5 important things happening in South Africa today

Here’s what is happening in and affecting South Africa today:

• Construction activity slows: The construction sector in South Africa saw a slow start in the first quarter of 2024, affected by seasonal trends, high capital costs, and local government inefficiencies in approving building plans. Despite Afrimat’s construction index showing positive growth for three quarters, driven by public-private initiatives and efforts to decrease dependency on Eskom, the typical sluggishness of the period was exacerbated by these challenges. [Business Day]

• Truck driver arrested for delivering stone-filled coal to Eskom: A truck driver was arrested for allegedly stealing coal meant for Eskom’s Arnot power station in Mpumalanga and selling it for R6,000. Eskom’s security team discovered the coal containing stones, which confirmed the suspected coal swapping witnessed earlier in the Middleburg yard. [News24]

• Naspers expecting significantly higher full-year earnings: Naspers and Prosus anticipate increased annual earnings, driven by the “accelerated profitability” of their e-commerce ventures. Naspers, holding a major stake in Prosus, credits its earnings largely to this subsidiary, which is involved in various sectors, including online classifieds and food delivery, with significant investments in companies like Tencent, iFood, PayU, and Swiggy. “Our promises of consolidated e-commerce profitability and cash flow generation are on track,” Naspers said in a recent statement. [Business Day]

• Coalition talks clock ticking: News24 has reported an emerging cautious optimism for an “all systems go” among some parties after Tuesday’s discussions on forming a government of national unity (GNU). This is because the critical first session of Parliament looms just 48 hours away, and the elections for President, Speaker, and Deputy Speaker will be held. [News24]

• Markets: The rand gained on Tuesday, as political parties continued talks to try and form a government of national unity in the country, days away from the first sitting of Parliament. On Wednesday (12 June), the rand was trading at R18.58 to the dollar, R23.69 to the pound, and R20.20 to the euro. Oil is trading at $82.27 a barrel. [Reuters]