Hits & Misses

Biggest trade surplus in years, but Cape Town faces downgrade

SOUTH Africa recorded its biggest trade surplus in at least 27 years in December as imports of equipment components, electronics and chemical products dropped. The R15.7-billion surplus compared with November’s R13.1-billion positive balance, the SA Revenue Service said. It is the 11th straight month of surpluses, the longest such streak since 1999.

THE Reserve Bank said Capitec had enough capital and liquidity buffers to survive shocks after a short seller accused the lender of concealing losses. Viceroy Research said the lender may have to write down its loan book by R11-billion to “more accurately represent delinquencies and risk”.

HOUSEHOLDS and businesses borrowed more than expected in December. Economists had expected credit growth to slacken. The Reserve Bank reported that private sector credit extension grew by 6.72% from November’s 6.48% annual growth.

THE Government Employees Pension Fund said its shareholding in Steinhoff depreciated from R24.1-billion on November 30 to R1.8-billion by December 31 in the wake of an accounting scandal at the group. It made the remarks in a presentation handed in to a joint committee meeting in parliament, where a preliminary hearing on Steinhoff was being held.

A credit downgrade looms for Cape Town as the economic consequences of its water emergency deepened with a statement from Moody’s that the water supply crisis was “credit negative” for the Mother City. Moody’s has Cape Town on a Baa3 rating.

ESKOM’S new board released the company’s delayed interim financial statements, indicating that credit lines to the company had been restored but warning that its R367-billion debt burden was unsustainable and had to be dealt with.