President Jacob Zuma and Grain Producer

South African debt: The mining industry, hit hard by slowing demand from China, is shedding jobs by the thousand while the worst drought in a century has forced Africa top grain producer to import maize, according to Euro News. Ratings agencies have said they might cut South African debt to junk status after President Jacob Zuma changed finance ministers twice in less than a week in December, raising questions about Pretoria commitment to prudent fiscal policy. The package of spending cuts, civil service job freezes and moderate tax hikes on property sales, fuel, alcohol and capital gains may not go down well with voters either ahead of municipal elections this year in which the ruling African National Congress faces a stiff challenge from the opposition. Finance Minister Pravin Gordhan told parliament that tax hikes should help raise an additional 18.1 billion rand in revenue in 2016/17 and the economy may expand just 0.9 percent, down from a previous forecast of 1.7 percent and compared with estimated growth estimate of 1.3 percent in 2015. Growth has now fallen behind the rate of population increase, resulting in declining per capita incomes, the National Treasury said in a budget statement outlining spending plans for the next three years. That would be the lowest rate of growth since South Africa emerged from recession in 2009. (news.financializer.com). As reported in the news.