Mboweni master plan to save SA; Eskom R450bn plant sale; strikes hammer Sibanye; Moyo-Manuel battle latest

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Tito Mboweni has unveiled an economic rescue plan for South Africa. Late on Tuesday, the National Treasury released a massive policy document aimed at boosting economic growth by between 2-3% and creating 1 million additional jobs. In a statement along with the release of that document, Minister of Finance Mboweni said he encouraged citizens to make comments on the proposals. The paper, titled: Economic transformation, inclusive growth, and competitiveness: Towards an Economic Strategy for South Africa.

Eskom could sell some coal-powered plants to raise R450bn and allow households to sell electricity back into the grid as part of a restructuring of the state-owned power utility. The stations could be sold through a series of auctions and would include related staff contracts, coal-supply contracts and environmental obligations, according to an economic policy paper the National Treasury released for public comment on Tuesday.

Precious metals producer Sibanye-Stillwater said on Tuesday it fell into the red in the first half of the year due to a five-month strike at its South African gold operations.Gold production was hit by the strike over pay and job cuts that ended in April and cost Sibanye more than $100m in lost revenue.

Also among the worst performers on Tuesday was Old Mutual, also down nearly 3%. Analysts speculate that a battle between Peter Moyo, the on-again, off-again CEO and the life assurer’s chairman, former finance minister Trevor Manuel, is putting the Old Mutual stock under pressure. Fin24 reported late on Tuesday that Moyo had lodged an urgent application for the board of Old Mutual and its chairperson Trevor Manuel to be declared as having deliberately interfered with the functioning of the courts. Learn more about your ad choices. Visit megaphone.fm/adchoices
27 Aug 2019 12PM English South Africa Investing · Business News

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