June 18, 2024.

For Creamer Media in Johannesburg, I’m Halima Frost.

Making headlines:

DA takes key Finance, Infrastructure portfolios under new KZN Premier

S&P does not foresee any significant policy shift under new SA government

And, Botswana may fall short of 4.2% growth target

DA takes key Finance, Infrastructure portfolios under new KZN Premier

The first signs of the Government of National Unity are apparent in KwaZulu-Natal following the inauguration of the Inkatha Freedom Party’s Thami Ntuli, as Premier today, and his appointment of Democratic Alliance members in the Provincial Treasury and Public Works and Infrastructure portfolios.

Ntuli also moved the Community Safety portfolio to his office and gave the Provincial Department of Social Development to the National Freedom Party’s Mbali Shinga.

The kingmaker in the province, the NFP, joined the Government of Provincial Unity in KZN, swelling the coalition ranks of the African National Congress, IFP and DA.

IFP members take over Economic Development and Environment Affairs; Cooperative Governance and Traditional Affairs; Agriculture and Rural Development; and Sports, Arts and Culture.

ANC members take the Health portfolio, the Department of Transport and Human Settlements and the Education Department.

S&P does not foresee any significant policy shift under new SA government

S&P Global Ratings does not expect any significant policy shift as a result of South Africa's government of national unity formed following the May 29 elections when the African National Council failed to secure an overall majority for the first time since 1994.

The ANC’s GNU proposal was opened to all parties and a Statement of Intent outlining principles and basic minimum programme of priorities has been signed by the Democratic Alliance, the Inkatha Freedom Party, and the Patriotic Alliance, with other parties also expected to join.

In a statement, which S&P Global Ratings said did not constitute a rating action, the agency described the election outcome as broadly favourable for the economic and fiscal outlook when compared with the alternatives.

S&P Global Ratings South Africa's real GDP will increase by 1.1% in 2024 and an average of 1.3% between 2025 and 2027, from 0.6% in 2023.

Botswana may fall short of 4.2% growth target

Botswana's economy may fall short of the government's 4.2% growth target for this year, a senior central bank official said, citing global and domestic constraints.

Botswana’s Finance minister Peggy Serame made the projection for a 4.2% increase in GDP in a budget speech in February, saying the government expected growth to accelerate from 2023 due to an improved performance in the diamond sector. Gross domestic product grew 2.7% in 2023.

However, Botswana's mining sector, which is dominated by diamonds, is still struggling, reflecting sluggish market conditions globally.

Sales at Debswana Diamond Company, a joint venture between the southern African country's government and Anglo American's De Beers unit, were down about 48% year-on-year in the first quarter of 2024.

That’s a roundup of news making headlines today

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