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SARB Governor Warns Of Election Risks, ConCourt Expected To Rule In Election Case

SOUTH AFRICA
  • SARB Governor Lesetja Kganyago warned that next year's general elections are among the main risks for South Africa. He told City Press that if politicians resort to populist rhetoric, they may spook foreign investors. Kganyago also pointed to "idiosyncratic risks" facing South Africa, such as the energy crisis and logistical bottlenecks, which may "have implications not just for growth; they could also have implications for prices, because we might not be able to get the important material we may need to produce". This comes after Deputy Governor Fundi Tshazibana said on Friday that "there still seems to be a good case for keeping rates higher for longer". She added that "in the 2010s, the repo rate averaged just over 6%. It seems unlikely we will be going back to those kinds of average rates over the next few years."
  • Election matters are getting more attention. The Constitutional Court is today expected to rule on the Electoral Amendment Act, with the plaintiffs challenging the threshold for independent candidates to participate in elections and the number of seats allocated to the independents. Separately, former boxing champion Lovemore N'dou confirmed that he is planning to run for presidency in 2024.
  • Eskom escalated loadshedding "in order to manage emergency reserves" and will be moving between Stage 3 and Stage 4 power cuts until further notice.

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