BRICS Bank, US$400m Fuel Deal, GDP Growth, Strengthening of The Rand, Exiting Recession – Good News For SA

W020170906736212290020

W020170906736212290020

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.

10 Comments on "BRICS Bank, US$400m Fuel Deal, GDP Growth, Strengthening of The Rand, Exiting Recession – Good News For SA"

  1. The majority of black folks are and have always been in a state of permanent recession.

    It is scandalous that the big monopolies in SA are sitting on stashes of billions that are not invested back into the economy

    • Pinky Khoabane | September 7, 2017 at 2:01 pm | Reply

      Agreed. As Tiisetso Makhele wrote here yesterday, the benefits of the GDP growth mean nothing for the black majority as Capitalists shed jobs and horde the profits.

  2. WMC not happy about this, hope we will also get out of this animal called junk status,Thanks again Sis PK and your team for giving us updates

    • Pinky Khoabane | September 7, 2017 at 1:59 pm | Reply

      Dear Fortune

      I dont know about you but I’m yet to feel the difference between when we were out of junk and now we’re in junk. Instead, the rand has improved and we are now out of recession. Didn’t the petrol also go down. I read shortly after going into junk that investors were still buying property.

      Methinks being in junk hasn’t been all that bad. And that is because the junk status was just political – meant to push the President into retaining Pravin and when he didn’t he was punished. Investors and the Rand (you know that thing has ears and eyes) were able to see right through it.

      Kindest

      PK

  3. Good news for the country. Even small victories must be celebrated as it boosts morale and is a breath of fresh air to the usual negativity. SA is on a positive incline and at this rate we can get better. Big ups

  4. Jeff Koorbanally | September 8, 2017 at 8:17 am | Reply

    More investments like this will get us out of junk status.

    What are the main effect of junk status to the black people of this country:

    it puts a burden on workers as taxes are raised to cover shortfall.

    It prejudices poor people, in terms of basic service delivery, due to lack of funds & as government borrowing becomes costly.

    Its used as justification to push the price of basic food & transport.

    The question then is:

    What is new? Answer is: “Nothing”

    We have been in junk status ever since, hence it means very little to us.
    In fact Junk Status has become an accepted member of the black families, we survived with it and will continue to.

    White people can’t live with it period, it affects their wealth.

  5. Why can’t we just ignore views and suggestions by western economists (investors) and their rating agencies and do what is right and needed to revive our economy? I mean we’ve been implementing their programs for the pasts 24years with minimum job creation. Putin was asked about the downgrade of Russian economy by the usual rating agencies he said that doesn’t concern him cause there are about hundreds of rating agencies and they rate Russian economy differently. Russia is under sanctions from the western powers but their economy is expected to grow. Iran economy too…what are they doing right that we are not doing? They use their natural resources for development..Gazprom(gas and pipeline company) Rosneft(oil company) are allowed to have a near monopoly on the resources for strategic reasons, small internal players are allowed to operate, big international players are allowed to partner only with these 2 big government owned entities..

  6. Edmund Mathebula | September 8, 2017 at 3:18 pm | Reply

    To be honest really for black people in this country,I for one do not feel the difference before and after RSA being in junk status and in recession. Is it because I have not tasted monetary freedom!

  7. I think we given certain agendas to talk about instead of focusing benefiting out of economy. Politics are like roles we meant to focus on as achievement while we kill each other. If we focus on polishing our own minerals & exports.

  8. Methinks next step is for BRICS to finalize the setting up of it’s own Credit Rating Agency.

Leave a comment

Your email address will not be published.


*