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Making headlines: Mbalula expresses ANC’s commitment to GNU as Budget talks continue; Pilot procurement of powerlines from private investors to be launched in November; And, South African business outlook muddied by deteriorating US ties

Mbalula expresses ANC’s commitment to GNU as Budget talks continue

African National Congress secretary-general Fikile Mbalula expressed confidence, today, that the Budget will be passed, although negotiations are ongoing.

The Standing Committee on Finance is scheduled to vote on the fiscal framework, focusing on the National Treasury's challenges in stabilising the debt trajectory and addressing inefficiencies in network industries to enhance economic performance.

In February, the Democratic Alliance and other opposition parties refused to support Finance Minister Enoch Godongwana’s Budget, with proposals to raise value-added tax.

Mbalula said the ANC was in engagements with all the parties in the Government of National Unity, explaining that the process of the negotiations was fluid.

Mbalula said the ANC had “shown commitment” and that the party was working with all the parties to find solutions to the Budget, noting that his party had a draft framework to engage all parties.

Pilot procurement of powerlines from private investors to be launched in November

South Africa intends launching a pilot programme for the procurement of 1 164 km of 400-kV powerlines, involving seven corridors in three provinces, in November as part of an initiative to mobilise private investment to address a grid backlog that is currently constraining new projects in high potential renewable-energy regions.

The pilot independent transmission project request for proposals will be overseen by the Independent Power Producer Office, which has managed South Africa’s public renewables procurement since 2011, and will be preceeded by the release of a request for qualification in July.

Last month, Electricity and Energy Minister Dr Kgosientsho Ramokgopa Gazetted a Ministerial Determination under Section 34 of the Electricity Regulation Act opening the way for the procurement of independent transmission project capacity in the Northern Cape, the North West province and Gauteng.

The determination designates the Department of Electricity and Energy as the procurer and the National Transmission Company South Africa, the Eskom subsidiary of responsible for the grid and system and market operations, as the buyer of the ITP capacity over the concession period.

Neither the precise ITP model, nor the concession term, has been disclosed, but Ramokgopa indicated during a briefing on today that some form of build, operate, own and transfer, or BOOT, arrangement was likely to be implemented.

And, South African business outlook muddied by deteriorating US ties

South African business sentiment remained in contractionary territory for a fifth straight month as a recovery in demand struggles to pick up pace amid uncertainty about deteriorating relations with the US.

Absa Group’s Purchasing Managers’ Index, compiled by the Bureau for Economic Research, rose to 48.7 in March — below the 50 level that indicates an expansion and compared with 44.7 in February, the Johannesburg-based lender said today.

It said comments from respondents indicate that logistical issues at the ports remain, and souring relations with the biggest economy in the world is bringing uncertainty – although it may not be affecting trade at the moment.

South Africa’s relations with the US have become increasingly strained since President Donald Trump took office in January. The US leader has criticised South Africa on several fronts, including over its land-expropriation policy and for a case it brought before the International Court of Justice accusing Israel — a key American ally — of genocide.

That’s a roundup of news making headlines today

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