South Africa ranks last in important metric, and the Auditor-General under threat

The South African rand gained slightly on Wednesday, following stable domestic inflation data and stronger-than-expected retail sales figures.

Global investors were also anticipating an interest rate decision from the U.S. Federal Reserve later in the day.

The rand was trading at 17.96 against the dollar, reflecting an increase of approximately 0.4% from Tuesday’s close.

On Tuesday, the risk-sensitive currency declined by more than 1% as escalating tensions between Israel and Iran prompted investors to seek safer assets, reducing the rand’s appeal. The currency continued to face challenges for most of Wednesday’s trading session.

On Thursday, 19 June, the rand was trading at R18.07 to the dollar, R24.19 to the pound and R20.71 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:

South Africa ranks last: South Africa is one of the most challenging countries for doing business. According to an IMF study, South Africa ranked last among 49 other countries in terms of competition-friendly economies. [Daily Investor]

Auditor-General under threat: Wouter Wessels, the Chair of Parliament’s Standing Committee on the Auditor-General (AG), has highlighted that municipalities owe the AG R1 billion in audit fees, posing a serious threat to the ongoing functionality of the office. [Financial Mail]

Trouble for interest rates: While inflation in South Africa may be under control, the escalating conflict between Iran and Israel might prompt the South African Reserve Bank (SARB) to proceed with caution regarding further interest rate cuts. [BusinessTech]

SA and US to talk trade: South Africa will restart trade discussions with the Trump administration during the US-Africa Business Summit next week, just weeks before Washington’s reciprocal tariffs are scheduled to take effect. [News24]

Good news for Formula 1 fans: The Kyalami Grand Prix Circuit has received confirmation that the Fédération Internationale de l’Automobile (FIA) has accepted proposals to upgrade the circuit to Grade 1 status. This is the highest international standard for a racetrack and is necessary to host a Formula 1 race. [BusinessTech]