Ramaphosa calls an emergency in South Africa, and red flags for food prices

South Africa’s rand weakened on Thursday (27 March) as concerns grew over the tariffs that U.S. President Donald Trump is set to impose next week.

The rand traded at 18.3375 against the U.S. dollar, representing a decline of approximately 0.4% from its previous close.

Like many other risk-sensitive currencies, the rand is influenced by global factors such as U.S. economic policies, as well as local conditions.

Domestic investors were also focused on South Africa’s producer inflation data released on Thursday, which showed a year-on-year increase of 1.0% in February, down from 1.1% in January, according to data from the statistics agency.

On Friday (28 March), the rand was trading at R18.26 to the dollar, R23.63 to the pound and R19.70 to the euro. Oil is trading lower at $73.85 a barrel.

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

South Africa’s emergency: President Cyril Ramaphosa called South Africa’s water crisis an emergency and stressed the urgent need for a national water plan during the Water and Sanitation Indaba. He cited infrastructure vandalism, leakages, and mismanagement as key factors in South Africa’s water crisis. “This is an emergency, and we need a reliable national plan for water urgently,” he said. [News24]

Food price red flags: The Competition Commission reports that some essential food prices are dropping, while others remain high, suggesting retailers and producers are trying to increase their profit margins. However, the commission said it isn’t rushing to conclusions just yet. [The Citizen]

GNU closer to budget compromise: DA leader John Steenhuisen expressed optimism on Thursday that the parties in the Government of National Unity (GNU) would reach a compromise on the budget before the vote in Parliament next week. [Business Day]

Inflation target outdated: South Africa’s central bank governor, Lesetja Kganyago, said the country’s inflation targeting regime is out of date and might be inhibiting faster growth and making the economy less competitive. Kganyago said a fresh look was needed in line with other developing economies. [CNBC Africa]

Long wait ahead for South Africans wanting to enter the US: The approximately 70,000 Afrikaners who have expressed interest in US President Donald Trump’s executive order offering asylum will need to prepare for a complex and lengthy bureaucratic process. [Daily Maverick]