Morning Brief – Tuesday, 25 October 2022

Good morning. Here’s what you need to know today:

• Here are the focus areas for Enoch Godogwana’s Medium Term Budget Policy Statement this week.
• A crackdown on tech firms in China over the past year has wiped billions in value from Naspers and Prosus.
• Union Solidarity will take Dis-Chem to court over its moratorium on the hiring of white people.

What to expect from the mid-term Budget this week

On Wednesday, finance minister Enoch Godongwana will table his Medium Term Budget Policy Statement (MTBPS) in parliament where he is expected to address several critical factors surrounding fiscal and economic sustainability. Some of the key areas Godongwana’s budget will touch on include higher public sector wages, bailouts for state-owned enterprises, basic income grants, e-tolls, Eskom’s debt, and an adjustment to the budget following a chaotic 2022. Read more here. (Business Tech)

Jitters over China wipe R432bn off value of Naspers and Prosus

Naspers and Prosus have been hammered over the past year due to China’s aggressive crackdown on tech firms and on Monday the JSE heavyweights were battered yet again, which saw both companies lose enormous amounts of market value. The dramatic drop in value for the pair as well as Chinese tech firm Tencent, which both have a stake in, came after an election in China, which saw President Xi Jinping secure a third term over the weekend. Xi will tighten his grip on the economy, which has not been favourable to investors this year. Read more here. (Business Day, for subscribers)

Dis-Chem faces legal action over CEO’s memo

Union Solidarity says it is planning to drag Dis-Chem to the Labour Court following the release of a controversial memo from the company’s CEO, which placed a moratorium on the hiring and promotion of white people. In response, Dis-Chem said it would defend its actions in court and said there’s “simply no ban on employing and promoting white individuals.” Solidarity has vowed to take the case all the way to the Constitutional Court if need be but believe they will be successful in the lower courts. Read more here. (News24)