IT’S been three weeks or so of good news for South Africa’s economy.
BRICS Bank opened its doors to business
The BRICS BANK opened in Sandton, Johannesburg, last month with an immediate R20bn reserved for projects. “The launch of the Africa Regional Centre of the New Development Bank is a historic occasion as it marks the strengthening of the BRICS formation and also underlines the BRICS commitment to the development of the African continent and emerging markets,” said President Jacob Zuma on the launch of the bank.
The idea of establishing a new Bank with a new mission and orientation was first discussed in Durban in 2013, when South Africa hosted the BRICS forum.
PetroSA signs US$400m Oil & Gas Exploration Deal with Russia
Speaking on her way back from the ninth BRICS Summit held in China, Black Business Council (BBC)’s President Danisa Baloyi, said South Africa had signed a multibillion rand oil and gas exploration deal with Russia which will make South Africa self sustained in fuel.
The US$400m deal was signed by PetroSA, the oil and gas corporation of South Africa, and Rosgeo, the geological exploration company of the Russian Federation.
“The agreement involves the development in the exploration areas of blocks 9 and 11a off the South Coast of South Africa. Within the framework of the agreement, Rosgeo is supposed to conduct a considerable volume of geological exploration work. It is planned to carry out more than 4 000 square km of 3D seismic operations and over 13 000 km of gravity-magnetic exploration works, as well as the drilling of exploratory wells. The estimated volume of the investment is about US$400 million,” said PetroSA.
The project envisages extraction of up to four million cubic metres of gas daily. This will subsequently be delivered to PetroSA’s Gas-To-Liquids refinery in Mossel Bay, the South Coast processing plant.
SA Exits Recession with 2.5% GDP Growth
Two days ago Statistician General Pali Lehohla announced that South Africa’s gross domestic product had rebounded with 2.5% effectively lifting the country out of recession.
Lehohla attributed the growth to the agricultural and mining sectors which grew by 33.6% and 3.9% respectively.
Rand Firms In the Wake of Exiting Recession
The Rand firmed against the dollar on Tuesday following news that the economy had emerged from recession. The rand traded at R12.885 to the US Dollar.