IMF warning for SA growth; Eskom pollution slammed; Zesa turns off its own lights; Uber

By Jackie Cameron

  • The International Monetary Fund, which has slashed its growth forecast to just above zero for South Africa, warns that only radical reform will turbo-charge the country’s economy. South Africa faces a prolonged period of weak economic growth marked by rising unemployment, inequality and greater credit-rating risk if the government does not act fast to implement reforms, the IMF was reported as saying on Monday. In October, the IMF slashed its 2019 gross domestic production (GDP) forecast for South Africa to 0.5% from 1.2%, says Reuters. On Monday, it said growth would remain subdued in 2020 and beyond if the government pursued its current policies and failed to quickly implement reforms, adds the news agency.
  • President Cyril Ramaphosa is at the centre of a race row. First he appointed a white man to head Eskom, and in the next breath he slammed the business sector for not doing more to hire senior black executives. Bloomberg quotes Ramaphosa urging businesses to do more to end the legacy of apartheid and give black people a meaningful role in the economy, only a week after coming under fire for appointing a white man as head of the country’s largest state-owned company. “The significant progress that has been made in the public sector has not been matched by the private sector,” the president said in his weekly letter to the country on Monday. “Business needs to urgently do some serious introspection. Our transformative agenda cannot succeed unless we work together to broaden the participation of all South Africans in our economy, and it begins in the workplace.” Ramaphosa’s demand for greater inclusion comes after his government was criticised for naming Andre de Ruyter as chief executive officer of Eskom, the debt-stricken power utility, says Bloomberg. The company’s two largest unions said the appointment is a setback to racial transformation, while the Economic Freedom Fighters, the second-largest opposition party, said the decision was a deliberate attempt to diminish the role Africans play in the economy, adds the news wire.
  • Eskom has been criticised for its appalling pollution record. Eskom, which accounts for two-fifths of South Africa’s greenhouse-gas emissions, leads the country’s biggest emitters in its failure to set targets to reduce its impact on the climate, a report shows. The state power utility, which produces most of its electricity from coal, also doesn’t disclose who at the company is responsible for assessing its climate-based risks, the Cape Town-based Centre for Environmental Rights said in a report released on Monday. That’s according to Bloomberg, which highlights that Eskom, already the subject of lawsuits for air pollution that affects respiratory health, is one of five of the country’s 10 largest polluters that hasn’t set any reduction targets. Others, says Bloomberg, include the local unit of ArcelorMittal, wood-pulp company Sappi and cement producer PPC. Sasol, South Africa’s second-biggest emitter, has set a target, as have Anglo American and Gold Fields.
  • Zesa, Zimbabwe’s ‘Eskom’, has given up on electricity, ordering solar power for its head office in Zimbabwe. Zesa Holdings, the utility that’s subjecting Zimbabweans to 18-hour power cuts, is going off the grid. The electricity producer is inviting bids for a roof-top solar power installation at its head office in the capital, Harare, to ensure that its staff enjoy uninterrupted power, reports Bloomberg. The bids open today and will close on Dec. 19, according to a Government Gazette published Nov. 22. Solar panels may also be installed at Zesa’s provincial offices, Fullard Gwasira, Zesa’s spokesman, is quoted as saying. Zimbabwe is struggling to pay for imports from South Africa and Mozambique, says Bloomberg.
  • Uber shares slumped on news that the taxi-type company has been banned from operating in London. Bloomberg reports that Uber Technologies shares fell on Monday after the ride-hailing company lost its license to operate in London when the city’s transport regulator said it failed to address safety concerns. Wedbush analysts told Bloomberg that Uber was caught “flat footed” by the London decision. “The horror show of bad news since its IPO continues for Uber,” analysts Ygal Arounian and Daniel Ives wrote. But, overall, Wall Street analysts weren’t overly concerned, especially because Uber is able to appeal the decision. Uber shares briefly dropped as much as 4%.
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