Cape Town – A roundup of Monday‘s top economic and finance reads on Fin24.
Ramaphosa appoints Mabuza as Russia envoy
President Cyril Ramaphosa has appointed Deputy President David Mabuza as his special envoy to Russia, according to a statement from the Presidency.
Mabuza will hit the ground running and meet with Russian Federation President Vladimir Putin in Moscow on Tuesday to congratulate him on behalf of Ramaphosa and the South African government on his re-election as Russian president in March.
Four reasons why fast food franchises are on the rise in SA
The fast food and quick service sector in South Africa is showing steady growth despite the tough economic climate, according to research by FNB Business.
Data by the Franchise Association of South Africa shows that the franchising market is worth R587bn, about 13% of the country’s gross domestic product (GDP).
Captured state firms starved local manufacturers of business, Davies laments
Minister of Trade and Industry Rob Davies told reporters on Monday afternoon that state-owned entities which fell prey to state capture suffocated local businesses and manufacturers and deprived them of much-needed business.
He was unpacking his department’s Industrial Policy Action Plan (IPAP) for the 2018-19 to the 2020-2021 financial years.
The IPAP plan aims to focus on “transversal and sectoral” opportunities in the next two financial years, capitalising on better-than-expected manufacturing outputs from the country, in a global economy where many emerging economies are mulling de-industrialising.
Rand rally continues on the back of easing geopolitical tensions
The rand dipped below the R12.20 mark to the US dollar on Monday morning on the back of easing geopolitical tensions.
“The rand can be expected to test stronger levels before slipping back to the R12.30 mark,” said Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions. Analysts from NKC Economics expect the rand to trade within a range between R12.10/$ and R12.35/$.
Vodacom reports revenue growth amid data price war
Vodacom has reported revenue growth at its South African operations, despite the current data wars which have seen it adjust prices in challenging economic conditions.
Revenue grew by 8.1% to R70bn for the year to March 31 2018, driven by smart device sales which accounted for 70% of total devices sold.
“South Africa delivered robust performance, despite ongoing data pricing transformation and a low economic growth environment,” the company said.
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