Ramaphosa's Advisors Push Back Against Basic Income Grant; Fuel Price Hikes Ahead

LOCAL NEWS

• Ramaphosa’s advisors say that a permanent basic income grant is way too risky in terms of economic growth amd job creation, despite public pressure ahead of the SONA.
  • The panel criticized an expert report from the social development dept, saying it was sustainable for the economy. The panel said this grossly underestimated the risks associated and should be submitted for peer review
• ANC says Rampahosa will comply with Scopa’s request for a written response to accusations of misuse of state security agency (SSA) funds for political campaigns. Presidency spox says Ramaphsoa has always cooperated with any requirement of accountability
• Economists predict a massive fuel price hike of R1.30/l in Feb, taking prices to beyond R20/l. Protests against the size of levies/taxes in the fuel price (45%) are increasing and may be a topic to be addressed in the Feb budget

Data/Events:

• 1130GMT: Dec PPI m/m exp at 0.7% vs 1.4% prior
• 1130GMT: Dec PPI y/y exp at 10.2% vs 9.6% prior
• FinMin Godongwana to speak at event: “what’s needed to transform SA’s economy”
• Eskom holds state of the system briefing