JSE warns Eskom, and possible KZN coalition shake-up

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

• JSE warns Eskom: The JSE has informed Eskom that it will suspend bond trading if the energy producer fails to submit its annual financial statements for the year ending March 2024. This news is likely to alarm the utility’s bondholders, who hold a significant portion of its debt. On Friday, the exchange notified Eskom’s bondholders that the company had missed the deadline for submitting its annual financial statements. If these statements are not submitted by the end of November, the JSE may have to take decisive action. [Business Day]

• MK eyes taking over KZN: The KwaZulu-Natal (KZN) coalition government, formed in June by the IFP, ANC, DA, and NFP, is facing its biggest stability threat yet. Following the May elections, the uMkhonto Wesizwe (MK) party won 37 of 80 seats but disputed the results, delaying coalition talks that allowed other parties to form a government with 41 seats, sidelining MK. MK is now intensifying efforts to gain power, having tasked former ANC KZN premier and now MK KZN leader Willies Mchunu with negotiating new partnerships to form government in the province. [Daily Maverick]

• Gauteng–Polokwane rail link set in motion: A feasibility study for a potential high-speed rail link between Gauteng and Polokwane is underway, supervised by the Department of Transport. The study is expected to be completed by the end of next year, and if approved, construction could begin in 2026, creating jobs in Limpopo. [The Citizen]

• Cop killings at a new high: According to SAPS’ 2023/24 annual report, there has been a more than 20% year-on-year increase in the number of police officers killed in South Africa, with 111 murdered in the 2023/24 financial year. The 111 murders included both off-duty and on-duty officers and are the highest recorded over the last five years. [News24]

• Markets: The rand edged higher on Friday after the release of a purchasing managers’ index (PMI) for the domestic manufacturing sector, as well as U.S. jobs data. On Monday (04 November), the rand was trading at R17.54 to the dollar, R22.83 to the pound, and R19.12 to the euro. Oil is trading at $74.24 a barrel. [Reuters]