Friday, March 26, 2010

From Creamer Media in Johannesburg, I'm Amy Witherden.

Making headlines:

The National Energy Regulator of South Africa (Nersa) is exceeding its mandate by ordering municipalities to cap electricity charges in the wake of Eskom's tariff increases, said Cooperative Governance and Traditional Affairs Minister Sicelo Shiceka yesterday.
Speaking at a media briefing in Cape Town, Shiceka said that his department believes that Nersa's suggestion of a cap of 16% for surcharges, is a bit beyond its mandate. Shiceka has called for discussions with other ministers to assess the ruling, which he said will have "devastating implications to municipalities".
He warned Nersa that the government believes its decisions "must not determine the sustainability and the viability of municipalities".

Africa is the only continent not on track to meet the United Nations (UN) Millennium Development Goal (MDG) of halving poverty by 2015, because of the impact of the global economic downturn, said United Nations Economic Commission for Africa (Uneca) executive secretary Abdoulie Janneh yesterday.
The fall in economic growth owing to the global financial crisis, has resulted in rising poverty and unemployment in many African countries. Speaking at the annual African Union/Uneca finance ministers' meeting in Lilongwe, Malawi, Janneh said that the African economy grew by an average of 1,6% in 2009, lower than the 2008 average of 4,5%. "With such growth, Africa is the only continent not on track to halve poverty by 2015," he said.
The MDGs were agreed at a UN summit in 2000 and include targets to raise living standards in African and other poor countries by 2015.
Africa was thought to be largely insulated against the worst effects of the global economic crisis but saw healthy growth projections slashed owing to the crisis. Janneh said that a crucial challenge for the continent would be for it to reach high and sustainable levels of growth that would allow Africa to substantially reduce unemployment and poverty.

The South African Reserve Bank shocked markets with a half-point cut in its repo rate yesterday, a move likely to appease President Jacob Zuma's labour union allies as the economy claws its way back from recession.
The reduction leaves the rate at its lowest level in three decades and adds to 500 basis points of cuts between December 2008 and August 2009, which were aimed at boosting growth after weak demand hit the key manufacturing and mining sectors last year, slashing nearly 900 000 jobs.
Reserve Bank governor Gill Marcus said that despite clear signs that the economy has emerged from the recession, the pace of recovery is expected to remain slow. "The improved inflation environment has provided some space for an additional monetary stimulus to reinforce the sustainability of the upswing without jeopardising the achievement of the inflation target," she said, announcing a 50 basis point drop in the repo rate to 6,5%.

Also making headlines:

Higher Education and Training Minister Blade Nzimande says that there is no intention to "kill" excellence at universities as a new funding framework for tertiary education is contemplated.
A US admiral says that Somali pirates are widening their attack area, affecting the whole of the Indian Ocean.
The City of Johannesburg proposes big power hikes for businesses in 2010/11.
And, Nigeria's Senate approves a Constitutional amendment to allow politicians accused of fraud, but not convicted, to run for federal and state office.

That's a roundup of news making headlines today.