Storm brewing over wage hikes, and new rules for electricity prices

The South African rand strengthened on Wednesday as it responded to downward pressure on the US dollar, influenced by the market’s reaction to former US President Donald Trump’s policies.

The rand was trading at 18.37 against the dollar, about 0.5% stronger than its previous close. The dollar fell to three-month lows as the US trade war with its partners escalated, trading approximately 1% weaker against a basket of currencies.

“As the dollar faces broad-based pressure, the rand and other emerging market currencies have taken advantage,” stated Danny Greeff, co-head of Africa at ETM Analytics.

On Thursday (6 March), the rand was trading at R18.29 to the dollar, R23.58 to the pound and R19.75 to the euro. Oil is trading lower at $69.73 a barrel.

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

Transnet wage negotiations: The two largest unions at Transnet have demanded wage increases five times the rate of inflation, citing a variety of issues facing the working class. As a sign that both parties recognise the high stakes and the strong likelihood of disagreements, the parties signed picketing rules two weeks before the negotiations started on Tuesday. [Business Day]

New rules for electricity prices: Minister of Electricity and Energy Kgosientsho Ramokgopa is drafting a new electricity pricing policy that will change the methodology for determining Eskom tariffs. Acting director-general of the Department of Electricity and Energy, Subesh Pillay, said these would be published for comment within the next 30 days. [News24]

New corruption tactic: The Johannesburg metro police department recently discovered a troubling trend in bribery practices among its officers. Instead of accepting cash, they were found to be taking bribes through electronic payment methods such as e-wallets. [Times Live]

Bad news for new driving licences: Transport Minister Barbara Creecy has initiated legal action to block a contract for new driving licence printing machines due to concerns over the tendering process, putting plans for a new driving licence card on hold indefinitely. [BusinessTech]

Cape Town opens power grid: The City of Cape Town has said it will open its grid to more electricity producers following a year-long electricity wheeling pilot project, during which 562 kWh of renewable energy was wheeled. [eNCA]