Government ready to cut 30,000 workers, and social unrest hits UCT

The South African rand weakened slightly on Tuesday against a strong U.S. dollar, ahead of a much-anticipated national budget speech.

The rand was trading at 18.41 to the dollar, down 0.15% from its previous close. Additionally, the dollar was approximately 0.22% stronger against a basket of currencies.

Domestic investors are focused on the national budget presentation by Finance Minister Enoch Godongwana, which is taking place today.

Analysts expect that the budget will emphasise reforms, fiscal responsibility, and the inclusion of the private sector.

On Wednesday (19 February), the rand strengthened slightly, trading at R18.40 to the dollar, R23.22 to the pound and R19.23 to the euro. Oil is trading lower at $75.88 a barrel.

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

UCT Protests: The University of Cape Town (UCT) students will have to contend with some online lectures after protests at the campus. On Monday (17 February), groups of students staged protests outside the university’s administration buildings over student debt and housing. [Primedia Plus]

Government cuts wage bill: South Africa’s government has drafted an early retirement offer for civil servants as part of an effort to reduce its wage bill. If adopted, the early retirement plan would be available over the next two years, and about 30,000 people could take up the packages [Bloomberg]

Transport nightmare still costing billions: South Africa loses R1 billion a day in missed trade opportunities due to transport and logistics challenges, according to the Southern African Association of Freight Forwarders (SAAFF). [Business Day]

South African sues France: Chartered accountant Nicolaas van den Bergh is suing the French government for allegedly breaking an oral agreement to supply millions of breathalyser tests intended to reduce alcohol-related road fatalities, resulting in a sales loss of R244 million. [Moneyweb]

Budget speech D-day: the country waits for finance minister Enoch Godongwana to table his first budget of the Government of National Unity (GNU) today (19 February) at 14h00. Godongwana will outline all the financial, economic, and social commitments the government will prioritise in its planned expenditure. [Times Live]