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ICYMI: Friday's top 5 reads on Fin24:
Gigaba: Next ANC leader won’t want a wasteland
Finance Minister Malusi Gigaba has said he will not be hamstrung by the ANC leadership battle ahead of its elective conference in December, pledging to implement a stimulus package in the tourism and manufacturing sector to spark economic growth.
He was speaking to investors at a JSE-hosted event in Cape Town on Friday.
“There are very serious decisions we need to take,” said Gigaba. “Those serious decisions need to be taken in the context of the impending ANC elective conference.
“Some people have said we have kicked the can down to next year,” he said. “But we are going to take decisions, including prior to the ANC conference.
“Whoever the ANC leader is, they will not want to inherit a wasteland.”
READ: Malusi Gigaba: Next ANC leader won’t want a wasteland
Rating agencies may wait for ANC elective conference
While there is a chance that South Africa may be downgraded to the non-investment grade at a upcoming ratings review in November, rating agencies may wait to see the outcome of December’s ANC elective conference, according to Standard Bank economist Kim Silberman.
Silberman was talking to Fin24 in the wake of Finance Minister Malusi Gigaba’s maiden mini budget, which he presented to Parliament on Wednesday afternoon.
She said the market would likely react negatively to Gigaba’s budget, due to SA breaching its expenditure ceiling by R3.9bn, and Gigaba’s acknowledgement that SA tax authorities face a R50.8bn budget hole.
READ: Rating agencies may wait for ANC elective conference
Don’t take democracy for granted - Motlanthe
Avoid self-pity when faced with challenges and use dialogues to connect to a greater system of checks and balances, former president Kgalema Motlanthe said on Friday.
“Don’t take democracy for granted. Take strategic action to address challenges,” he said at the African Infrastructure Dialogue 2017.
“Infrastructure cannot just be about capital. An alternative view in policy discussions regarding development outcomes is needed.”
He emphasised that strong growth of the past came with deepening inequalities and social exclusion, especially of young people.
READ: Don’t take democracy for granted - Motlanthe
Gigaba vows to crack down on illicit flows, as Gupta Dubai heat intensifies
The finance minister has vowed that government will crack down on illicit financial outflows as he attempts to find extra revenue to keep the country within its fiscal ceiling.
South Africa will breach its fiscal ceiling by R3.9bn if it doesn’t find additional revenue, Gigaba revealed in his mini budget on Wednesday in Cape Town.
The focus on illicit outflows comes as pressure mounts on authorities to investigate the Guptas for their alleged illicit outflow activity.
The FBI in the US have started investigating such claims, while the UK is engaging with banks Standard Chartered and HSBC who both have a major presence in the United Arab Emirates.
The Hawks – previously criticised for their lack of progress regarding the Guptas - said this week they are cooperating with the FBI in their investigation.
READ: Gigaba vows to crack down on illicit flows, as Gupta Dubai heat intensifies
Fuel price increases on the cards
The rand has dropped considerably over the past month which will make fuel more expensive in November, the Automobile Association (AA) has warned.
And this does not yet factor in the rand's fall in the wake of Finance Minister Malusi Gigaba's mini budget address.
The AA expects petrol to only rise by 4 cents per litre, and diesel by 26c/l. Illuminating paraffin, meanwhile, is expected to rise 18c/l.
The association however warned that the full impact of the rand weakening in the wake of the finance minister's address in Cape Town on Wednesday had not yet been factored in to upcoming increases.
READ: Weak rand to push up fuel prices - AA
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