Relief for the poor, but more unrest could put credit ratings at risk

THE Treasury announced a R38.8bn relief package for the poor and business support that will not affect the budget framework because it will not require more debt. The package will be funded by higher-thanexpected tax revenue, with R33.85bn being new money and R2.65bn funded by the reprioritisation of departmental budgets.

LIQUOR producers welcomed the end to a fourth liquor ban and about R7.5bn in excise tax deferment, but warned they are still not out of the woods as they battle to recover in a market where more than a fifth of sales are estimated to be illicit.

THE US donated 5.7million Pfizer vaccine shots to support SA’s efforts to curb the spread of the pandemic and accelerate economic recovery. It pledged 500-million doses globally, including through Covax, the Africa CDC and African Union, said US chief of mission Todd Haskell.

TIGER Brands wiped more than R1bn off its market value after recalling millions of canned vegetable products in the latest food safety concern for a company still reeling from the discovery of listeria at its meat-processing factory. The crux of the safety issue is a welding technique that left defects in seams that could make the tins vulnerable to cracks and lead to leaks, the company said.

S&P Global Ratings said it did not expect SA’s credit rating to be affected in the immediate term by the recent looting and violence but that if it were to be prolonged or repeated, ratings could be at risk.

PRIVATE-sector credit extension fell 0.54% year on year in June, slightly worse than the 0.4% drop expected in the Trading Economics consensus, providing further confirmation that many businesses are more interested in reducing debt than betting on future growth.