Eskom’s plan to use Expropriation Act, and the massive driving licence backlog

The rand remained relatively stable on Wednesday following the passage of budget legislation by parliament, which establishes overall limits for government spending and outlines key measures for generating revenue. 

Disagreements within the coalition government had delayed the budget for several months, but the parliamentary vote now brings greater clarity regarding the fiscal direction of Africa’s largest economy. 

The rand was trading at 17.69 against the dollar, which is just 0.1% stronger than Tuesday’s closing level. 

The dollar was approximately 0.3% weaker against a basket of currencies after underlying inflation in the world’s largest economy rose less than expected. 

This suggests that the Federal Reserve may be able to cut interest rates sooner rather than later.

On Thursday, 12 June, the rand was trading at R17.71 to the dollar, R24.05 to the pound and R20.39 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:

NTCSA’ need to use Expropriation Act: According to Electricity and Energy Minister Kgosientsho Ramokgopa, Eskom’s National Transmission Company of South Africa (NTCSA) is considering using the Expropriation Act after exhausting negotiations with landowners for transmission line servitudes. Some negotiations have lasted up to four years without success. NTCSA’s interim CEO, Segomoco Scheppers, said the entity is working to ensure processes are followed correctly to avoid litigation. [News24]

Driving Licence backlog: Frustration is rising over the backlog of driver’s licence cards. The printing machine broke down in February and resumed service in May, causing delays. Over 700,000 drivers are still waiting for their licences. With a maximum production of 19,000 cards per day, it may take up to 70 days to clear the backlog. [eNCA]

Budget gets approved: South Africa’s National Assembly has approved Treasury’s fiscal framework, moving the annual budget’s adoption closer after months of disputes over tax increases. “We have had a painful journey to arrive to this date where the fiscal framework is being approved,” Finance Minister Enoch Godongwana told lawmakers ahead of the vote. [Daily Investor]

Record high for the JSE: On Wednesday (11 June), the JSE All Share Index reached a record high of 97,094 points, reflecting a gain of 27.73% over the past year. South Africa’s benchmark bond also rallied recently, with the yield hitting a seven-year low of 8.55% last week. [Business Day]

Lesufi number plates lie: Gauteng Premier Panyaza Lesufi claimed that cars spending over 30 days a month in the province need to have GP number plates. However, the South African Vehicle Rental Leasing and Fleet Management Association (Savral) said Lesufi’s argument is not supported by the current National Road Traffic Act (NRTA) legislation. [MyBroadband]