May 13, 2015.
For Creamer Media in Johannesburg, I’m Sane Dhlamini.
Making headlines:

Rising food prices pose a risk for the inflation rate in South Africa inflation. 

Africa's peacekeeping force may become a reality.

And, Eskom is determined to have National Energy Regulator of South Africa approve higher tarriffs.

South Africa's consumer inflation is likely to trend steadily higher this year as food prices rise, putting pressure on the central bank to increase interest rates this year, analysts say.

Predictions of rising food price pressures began in March after grain traders warned that South Africa could start buying grain abroad because unfavourable weather had reduced the expected 2015 harvest.

The World Food Programme weighed in on Monday with warnings of possible food shortages in Southern Africa due to a severe drought in key maize producer South Africa, which accounts for more than 40% of regional output.

The region would likely have to supplement domestic output with increased imports, it said.

Investec economist Kamilla Kaplan said the risks to the food inflation trajectory, associated with the maize price increase, are firmly to the upside adding that this was likely to be evident from the second half of the year.

Food has a 14% weighting in South Africa's consumer price index (or CPI), and food inflation came in at 5.9% year-on-year in March, outpacing the overall CPI rate of 4.0%.

A continental peacekeeping force appears closer to reality, as African Union ministers of defence are meeting in Zimbabwe to review progress made in the establishment of the African Standby Force.

The two-day meeting kicked off on Monday, with defence, peace and security experts from the 54-member States set to assess progress made towards the operationalisation of the standby force.

Meanwhile Zimbabwe National Army Major-General Sibusisiwe Moyo called for the strengthening of security cooperation among member States to enable the continent to respond quickly and effectively to crises.

Power utility Eskom is determined to try to get the extra 12.61% increase it needs from the National Energy Regulator of South Africa (or Nersa). This would push its price hike request to 25.3% for this financial year.

Eskom spokesperson Khulu Phasiwe said if the increase was granted, consumers would have to take the heat, as the utility needed an extra R39-billion for the bulk purchase of diesel, as well as to buy electricity from independent power producers.

Phasiwe said this was going to be a huge increase which consumers are ultimately going to have to foot.

He said after doing the calculations they decided that they needed 23.1% for the current financial year.

Phasiwe said the power utility expect to ask for single-digit increases for the subsequent two years.

The high cost of diesel to generate electricity was one of the reasons the utility needed more money. Eskom has increasingly been relying on diesel to run power stations such as Ankerlig, in the Western Cape.

Also making headlines:
South Africa is considering the sale of some of Eskom's power stations or an initial public offering of some of the cash-strapped State utility's shares.

An application by Agang SA, United Democratic Movement and Congress of the People to have National Assembly Speaker Baleka Mbete removed has been postponed until August by the Western Cape High Court.

South Africa temporarily halted the deportation of 200 foreigners after a legal challenge by a human rights group, which said authorities were unfairly targeting them following anti-immigrant riots in which seven people were killed.

Revenue recovered or saved by Eskom in terms of its Operation Khanyisa campaign is approaching the R1-billion mark.

And, by Friday, most public sector unions should have received mandates from their members on whether to accept or reject the latest  and apparently final pay and conditions offer from government.

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That’s a roundup of news making headlines today