November 7, 2014.
For Creamer Media in Johannesburg, I’m Sane Dhlamini.
Making headlines:

Ratings agency Moody's downgrades South Africa's debt rating.

The US considers sanctions on Libyan factions in an effort to halt a proxy war.

And, Westinghouse files a contempt of court motion against Eskom.

Ratings agency Moody's downgraded South Africa's debt to "Baa2" on Thursday, citing poor prospects for medium-term economic growth and rising public debt in the continent's most advanced economy.

The move, which sent the rand to its weakest in nearly five weeks against the dollar, came after Finance Minister Nhlanhla Nene last month forecast a wider budget deficit for 2014/15 than seen in February, citing low government revenue.

In a statement, the agency said poor medium-term growth prospects due to structural weaknesses, including ongoing energy shortages as well as rising interest rates, were a major driver of the downgrade.

However, the rating agency changed its outlook to stable from negative.

After the downgrade, the government said it was committed to narrowing its budget deficit and recognised the need to implement measures to boost economic growth.
 

The US is considering imposing sanctions on Libya's combative factions to try to prevent a proxy conflict fueled by regional powers from erupting into full-blown civil war and force militant leaders to negotiate.

Three years after Muammar Gaddafi's downfall, outside intervention has exacerbated the fighting, with Qatar and, to some degree, Turkey supporting Islamist-linked forces and Egypt and the United Arab Emirates backing more secular rivals.

US sanctions would be separate from potential United Nations sanctions that aim to pressure Libyan factions and militias to take part in UN-backed political negotiations to be led by UN envoy Bernardino Leon.

The possibility of using UN sanctions to help bring about political talks has been aired publicly. The consideration of separate US sanctions has not been previously disclosed.
US officials declined to say who they might target with sanctions or why they felt it necessary to look at US penalties separate from the United Nations. Nor would they detail what sanctions they would propose.

 

Westinghouse Electric Company has filed an application to the High Court of South Africa, charging power utility Eskom with contempt of court This is owing to what it said was the utility’s failure to deliver documentation, as ordered by the court, to Westinghouse within five calendar days of September 5.

The documents related to the R4.3-billion tender for the replacement of steam generators at Eskom’s Koeberg nuclear power station, which the utility had awarded to France’s Areva.

In late October, the utility had issued a statement, insisting that it had “fully complied” with the court order instructing it to hand documentation over to Westinghouse.

However, Westinghouse, on Thursday, said its latest court application had followed several unsuccessful attempts by its legal representatives to obtain “important files relating to the tender selection process”.

“Westinghouse will continue to exercise all of its legal rights to ensure the actions and decisions of the Eskom management during the tender process are transparent,” it added.

 

Also making headlines:

The South African government is committed to narrowing its budget deficit and recognises the need to implement measures to boost economic growth, the Treasury said on Thursday, after Moody's downgraded the country's rating.

Tanzania is studying a report alleging that Chinese officials bought large amounts of illegal ivory during a visit by President Xi Jinping last year and smuggled it out in diplomatic bags aboard his plane.

The National Planning Commission aims to facilitate a series of “quiet conversations” in an effort to unblock obstacles to greater private sector investment in the sector.

And, Public Enterprise Minister Lynne Brown slams DA MP Natasha Michael after she wrote a letter on matters related to Eskom in general and the recent incident at Majuba power station in an open letter over anti-Eskom campaign.

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That’s a roundup of news making headlines today.