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

Making headlines: Ramaphosa says SA needs to foster entrepreneurial culture to tackle youth unemployment; Rand weakens on risk-off mood, economic data eyed; And, Zimbabwe says gold-backed currency stable but investor doubts persist

Ramaphosa says SA needs to foster entrepreneurial culture to tackle youth unemployment

Following this year’s Youth Day celebration, President Cyril Ramaphosa pointed out that while entrepreneurship is a key economic growth driver, rates of entrepreneurial activity in South Africa are relatively low compared with other countries.

In commemoration of June 16, Ramaphosa acknowledged in his weekly letter to the nation today, South Africa’s high youth unemployment.

He said the extent and scale of the youth unemployment crisis meant that government should not focus solely on placing more young people in formal, existing jobs, but that it must bolster skills development and foster an entrepreneurial culture.

One of the challenges, Ramaphosa said, was the mismatch between the skills available in the workforce and market need.

He said closing this gap should be a critical priority for government, adding that it was working to foster an enabling environment that allowed more young people to become self-employed.

Rand weakens on risk-off mood, economic data eyed

The South African rand weakened in early trade today, as risk sentiment remained fragile with the Israel-Iran conflict entering its fifth day.

At this morning, the rand traded at 17.83 against the dollar, 0.1% softer than Monday's close.

Heightened uncertainty stemming from the Middle East conflict and US President Donald Trump's call to Iranians to evacuate Tehran led investors to seek safe-haven assets, dulling the appeal of the local currency.

Domestic investors will also look to consumer inflation and retail sales figures due on Wednesday, which may influence the South African Reserve Bank's thinking on monetary policy, though its next rate decision is not due till the end of July.

And, Zimbabwe says gold-backed currency stable but investor doubts persist

Zimbabwe's gold-backed currency now has more than 100% reserve cover and is stable, according to the central bank, but doubts over its credibility remain, underscored by a persistent premium in the parallel market.

The Reserve Bank of Zimbabwe on Monday kept its benchmark rate unchanged at 35%, citing a stable exchange rate as one of the reasons, and reported total reserves of $701-million. The bank said the portion of transactions carried out using the Zimbabwe Gold currency surged to 43% in May from 26% in April 2024, the month it was introduced.

Decades of economic instability and currency devaluations mean most people still use the US dollar for most purchases. But the authorities are hoping the ZiG's gold backing will give Zimbabweans the confidence to adopt it for everyday transactions.

That’s a roundup of news making headlines today

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