For Creamer Media in Johannesburg, I’m Lumkile Nkomfe.

Making headlines: Ramaphosa to visit US next week to meet Trump; Rand surges after South Africa flags inflation-target change; And, Malawi's IMF programme ends after only $35-million disbursed

Ramaphosa to visit US next week to meet Trump

South African President Cyril Ramaphosa will travel to the US on a working visit next week and will meet President Donald Trump on May 21, Ramaphosa's office said in a statement late on Wednesday.

The presidency said in a statement that Ramaphosa will meet with Trump at the White House in Washington DC to discuss bilateral, regional and global issues of interest.

Ramaphosa’s visit provides a platform to reset the strategic relationship between the two countries, the statement added.

Relations between South Africa and the US have soured significantly since Trump returned to the White House in January.

Trump has cut all US financial assistance to South Africa, citing disapproval of its land reform policy and of its genocide case at the International Court of Justice against Washington ally Israel.

Rand surges after South Africa flags inflation-target change

The rand surged to its strongest level against the dollar in two months and government bond yields fell after South Africa’s Deputy Finance Minister David Masondo said an announcement on the country’s inflation-targeting regime was imminent.

The South African Reserve Bank and National Treasury are “working very hard to establish the appropriate inflation framework” and an announcement would be made “very soon”, Masondo said at an investor conference in Cape Town.

The rand jumped as much as 1.1%, leading emerging-market currency gains, on expectations that a lower inflation target would keep monetary policy tighter for longer to put a brake on price increases. The yield on benchmark 2035 bonds fell seven basis points to the lowest since early March.

And, Malawi's IMF programme ends after only $35-million disbursed

The Treasury and SARB have been in talks on a new inflation framework since February 2024. The current target band is 3% to 6%, with a preference for price growth to be anchored at the midpoint. Central bank Governor Lesetja Kganyago has advocated a single-point inflation target of 3%, which would be more in line with South Africa’s peers.

Malawi's $175-million loan programme from the International Monetary Fund has been terminated after no review was completed over an 18-month period, the fund said late on Wednesday.

The donor-dependent Southern African country only received an initial disbursement of $35-million under the four-year Extended Credit Facility approved in November 2023.

The IMF said the programme was not able to restore macroeconomic stability.

Inflation is running at over 30% in annual terms, while crippling foreign exchange shortages have curbed key imports such as fuel and fertiliser.

That’s a roundup of news making headlines today

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