Warning signs for South Africa’s economy, and Motsoaledi receives bad news

The South African rand experienced a slight decline on Monday as investors awaited a national budget speech later this week and monitored developments in U.S. foreign policy.

The rand was trading at 18.28 against the dollar, which is approximately 0.1% weaker than its previous closing value.

Danny Greeff, co-head of Africa at ETM Analytics, said that although the rand’s performance today aligns with broader trends in the emerging foreign exchange market, it may start to exhibit more unique characteristics as the week progresses.

On Tuesday (11 March), the rand was trading at R18.29 to the dollar, R23.59 to the pound and R19.83 to the euro. Oil is trading lower at $69.25 a barrel.

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

Stagflation warning: South Africa risks stagflation if decisive policy action is not taken. Stagflation happens when an economy is concurrently stuck with slow growth, high unemployment, and rising prices (inflation). This is according to Citadel chief economist Maarten Ackerman, who said While South Africa managed to sidestep a technical recession, the reality is that growth remains too weak to meaningfully improve living standards. [Daily Investor]

Bad news for Motsoaledi: The health ombudsman has deemed the Helen Joseph Hospital in Gauteng unfit for purpose due to multiple issues, including four acting CEOs in five years, poor accountability, deteriorating infrastructure, intermittent water supply, and 30.2% of nursing positions unfilled. The ombudsman has given Health Minister Aaron Motsoaledi and the Gauteng Health Department six months to resolve these problems. [eNCA]

State capture crackdown: Shamila Batohi, the National Director of Public Prosecutions, has indicated that convictions related to State capture will increase, as the NPA collaborates with its partners to facilitate prosecutions. [Business Day]

More VAT backlash: South Africa Revenue Service (SARS) Commissioner Edward Kieswetter has gained an unexpected supporter in former Transport Minister and current ANC MP Joe Maswanganyi. Maswanganyi fully backs Kieswetter’s proposal to enhance tax collection rather than increase the value-added tax (VAT) to address funding shortfalls. [News24]

Good news for load shedding: Power utility Eskom says that it has successfully brought the downed Koeberg Unit 2 back to service. The unit was brought back online on Sunday, 9 March, and incrementally ramped up to 646MW. Its output will continue to increase until it reaches its full capacity of 930MW, it said. [BusinessTech]