Good morning. Amid all the political uncertainty in South Africa, economic growth surprised on Tuesday, coming out well above market expectations. But the Phala Phala scandal and speculation over President Cyril Ramaphosa’s future could lead to increased uncertainty over the policy outlook.
Analysts are still worried despite GDP growing by 1.6% in the third quarter
South Africa escaped a technical recession and defied market expectations that GDP would increase by just 0.6% in the third quarter. Ramaphosa voiced his pleasure with the state of the economy via a statement, which is now above levels that were last seen pre-pandemic and at the highest, it has been. But the uncertainty over the Section 89 report into Phala Phala is likely to sap business confidence. Read more here. (Business Day, for subscribers)
Despite the ANC’s backing of Ramaphosa, his future remains uncertain
While the ANC has said it will vote down the Section 89 report during a sitting of parliament on Tuesday, which is just days before the party meets for its National Elective Conference, Ramaphosa’s future is not guaranteed. Ramaphosa is the front-runner based on the two candidates currently named as contesting the presidency position but it is not a given that he will win re-election following the release of the report. Read more here. (The Citizen)
Sudanese businessman at the centre of Phala Phala scandal finally speaks
The man who Ramaphosa says paid $580,000 for buffalo from Phala Phala farm claims the business transaction was all above board but due to Covid-19 he never received the cattle he purchased. Speaking to British news outlet Sky News, Hazim Mustafa confirmed the president’s version of events and said there is an understanding that he will be refunded for the purchase. Mustafa says he did not know that the farm belonged to the president and only dealt with farm management. When asked how he brought such a large sum of cash into the country he responded by saying he declared the money at OR Tambo Airport in Johannesburg but refused to produce evidence of the customs declaration. Read more here. (News24, for subscribers)
Here’s what else you need to know today:
South Africa’s growth prospects just shifted in a big way – but don’t start celebrating yet – BusinessTech
Eskom to appeal ‘insensible’ judgment against R16bn boiler maintenance tender – News24
Move to electric cars threatens over 100,000 jobs: Gungubele – EWN
The EU will for the first time seek sanctions against Russian mining – which competes with SA – Business Insider
South Africans are threatening to close their bank accounts – this is where they would rather go – BusinessTech
Trump companies are convicted in NY criminal tax fraud trial – DM/Bloomberg
Apple Overhauls App Store Pricing to Range From $0.29 to $10,000 – Bloomberg
Apple Scales Back Self-Driving Car and Delays Debut Until 2026 – Bloomberg
