JOHANNESBURG (Reuters) – Anheuser-Busch InBev, the world’s largest brewer, has offered more than 1,000 employees in South Africa voluntary severance following its merger with SABMiller, the Business Day newspaper reported on Monday, citing an internal memo.

AB InBev bought nearest rival SABMiller for 79 billion pounds ($98.23 billion) last year in one of the largest corporate mergers in history and taking the company into Africa for the first time.

As part of the merger conditions, AB InBev was required to maintain the number of employees in SABMiller’s South African operations for five years after the date of the merger and not implement forced retrenchments.

The paper said AB InBev could not confirm the number of job cuts it was targeting through the voluntary severance, which has only been offered to management employees.

Spokeswoman Robyn Chalmers did not respond to telephone requests for comment but she is quoted in the paper confirming that Ab InBev has started the programme.

“The voluntary severance offer, which is entirely voluntary, has been made available only to mid-level employees and above,” Business Day quoted her as saying. “We understand that during this period of change some employees may wish to voluntarily exit the business, which is why we have introduced a voluntary severance offer.”

($1 = 0.8042 pounds)

(Reporting by Olivia Kumwenda-Mtambo)

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LONDON (Reuters) – Mozambique’s default on a coupon payment for its dollar-denominated bond last week was “unnecessary” and a step backwards for the country’s relationship with the holders of the debt, a group of creditors said in a statement on Monday.

Mozambique announced a week ago it would not make the $59.8 million payment to holders of its 2023 bond due on Jan. 18 because A deteriorating economic and fiscal situation made its ability to repay debt this year extremely limited.

“This development is a retrograde step for the prospects of Mozambique engaging in good faith negotiations with bondholders,” the Committee of Mozambique’s Bondholders said in a statement.

“The default was unnecessary, given the improvement since October in Mozambique’s economic and financial situation,” the statement said. It added that Maputo was continuing to service other external debt, which signalled “a strategic default targeted at the bondholders.”

The committee was formed in November and includes AllianceBernstein, Franklin Templeton Investment Management and Greylock Capital Management as well as NWI Management and Pharo Management. It says it represents 60 percent of the holders of Mozambique’s so-called “tuna bond”.

The southern African country, one of the world’s poorest, has seen its currency and investor confidence collapse since April, when the International Monetary Fund (IMF) halted a loan after uncovering previously undisclosed debts. The additional debt burden came to light only days after bondholders had agreed to a restructuring.

In its statement, the committee reiterated there was nothing to negotiate until it saw an international audit of state firms’ loans requested by the IMF and an outline of what sort of engagement the fund would envisage going forward.

It also repeated that Mozambique needs to accept “intercreditor equity” – referring to equal treatment for loan and bond creditors as well as bilateral lenders.

“While negotiations are premature, the committee has been prepared to discuss its views and analysis of all aspects of the situation facing Mozambique. To date, neither the government nor its advisors has engaged with the committee on such initial discussions,” the statement said.

On Friday, Fitch said Mozambique’s failure to pay the interest on the bond pointed to an extended period of uncertainty.

(Reporting by Karin Strohecker; Editing by Paul Simao)

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By Vuyani Ndaba

JOHANNESBURG (Reuters) – South Africa’s economy will get a boost from perkier commodity prices, a benign inflation outlook and better rains for the agriculture sector this year, a Reuters poll found on Thursday.

A median of 27 economists in a poll taken over the past week suggested growth in South Africa would accelerate to 1.1 percent this year and 1.6 percent next year.

The South African Reserve Bank (SARB) estimated GDP expanded 0.4 percent last year.

“Higher commodity prices in combination with lower inflation, stable interest rates and a recovery in the agricultural sector should drive 2017 growth somewhat stronger than in 2016,” said Elize Kruger at NKC African Economics.

Twelve of 14 economists bet that growth in Africa’s most industrialised nation has left the slow expansion trap seen in previous quarters.

South Africa’s growth has been choppy in the past two years, with negative quarterly performances three different times on an annualised basis since 2014.

However, KPMG’s Christie Viljoen says positive growth is expected , though it will be very low.

Economists back their claims with the annualised growth rate in the SARB’s leading indicator that has turned positive, but they caution about the risks that lie ahead.

South Africa’s economy relies heavily on the well-being of the euro zone, its biggest trading partner as a single region, and China, its biggest trading partner as a single country.

STABLE RATES

Consumption should get a boost if the Reserve Bank does not hike interest rates this year. All 27 economists expect the repo rate to be kept on hold at 7.0 percent in the Reserve Bank’s meeting on January 24 (not 26).

Medians for the rest of the year suggest no change for the repo rate after Tuesday’s (not Thursday) policy announcement. There is just over a one-in-three chance of a cut this year.

“The bank may still have a change of heart in its rate stance come the second half of this year, opening up room for it to cut policy rates later in the year,” said BNP Paribas economist Jeffrey Schultz.

Still, consumer inflation is expected to slow to an average of 5.8 percent for this year – 0.2 percentage points shy of the Reserve Bank’s top-end comfort level – and 5.5 percent in 2018. It hit a 6.4 percent average last year.

(Editing by Tom Heneghan)

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CAIRO (Reuters) – Egypt’s Suez Canal revenues fell to $5.005 billion in 2016 from $5.175 billion the previous year, Reuters calculations showed on Thursday.

A government website published earlier on Thursday data showing the revenues reached $414.4 million for the month of December.

(Reporting by Ehab Farouk, Writing by Lin Noueihed, editing by Larry King)

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ABIDJAN (Reuters) – Togo has reached an agreement with the International Monetary Fund for a three-year programme that could, subject to board approval, be supported by a $238 million loan package, the IMF said in a statement on Wednesday.

“The agreed economic program … aims to improve the living conditions for the population and to maintain a stable macroeconomic environment that is compatible with public debt sustainability,” the statement said.

(Reporting by Joe Bavier; Editing by Sandra Maler)

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JOHANNESBURG (Reuters) – South Africa’s consumer confidence slipped deeper into negative territory in the fourth quarter of last year, highlighting households’ concerns about the weak outlook for the economy, a survey showed on Thursday.

The consumer confidence index, sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research, slumped to -10 in the fourth quarter after registering -3 in the third quarter.

“The peaceful, free and fair completion of the municipal elections in early August, as well as the final outcome, may also have raised the confidence levels – or expectations for the future – of some consumers,” FNB senior economic analyst Jason Muscat said.

“However, the election boost to confidence likely faded during the fourth quarter, and the economic realities of weak household income growth, poor credit extension and soaring food prices once again exerted downward pressure during the festive season.”

(Reporting by Olivia Kumwenda-Mtambo; editing by Richard Lough)

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