New City Power scandal, and big electricity price increases coming

The rand strengthened on Monday (17 March) against a weaker dollar, as market participants seemed to overlook the United States’ decision late last week to expel South Africa’s ambassador.

This latest move by the United States highlights the quickly deteriorating relations between the two countries.

Later this week, investors will focus on local inflation data, which will be released on Wednesday (19 March 19), and an interest rate decision scheduled for Thursday (20 March).

Additionally, negotiations among political parties concerning this year’s stalled budget could also impact the markets. The rand was trading at 18.11 against the dollar, approximately 0.4% stronger than its previous close.

On Tuesday (18 March), the rand was trading at R18.10 to the dollar, R23.49 to the pound and R19.75 to the euro. Oil is trading lower at $71.29 a barrel.

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

City Power scandal: City Power’s financial mismanagement, as detailed by the Auditor-General, was underscored by the alleged looting of its maintenance budget. Evidence sourced by News24 revealed that the utility’s executive management failed to prevent the misuse of finances, which it acknowledged. The utility reportedly spent over R355,000 on BIC pens, air fresheners, mopping trolleys, and fraudulent job invoices—among other things. [News24]

Electricity price hikes: Energy regulator Nersa has approved the Eskom Retail Tariffs and Structural Adjustment (ERTSA) for 2025, resulting in a 12.74% price increase starting 1 April 2025. Municipal tariffs will also increase by at least 11.32% from 1 July 2025. [BusinessTech]

Ramaphosa comments on SA-US relations: South Africa’s relationship with the US is at an all-time low. But President Cyril Ramaphosa says not all is lost. He’s confident the relationship can still be salvaged and insists engagements with the Trump administration will continue. [eNCA]

Another blow to RAF: The Road Accident Fund (RAF) has suffered a legal setback, with a high court dismissing its special plea and ordering costs against it. The court ruled that the RAF cannot reject claims that substantially comply with Section 24 of the Road Accident Fund Act. This plea arose from 16 claimants whose applications were rejected for not meeting the requirements of RAF Board Notice 271 of 2022 and the new RAF 1 form. [Moneyweb]

Crypto scam warning: Following the hack of Parliament’s social platforms to promote a crypto investment scam over the weekend, Crypto experts have warned South Africans that these types of scams have increased amid a recent global rally on crypto markets. [EWN]