KwaZulu-Natal in financial trouble and private college deregistration confusion

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

• KZN needing a cash injection: In an interview with Business Day, KwaZulu-Natal Premier Thami Ntuli highlighted the province’s need for increased funding from the Treasury to ensure the success of the government of national unity following recent devastations from political riots and floods. Ntuli emphasised seeking financial support, inviting private-sector partnerships, and reprioritizing expenditures. Despite challenges and a history of governance issues, he remains optimistic, although he acknowledged that rising serious crime levels pose a significant investment threat and underscored the potential role of the private sector in economic growth. [Business Day]

• Staff and students still in the dark over Educor crisis: Four months after the Department of Higher Education announced the deregistration of four Educor-owned colleges, including City Varsity, Damelin, ICESA City Campus, and Lyceum College, due to complaints about educational standards and financial issues, confusion persists among staff and students about their future. Despite concerns, an educator affiliated with Educor confirmed that the institutions are still operational and recruiting new students. However, they also highlighted a lack of transparency from Educor, leading to widespread anxiety and uncertainty. [News24]

• Eastern Cape housing project mess: In Matatiele, Eastern Cape, over 400 houses in the large-scale Maritseng housing project remain unfinished, without roofs, leaving recipients residing in nearby mud houses. Initiated in 2015 and aimed to build 1,500 houses, Sivivane Construction Company completed 1,084 before exiting in 2022. The Matatiele Local Municipality, now overseeing the project, has contracted Mayibuye iAfrika to finish the remaining 416 units by June 2025, with a budget of R71.6 million. [GroundUp]

• SA pharmacies still battling for Covid vaccine payments: South Africa’s largest association of independent pharmacies has highlighted ongoing financial losses among its members post-Covid-19 vaccination program, raising concerns over the economic feasibility of partnering with the state under the National Health Insurance (NHI) scheme. The NHI aims to reimburse providers, including pharmacies, from a state fund. However, many have voiced disillusionment, noting the challenges already faced with just two medicines and questioning the sustainability when expanding. [Business Day]

• Markets: The rand was stronger on Monday at the start of a week filled with closely watched global and domestic economic data releases. On Tuesday (13 August), the rand was trading at R18.25 to the dollar, R23.31 to the pound, and R19.92 to the euro. Oil is trading at $81.82 a barrel. [Reuters]