Shoprite pay problem, and trouble brewing for beer in South Africa

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

• Shoprite exec pay: Over 25% of Shoprite shareholders have opposed the retailer’s executive pay, prompting the retailer to address their concerns. Last month, Shoprite revealed that CEO Pieter Engelbrecht’s pay package for the past financial year was R83.272 million, nearly R20 million more than the previous year, including deferred incentives that will vest in two years. [News24]

• Trouble brewing: Excise duties and VAT now make up 38% of beer revenue, a rate rising faster than inflation, leaving the industry with thin profit margins. Keith Engel, CEO of the SA Institute of Taxation, warns that the high excise duty on beer could backfire and reduce government revenue due to its heavy burden on consumers and producers. [Business Day]

• Don’t panic, Joburg residents: Electricity Minister Kgosientsho Ramokgopa has urged Joburg residents and businesses not to panic over a dispute between the city and Eskom. Ramokgopa said that the two entities were working on finding common ground on their debt impasse. [EWN]

• Joburg water woes: A seven-page letter from Johannesburg Water to city manager Floyd Brink on 14 October revealed that water throttling and pressure controls (which slow water to a trickle) will be introduced going forward as the city’s water crisis deepens.[Daily Maverick]

• Markets: South Africa’s rand slumped on Monday, buffeted by global headwinds, including a softer gold price, the sputtering Chinese economy and uncertainty over future U.S. policy after Donald Trump’s election victory. On Tuesday (12 November), the rand was trading at R17.96 to the dollar, R23.05 to the pound, and R19.11 to the euro. Oil is trading at $71.76 a barrel. [Reuters]