D-day for Tshwane, and big win for the rand

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

• Durban port limbo: As the Durban High Court considers an interdict against a Transnet tender awarded to International Container Terminal Services Incorporated (ICTSI), CEO Christian Gonzalez expressed concern for his team left in uncertainty. The court challenge, initiated by losing bidder APM Terminals, claims ICTSI failed to meet a mandatory solvency ratio requirement. Sources indicate this ratio is impractical and unattainable for even some of South Africa’s largest companies. [News24]

• Tshwane mayor no-confidence motion: In Tshwane, a motion of no-confidence in DA executive mayor Cilliers Brink, tabled by the ANC, will be heard. Senior leaders from the ANC and DA were reportedly discussing a coalition agreement that could halt the motion and lead to shifts in administration in Johannesburg, Tshwane, and Ekurhuleni. The DA, ANC, and ActionSA are all vying for the mayoral position in Tshwane. However, no agreement has been confirmed, and sources have said that the ANC national leadership has given the nod for the motion to go ahead.

• Rand reaches intra-day high: The rand reached an intra-day high of R17.12 against the US dollar, with analysts saying that this is driven by positive sentiment from the Government of National Unity. Currency specialist Andre Cilliers attributes this to President Cyril Ramaphosa’s recent visits to New York and China and the widening interest rate differentials between South Africa and the US. Expectations of the US Federal Reserve continuing aggressive rate cuts are also expected to weaken the dollar. [SABC]

• KZN municipality’s 8-year water woes: Residents of eThekwini municipality’s Ward 105 have faced dry taps for over eight years, with water flow limited to nighttime since 2014. After the area was transferred from Ugu District Municipality to eThekwini in 2016, water provision worsened. Located about 40km southeast of Durban, the ward includes several villages—Fakazi, Mgendwa, Wubwini, Amandlethu, Thenjana, and Mfume—all lacking running water. [GroundUp]

• Markets: The rand extended its recent rally on Wednesday, strengthening to a fresh 20-month high against the dollar. On Thursday (26 September), the rand was trading at R17.24 to the dollar, R23.04 to the pound, and R19.23 to the euro. Oil is trading at $73.03 a barrel. [Reuters]