5 important things happening in South Africa today

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

• Gauteng Cabinet announcement postponed again: It has been over two weeks since the ANC’s Panyaza Lesufi was sworn in as Gauteng Premier, but a negotiation deadlock between the DA (which received ~28% of the provincial vote) and the ANC (~35% of the vote) meant that the planned announcement of the provincial executive was postponed for a second time. It is alleged that Lesufi wanted to give the DA 2 MEC posts and the ANC 7. [EWN]

• Labour Court rules Prasa must reinstate former CEO: The Passenger Rail Agency of South Africa (Prasa) has been ordered to reinstate Zolani Kgosietsile Matthews as its chief executive officer. The Labour Court dismissed the rail operator’s bid to review and set aside a 2022 arbitration award that found it must reinstate Matthews in his position. Prasa fired Matthews in November 2021, after eight months on the job, for failure to disclose he also held citizenship of the UK and thus could not obtain a top security clearance. The court decision leaves Prasa in a bind, as it now effectively has two CEOs. [News24]

• Maersk keeps Transnet tender after legal challenge: The Mediterranean Shipping Company (MSC)’s legal challenge to nullify a contract between Transnet and Maersk, which involves developing unoccupied land at Transnet Park to boost Belcon precinct’s rail capacity to the Port of Cape Town, has been denied. The development includes a depot, cold store, and warehouse to support the handling of perishable imports and exports, with Maersk investing R700 million. The depot has been operational since February 2023, with completion expected in March 2025. MSC questioned the legality of the contract between Maersk and Transnet Freight Rail. [BusinessDay]

• Clicks announce plan to offload ‘medicine factory’ Unicorn: The Clicks Group is selling its entire ownership stake in Unicorn Pharmaceuticals, expected by the end of July, following a legal defeat to the Independent Community Pharmacy Association, which argued Clicks’ ownership violated regulations. This ends a dispute over Clicks’ interest in Unicorn, which produces 40 generic medicines previously exclusive to Clicks pharmacies, affecting independent pharmacy access and product dispensing for patients. [Daily Maverick]

• Markets: The rand gave up some gains on Monday as the initial optimism shown by the markets waned a day after President Cyril Ramaphosa formed a new cabinet. On Tuesday (2 July), the rand was trading at R18.39 to the dollar, R23.04 to the pound, and R19.72 to the euro. Oil is trading at $86.83 a barrel. [Reuters]