For Creamer Media in I am Lumkile Nkomfe.

Making headlines: Kganyago bolsters case for lower inflation target; GOOD Party hopeful of State capture prosecutions following Molefe, Gama arrests; And, Rand strengthens as South Africa’s coalition avoids collapse

Kganyago bolsters case for lower inflation target

South African Reserve Bank Governor Lesetja Kganyago reinforced his argument for adopting a lower inflation target, noting that the current goal hurts the rand and allows prices to march higher.

Kganyago said in Reserve Bank’s annual report published today, although an inflation rate of 4.5% may seem moderate, it still causes prices to double every 16 years.

The central bank prefers to anchor inflation expectations at the midpoint of its 3% to 6% target band, which is currently under review.

Kganyago’s remarks mark his latest effort to sway the debate toward lowering the goal with the central bank advocating for 3%. South African inflation rate was 2.8% in May.

The low level of inflation offers South Africa an “amazing” opportunity to adjust a framework that hasn’t been revised since it was introduced in 2000, David Fowkes, a member of the bank’s monetary policy committee, said earlier this month.

GOOD Party hopeful of State capture prosecutions following Molefe, Gama arrests

The GOOD Party has welcomed what it termed the “long-overdue arrests” of former Transnet executives Brian Molefe and Siyabonga Gama, expressing confidence in the National Prosecuting Authority’s case.

The duo handed themselves over to police and are expected to appear in court on Monday.

According to media reports, the arrests relate to the procurement of 1 064 locomotives and a R93-million double payment during Molefe’s tenure as Transnet CEO between 2011 and 2015.

GOOD secretary-general Brett Herron said this case is yet another example of the industrial-scale looting that took place under the cover of State capture, a project that robbed South Africans of infrastructure, integrity, and justice.

He said after years of damning evidence, including testimony at the Zondo Commission, it was time for accountability.

And, Rand strengthens as South Africa’s coalition avoids collapse

South Africa’s currency gained after the nation’s fractious ruling coalition weathered its latest storm when a key partner opted to remain in the government.

President Cyril Ramaphosa fired the Democratic Alliance’s Andrew Whitfield from his deputy trade minister’s post last week for travelling abroad without permission. The decision was criticised by DA leader John Steenhuisen, who accused Ramaphosa of double standards and gave him a two-day ultimatum to fire ministers from his African National Congress who’ve been implicated in corruption.

The DA’s top leadership decided at a weekend meeting against leaving the so-called government of national unity or submitting a motion of no confidence in the president, instead resolving to vote against some departments’ budget allocations and boycott a national dialogue on the country’s future.

The rand gained as much as 0.7% and traded 0.4% stronger against the dollar at 17.76, this afternoon after it became apparent that neither of the GNU’s two biggest members want it to unravel.

The ANC, DA and eight smaller rivals linked up after last year’s elections failed to produce an outright winner and agreed to focus on growing the economy and safeguarding the constitution — priorities that found favour with investors and buoyed the nation’s assets.

That’s a roundup of news making headlines today

Don’t forget to follow us on the X platform, at the handle @PolityZA