Trouble for Home Affairs, and bailout not off the table for Transnet

The rand gained against a weaker dollar on Wednesday as investors awaited President Cyril Ramaphosa’s national address today and closely watched developments between the U.S. and China in their dispute over tariffs.

The rand traded at 18.55 against the U.S. dollar, about 0.7% stronger than its previous close.

“Rand sentiment hinges on SONA and U.S.-China trade war developments. Stronger messaging on reforms and fiscal discipline could support South African assets,” said Andre Cilliers, currency strategist at TreasuryONE.

The rand is trading at R18.57 to the dollar, R23.20 to the pound and R19.29 to the euro. Oil is trading lower at $74.68 a barrel.

Here are five other news stories making waves in South Africa today:

Home Affairs in trouble: Minister of Home Affairs Leon Schreiber recently celebrated the clearance of a backlog of 306,000 visas with the assistance of a “Backlog Bomb Squad.” However, immigration agents have reported a significant visa rejection rate, which they claim could be as high as 80%. [Moneyweb]

Transnet bailout still an option: Transnet Group CEO Michelle Phillips says the cash-strapped and embattled rail and logistics giant needs considerable financial investment to turn around its dire situation. She noted that Transnet wants to leverage its customers for a solution before even considering another loan or bailout. [TimesLive]

Bad news for Gqeberha: The Auditor-General’s latest report for the financial year has found that Nelson Mandela Bay has regressed in its audit outcomes over the years and revealed chaos in the key metro in the Eastern Cape. [Daily Maverick]

South Africa’s bull run: Asset managers are cautious about the returns generated by South African assets in the short term but are extremely bullish about local equities over the next year. Bank of America’s South Africa strategist, John Morris, explained that a common belief among professional investors in the country is that local equities are undervalued. [Daily Investor]

South Africans are poorer: South African consumers have 42% less spending power than they did nine years ago because salary increases have failed to keep up with the rising cost of living. [Mail & Gaurdian]