June 27, 2024.

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

 

Making headlines:

Cabinet talks stall after ANC withdraws trade offer

South African food inflation remained below CPI headline inflation in May

And, Congo authorities approve mpox vaccines to try to contain outbreak

 

Cabinet talks stall after ANC withdraws trade offer

Talks between South Africa’s two biggest political parties on forming a cabinet stalled after the African National Congress withdrew an offer to appoint a member of the smaller Democratic Alliance as trade and industry minister, people familiar with the matter said.

While the ANC offered to instead cede the tourism portfolio, the DA objected as the party sees it as a minor ministry, said the people who asked not to be identified as the negotiations are private.

The disagreement is delaying a deal over the appointment of ministers almost a month after the election cost the ANC its parliamentary majority for the first time. Still, negotiations on the cabinet were always expected to be difficult and it’s anticipated that an agreement may yet be reached, the people said.

The setback is the latest twist in talks that are being watched anxiously by investors. The DA had initially asked for about 10 ministerial posts, while the ANC had offered three, Bloomberg has previously reported. The two parties, which have been bitter opponents for decades, later settled on about six, with the DA wanting to be represented in the so-called economic cluster, which includes the trade and industry portfolio.

 

South African food inflation remained below CPI headline inflation in May

In May, for the third month in a row, South African food and non-alcoholic beverage inflation, hereafter to be referred to simply as food inflation, ran at a level below that of consumer price index headline inflation, reported the Bureau for Food and Agricultural Policy in its latest Food Inflation Brief report. Year-on-year food inflation was 4.7% last month, while CPI headline inflation was 5.2%.

In month-on-month terms, the two rates were effectively flat, with each increasing by only 0.2%. Food inflation contributed 0.9 percentage points to the CPI headline inflation year-on-year figure, and 0.03 ppt to the month-on-month number.

Regarding input costs for the food sector, in May the CPI for “electricity and other fuels” rose by 15.3%, year-on-year, but by zero percent, month-on-month.

The CPI figure for “fuel” increased by 9%, year-on-year, and by 1.9%, month-on-month. But, for the first time in many months, the rand appreciated against the dollar, instead of depreciating.

 

Congo authorities approve mpox vaccines to try to contain outbreak

Authorities in the Democratic of Congo have approved the use of two mpox vaccines to try to tackle an upsurge in cases and a dangerous new strain spreading in the country.

Congo has seen 20 000 cases and more than 1 000 deaths from mpox, mainly among children, since the start of last year.

The disease is a viral infection that spreads through close contact, causing flu-like symptoms and pus-filled lesions. Most cases are mild but it can kill.

This week, the World Health Organization and scientists warned of a new, more deadly strain spreading in Congo's South Kivu province.

The regulator has issued an emergency use authorisation for both Bavarian Nordic's shot, Jynneos, and LC16, made by KM Biologics, according to documents and sources involved in the process.

 

That’s a roundup of news making headlines today

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