Thanks to Moody’s stable outlook for SA, the Monetary Policy Committee (MPC) of the SA Reserve Bank (SARB) will likely reduce the repo rate by 25 basis points on Wednesday. This is the conclusion of Nedbank’s Corporate and Investment Banking (CIB) division after it analysed its latest Interest Rate Barometer. A 25 basis points cut would lower the repo rate, the rate at which banks borrow money from the SARB, to 6.5% and the prime lending rate to consumers to 10%.
Minimum Wage To Be Delayed
Labour Minister Mildred Oliphant confirmed on Monday evening that it will not be possible to implement the new minimum wage legislation on the envisaged date of May 1 because the parliamentary process will not be completed by then. Oliphant said that the bills were highly contested and “it has become apparent that the ambition for the National Minimum Wage Bill to become law by May 1 2018 may not be practical given the high volumes of public submissions.
Listeriosis Will Cost Rainbow An Estimated R75 million
Its best estimate of the direct and identifiable cost of the listeriosis outbreak is R75 million, Rainbow Chicken’s parent company RCL told shareholders on Monday afternoon. That includes the costs of recalling its chicken polony, destroying recalled products, testing costs, and advertising and in-store communication. Those are hard to estimate, RCL said, but could be around R20 million in profit lost a month, every month, until things return to normal.
Mkhwebane Investigating DWS & SAP Contract
The Public Protector is investigating a R671 million ($60 million) government contract with German software firm SAP , which has admitted misconduct in separate deals involving friends of ousted president Jacob Zuma. The Public Protector’s office said it had received an anonymous letter alleging due process was not followed in the award of a contract to SAP in 2016 to provide IT and support services to the Department of Water and Sanitation (DWS).
MTN To Launch Namibian Operation
MTN plans to enter Namibia’s mobile-operator market through a tie-up with a state telecommunications firm. MTN Business Solutions Namibia, which is 30% owned by local shareholders, and local company Demshi Investment Holdings, will enter the market from June 2018 as mobile virtual network operators (MVNOs). Both operators were in negotiations to use state-owned TN Mobile’s 3G and LTE network. TN has a market share of just 4.5%, while MTC, another state-owned operator, has a share of 95.5%.
Capitec And Sanlam Announce Bancassurance Deal
Capitec is expected to announce a bancassurance joint venture with Sanlam, alongside its financial results due Tuesday. In an interview with Moneyweb, Sanlam chief executive Ian Kirk said the joint venture would see Sanlam become an insurance partner to the banking group. “We are delighted with the opportunity to partner with Capitec. We like the bank, we think they are quite innovative, they’ve grown well and they’ve identified the need to offer insurance and savings plans to their client base to broaden their offerings and to improve their positioning with their clients in South Africa.
Western Cape Considering Provincial Fuel Levy
The Western Cape provincial government is looking to introduce a provincial fuel levy, over and above the national levy currently imposed on all South African motorists – but it likely won’t be coming for a while. The decision taken in April/May 2017 by the Western Cape Cabinet is that before any consultation can happen, the fuel levy research which was done in 2005 will have to be updated.
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