Prepaid electricity crackdown, and 17% VAT still on the cards

The South African rand weakened on Thursday following U.S. President Donald Trump’s announcement that his proposed tariffs on Mexican and Canadian goods will take effect next week.

The rand was trading at 18.4775 against the U.S. dollar, which represents a decrease of about 0.2% compared to its previous close.

Additionally, the dollar was approximately 0.6% stronger against a basket of other currencies.

On Friday (28 February), the rand strengthened slightly, trading at R18.50 to the dollar, R23.27 to the pound and R19.21 to the euro. Oil is trading lower at $73.66 a barrel.

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

Prepaid crackdown: Eskom has said that while working on a new vending system for selling prepaid electricity tokens, it has fortified the existing one to prevent further theft. A recent KRN 2 rollover programme converted 400,000 zero buyers to paying customers. However, about 1.7 million users still bypass the system, costing the utility around R2 billion monthly. The improvements are expected to make it harder for those still trying to steal electricity. [MyBroadband]

VAT hikes still considered: Budget negotiations will continue on Monday with new Treasury proposals. The Treasury aims to raise VAT, but at a lower rate, while the Democratic Alliance (DA) opposes any increase. A proposed payment holiday from the Government Employees Pension Fund would allow the Treasury additional time to review spending. [News24]

Trump aid axe falls: USAID has cut funding for HIV/AIDS organisations across South Africa, a decision that could have major consequences for medical research, disease prevention, support for key populations, and community-based testing and tracing. [Daily Maverick]

Permanent SAA CEO appointed: Professor John Lamola has been appointed Group CEO of South African Airways, having previously served as interim CEO after Thomas Kgokolo did not renew his contract. The Democratic Alliance (DA) is raising concerns about Deputy President Paul Mashatile and Transport Minister Barbara Creecy’s involvement in the interview process. [eNCA]