Game changer for Eskom, and disaster for Transnet

The rand, stocks, and government bonds all traded lower at the end of last week, breaking a week-long streak of gains. 

Analysts attributed this decline to Israeli military strikes on Iran, which drove investors away from riskier assets and toward safer options. 

The strong performance of local assets had previously been supported by coalition partners resolving a budget dispute, discussions of a lower inflation target, and robust prices for precious metals.

However, on Friday, June 13, the risk-sensitive rand was trading at 17.89 against the dollar, which is 0.7% lower than the close on Thursday. Analysts also noted that the long weekend contributed to the sell-off.

On Tuesday, 17 June, the rand was trading at R17.83 to the dollar, R24.20 to the pound and R20.62 to the euro. Oil was trading slightly lower at $73.66 a barrel.

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

Game changer for Eskom: The Council for Scientific and Industrial Research (CSIR) is examining technology that could help Eskom operate power stations longer while reducing emissions. Already used in South Korea and Poland, this initiative involves collaboration with Eskom, the South African National Energy Development Institute (SANEDI), and Coaltech to test circulating fluidised bed (CFB) technology. [News24]

Disaster for Transnet: Transnet’s dispute with its hosting provider, Gijima, may disrupt operations as it struggles to transfer essential data without a compatible mainframe. Transnet had instructed Gijima to hand over passwords relating to its operations and walk away. However, Gijima’s COO warned of severe consequences if Transnet does not secure a new provider. [MyBroadband]

Good news about SA’s greylisting: The Financial Action Task Force (FATF) noted that South Africa has completed its 22 action items after being greylisted in February 2023. A positive outcome from an upcoming visit by the FATF Africa Joint Group could lift the greylisting in October. [Business Day]

JSE set to soar: South African equities are set for a strong performance in the coming years, with analysts expecting earnings growth of 20% for 2025 and 15% for 2026. [Daily Investor]

Nersa under fire: The South African Property Owners’ Association (SAPOA) argues that NERSA’s process for setting municipal electricity tariffs is unfair and limits public participation due to a lack of access to crucial cost-of-supply studies. They submitted these concerns regarding the 2025/26 tariff applications currently under review, which could be approved to take effect on 1 July 2025. [Moneyweb]