Parliament hacked, and Fitch ratings warning for South Africa

The South African rand gained on Friday (14 March) thanks to record-high gold prices, as investors sought safe-haven assets amid concerns over a global trade war.

The rand traded at 18.18 against the dollar, approximately 0.7% stronger than its previous close. Earlier last week, the South African currency had declined due to domestic political tensions stemming from a revised national budget.

“The rand ended the week on a strong note, supported by global market sentiment rather than local developments, despite the uncertainty surrounding the ratification of the proposed budget,” said Zain Vawda, a market analyst at MarketPulse by OANDA.

On Monday (17 March), the rand was trading at R18.20 to the dollar, R23.55 to the pound and R19.81 to the euro. Oil is trading lower at $71.12 a barrel.

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

Parliament gets hacked: Parliament’s digital team is investigating a hacking incident involving their YouTube and X accounts. On Saturday, a post falsely claiming the president endorsed a cryptocurrency token was uploaded to their X account, linking to their YouTube channel and using hashtags like Solana and crypto. [EWN]

Fitch ratings debt warning: Fitch stated on Friday that South Africa’s government will likely struggle to stabilize its debt, as indicated in the revised budget. Finance Minister Enoch Godongwana projected that debt will peak at 76.2% of GDP. In contrast, Fitch expects debt to reach 78.8% of GDP in FY25, up from 77% in FY24, and to continue rising in FY26. However, if the government’s projections hold true, it could positively affect the sovereign rating. [CNBC Africa]

Nine parliament members fined: Parliament’s joint committee on ethics and members’ interests has fined nine MPs, including Minister in the Presidency Maropene Ramokgopa, for failing to declare their financial and registrable interests by the deadline of October 14, 2024, as required. The committee imposed fines on these MPs, ranging from R10,000 to R12,500. [Mail and Guardian]

R200 billion to fix rail crisis: Transnet’s decision to permit third-party access to South Africa’s extensive rail network may be crucial for driving export-led economic growth in the coming years. However, Investec’s Corporate and Investment Banking (CIB) division estimates that R200 billion will be needed to address the country’s freight crisis. [Business Day]

VAT-free products: According to new VAT legislation proposed by Finance Minister Enoch Godongwana, most canned vegetables will not be classified as zero-rated food products, which contrasts with the statements made in his budget speech earlier this week. However, several cuts of offal and red meat will be included in the zero-rated category. [News24]