Another threat to investment in South Africa, and AutoTrader scandal emerges

The rand weakened on Tuesday, 29 April, as investors awaited the finance minister’s announcement regarding the timing of a revised national budget presentation.

Finance Minister Enoch Godongwana must make further adjustments following the cancellation of a controversial increase in value-added tax (VAT), which faced strong opposition across the political spectrum.

A court on Sunday issued an order suspending the VAT hike and setting aside the adoption of the fiscal framework, paving the way for Godongwana to table new budget instruments in parliament.

The rand was trading at 18.55 to the dollar, down approximately 0.3% from its previous close. Meanwhile, on the stock market, the Top 40 index was up about 0.7%.

On Wednesday, 30 April, the rand was trading at R18.54 to the dollar, R24.83 to the pound and R21.10 to the euro. Oil was trading slightly lower at $63.54 a barrel.

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

Another threat to investment: Sibanye-Stillwater has called on the National Prosecuting Authority (NPA) to address illegal mining, which undermines the rule of law and property rights in South Africa, harming the country’s investment prospects. Last year, the group reported its highest number of illegal mining incidents in over a decade, with 540 incidents and 1,487 arrests at its South African gold operations. [Business Day]

AutoTrader scandal: AutoTrader has issued a statement noting that collusion was discovered between some of its employees and dealers. AutoTrader explained that some employees have been approached by dealers offering payments for early access to private consumer vehicle listings. The company said this violates its ethical standards, is conducting an internal investigation, and will take appropriate disciplinary and legal action. [News24]

Nersa warning to municipalities: The National Energy Regulator of South Africa (Nersa) has announced that all municipal power providers must submit their tariff adjustment applications for the 2025/26 financial year, along with a cost of supply study. If they fail to do so, their electricity tariffs will not be adjusted for the upcoming financial year. [MyBroadband]

JSE boom: The Johannesburg Stock Exchange (JSE) reached a new high on Tuesday after the long weekend, with the All Share Index (ASI) surpassing 91,300 points. Although Africa’s largest stock market closed the day up by just 0.65%, this new record indicates an increase of over 8% year-to-date, despite the volatility resulting from U.S. President Donald Trump’s tariff actions. [Moneyweb]

Eskom’s new plan for coal plants: Eskom announced it will separate the shutdown of old coal plants from its Just Energy Transition strategy and is considering repurposing them for gas or nuclear power. [Daily Maverick]