullback in consumption, coupled with extended closures of businesses, would hurt earnings, drive layoffs and weigh on sentiment. Such conditions could ultimately feed self-sustaining recessionary dynamics. Heightened asset price volatility would magnify the shock. » Fiscal and monetary policy measures will likely help limit the damage in individual economies. Policy announcements from fiscal authorities, central banks and international organizations so far suggest that policy response is likely to be strong in affected countries. The US Federal Reserve’s decision to cut the federal funds rate by 50 basis points and the announcements from the European Central Bank and the Bank of Japan assuring policy support will limit global financial market volatility and partly counter the tightening of financial conditions.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="754" height="604" src="https://www.cnbcafrica.com/wp-content/uploads/2020/03/growth.jpg" alt="" class="wp-image-362224" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/growth.jpg 754w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/growth-300x240.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/growth-696x558.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/growth-524x420.jpg 524w" sizes="auto, (max-width: 754px) 100vw, 754px" /></figure>

Moody’s cuts SA’s growth forecast on the back of Coronavirus

By Bianca Botes, Treasury Partner at Peregrine Treasury Solutions



The rand has come under pressure as the first case of the COVID-19 coronavirus has been confirmed in South Africa.



The markets are on edge, with many questioning the ability of government to deal with a breakout in SA efficiently. The currency weakened 1.4% during the course of Thursday, trading at R15.46/$, R17.30/€ and R19.99/£.



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="361" height="179" src="https://www.cnbcafrica.com/wp-content/uploads/2020/03/image.png" alt="" class="wp-image-362066" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/image.png 361w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/image-300x149.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/image-324x160.png 324w" sizes="auto, (max-width: 361px) 100vw, 361px" /><figcaption>RAND DIVES ON COVID-19 CASE </figcaption></figure></div>



READ: <a href="https://www.cnbcafrica.com/news/2020/03/05/south-africa-confirms-first-case-of-covid-19/">South Africa confirms first case of COVID-19</a> ­ 



READ: <a href="https://www.cnbcafrica.com/coronavirus/2020/03/03/here-are-some-tips-on-staying-safe-from-the-coronavirus/">Here are some tips on staying safe from the #coronavirus </a>



READ: <a href="https://www.cnbcafrica.com/coronavirus/2020/02/28/the-novel-coronavirus-frequently-asked-questions/">The Novel Coronavirus: frequently asked questions </a>

Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown

First confirmed coronavirus case in SA sends rand diving

By David S. Levin, writer from New York 



Maybe it’s me, but U.S. politics, and the Democrats in particular, are starting to remind me of an episode of South Park. With an ensemble of panic-stricken, ageing politicos facing off against young, socialist insurgents with man-buns, it makes for hours of riveting binge-watching. Plus, if you’re out of the house, thanks to Facebook and Twitter, you can even follow your favourite politicians getting brought to their knees while you shop at the mall or hang out at the beach. Technology sure makes hating people easy these days. 



Back in my parents day, it wasn’t this bad
though. Of course, you still despised all the politicians just like we do today.
But you could usually find someone to vote for. Remember, years ago, the
Democrats used to have some real star power too. There was FDR and JFK. Lyndon
Johnson and Bill Clinton. And, more recently, even Barack Obama. But those
models have been discontinued and man, how times have changed. 



Put simply, today’s Democrats are not my parents Democrats. Or mine either. Since they lost the election to Donald Trump in 2016, they’ve been flapping around on the dock like a freshly caught fish, trying to figure out who’s to blame for their near-terminal state. It’s gotten so bad, their leading presidential candidate is actually a socialist which pretty much illustrates everything that’s gone wrong with them. Worse yet, the voters are sharply split by culture, generation, and policy agendas so dissimilar you would never even know they’re members of the same party. 



Their current punch-drunk state is the result
of getting rocked by Donald Trump every day for three straight years. First, he
trampled them in the 2016 election like Godzilla in one of those old Japanese monster
movies. Then, two years and $32 million taxpayer dollars later, the Mueller
investigation ended with barely a whimper. And just a few months ago, they actually
managed to impeach him but still couldn’t get him out of office despite all the
pomp and circumstance. Now, with the election only eight months away, the
Democrats face an enormous uphill battle against a newly invigorated, and oh so
very pissed off, candidate Trump. And his 72 million juiced-up Twitter followers are just chomping at
the bit.



Still, the Democrats fight on. As they
should. I walked by a “post-impeachment” rally a few weeks ago near Central
Park where a hundred or so rabid Never-Trumpers were jumping up and down screaming
“Resist!!! Resist !!!” Come on already. Don’t you think it’s time for a new
message after three years of this? Maybe some different language or another
angle altogether? I don’t think a platform of “resist everything” is really working anymore. It’s a
little broad. Plus, it requires way too much time and energy to resist
everything. A few things? Maybe. Everything? Doubtful. 



So, I’m thinking that the Democrats could
use a makeover. Maybe even a full renovation. Because the problem is no one is
quite sure what they’re actually selling anymore. There’s no real platform that
I can see other than “get Trump.” Everything else is just window dressing. The
standard prefab, party-line talking points we’ve all heard time and again. Sorry,
but I need a little bit more than that if you want my vote. What I want to know
is exactly what I’m buying if I pull the lever for either party? What do I get?
Am I only getting “resist everything” if I vote for a Democrat? Is that the entire
pitch? Nothing more?



And then, when you factor in the candidates
lining up to run against Trump in November, it gets really scary. Because there’s
really not much to choose from. At one end, there’s &nbsp;Joe Biden and Mike Bloomberg, both of which look
like they were just uncovered at an archaeological dig out in the desert
somewhere. And at the other end, in a parallel universe kind of way, younger Millennial voters have found
true oneness and karma with socialist Bernie Sanders, mostly because he
told them everything would be free and that he’s going to stick it to the man. As
an old Scottish friend of mine would say, I’m just a wee bit nervous here. 



Some polls actually show Sanders defeating
Trump in November in a head to head match up. But you’ve just got to love the
irony. The Democrats would have a better chance of beating Trump if they ran a socialist
against him. That little tidbit should be screaming volumes to them that the
wheels have come off the wagon. 



But America’s two-party system has proven
to be pretty durable up until recently. Both political parties worked well over
the generations. They performed as intended. If you were a Democrat, you
believed in certain core values. Big government programmes, higher taxes on the
rich, the environment, civil rights and so on.&nbsp;And if you were a
Republican, you were all about smaller government, a strong military, freedom
of religion, and fiscal conservatism among other things. It used to be that most
people fit neatly into one of those two boxes. But not so much anymore. There’s
a reason that registered Independent voters now comprise 41% of the electorate
while the Democrats and Republicans each have 29% respectively. 



So here we sit at the edge of our incredibly
expensive theatre seats with another election just around the corner waiting
for the show to begin. The Democrats can only watch in horror as their
traditional core voters continue to erode and the angry fringe groups that make
up a growing percentage of the party assume the helm and take the national
stage. 



And in the event you’re one of the
remaining centrists in the Democratic Party, you’ve got to be feeling a little
antsy these days. Because the party is changing, and it doesn’t appear you’re
in their plans going forward. It’s getting younger and philosophically less centrist.
And most importantly, less tolerant of the party that they believe has failed
them in the past. Put somewhat differently, you’re the enemy. 



But one thing is clear. These are
definitely not my parents Democrats anymore. The party has changed, and today’s
Democrats represent a radically different set of ideas and allegiances. Just
ask the Bernie posse. They’ll be happy to tell you. 



We’ve all heard the old retail phrase,
“buyer beware.” So, if you’re a moderate Democrat, remember this. As you shop
for your candidate to face off against Donald Trump in November, read the
ingredients and warning labels on the back of the box carefully. And don’t
assume it’s the same product that you’ve always been buying just because the
name is the same. 



All those traditional, centrist Democrats that
many of us grew up with like Kennedy and LBJ, and even Bill Clinton have been
phased out. And now, in their place, you’ll find people like Bernie Sanders and
Alexandria Ocasio-Cortez as the party creeps further and further left toward
socialism. And while they still may be called Democrats, the ingredients have changed,
and the heart and soul of the party has too.

Op-Ed on U.S. elections: Not my parents’ Democrats

<figure>
 <img decoding="async" src="https://images.theconversation.com/files/317777/original/file-20200228-24651-14mom3e.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip">
 <figcaption>
 
 Shutterstock
 </figcaption>
 </figure>

By <a href="https://theconversation.com/africa/team#ozayr-patel">Ozayr Patel</a>, <a href="http://www.theconversation.com/">The Conversation</a> and <a href="https://theconversation.com/africa/team#wale-fatade">Wale Fatade</a>, <a href="http://www.theconversation.com/">The Conversation</a>

Nigeria has confirmed its first case of the novel coronavirus disease after an Italian business traveller arrived in Lagos on the 27th of February. 

Doyin Odubanjo, executive secretary at The Nigerian Academy of Science and past chair, Association of Public Health Physicians of Nigeria, spoke to The Conversation Africa on tips for people to stay safe.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/132681/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important">

<figure>
 <iframe loading="lazy" width="440" height="260" src="https://www.youtube.com/embed/J4-yLludFZM?wmode=transparent&amp;start=0" frameborder="0" allowfullscreen=""></iframe>
 <figcaption>A few basic steps on staying safe from the coronavirus.</figcaption>
 </figure>

<a href="https://theconversation.com/africa/team#ozayr-patel">Ozayr Patel</a>, Digital Editor, <a href="http://www.theconversation.com/">The Conversation</a> and <a href="https://theconversation.com/africa/team#wale-fatade">Wale Fatade</a>, Commissioning Editor: Nigeria, <a href="http://www.theconversation.com/">The Conversation</a>

This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/video-some-basic-tips-on-staying-safe-from-the-coronavirus-132681">original article</a>.

Here are some tips on staying safe from the #coronavirus

Content by Dettol An outbreak of novel coronavirus (2019-nCoV) was first reported from Wuhan, China, in December 2019. It has since spread within China, and to other countries, including Nigeria. 



As yet, there have been no confirmed cases in South Africa. However, we
should follow hygienic practices at all times, to prevent the spread of all
diseases, including the new coronavirus. Here are some answers to frequently
asked questions about the novel coronavirus… 



What is a coronavirus?



Coronaviruses are a large family of viruses found in both animals and
humans. Some infect people and cause illness from the common cold to more
severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe
Acute Respiratory Syndrome (SARS).



What is the latest strain of the
virus?



A novel coronavirus (CoV) is a new strain of coronavirus not previously
found in humans.&nbsp;The new, or “novel” coronavirus, now called 2019-nCoV, was
first detected when an outbreak was reported in Wuhan, China on 31 December,
2019.



What are the symptoms?



There can be fever and respiratory symptoms like coughs and shortness
of breath. Severe cases can lead to pneumonia and kidney failure.



<a href="https://www.who.int/news-room/q-a-detail/q-a-coronaviruses">How does the virus spread?</a>



The new coronavirus mainly spreads through respiratory
droplets when an infected person coughs or sneezes.



Who can catch this virus?



People living or travelling in an area where the 2019-nCoV virus is
circulating may be at risk of infection. At the moment, the vast majority of
infections have been reported in China. Others infected are health workers
treating people with 2019-nCoV or people who have recently travelled from China
or who live or work closely with those travellers.



What can I do to protect myself?



Here are some steps you can take to minimise your risk of contracting
respiratory illnesses, including coronaviruses.



<ul class="wp-block-list"><li>Wash your
hands </li></ul>



Wash
your hands regularly with soap and water or an alcohol-based hand sanitiser. 



<ul class="wp-block-list"><li>Practice
respiratory hygiene</li></ul>



When coughing and
sneezing, cover your mouth and nose with a flexed elbow or a tissue. Discard
tissues into a closed bin and then wash your hands. 



<ul class="wp-block-list"><li>Maintain
social distance</li></ul>



Keep at least a metre
between yourself and other people, particularly people coughing, sneezing or
who have a fever. 



<ul class="wp-block-list"><li>Avoid
touching eyes, nose and mouth</li></ul>



If you touch your
eyes, nose or mouth with your contaminated hands, you can transfer the virus to
yourself.&nbsp;Regularly clean hands and surfaces.



<ul class="wp-block-list"><li>If you have
symptoms, seek medical care </li></ul>



If you have fever,
cough and difficulty breathing, tell your doctor if you, or someone you’ve been
in contact with, have travelled to China and have respiratory symptoms. If you
have mild respiratory symptoms and have not visited China, carefully practice
basic respiratory and hand hygiene and stay home until you feel better.



For more information, visit the World Health Organization website at <a href="http://www.who.int">www.who.int</a> &nbsp;or <a href="http://www.dettol.co.za">www.dettol.co.za</a>

The Novel Coronavirus: frequently asked questions

By Lucie Villa, Moody’s Vice President – Senior Credit Officer



On 26 February, the Government of South Africa (Baa3 negative) released its <a href="https://www.cnbcafrica.com/insights/budget-day/2020/02/26/budget2020-sas-finance-minister-tito-mbowenis-full-speech/">budget </a>for fiscal 2020 (year ending 31 March 2021) and for the subsequent two fiscal years. The fiscal trajectory under the new budget is broadly similar to the Medium-Term Budget Policy Statement (MTBPS) presented in October 2019. In the budget, the government has acknowledged that weak economic growth will weigh on revenue intake, which the government has attempted to compensate for by containing spending, particularly on the public sector wage bill. However, it avoided introducing any broad tax-increasing measures given the weak growth environment. As a result, fiscal deficits will remain wide, around 6%-7% of GDP in the next few years, which will increase the government&#8217;s debt burden over the budget period. Moreover, uncertainty regarding the success of negotiations with the country&#8217;s unions to reduce the wage bill and potential contingent liabilities from state-owned enterprises (SOEs) mean risks to budget forecasts are elevated. For fiscal year 2020 (the year ending March 2021), the main budget1 balance – the relevant fiscal metric to infer developments in government debt – is unchanged from the MTBPS at 6.8% of GDP. For the overall budget – which is broader – the government plans an overall deficit of 6.8% of GDP, which is higher than the 6.5% presented in the MTBPS. The revision stems from the social security funds balance, which is now recording a deficit equivalent to 0.2% of GDP, from a surplus of 0.1% in the MTBPS, because of legislative changes to the Unemployment Insurance Fund. This deficit will not weigh on the government&#8217;s borrowing needs because it will not be financed with debt.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="493" height="285" src="https://www.cnbcafrica.com/wp-content/uploads/2020/02/moody.jpg" alt="" class="wp-image-361400" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/02/moody.jpg 493w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/moody-300x173.jpg 300w" sizes="auto, (max-width: 493px) 100vw, 493px" /></figure>



The government has reduced its revenue forecasts to 29.2% of GDP in fiscal year 2020 from 29.3% in the MTBPS and estimates of 29.4% in fiscal year 2019. Expected gains from the carbon tax will offset the revenue loss from above-inflation increase in personal income tax brackets. The government has focused on adjustments to primary spending to compensate for this drop in revenue. Its focus will be the public sector wage bill, where it expects to realize savings of R36 billion (0.7% of GDP) compared with the MTBPS in fiscal year 2020. This would more than offset increases in support to SOEs compared with the MTBPS, especially support to South African Airways. 



However, interest expenses will consume an increasing share of revenue at a projected 14.5% in fiscal year 2020, up from 13.5% in fiscal year 2019. Total spending as a proportion of GDP is higher than in the MTBPS (36.0% vs. 35.8% of GDP) and higher than in fiscal year 2019 because of the slower than previously expected nominal growth and higher interest spending. In subsequent years, the government projects stable revenue, at 29.2% of GDP, which we view as achievable. The budget details further the South Africa Revenue Service&#8217;s efforts to improve tax compliance but does not quantify the expected impact of such efforts. Fiscal adjustments will predominantly come from the continued moderation in the wage bill growth, at a Compound Annual Growth Rate of 3.5%, compared with annual inflation of around 4.5% and average nominal GDP growth of 5.9% over the period. The authorities have yet to negotiate any moderation in wages with the country&#8217;s unions, which will likely be challenging given South Africa’s socioeconomic realities and would represent a significant departure from the outcome of previous negotiations. If the government fails to contain the rise in the wage bill and compensation spending increases in line with the MTBPS, we estimate that the fiscal deficit would reach 7.5% of GDP in fiscal year 2020 and 7.1% in fiscal year 2021. The SOE sector, which has been a main source of unexpected spending in recent years, increases the risk of a wider-than-expected deficit. Even if the government achieves its planned spending restraint, the government&#8217;s projected primary deficit of 1.1% of GDP by fiscal 2022 would still be too wide to stabilize the debt burden given weak growth projections and our expectation of a further rise in the interest bill. The budget projects government debt will reach 71.6% of GDP by end of March 2023 (net of the guarantee to SOE debt that we have included in government debt since fiscal 2019), 10 percentage points higher than the level estimated for end March 2020. Risks remain skewed toward a higher debt path given the challenges in containing spending growth and persistent risks to growth.

Moody’s rates SA’s #Budget2020, warns risks remain skewed toward a higher debt path

By Kopano Gumbi, CNBC Africa markets reporter 



Minister of Finance Tito Mboweni has decided to cut the strained South African consumer some slack this year by keeping taxes largely unchanged. 



READ:<a href="https://www.cnbcafrica.com/insights/budget-day/2020/02/26/budget2020-risk-of-sa-remaining-investment-grade-by-moodys-has-become-more-pronounced/">#Budget2020: Risk of SA remaining investment grade by Moody’s has become more pronounced</a>







Government will not raise additional revenue from tax
proposals this financial year.&nbsp; The R63 billion revenue shortfall, the
widest shortfall in a decade, is expected to be covered through the management
and consistent decrease of the public-sector wage bill.



“In this difficult economic time, it would be foolhardy to introduce a hike in VAT rates,” said Mboweni.



 <a href="https://www.cnbcafrica.com/insights/budget-day/2020/02/26/budget2020-sas-finance-minister-tito-mbowenis-full-speech/">READ:#Budget2020: SA’s Finance Minister Tito Mboweni’s full speech</a> 



This first budget tabled in the 6th administration has come at a difficult time. With economic activity grinding to a halt, the minister is stuck between al rock and a hard place. Real GDP growth is estimated to be a measly 0.3 percent for 2019 and the projections for 2020 and beyond remain bleak, barely crossing 1 percent. Tax collection revenue was again below expectations, and industry estimated that power cuts caused losses of about 0.1 per cent of GDP in the fourth quarter of 2019.



Ratings agency Moody’s, the last agency to keep South Africa
above investment grade, recently announced it was revising down South Africa’s
2020 growth forecast to 0.7 percent. National treasury estimates that 2020 real
GDP growth will be 0.9 percent. 



The risk to South Africa keeping its investment-grade credit ratings has become more pronounced. The government has noted a sharp increase in borrowing requirements as the fiscal position worsens, and all things being equal, the debt requirement will reach nearly R500 billion in two years’ time. 



It is within this context that the government will not raise
additional revenue from personal income taxes for this year. Choosing instead
to reduce the public-sector wage bill by R160 billion and committing to
spending the already limited resources more prudently. A move that may delight
concerned citizens but aggravate unions that have already expressed displeasure
with the proposal to reduce public sector wages. 



“Eventually government and public service workers will find
each other somewhere along the way, but for the credibility of our fiscal
stance that R160 billion has to be found for all our sakes,” said Mboweni.



The Minister further explained that macroeconomic policy would indicate that a rate cut would have been warranted to spur economic growth. The corporate tax rate remains unchanged at 28 percent and excise duties will be going up in line with inflation and Mboweni hinted that a corporate rate cut could be on the cards if the government can get its ducks in a row.

#Budget2020: South Africans get a tax break; public-sector wage bill cut

By Kopano Gumbi, CNBC Africa markets reporter 



The national treasury has acknowledged that the risk to South Africa remaining investment grade has become more pronounced. A sharp increase in borrowing requirements, unstable electricity supply and reduced tax revenue collections have put strain on the nation’s fiscal position. 



<a href="https://www.cnbcafrica.com/insights/budget-day/2020/02/26/budget2020-sas-finance-minister-tito-mbowenis-full-speech/">READ:#Budget2020: SA’s Finance Minister Tito Mboweni’s full speech</a>



In the last year alone, the government’s gross borrowing
requirements increased by 21.4 percent to R407 billion. The government’s debt
requirements over the next two years will reach nearly R500 billion. The debt
to GDP ratio continues to rise, it is expected to be 65.6 percent of GDP by the
end of 2020/21.



“Although our budget deficit rises to 6.8 percent, we are nevertheless determined to bring it back,” asserts Mboweni.



READ:<a href="https://www.cnbcafrica.com/article/2020/02/26/budget2020-south-africans-get-a-tax-break-public-sector-wage-bill-cut/">#Budget2020: South Africans get a tax break; public-sector wage bill cut</a>



The majority of South Africa’s debt is through domestic loans but as the national treasury has stated, debt is not expected to stabilise over the medium term. A change in the country’s sovereign rating to sub-investment grade would lead to short-term volatility in the financial markets, including an increase in borrowing costs and exchange rate depreciation. The government is of the view that this would unlikely affect its ability to finance its medium-term borrowing requirements.



In trying to exercise more financial prudence, the
government would need to demonstrate that it has a handle on its state-owned
entities. According to government, it has allocated R162 billion to aid
financially stressed companies over the last 12 years. SAA, SA Express, SABC,
Denel and Eskom have been the biggest drain on the state’s resources. Eskom,
the embattled power utility, has received the lion’s share of this assistance.
The total debt of these entities amounts to R760 billion, with 62 percent
guaranteed by government. 



“Over the next three years, debt repayments total R178.1 billion,
of which R103.5 billion is held by Eskom,” estimates government. 



In the coming financial year, government has committed to
provide SAA with an additional R16 billion bailout over the medium term, even
though the company is in voluntary business rescue.



Eskom, which has debt of R450 billion, has received hundreds
of billions from the government and many proposals have been put forward to
assist the ailing power utility. Including, most recently, a proposal to use
the Public Investment Corporation as an investment vehicle. 



Minister Mboweni didn’t scoff at the idea of using public
funds to pay off a large portion of Eskom’s debt, saying that it was not a bad
idea.



“We must be clear that it’s not only public-sector pensions that will be used,” Mboweni said in an address ahead of the budget speech. “If we are going to use pensions, it must be all of our pensions.” This would include private pension funds. The minister outlined that discussions around this are developing and that role-players, in government and in the unions, are coming around to the idea. Mboweni said that this would now introduce the idea that public sector investment could start to happen in Eskom, a point that has been highly contested.

#Budget2020: Risk of SA remaining investment grade by Moody’s has become more pronounced

#Budget2020: SA’s Finance Minister Tito Mboweni’s full speech

By Giulia Paravicini



ADDIS ABABA, Feb 18 (Reuters) &#8211; The United States will provide financial assistance to Ethiopia as it pursues political reforms, the office of Ethiopian Prime Minister Abiy Ahmed said on Tuesday during a visit by U.S. Secretary of State Mike Pompeo.



&#8220;An agreement has been reached regarding the strengthening of the holistic and ongoing reform in Ethiopia to which the United States Government plans to provide substantial financial support,&#8221; the statement said.



Neither Pompeo nor Abiy provided further details. Ethiopia, Africa&#8217;s second-most populous nation, has long been an ally of the United States, which supplies about $1 billion in aid annually.



Pompeo praised political reforms Abiy has spearheaded ahead of Ethiopia&#8217;s upcoming elections. Ethiopians are due vote on Aug. 29 in a balllot Abiy has promised will be free and fair in a bold break from decades of repression.



&#8220;A free and credible vote will show that there is no false choice between democracy and security and it will ensure that everyone has a choice,&#8221; Pompeo told reporters.



Abiy took power in 2018 following years of anti-government protests. He freed thousands of political prisoners, won the Nobel Peace Prize for ending a long-running conflict with neighbouring Eritrea, and put prominent dissidents and human rights activists in positions of power.



&#8220;These aren&#8217;t reforms imposed by somebody on the outside. These were reforms that came from Ethiopian people,&#8221; Pompeo said.



A senior U.S. State Department official told pool reporters said Abiy appeared committed to holding elections on time, although he said Ethiopian security agencies &#8211; long used to suppressing political opposition &#8211; might need some more training on respecting human rights.



Abiy&#8217;s reforms, while applauded abroad, have also unleashed simmering ethnic and political tensions at home as regional powerbrokers jockey for position. More than 2 million of Ethiopia&#8217;s 109 million citizens have been displaced, according to the United Nations.



&#8220;The most important challenge for us is security,&#8221; Ethiopia&#8217;s foreign minister Gedu Andargachew told reporters. &#8220;Most of our youth have no job… this situation is difficult to maintain peace and order.&#8221;



Abiy has also overseen economic reforms, promising to open its bureaucratic, state-run economy to foreign investment and liberalise the telecoms and banking sectors. Ethiopia struggles with foreign exchange shortages that inhibit investment. Gedu also said there had been &#8220;progress&#8221; in a dispute that the U.S. Treasury has been trying to mediate between Ethiopia and Egypt over Ethiopia&#8217;s giant Blue Nile hydropower dam.



Pompeo is on a tour that has already taken him to Germany, Senegal and Angola. His visit comes as some African governments are questioning U.S. President Donald Trump&#8217;s commitment to their continent. 



(Additional reporting from pool reporters, Editing by Angus MacSwan Writing by Katharine Houreld)

U.S. to offer financial support for this East African country’s political reforms

By Nqobile Dludla



JOHANNESBURG, Feb 19 (Reuters) &#8211; Grand Parade Investments (GPI) Ltd said on Wednesday it is selling the Burger King South Africa franchise and a related burger-making plant to private equity firm ECP Africa Fund for 697 million rand ($47 million).





The announcement sent shares in GPI up 9.09% to 3.60 rand, their highest level since Dec. 11.



ECP Africa said that despite a difficult economic climate, it could double the number of Burger King outlets across South Africa in the next five years.



GPI bought the Burger King franchise in 2012, betting on South Africa’s lucrative fast-food market, consumer appetite for flame-grilled burgers and their price appeal.

CNBC

Grand Parade to sell Burger King franchise to one of Africa’s largest private equity firms, here’s why…

HARARE, Feb 17 (Reuters) &#8211; Zimbabwe&#8217;s central bank left its benchmark interest rate at 35% on Monday, citing moderating inflation, as it looks to print more local currency and limit the use of foreign currencies.



Zimbabwe is struggling through its worst economic crisis in a decade, with prices of basic goods soaring and shortages of medicine, fuel and electricity worsening. Hopes of a quick recovery under President Emmerson Mnangagwa are fading.



The worsening poverty is upsetting the fragile calm that&#8217;s prevailed since the 2017 coup that toppled long-time ruler Robert Mugabe.



After suspending publication of annual inflation data, which economic analysts put at 525% in December, authorities will resume printing the figures next month.



Governor John Mangudya was bullish on inflation, projecting that annual price growth would dip below 50% by the end of the year. Monthly inflation fell in January to 2.23%



&#8220;Our task is we stabilize inflation and stabilize the exchange rate. We expect month-on-month inflation will continue to come down until the end of the year,&#8221; Mangudya said.



&#8220;Most of the inflation is caused by non-monetary factors. That is expectations &#8211; that &#8216;I lost money in 2008&#8217;,&#8221; Mangudya said. &#8220;This is a once-beaten, twice-shy scenario. These are things that shape inflation in Zimbabwe.&#8221;



Zimbabweans have little confidence in monetary policy after pensions and savings were wiped out at the height of hyperinflation, which reached 500 billion% in 2008 and forced the country to dump its local currency.



Last year in June, Zimbabwe ended a decade of dollarisation, which fuelled inflation. Mangudya said it would take up to five years to completely wean Zimbabwe from using the U.S. dollar in local transactions.



Seeking to reassure investors, the governor said foreign currency accounts held by companies, donors and individuals were safe, while businesses like mines would continue to receive a portion of their export earnings in dollars.



To ease shortages of cash, the bank will feed higher- denomination Zimbabwe dollar notes into the economy while increasing transparency on foreign currency trading to stabilise the exchange rate.



The central bank governor said he still saw economic growth at 3% in 2020, citing improved rainfall since mid January. 



(Reporting by MacDonald Dzirutwe, writing by Mfuneko Toyana; editing by William Maclean, Larry King)

Zimbabwe central bank leaves rates unchanged, bullish on inflation, what you need to know…

.By Chris Bishop



Before South Africa&#8217;s President Cyril Ramaphosa uttered a word in his State of the Nation Address in Parliament in Cape Town the proceedings were thrown into chaos.



Everyone thought the Economic Freedom Fighters were going to attack public enterprises minister Pravin Gordhan – instead, they hurled angry words across the floor at the president of South Africa who stepped aside 26 years ago to make way for democracy and Nelson Mandela.



Julius Malema led the way by standing and raising a point of order. He castigated former South Africa&#8217;s President FW de Klerk as the commander of Vlakplaas – the apartheid era camp where torture and killings of political activists went on. He called the former president the “Commander of Vlakplaas” and said his presence was an insult to those who died.   “Are we going to go on and on and on about the matter of FW de Klerk? The presence of FW de Klerk in this house is proper as a former president we have done it by the rules.



Delaying the matters of this house on this matter is not
going to achieve anything,” replied Thandi Modise the speaker of the house to
applause from the ANC ruling party benches.



“Only last week de Klerk takes the mic and says apartheid was not a crime against humanity and you are clapping hands for him,” retorted Mbuyiseni Ndlozi, an EFF MP. 



The speaker ruled against them and President Ramaphosa was
invited to give his address to applause from most of the house. 



As the president prepared to speak, again the EFF benches rose –as expected &#8211; to howl down Gordhan who is saddled with the job of reforming the loss-making state owned enterprises. 



They called him a minister working for what they called white monopoly capital. The same opposition MPS in EFF red who once howled: “Payback the money” to former president Jacob Zuma and applauded Gordhan when he was named as finance minister for the second time after the former’s disastrous finance minister shuffle.  



“Pravin Gordhan must go,” shouted one of the EFF MPs to
cheers from his Parliamentary colleagues.



“ Please fire Pravin Gordhan or we go…Please adjourn the
house so you can fire Pravin Gordhan and you will have a peaceful, peaceful,
SONA,” shouted another.



The increasingly angry Speaker of the House looked like a kettle about to boil over. Modise told EFF MPs to take their seats to laughter from the EFF benches and uproar from the ruling party benches.



“You all have a minute to take your seats or march out,”
Modise shouted, over the din on the floor, jabbing her finger at the EFF
benches.



Other MPs complained that millions across the country were waiting to hear what the president had to say and it was unfair that the chaos on the floor was holding up proceedings. Elder statesman Mangosuthu Buthelezi tried to call for calm, but it was as if he was shouting in the wilds of KwaZulu-Natal where he grew up.



Malema’s EFF argued they had a right to speak in Parliament,
yet the speaker disagreed. 



“You are simply retarding the progress of this house
tonight,” says Modise. &nbsp;&nbsp;



The best part of an hour was wasted in squabbling across the
floor and the nation still had no idea, from the lips of the president, what
state it was in. 



“South Africa is not very proud of us tonight,” said Modise
with the shake of her head after 40 minutes of arguing. The heartfelt words
fell like a cup of water on a bushfire.



Maybe the chaos did reflect on the state of the nation in a backhanded way. At the very least, the squabbling was a clear, depressing, sign of the divisions and dissatisfaction that ail the once hopeful, golden, rainbow nation.

article

Memorial marks first anniversary of Ethiopian 737 MAX crash

Democratic Republic of Congo confirms first coronavirus case

Tanzania: The soul of a New Africa

SA’s richest province reports first case of COVID-19

Moody’s cuts SA’s growth forecast on the back of Coronavirus

First confirmed coronavirus case in SA sends rand diving

Op-Ed on U.S. elections: Not my parents’ Democrats

Here are some tips on staying safe from the #coronavirus

The Novel Coronavirus: frequently asked questions

Moody’s rates SA’s #Budget2020, warns risks remain skewed toward a higher debt path

#Budget2020: South Africans get a tax break; public-sector wage bill cut

#Budget2020: Risk of SA remaining investment grade by Moody’s has become more pronounced

#Budget2020: SA’s Finance Minister Tito Mboweni’s full speech

U.S. to offer financial support for this East African country’s political reforms

Grand Parade to sell Burger King franchise to one of Africa’s largest private equity firms, here’s why…

Zimbabwe central bank leaves rates unchanged, bullish on inflation, what you need to know…

#SONA2020: Point of order Mr President !..Two presidents howled down in Parliamentary fiasco

News Tips

Advertise With Us

article

Memorial marks first anniversary of Ethiopian 737 MAX crash

Democratic Republic of Congo confirms first coronavirus case

Tanzania: The soul of a New Africa

SA’s richest province reports first case of COVID-19

Moody’s cuts SA’s growth forecast on the back of Coronavirus

First confirmed coronavirus case in SA sends rand diving

Op-Ed on U.S. elections: Not my parents’ Democrats

Here are some tips on staying safe from the #coronavirus

The Novel Coronavirus: frequently asked questions

Moody’s rates SA’s #Budget2020, warns risks remain skewed toward a higher debt path

#Budget2020: South Africans get a tax break; public-sector wage bill cut

#Budget2020: Risk of SA remaining investment grade by Moody’s has become more pronounced

#Budget2020: SA’s Finance Minister Tito Mboweni’s full speech

U.S. to offer financial support for this East African country’s political reforms

Grand Parade to sell Burger King franchise to one of Africa’s largest private equity firms, here’s why…

Zimbabwe central bank leaves rates unchanged, bullish on inflation, what you need to know…

#SONA2020: Point of order Mr President !..Two presidents howled down in Parliamentary fiasco

News Tips

Advertise With Us

Newsletters