NEWS IN BRIEF

South African rand starts week slightly weaker

REUTERS

South Africa’s Rand fell slightly early on Monday, as risk appetite was subdued ahead of a key United States inflation report later in the week.

A reading on U.S. inflation due on Thursday is expected to provide some clarity on the Federal Reserve's monetary policy outlook, which often determines direction for emerging market currencies like the rand.

Central bank data released on Monday showed that South Africa's net foreign reserves rose to US$56.9 billion at the end of December from US$56.3 billion in November, while gross reserves increased to US$62.5 billion in December from US$61.7billion the previous month.

Monthly manufacturing data due later this week will give further clues about the health of the local economy.

South Africa's benchmark 2030 government bond was weaker in early deals, with the yield up 1 basis point to 9.875%.



WFP plans food relief for 270,000 Zimbabweans

REUTERS

The World Food Programme is planning to feed 270 000 hungry Zimbabweans over the next three months, an official said on Friday, as the country braces for a poor harvest due to an El Nino-induced drought.

The southern African country has been struggling to feed itself since 2000, when former leader Robert Mugabe led the seizure of white-owned farms to resettle landless Black people.

But Zimbabwe and other regional countries also expect 2024 crop yields to be hit by El Nino, a climate phenomenon in which surface waters of the central and eastern Pacific become unusually warm, causing changes in global weather patterns.

In total, the country is working with aid agencies to provide assistance to 2.7 million people struggling with food insecurity, WFP acting country director Christine Mendes said.

The WFP itself, which has provided assistance in Zimbabwe for decades, will be focusing on 270 000 people mostly in the southern region where the rains are poor and the lower yields will have some of the most significant impact.



South African power plan points to need for massive plant build

REUTERS

South Africa needs a massive power plant construction programme to ensure adequate electricity supply up to 2050, a government planning document released for public comment on Thursday showed.

Africa's most industrialised economy has suffered power cuts for more than a decade which have held back growth, reaching record levels last year lasting up to 10 hours a day.

The latest iteration of the government's Integrated Resource Plan (IRP) analysed different options to close the power shortfall over the period up to 2030, and the period from 2031 to 2050.