For Creamer Media in Johannesburg, I’m Thabi Shomolekae.

Making headlines: South Africa inflation rises less than expected in December; AfriForum launches petition against new R100bn transformation fund; And, Zimbabwe fears US withdrawal from WHO will hit HIV/AIDS programmes

South Africa inflation rises less than expected in December

South Africa's inflation rate rose for the second month in a row in December but by less than expected, with analysts saying the central bank was still likely to deliver another interest rate cut next week.

Headline consumer inflation ticked up to 3.0% year on year in December from 2.9% in November, with housing and food major contributors, Statistics South Africa data showed today.

Economists polled by Reuters had expected a rate of 3.2%, still well below 4.5% - the level the South African Reserve Bank aims for.

Average inflation for 2024 was 4.4%, the lowest level in four years.

Economists expect the South African Reserve Bank's Monetary Policy Committee to deliver another 25 basis-point rate cut at its next policy announcement on January 30.

AfriForum launches petition against new R100bn transformation fund

Non-governmental organisation AfriForum has launched a petition against Minister of Trade, Industry and Competition Parks Tau’s proposed plan to get private-sector entities to contribute an equivalent of 3% of annual net profit after tax for the development of black suppliers under the proposed R100-billion transformation fund, labelling it “racially discriminatory”.

The fund is aimed at supporting black-owned businesses and small, medium-sized and microenterprises and also aims to address the financial barriers faced by historically disadvantaged groups, including black South Africans, women, youth, people with disabilities, and those residing in rural and township areas.

However, it will be funded by the enforcement of more Broad-Based Black Economic Empowerment Codes in the private sector,

AfriForum expressed its “moral objections” to any fund which distributes finances based on race, pointing out that the fund is “immoral and destructive”, and it also poses a risk of corruption.

Meanwhile, the Democratic Alliance has since called for Tau to immediately bring the fund to Cabinet for proper discussion and approval.

And, Zimbabwe fears US withdrawal from WHO will hit HIV/AIDS programmes

Zimbabwe's finance minister expressed concern today that a US withdrawal from the World Health Organization will lead to aid cuts to countries such as his that are most affected by HIV/AIDS.

President Donald Trump signed an executive order on the US withdrawal after his inauguration to a second term on Monday.

Warning that a US withdrawal could signal cuts in health aid to countries such as Zimbabwe, Finance Minister Mthuli Ncube said: "Any country with an HIV/AIDS challenge will be impacted."

Zimbabwe receives over $200-million a year from the US President's Emergency Plan for AIDS Relief, and the US government has given Zimbabwe over $1.7-billion since 2006 to strengthen health systems and support people living with HIV, according the US embassy in Harare.

That’s a roundup of news making headlines today

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