5 things you need to know in SA business and why this SA company's share price doubled in a week


- businessinsider.co.za | 6 days ago

Comair employees who are members of the National Union of Metalworkers of SA (Numsa) will start to strike in the next two days. The union is unhappy with “wage disparities” at Comair, which operates kulula and British Airways in South Africa. In other aviation news, the American airline United Airlines announced plans to launch a direct flight between Cape Town and Newark Liberty International Airport this December.

 That would be the first time in a long time there has been a direct flight between Cape Town and the United States – and it would save travellers at least four hours. The route is only due to run during the South African summer at first. In a statement yesterday, Moody’s warned that growing government debt and slow economic growth could risk its credit rating.

It was not optimistic that growth will strengthen – due to problems like weak state-owned enterprises, inequality, youth unemployment, skills shortages and power supply problems. However, Moody’s is optimistic about president Cyril Ramaphosa who “has managed to avoid damaging political, social and economic confrontation to manoeuvre the sociopolitical landscape and push forward with key steps against state capture.

The main risk, however, is that members of the government turn out to be involved in state capture, thereby leading to a high turnover of ministers and with it, at times, policy uncertainty.

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