D-Day for the budget 3.0, and South Africa asks the US for a favour

The South African rand strengthened on Tuesday, despite a significant contraction in local manufacturing output, as investors awaited more clarity on trade talks between the US and China. 

The rand was trading at R17.69 against the dollar, approximately 0.2% stronger than Monday’s closing level. 

Data from the statistics agency revealed that South Africa’s manufacturing output decreased by 6.3% year-on-year in April, surprising experts who had anticipated a 3.9% decline. 

This marked the sixth consecutive month of decline in manufacturing output. Additionally, the rand gained support on Tuesday from a higher global gold price and a weaker US dollar.

On Wednesday, 11 June, the rand was trading at R17.70 to the dollar, R23.87 to the pound and R20.21 to the euro. Oil was trading slightly lower at $66.77 a barrel.

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

D-Day for the budget 3.0: Parliament will consider the fiscal framework and revenue proposals for the 2025 budget today. The framework outlines how the country will raise revenue, spend money, and manage debt. The previous framework was abandoned due to legal challenges over a proposed VAT increase, after ActionSA and Build One SA supported the ANC in a vote. [EWN]

South Africa asks for a favour: South Africa has asked the United States to maintain the current tariff rate of 10% if negotiations on a new trade framework are not finalised by 9 July. This date marks the end of a 90-day suspension of the 30% reciprocal tariffs imposed on South African exports. [Engineering News]

Mantashe removes BEE rule in darft bill: Mining Minister Gwede Mantashe has revised the empowerment requirements for prospecting rights after receiving pushback from the industry and experts, who argued that this change could harm investment. [Business Day]

Bad news for biggest medical aid: In 2024, nine of the 16 core Discovery Health Medical Scheme (DHMS) options saw declines in membership compared to 2023, according to the annual report released before the AGM in June. The largest plans, Classic Comprehensive and income-limited KeyCare Plus, experienced declines of 7% and 11%, respectively. [Moneyweb]

Red flags over new number plates: Gauteng’s plan for new license plates seems more focused on profit than on improving traffic enforcement and crime prevention, according to the civil action group Outa and a road laws expert at Driving.co.za. [MyBroadband]