SA looks to hang on to Agoa trade benefits and Ramaphosa responds to oversight pressure

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

• SA looks to hang on to Agoa trade benefits: South Africa is actively campaigning to remain a beneficiary of the African Growth and Opportunity Act (Agoa), with Trade Minister Parks Tau emphasizing the need for its early and extended reauthorization beyond its 2025 expiry to boost investor confidence and foster industrial growth in Africa. This comes in hopes of boosting US-SA relations, which have been clouded in tension for two years, sparked by Russia’s invasion of Ukraine in February 2022. [Business Day]

• Ramaphosa responds to pressure for Presidency oversight: President Cyril Ramaphosa responded to MPs’ concerns about the accountability of his office despite not having a dedicated oversight committee, particularly now that SOEs are under his office’s purview. He emphasised Parliament’s role in overseeing the Presidency and referenced the Zondo Commission’s report and Parliament’s Rules Committee’s recommendations for improved oversight. Ramaphosa said that the Presidency is accountable to Parliament, highlighting ongoing discussions about establishing a specialised oversight committee – but confirmed that no committee has materialised. [Daily Maverick]

• Prison raid shows worrying outcomes: A massive raid at Johannesburg Prison, also known as Sun City, by officials and police led to the seizure of electronics, money, and contraband from medium-risk inmates. Items confiscated included cellphones, TVs without permits, WIFI routers, large amounts of marijuana, cigarettes, and smuggling paraphernalia. National Commissioner Samuel Thobakgale stated inmates using cords to transport contraband would face criminal charges under the Correctional Services Act. [EWN]

• Numsa signs 6.8% wage deal at Gautrain: The 17-day Numsa strike at Gautrain’s operator, Bombela Operating Company, ended with a one-year 6.8% wage agreement, surpassing the 5.1% inflation rate, but below their initial 13% demand. BOC operates and maintains Gautrain systems under a contract with Bombela Concession Company. [Business Day]

• Markets: The rand recouped some losses against a weaker dollar on Wednesday even as national inflation slowed, fuelling hopes of an interest rate cut by the South African Reserve Bank (SARB). On Thursday (25 July), the rand was trading at R18.42 to the dollar, R23.69 to the pound, and R19.88 to the euro. Oil is trading at $81.05 a barrel. [Reuters]