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ICYMI: A roundup of Friday's must-read news on Fin24
#BlackFriday rush crashes online stores (but sales still soar)
Surging visitor demand crashed or restricted access to some of South Africa’s largest e-commerce websites on #BlackFriday. But despite this, sales were still up.
Since 00:01 on Friday morning, takealot.com and websites across The Foschini Group experienced erratic behaviour.
Takealot.com took to Twitter to apologise to users, who had experienced issues accessing and purchasing items from the website from the early hours of the morning.
Similarly, TFG websites including Markham, Fabiani, @Home and Sportscene – all of which are offering online customers discounted deals on various items, experienced erratic behaviour from midnight.
While the takealot.com site and apps came online again, they continued to experience ongoing issues.
“Customers will unfortunately still struggle to access our site and apps as we are currently staggering traffic to the platform while we slowly build up to full site capacity, prioritising orders in process,” Julie-Anne Walsh, Chief Marketing Officer at takealot.com said on Friday.
But the online retailer reported it had nevertheless experienced its most successful #BlackFriday yet in terms of sales.
READ: Takealot cashes in big time despite #BlackFriday downtime
The e-commerce website also lashed out at comments allegedly made by ANC MP Vytjie Mentor that the controversial Gupta family has a stake in the business, calling it "fake news".
READ: In addition to #BlackFriday downtime problems, takelot.com is now also facing Gupta claims
Mnangagwa spells out economic plans
Zimbabwe's newly sworn-in President Emmerson Mnangagwa vowed during his inauguration speech on Friday that he will work to improve the economy to reduce unemployment and return the country to prosperity.
"Our economic policy will be directed for job, job, job creation," said Mnangagwa to cheers from the crowd of 60 000. Zimbabwe is currently plagued with an unemployment rate estimated to be 80%.
"We must work together. You, me, all of us who make up this nation," he said. He urged the millions of Zimbabweans who have left the country to return to help rebuild the economy.
"I must hit the ground running," said Mnangagwa, emphasising that Zimbabwe's economic problems must be addressed immediately.
READ: Mnangagwa spells out economic plans
Eskom’s latest work on energy policy plan rejects nuclear
The findings of the latest work on the draft Integrated Resource Plan for Electricity, IRP 2017, by Eskom for the Department of Energy are proving to be somewhat problematic for Energy Minister David Mahlobo.
As a result, this latest work by Eskom, and all further work on IRP 2017, has now been taken out of the hands of both Eskom and the department's planning technocrats by Mahlobo and his nuclear team so they can “massage” it further with “policy adjustment”.
The Eskom work confirms studies by other respected research bodies in South Africa and abroad, as well as the statements by Finance Minister Malusi Gigaba at the recent World Bank and IMF summit in New York - and in his medium-term budget policy statement - that the new nuclear option for South Africa is both unnecessary and costly.
READ: Eskom’s latest work on energy policy plan rejects nuclear
IDC legal action against Oakbay 'too little, too late' - banker
The Industrial Development Corporation (IDC) should have foreseen that it was risky to convert a loan to Oakbay Resources into shares and its intended legal action to force the company to pay back the R293m owed to the IDC may be too little, too late.
This was the view of Melanie De Nysschen, corporate finance principal at Bravura Capital.
Minister of Economic Development Ebrahim Patel gave Gupta-linked company Oakbay Resources until midnight on Thursday to pay back R293m to the Industrial Development Corporation (IDC).
In a written reply to a Parliamentary question, Patel said that the IDC has R293m worth of equity in the firm. Patel said that following media reports earlier in the year that Oakbay and “persons and entities associated with it, engaged in unlawful manipulation of [its] share price” he launched an investigation.
With the investigation concluded, he now wants Oakbay Resources to pay back the money.
READ: IDC legal action against Oakbay 'too little, too late' - banker
Rand hits R14/$, then strengthens, as markets await ratings decisions
The rand, which was unaffected by the Reserve Bank’s decision to keep rates on hold on Thursday, weakened to R14 to the dollar on Friday morning ahead of two major soverign credit ratings decisions scheduled for the later in day.
The rand opened at R13.88/$ on Friday. It weakened to R14.01 to the greenback by 12:00, before again firming somewhat. By 18:00 it was trading at 13.91/$.
“Domestic event risks, including rating agency reviews and the economic policy implications of the ANC electoral conference, are likely to dominate rand movements over the coming weeks,” Reserve Bank Governor Lesetja Kganyago said at the Monetary Policy Committee announcement on Thursday where he announced the repo rate would remain unchanged,
Kganyago emphasised that downgrades remain a risk to the rand. “Such an event could trigger significant sales of domestic bonds by non-residents. Ratings reviews are expected imminently, but the extent to which any possible downgrades may already be priced in remains uncertain.”
Moody’s and S&P are expected to give their ratings assessments on Friday. On Thursday, Fitch maintained the junk (BB+) rating with a stable outlook.
READ: Rand hits R14/$ as markets await ratings decisions
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