South African province in crisis, and 125,000 jobs at risk

The South African rand strengthened against a weaker dollar on Friday (11 April).

However, analysts caution that it remains vulnerable to developments in the global trade war and the potential for a split within South Africa’s coalition government. 

The rand was trading at 19.21 against the dollar, approximately 1.3% stronger than Thursday’s closing level. 

Meanwhile, the dollar was down about 0.5% against a basket of currencies, which contributed to the rand’s recovery. 

Analysts noted that the rand will continue to be influenced by news regarding the future of South Africa’s generally business-friendly Government of National Unity.

On Monday, 14 April 2025, the rand was trading at R19.06 to the dollar, R25.00 to the pound and R21.69 to the euro. Oil is trading lower at $64.56 a barrel.

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

The province in crisis: The Auditor-General criticized the Eastern Cape government for poor accountability and vague reporting, which obscures a lack of performance and service delivery. Many departments reported unverified achievements, with some spending their entire budgets while meeting less than 50% of their targets. The AG highlighted unauthorized expenditure of R467.7 million, R2.7 billion in irregular expenditure, and R148 million in fruitless and wasteful spending. [Daily Maverick]

125,000 South African jobs at risk: US tariffs and the potential end of the African Growth and Opportunity Act (AGOA) threaten South Africa’s motor industry. Naamsa reports that the US is the third-largest market for South African cars, importing 25,000 vehicles worth R35 billion annually. Approximately 86,000 jobs in the auto industry rely on AGOA, increasing to 125,000 when subcontractors are included. [News24]

Post office circling the drain: According to Icasa, revenue from South African postal services fell by over R1.2 billion between 2023 and 2024 due to technological changes and shifting consumer preferences. The Department of Communications and Digital Technologies is discussing funding support with the National Treasury, but spokesperson Kwena Moloto noted that the department’s budget cannot support ongoing bailouts as the Post Office remains in Business Rescue. [MyBroadband]

Wage increase for petrol attendants and others: The National Union of Metalworkers of SA (Numsa), the country’s largest union representing more than 400,000 workers, is demanding a 10% wage increase in the motor sector amid the cost of living for its members. the wage demand expends to employees in component manufacturing companies, fuel stations, car dealerships, tyre shops, aftermarket sales, glass-fitment centres, car cleaning, car parts assembly and panel-beating workshops. [Business Day]

Cape Town schools under siege: Public health researchers are urging the government to quickly pass the Tobacco Products and Electronic Delivery Systems Control Bill. A study from the University of Cape Town found that 60% of surveyed teenagers show signs of high dependence on vaping. Researcher Samantha Filby stated that the bill could help reduce teenage vape use. [EWN]