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<p>South Africa&#8217;s Directorate for Priority Crime Investigation- also known as the Hawks is under pressure to make high profile arrests from the litany of corruption cases that are alleged across the country. The Unit will also have to work with the new Investigative Directorate Unit which was recently established by President Ramaphosa. Hawks Head, Lieutenant-General Godfrey Lebeya joins CNBC Africa for more.</p>


Hawks Head Godfrey Lebeya gives update on Steinhoff & VBS

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<p>Dawie Roodt, Chief Economist at the Efficient Group says president Ramaphosa did not go far enough in trimming his cabinet and that he should look at the reducing SA’s bloated civil service.</p>


Ramaphosa should turn his focus to bloated civil service, says economist Dawie Roodt

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<p>Intellidex Head of Capital Markets Research, Peter Attard Montalto shares his views on president Ramaphosa’s cabinet announcement.</p>


Markets react to Ramaphosa’s cabinet announcement

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<p>Managing director for the Banking Association of South Africa (BASA) Cas Coovadia give his views on president Ramaphosa’s cabinet announcement.</p>


BASA’s Cas Coovadia gives a thumbs up to Ramaphosa’s cabinet announcement

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<p>The CEOs of South Africa&#8217;s biggest mining companies say they are willing to collaborate with government to restore the sectors shine. But they ask President Ramaphosa to also play ball in growing the mining industry to create jobs. CNBC Africa’s Fifi Peters caught up with some of them for more.</p>


Mr President, help us help you – Mining CEOs

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<p>The future of South Africa after the dark days of Zuma’s reign is slowly coming to an end.</p>


Trevor Manuel speaks about the Zuma years, damage done to SOEs and Ramaphosa’s investment drive


<p>By Chris Bishop</p>



<p>President Cyril Ramaphosa said Wednesday that South Africa’s
Reserve Bank will be left alone despite concerns that the economy is not
creating enough jobs.</p>



<p>The Reserve Bank, a private company with shareholders,
manages the country’s monetary policy based around inflation targeting.&nbsp;</p>



<p>“There is no interest whatsoever to tamper or tinker with
the independence of the Reserve Bank,” Ramaphosa said at a pre-Davos breakfast
at a Johannesburg hotel.</p>



<p>“Our wish is as it goes about with policy it should keep an
eye on the issue of employment.”</p>



<p>The Reserve Bank has cropped up in many political speeches
in recent years as the South African economy has struggled. Critics say the
central bank should forget about inflation and concentrate on stimulating job
creation &#8211; an analysis dismissed as facile and unworkable by the people who run
the central bank.</p>


President Ramaphosa: This is what we plan to do with South African Reserve Bank


<p>By Chris Bishop&nbsp;</p>



<p>President Cyril Ramaphosa took on the thorny issue of land
that is likely to raise a number of uncomfortable questions at the World
Economic Forum in Davos next week.</p>



<p>The ruling &nbsp;African National Congress surprised many
last year when it vowed to go along with land expropriation without
compensation in line with the calls from the radical opposition party the
Economic Freedom Fighters. It sent shivers down the spine of many foreign
investors who fear it could be the thin end of a nationalisation wedge.</p>



<p>“It will not be done out of vengefulness where people go
around grabbing land. That is how we do things in South Africa,” Ramaphosa told
a pre-Davos breakfast in Johannesburg.</p>



<p>“We are not going to cut off our noses to spite our faces
but we are going to push the interests of our people.”</p>



<p>Ramaphosa said the furore around land has put the issue to
the top of the agenda, which was good. He said it had lit a fire under
government to move it forward in sorting out the land question.</p>



<p>“Landowners have also come forward saying they now realise
how important this is and have offered to &nbsp;put land into the pot.” Says
Ramaphosa.</p>



<p>The president said the government would concentrate on
appropriating state owned, abandoned and unused land.</p>



<p>The ruling ANC goes to the polls in May in the hope of
extending its nearly 25-years in power in South Africa. It is unlikely to lose
its grip on power but knows that the land issue is likely to be a vote winner.</p>


﻿President Ramaphosa reveals what team SA, plans to tell investors in Davos on concerns over land expropriation

<p>JOHANNESBURG (Reuters) &#8211; South Africa faces more power cuts, electricity utility Eskom warned on Monday as it sought to prevent the collapse of its power grid in a test for President Cyril Ramaphosa’s reforms.</p>
<p>Eskom implemented a fifth day of controlled power cuts on Monday, putting more strain on an economy already mired in recession only months before a national election.</p>
<p>“The entire week could be severely constrained if we are unable to replenish the diesel and water reserves, and reduce the high unplanned outages,” Eskom spokesman Khulu Phasiwe said.</p>
<p>Eskom, which is battling a severe financial crisis, coal shortages and breakdowns of its power plants, said it would cut up to 2,000 megawatts of power from the grid on Monday.</p>
<p>The utility, which last week called for a bailout or debt relief, began the controlled cuts, known as load-shedding, on Thursday as demand for power outstripped available capacity.</p>
<p>“Eskom teams are working hard to salvage the situation but the process is going to be hard, long and costly,” Phasiwe said.</p>
<p>Ramaphosa has made reforming Eskom a priority, but he has been hampered by fiscal constraints in a blow to his plan to woo investors who can help grow the economy ahead of an election likely to be held in May next year. nL8N1X61GL]</p>
<p>“Eskom as an institution and its ability to provide stable power supply is the single biggest risk to @CyrilRamaphosa’s investment drive and the South Africa fiscus,” Isaah Mhlanga, executive chief economist at Alexander Forbes Investments said on Twitter.</p>
<p>BNP Paribas South Africa senior economist Jeff Schultz said prolonged power cuts would likely hurt economic growth in the first quarter of 2019, although a slowdown in manufacturing over the Christmas period will buy Eskom some time.</p>
<p>“But come mid-January, if we are still facing load-shedding, that is when it is going to be a much more pressing issue for the economy,” Schultz said.</p>
<p>South Africa entered recession in the second quarter for the first time since 2009. Third-quarter gross domestic product numbers are due out on Tuesday, with analysts polled by Reuters predicting quarter-on-quarter GDP growth of 1.6 percent.</p>
<p>($1 = 13.6396 rand)</p>
<p>Editing by James Macharia and Alexander Smith</p>


More power cuts for South Africa could raise Ramaphosa reform risk

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s President Cyril Ramaphosa has signed into law the national minimum wage bill, his office said on Monday, part of efforts by the government to tackle wage inequality in Africa’s most industrialised economy.</p>
<p>The National Minimum Wage Act sets South Africa’s minimum wage at 20 rand ($1.45) an hour, equal to 3,500 rand per month. The law will come into force on a date to be determined by Ramaphosa, the presidency said.</p>
<p>Supporters of the minimum wage say it will reduce inequality and stimulate economic growth as workers spend more.</p>
<p>But critics say it could lead to increased unemployment, already at record highs, because some employers won’t be able to afford higher wage bills.</p>
<p>Thousands of union members protested against the proposed minimum wage in April, saying it was too low. [nL8N1S23R9]</p>
<p>Ramaphosa’s office said in a statement that while the national minimum wage will not end income inequality, it was a first step towards adressing the clamour for a living wage.</p>
<p>($1 = 13.8072 rand)</p>
<p>Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia</p>


South Africa’s minimum wage bill signed into law by Ramaphosa, what you need to know

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s economic recovery plans face serious constraints with growing debt of state firms domestically and capital outflows as a result of global trade tensions, <a href="https://www.imf.org/en/News/Articles/2018/11/16/ms111918-south-africa-staff-concluding-statement-of-an-imf-staff-visit">the International Monetary Fund (IMF)</a> said on Monday.</p>
<p>In October the global lender said it saw Africa’s most industrialised economy expanding by 0.8 percent in 2018, down from a prior forecast of 1.5 percent. South Africa’s Treasury predicts growth of 0.7 percent.</p>
<p>The recession-bound economy and a bleak budget in October have piled pressure on President Cyril’s Ramaphosa.</p>
<p>“Some of the initial optimism has dissipated as growth remains stuck in low gear and reform implementation has faced constraints,” the IMF said, naming the state power firm Eskom as a key risk.</p>
<p>The president’s work is made harder by cash-strapped state-owned firms, including debt-ridden Eskom, which is struggling to supply the nation’s power.</p>
<p>The IMF said the proposal to amend property laws to allow for expropriation without compensation should be carefully considered and be guided by lessons of international experience.</p>
<p>“Land reform should focus on enhancing agricultural productivity and strengthening tenure security,” said the IMF.</p>
<p>A parliamentary team has recommended a constitutional amendment to make it possible for the state to expropriate land without compensation. The recommendation will now go to the national assembly for a vote.</p>
<p>Reporting by Mfuneko Toyana; Editing by James Macharia</p>
<p>&nbsp;</p>
<p>&nbsp;</p>


South Africa’s economic recovery plans fading: IMF

<p>President Cyril Ramaphosa reported nearly R290 billion worth of investment pledges from local and international companies. PwC’s Strategy&amp; calculations suggest that this investment would add an estimated R338 billion to South Africa’s GDP over the 2019–2024 period, create or sustain an estimated 825 000 direct and indirect jobs (on average per year) and generate an estimated R59 billion in additional government revenue.</p>
<p>In addition, the investment would enable some R468.8 billion in potential production from 2025 to 2035. This production would, over the ten-year period, add an estimated R505 billion to South Africa’s GDP, create and/or sustain an estimated 116 000 direct and indirect jobs (on average per year) and generate an estimated R133 billion in government revenue.</p>
<p>On 16 April 2018, President Cyril Ramaphosa announced his five-year, US$100 billion investment drive in a bid to revive the South African economy. According to the president, his initiative is a response to the drop in total fixed investment in South Africa from 24% of GDP in 2008 to 19% of GDP in 2017, and foreign direct investment (FDI) inflows dropping 77% in rand terms over the same period 1.</p>
<p>Shortly after this announcement, President Ramaphosa began an international roadshow promoting trade and investment agreements with existing South African partners. A team of investment envoys was assembled to support the presidency, made up of former finance minister Trevor Manuel, former deputy finance minister Mcebisi Jonas, Afropulse executive chairperson Phumzile Langeni, and chairman of Liberty Group Jacko Maree. In addition, economist Trudi Makhaya was appointed as the president’s economic advisor.</p>
<p><strong>Early results</strong><br />
Initial investment pledges were made by the governments of the United Arab Emirates (US$10 billion), the Kingdom of Saudi Arabia (US$10 billion) and the Republic of China (US$14.7 billion)5.</p>
<p>In an announcement about the Presidential Investment Summit held in October, investment envoy, Jacko Maree supported the President’s benchmark vision of a 50/50 split between local and foreign investment to make up the projected $100 billion total sum6.</p>
<p>FDI is an important enabler of economic growth. For emerging market economies, foreign investment inflows are crucial for transferring money and expertise from multinational companies to local enterprises. Emerging markets also need FDI to help finance infrastructure deficits.</p>
<p>President Ramaphosa was cognisant of this when, as the deputy head of the National Planning Commission (NPC), he oversaw the formulation of the National Development Plan (NDP) 2030, published in 2012. The NDP aimed for total fixed investment to rise from below 20% of GDP at the start of the current decade to 30% of GDP by 2030.</p>
<p>The NDP also planned for public sector investment to account for 10% of GDP by 2030. In 2017, total fixed investment was recorded at 19% of GDP, with around 80% of the investment coming from the private sector.9</p>
<p>In other words, both the overall investment target as well as the public investment target have not been met.</p>
<p>This is indicative of the fact that the South African economy needs significant investment stimulus.</p>
<p>Outcomes of the Investment Conference<br />
The key sectors targeted by the summit were:<br />
• Agriculture and agro-processing;<br />
• Mining and minerals beneficiation;<br />
Heavy manufacturing;<br />
• Water and transport infrastructure;<br />
• Energy;<br />
• Information, communication and technology;<br />
• Manufacturing;<br />
• Tourism, business process outsourcing, and film; and<br />
• Venture capital.<br />
During his final address to the summit, President Ramaphosa declared that during the course of the day “nearly R290 billion” had been pledged by both local and international companies seeking to participate in the President’s five-year plan.</p>
<p>Unemployment remains one of government’s core concerns. In August 2018 , President Ramaphosa declared the urgency “to develop and implement a stimulus package to ignite growth that will lead to the creation of jobs, especially for young people and women”.10 To this end, some of the investment pledges also specify job creation targets, including those by Sumitomo Rubber, Anglo America and McDonald’s.</p>
<p><strong>Estimated economic impact of the promised investment</strong></p>
<p>The R284.6 billion of investment pledged is expected to support long-term economic benefits for South Africa, including stronger real GDP growth, the creation of jobs and generation of additional tax revenue.</p>
<p>We estimate the potential economic activity over the next five years<br />
resulting from this investment will include:</p>
<p>• An estimated R338 billion added to GDP;<br />
• Creating and/or sustaining an estimated 165 000 direct and indirect<br />
jobs, on average, per year; and<br />
• An estimated R59 billion added to total government revenue, through<br />
both the collection of direct and indirect taxes.</p>
<p>These estimated economic impacts are only associated with the investment spending between 2019 and 2024.</p>
<p>Long-term economic contributions will be created by the additional production in the various sectors, once the investment phase is complete.</p>
<p>We estimate some R468.8 billion in potential production from 2025 to 2035 due to linkages. Our calculations show that the above-mentioned production would potentially contribute the following impacts over a ten year period:<br />
• R505 billion added to GDP;<br />
• Creating and/or sustaining an estimated 116 000 direct and indirect<br />
jobs, on average per year; and<br />
• R133 billion added to total government revenue.</p>
<p>When considering the economic impact results for each of the sectors, we see that the sector with the largest investment does not necessarily generate the largest long-term economic contributions:<br />
• The largest investment is captured within the mining sector;<br />
• Investment in the rubber sector generates the largest GDP multiplier<br />
effect;<br />
• In terms of the jobs created and tax revenue generated through the investment, the food sector has the largest job and tax multipliers; and<br />
• The sector that generates the largest production from the investment is the transport equipment sector. This sector will also generate the most long-term economic benefit across all three performance indicators (GDP, employment and tax).</p>
<p>From our analysis, we see that the continued investment in South Africa would assist in reducing unemployment, poverty and improve people’s lives, which, in turn, would also support long-term economic growth.</p>
<p>This aligns with President Ramaphosa’s State of the Nation Address (SONA) 2018 in which he promised to use investment, among other levers, to address the country’s challenges of poverty and inequality.</p>
<p>However, this analysis is based on the assumption that all investment pledges, amounting to R284.6 billion, are translated into real investments, as the estimated economic contributions will be proportionate to the investment made. The challenge for South Africa is to ensure that the already-listed factors that influence investment are<br />
addressed. Investment pledges will only translate into actual investments if a supportive business environment, policy certainty and political stability are in place. These too were pledges of SONA 2018.</p>
<p>The well-attended Investment Summit was a showcase of South Africa’s attributes, and a place of conversation about how the country had progressed over the preceding eight months on the policy and political front. The R284.6 billion in investment pledges assessed here are testament to the perceived improvement in the local investment climate and the optimism around South Africa heading into 2019.</p>
<p>Provided by PWC</p>


Estimating the potential economic impact of investment pledges made at the South Africa Investment Conference

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<p>The last words from the massive investment conference held here in South Africa last week, from Ali Baba billionaire Jack Ma. Here he says investment is good but without entrepreneurs and e-government it’s not enough.</p>


Jack Ma’s last words at SA Investment Conference

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<p>CNBC Africa&#8217;s Fifi Peters spoke to SA&#8217;s former Finance Minister, Trevor Manuel about the investment secured to boost the local economy thus far on the side-lines of the inaugural SA Investment Conference.</p>


Trevor Manuel on SA’s global investment pursuit progress

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<p>Andile Sangqu, Executive Head of Anglo American South Africa spoke to CNBC Africa’s Fifi Peters about their commitment to SA mining at the inaugural SA Investment Conference.</p>


Anglo American commits $6bn to SA

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<p>Econet Chairman Strive Masiyiwa spoke to CNBC Africa’s Karabo Letlhatlha about their investment plans for Africa and the importance of infrastructure investment in the telecoms sector.</p>


Strive Masiyiwa bemoans lack of investment into Africa’s telecoms infrastructure

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s President Cyril Ramaphosa on Wednesday appointed a judicial inquiry into the 2 trillion rand ($142 billion) state pension fund, a government gazette said, following corruption allegations.</p>
<p>The PIC is Africa’s biggest pension fund and the biggest investor in South Africa’s economy holding a large volume of bonds issued by government and state-owned firms.</p>
<p>The gazette notice said it will investigate “persistent and continued negative reports about alleged improprieties regarding investments” by the Public Investment Corporation (PIC), which manages assets on behalf of the government employees.</p>
<p>Ramaphosa said the inquiry should issue a final report by latest April next year.</p>
<p>In May, opposition parties called for an investigation into the pension fund’s chief executive Dan Matjila, accusing him of misuse of funds and careless investment decisions.</p>
<p>Matjila has denied the allegations and was also backed by the Treasury, which oversees the PIC.</p>
<p>The PIC’s spokesman could not immediately comment and referred any questions to the Treasury.</p>
<p>In 2017, Matjila was cleared of any wrongdoing by an internal audit committee that looked into the allegations.</p>
<p>But the collapse of VBS Mutual Bank early this year, where the fund has a 25 percent stake, and the resignations of two PIC employees linked to the fraud have raised new questions.</p>
<p>The PIC also has stakes in blue-chip companies across various sectors such as miner Anglo American Platinum, lender Barclays Africa and retailer Shoprite.</p>
<p>($1 = 14.0966 rand)</p>
<p>Reporting by Mfuneko Toyana; Editing by James Macharia</p>


Ramaphosa

Hawks Head Godfrey Lebeya gives update on Steinhoff & VBS

Ramaphosa should turn his focus to bloated civil service, says economist Dawie Roodt

Markets react to Ramaphosa’s cabinet announcement

BASA’s Cas Coovadia gives a thumbs up to Ramaphosa’s cabinet announcement

Mr President, help us help you – Mining CEOs

Trevor Manuel speaks about the Zuma years, damage done to SOEs and Ramaphosa’s investment drive

President Ramaphosa: This is what we plan to do with South African Reserve Bank

President Ramaphosa reveals what team SA, plans to tell investors in Davos on concerns over land expropriation

More power cuts for South Africa could raise Ramaphosa reform risk

South Africa’s minimum wage bill signed into law by Ramaphosa, what you need to know

South Africa’s economic recovery plans fading: IMF

Estimating the potential economic impact of investment pledges made at the South Africa Investment Conference

Jack Ma’s last words at SA Investment Conference

Trevor Manuel on SA’s global investment pursuit progress

Anglo American commits $6bn to SA

Strive Masiyiwa bemoans lack of investment into Africa’s telecoms infrastructure

South Africa’s Ramaphosa appoints judicial inquiry into $142 billion state pension fund, here’s why…

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Ramaphosa

Hawks Head Godfrey Lebeya gives update on Steinhoff & VBS

Ramaphosa should turn his focus to bloated civil service, says economist Dawie Roodt

Markets react to Ramaphosa’s cabinet announcement

BASA’s Cas Coovadia gives a thumbs up to Ramaphosa’s cabinet announcement

Mr President, help us help you – Mining CEOs

Trevor Manuel speaks about the Zuma years, damage done to SOEs and Ramaphosa’s investment drive

President Ramaphosa: This is what we plan to do with South African Reserve Bank

﻿President Ramaphosa reveals what team SA, plans to tell investors in Davos on concerns over land expropriation

More power cuts for South Africa could raise Ramaphosa reform risk

South Africa’s minimum wage bill signed into law by Ramaphosa, what you need to know

South Africa’s economic recovery plans fading: IMF

Estimating the potential economic impact of investment pledges made at the South Africa Investment Conference

Jack Ma’s last words at SA Investment Conference

Trevor Manuel on SA’s global investment pursuit progress

Anglo American commits $6bn to SA

Strive Masiyiwa bemoans lack of investment into Africa’s telecoms infrastructure

South Africa’s Ramaphosa appoints judicial inquiry into $142 billion state pension fund, here’s why…

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President Ramaphosa reveals what team SA, plans to tell investors in Davos on concerns over land expropriation