5 Things

5 important things happening in South Africa today

Seth Thorne

 ·27 Jun 2024

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

• Ramaphosa presents final “take it or leave it” offers to GNU partners: News24 reports that the negotiations over Cabinet seats between the ANC and the DA are nearing conflict after it was reported that President Cyril Ramaphosa revised an offer, swapping a key performance ministry with a lesser portfolio that was never considered before. The DA is reportedly still offered six Cabinet seats, but one with a less impactful ministry. The ANC has given this as a final offer, with Ramaphosa planning to announce his Cabinet soon. [News24]

• IEC asks Electoral Court to dismiss MK’s case with costs: The Electoral Commission (IEC) has strongly condemned the uMkhonto weSizwe (MK) party for accusations of vote manipulation in the 2024 elections and responded by filing an affidavit to the Electoral Court. The IEC criticised the MK party for alleging fraud without credible evidence after they sought to overturn the election results and requested a new election within 90 days. [The Citizen]

• Ayo shareholders agree to repay R613 million to PIC: Ayo Technology Solutions secured 99% shareholder approval for a settlement to repurchase 17.2 million shares and pay R619 million to the Public Investment Corporation (PIC). This follows a significant discrepancy from the initial R4.3 billion investment for a 29% stake by the PIC before Ayo’s 2017 JSE listing. The deal comes after the PIC, under former CEO Dan Matjila, sued to nullify their initial agreement with Ayo, claiming it was based on false representations. [Moneyweb]

• Coronation share price rebounds: The tax dispute between Coronation Investment Managers South Africa (CIMSA) and SARS ended with the Constitutional Court favouring Coronation. This resulted in Coronation’s share price increasing by 10% in one week and 15% over the year. Coronation, listed on the JSE and based in South Africa, owns subsidiaries, including Coronation Global Fund Managers in Ireland and Coronation International in the UK. [Daily Maverick]

• Markets:  The rand edged lower on Wednesday, as an announcement on President Cyril Ramaphosa’s cabinet appeared imminent amid uncertainty over key appointments in the executive. On Thursday (27 June), the rand was trading at R18.16 to the dollar, R22.94 to the pound, and R19.42 to the euro. Oil is trading at $85.05 a barrel. [Reuters]