5 things you need to know in SA business today and how municipalities are spending your money
1. Moody’s, the only of the three major credit rating agencies which hasn’t downgraded SA to junk, has released a new negative report about SA. It said South Africa’s economic growth prospects will be limited by weak business confidence while uncertainty around land and mining reforms remain a concern for investors. “Uncertainty over how this (land reform) will be achieved continues to limit near-term investment,” Moody’s analyst and senior credit officer Lucie Villa said in a report. (It) could ultimately lead to a more pronounced fall in investment should the final terms of land reform be particularly onerous to businesses.”
2. Parliament's Constitutional Review Committee yesterday kicked off public hearings on the expropriation of land without compensation. The first hearing was in the Northern Cape.
3. Old Mutual Limited saw a muted listing on the JSE yesterday. Now the group only has to unbundle its Nedbank stake, and its break-up strategy will be complete.
4. Things have taken a turn for the worse at Steinhoff Africa Retail (Star). A month after Tekkie Town founder Braam van Huyssteen was pushed out of the management team and resigned as chairperson of the group’s property division, senior managers, including the CEO Bernard Mostert, the COO, other top management and staff in the STAR specialty fashion and footwear business have walked out.
5. This morning, Telkom appointed a new head of finance. Tsholofelo Molefe, previously deputy CFO of Telkom, is Eskom’s former CFO.
How SA municipalities are spending your money
Statistics SA yesterday released a graph depicting the spending allocations of municipalities, comparing 2017 to 2016. Wage bills continued to growth, while debt owed to the municipalities also continued to rise.