Thursday, October 28, 2010

From Creamer Media in Johannesburg, I'm Brad Dubbelman.

Making headlines:

The South Africa government said on Wednesday that it has few options to devalue the rand in the face of increased capital inflows, but will still try to build up its foreign exchange war chest to stem the currency's rise.
Emerging market currencies, including the rand, have soared in value as investors, faced with minimal interest rates in crisis-hit developed economies, seek higher returns elsewhere. Countries such as Brazil and Thailand have taken extraordinary measures to weaken their currencies, including taxing capital inflows to discourage short-term investment.
Finance Minister Pravin Gordhan said that this remains an option, but stressed that South Africa favours a coordinated global approach as "no one country is going to be able to resolve these problems of overvaluation of currencies on its own". "We believe that international cooperation is needed to achieve a more stable international financial environment, as proposed in the recent Group of 20 communiqué," he said.

South Africa should focus on boosting trade, not only among dominant emerging economies, but also within the rest of Africa and other developing countries, as it seeks diversify export markets.
This comes as trade experts, gathered at the second South African Institute of International Affairs trade reform dialogue in Cape Town on Tuesday, were discussing how South Africa should position its trade policy in the wake of the global financial crisis, which has drawn attention to the need for South Africa to diversify its export markets, with emphasis on shifting from western economies like the US and the European Union, to emerging economies such as Brazil, Russia, India, and China - known as the Bric countries.
South Africa has indicated its desire to become a part of the Bric grouping. However, questions have been raised as to what the purpose and benefits of this would be, and being considered a part of this grouping should not be an end in itself. Cape Town Graduate School professor Mills Soko said that while developing relations with these countries is important, South Africa should not be "obsessed" with becoming a Bric member. Engagement with the Bric countries must be strategic, Soko said, calling for pragmatism over ideology.

Proposed South African media legislation that has been criticised as an attempt to muzzle the press, reminiscent of apartheid-era censorship, is likely to be changed to reflect public concern, said government adviser Joel Netshitenzhe, a member of the National Planning Commission.
Speaking during a visit to London, Netshitenzhe said that parts of an information bill that lawmakers from the ruling African National Congress say is designed to protect State secrets, have been carelessly formulated. If passed, the bill would also restrict access to information from official regulators and State-owned enterprises, which, critics say, could deprive investors of important commercial information.
He said that as a result of vigorous public debate, changes are being made to ensure that the legislation protects State and commercial information that should be kept secret, but does not threaten the freedom of the media or the public.

Also making headlines:

South African political parties give a cautious green light to Finance Minister Pravin Gordhan's Medium Term Budget Policy Statement.
Uganda reports that its sustained economic growth has reduced the number of people in poverty by 15% in four years.
Congress of South African Trade Unions secretary-general Zwelinzima Vavi denies suggestions that a civil society conference currently under way is testing the waters for a new political party.
And, south Sudan is prepared to offer the north a financial package to soften the blow of secession if it agrees to allow southern annexation of the oil-producing Abyei region.

That's a roundup of news making headlines today.