Eskom skills disaster, and traffic police to get more power in South Africa

The rand weakened slightly on Tuesday, despite fragile market sentiment due to the ongoing Israel-Iran conflict. 

The rand was trading at 17.85 against the dollar, which is 0.2% lower than Monday’s close.

Analysts noted that while fears of a prolonged conflict in the Middle East have increased risk aversion in the markets, the rand has only experienced modest weakening due to a subdued US dollar.

Domestic investors are anticipating consumer inflation and retail sales figures to be released on Wednesday, which could impact the South African Reserve Bank’s monetary policy considerations. 

However, the central bank’s next interest rate decision is not expected until the end of July.

On Wednesday, 18 June, the rand was trading at R17.96 to the dollar, R24.15 to the pound and R20.66 to the euro. Oil was trading slightly lower at $76.71 a barrel.

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

Skills crisis at Eskom: A former Eskom employee said a lack of incentives and the company’s poor reputation have resulted in skill shortages, impacting maintenance and load shedding prevention. These issues come from leadership failures in following procedures and holding employees accountable. The employee noted that these problems have persisted since he joined in 2010, with senior staff being recruited by countries like China and Australia. [MyBroadband]

More power for traffic police: Police Minister Senzo Mchunu is considering giving more powers to metro police officers nationwide to combat crime. These officers, initially focused on traffic and municipal regulations enforcement, could gain authority to conduct inspections at second-hand dealers, examine goods, seize records, and seal premises to enforce compliance with the law. [Business Day]

Where South Africans are relocating: Over 1 million South Africans have emigrated to other countries, with around 107,000 leaving for other pastures in the last four years alone. Some of the countries that have seen the biggest influx of South Africans include the US, New Zealand, Australia, and the UK. [BusinessTech]

Farmers see a drop in confidence: The Agricultural Business Chamber of South Africa (Agbiz)/IDC Agribusiness Confidence Index (ACI) dropped five points to 65 in the second quarter. Respondents cited the uncertain global trade environment, geopolitical tensions, and domestic animal disease challenges as key constraints on the sector. [Engineering News]

Doctors are fed up: A group of doctors from South Africa has criticised the South African Medical Association Trade Union (Samatu) for not representing health professionals amid worsening working conditions. Over 1,000 doctors report that their pleas to Samatu regarding issues like mass unemployment, resource constraints and excessive overtime have gone unanswered. [Daily Maverick]