Tax hike warning, and legal trouble for top KZN estate

The South African rand strengthened on Friday following U.S. President Donald Trump’s announcement of plans to impose reciprocal tariffs on countries that tax U.S. imports.

Investors are also anticipating the upcoming domestic budget release this week. ETM Analytics noted that the only significant factor affecting the rand’s direction is the budget speech.

South African Finance Minister Enoch Godongwana is expected to outline the budget this week and provide investors with guidance.

At the close of trading, the rand was priced at 18.32 against the dollar, representing an increase of approximately 0.9% from its previous closing value.

On Monday (17 February), the rand strengthened slightly, trading at R18.34 to the dollar, R23.09 to the pound and R19.23 to the euro. Oil is trading lower at $74.91 a barrel.

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

Tax hikes: South Africans could be facing several tax shocks this week when Finance Minister Enoch Godongwana tables his 2025 budget on Wednesday (19 February). [BusinessTech]

Zimbali legal battle: A legal dispute involving defamation, intimidation, and harassment allegations, along with a R700,000 levy bill, has emerged between a resident of the luxury coastal estate of Zimbali in Durban and its CEO. [News24]

Risks to South Africa: President Cyril Ramaphosa is sending envoys to Washington and other capitals to clarify South Africa’s policies. Moody’s Ratings warns that strained relations between the US and South Africa could threaten the country’s economic growth and trade. [Business Day]

Eskom kisses billions goodbye: The Auditor General (AG) identified significant issues of irregular, fruitless, and wasteful expenditure, resulting in billions of losses for Eskom. The findings included R4.1 billion in irregular expenditure, R1 million in wasteful spending, and R6.7 billion lost to criminal activity. [Daily Investor]

Water trouble continues: Joburg Water has reported that some of the city’s systems are still under strain, despite Rand Water operating at full capacity. [EWN]