The South African rand surged to a six-month peak on Tuesday after the news that Cyril Ramaphosa, the current deputy president, has succeeded Jacob Zuma as the president of the ruling ANC party, reflecting the hope that he will tackle some of the urgent economic issues that are threatening a full-scale economic crisis.
But it may be too early to celebrate: Mr Zuma is still in power, with another 18 months to serve as state president, and can do a lot more damage in that time. Last week the state-controlled arms manufacturer Denel disclosed it didn’t have enough cash to pay its staff over Christmas and Eskom, the monopoly energy supplier, is in even bigger trouble, sinking under the weight of its debt, which is big enough to sink the entire country.
Yet Mr Ramaphosa brings a commodity to South Africa that has become rare under the Zuma regime: hope. He has promised, once he assumes the reins of power, to tackle corruption, stamp out the practice of “state capture” and implement a comprehensive economic plan (which is already official government economic policy but no one in government pays any attention to it) for restoring financial disciplines and re-igniting growth. He is also seen as investor-friendly and, as a rand billionaire himself, will be able to work with a business sector that Mr Zuma had thoroughly alienated and which is essential for turning things around.
But it’s not going to be easy and within hours of his victory on Monday, cooler heads were already warning of the difficulties Mr Ramaphosa faces. Nine years of Mr Zuma’s presidency have done immense damage, not just to the economy, but to the institutions and state corporations, which have been systematically plundered by his cronies and appointees. SARS, the state revenue service, used to be one of the most efficient tax-collecting agencies in the world. But after it challenged Mr Zuma over his private tax affairs, its key staff were moved or sacked, its investigative powers curbed, and a Zuma crony, who knows nothing about tax, was put in charge. The result is a 42 billion rand (Dh12.05bn) hole in the public finances.
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Read more:
Traders welcome Ramaphosa's win in South Africa
Country at a crossroads as Zuma's reign nears end
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The former finance minister, Pravin Gordhan, a man of rock-ribbed integrity who actually ran SARS and was twice fired by Mr Zuma, warns that in its current state the economy “is not going to grow at more than 1 per cent when what we need is 4 to 5 per cent”. There have been two recessions in the past 10 years, which is difficult to achieve at a time when the world economy has been growing strongly, and in the past three years the country has averaged growth of less than 1 per cent, well below the growth in its population. South Africa, with one of the biggest wealth divisions in the world, has actually been going backwards.
“The current leadership has failed us,” says Mr Gordhan, “because it’s primary occupation has been how to fill certain people’s bank accounts, local and foreign. That’s been their priority - not the 55 million South Africans.” By “certain people”, he means the Indian-born Gupta family who, through their influence over Mr Zuma, have in effect “captured” the state through the appointment of their cronies as ministers in key departments and as heads of the big state-owned companies. Financial investigators, with the help of a huge leak of internal emails provided by a whistleblower, have tracked their influence into the deepest corners of the state machinery. Mr Gordhan calculates they have “stolen” 100bn rand of state money through the award of lucrative state contracts and inflated fees to their own companies.
“Members of the cabinet have associated themselves with people who have proven themselves prime extraditors of revenue and wealth from the tax-payers,” he says. Monday’s vote, therefore, was bad news for the Guptas, who must see their days in South Africa as numbered. Not that they will worry too much - by most estimates they have successfully “laundered” several billion dollars to their interests. Now based in the Middle East, their life will be more comfortable than the potential alternative: jail.
The first test of Mr Ramaphosa’s global standing will come in February when Moody’s Investors Service rates the country’s debt. Right now, it is the only one of the three big agencies that holds rates it at above junk status, and it has been hanging on for the budget before making up its mind. If Mr Ramaphosa had lost the weekend’s vote to his rival, Nkosazana Dlamini Zuma, the president’s former wife, Moody’s might not even have waited that long. Just hours before the voting started, Mr Zuma had caught his own finance minister, Malusi Gigaba, by surprise when he announced free university fees for nearly a million students, a populist move he thought might just tip the balance in her favour. Fortunately, it didn’t work - and couldn’t have been paid for in any case.
The big question now is: will Mr Zuma be able to serve out his term as state president, which ends with the next general election in 2019? Mr Zuma himself removed Thabo Mbeki, the then president, in similar circumstances 10 years ago. Mr Ramaphosa’s supporters are hoping he can do the same thing. In which case the rand might strengthen further.
It has been a good weekend for South Africa.
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Tips for avoiding trouble online
- Do not post incorrect information and beware of fake news
- Do not publish or repost racist or hate speech, yours or anyone else’s
- Do not incite violence and be careful how to phrase what you want to say
- Do not defame anyone. Have a difference of opinion with someone? Don’t attack them on social media
- Do not forget your children and monitor their online activities
The specs
Engine: 2.9-litre twin-turbo V6
Power: 540hp at 6,500rpm
Torque: 600Nm at 2,500rpm
Transmission: Eight-speed auto
Kerb weight: 1580kg
Price: From Dh750k
On sale: via special order
Starring: Jamie Foxx, Angela Bassett, Tina Fey
Directed by: Pete Doctor
Rating: 4 stars
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
PRESIDENTS CUP
Draw for Presidents Cup fourball matches on Thursday (Internationals first mention). All times UAE:
02.32am (Thursday): Marc Leishman/Joaquin Niemann v Tiger Woods/Justin Thomas
02.47am (Thursday): Adam Hadwin/Im Sung-jae v Xander Schauffele/Patrick Cantlay
03.02am (Thursday): Adam Scott/An Byeong-hun v Bryson DeChambeau/Tony Finau
03.17am (Thursday): Hideki Matsuyama/CT Pan v Webb Simpson/Patrick Reed
03.32am (Thursday): Abraham Ancer/Louis Oosthuizen v Dustin Johnson/Gary Woodland
Company%20profile
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
TO%20CATCH%20A%20KILLER
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DMZ facts
- The DMZ was created as a buffer after the 1950-53 Korean War.
- It runs 248 kilometers across the Korean Peninsula and is 4km wide.
- The zone is jointly overseen by the US-led United Nations Command and North Korea.
- It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
- Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
- Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
- Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012.
- Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
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Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Company%C2%A0profile
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$1,000 award for 1,000 days on madrasa portal
Daily cash awards of $1,000 dollars will sweeten the Madrasa e-learning project by tempting more pupils to an education portal to deepen their understanding of math and sciences.
School children are required to watch an educational video each day and answer a question related to it. They then enter into a raffle draw for the $1,000 prize.
“We are targeting everyone who wants to learn. This will be $1,000 for 1,000 days so there will be a winner every day for 1,000 days,” said Sara Al Nuaimi, project manager of the Madrasa e-learning platform that was launched on Tuesday by the Vice President and Ruler of Dubai, to reach Arab pupils from kindergarten to grade 12 with educational videos.
“The objective of the Madrasa is to become the number one reference for all Arab students in the world. The 5,000 videos we have online is just the beginning, we have big ambitions. Today in the Arab world there are 50 million students. We want to reach everyone who is willing to learn.”
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
