Date set for court ruling on VAT hike, and Ramaphosa and Mashatile under threat

The South African rand experienced a significant increase as gold prices rose on Tuesday, 22 April. 

This uptick followed U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell, which unsettled markets and heightened demand for gold, a safe-haven asset. 

The rand traded at 18.60 against the dollar, about 0.8% stronger than its closing value on Monday, and even peaked at around 1% higher during the day. 

Zain Vawda, a market analyst at MarketPulse by OANDA, said that the South African rand is gaining support from several factors.

These include rising gold prices and increased pressure on the U.S. dollar due to Donald Trump’s remarks regarding the Federal Reserve.

On Wednesday, 23 April, the rand was trading at R18.59 to the dollar, R24.71 to the pound and R21.15 to the euro. Oil was trading slightly lower at $67.96 a barrel.

Here are five other important things happening in and affecting South Africa today:

Court ruling on VAT: The DA and EFF are seeking final relief from the Western Cape High Court in the form of an urgent interdict to suspend the decision to increase the VAT rate and to prevent the Revenue Service (SARS) from implementing the minister’s decision to increase it. The Western Cape High Court intends to deliver its ruling by 29 April 2025. [Business Day]

Ramaphosa and Mashatile threat: The police have increased security for President Cyril Ramaphosa and his deputy, Paul Mashatile, after a shooting incident involving Mashatile’s convoy in Boksburg. National Police Commissioner Fannie Masemola confirmed that a high-level investigation is underway and assured that the executive is safe. [eNCA]

MTN and Cell C cheating: Vodacom has scrutinised the legality of a spectrum pooling agreement between MTN and Cell C that it argues is to blame for its recent drop in South African mobile network performance rankings. [MyBroadband]

Good news at South Africa’s ports: The port of Richards Bay has achieved record volumes in the past financial year, driven by higher coal, chrome, and magnetite shipments. For the first time in nearly 50 years, Transnet Port Terminals (TPT) Richards Bay moved 30 million tonnes of cargo for the year ending in March 2025. [News24]

Blow for South Africa’s economic growth: The International Monetary Fund has again taken an axe to South Africa’s growth prospects, cutting expectations by 0.5% pts for 2025 to just 1.0%. According to the group, the impact of the US tariffs will be far-reaching, and no economy will escape the shockwaves set to follow. [BusinessTech]