United States demands 4 things from South Africa, and the GNU is in trouble

The South African rand remained stable during a volatile trading session on Thursday as investors responded to important US economic indicators and the dismissal of the deputy trade minister in South Africa. 

The rand was trading at 17.73 against the dollar, which is roughly the same as Wednesday’s closing value. 

Initially, the rand had appreciated by nearly 1% against the dollar after a media report suggested that US President Donald Trump was considering naming a replacement for Federal Reserve Chair Jerome Powell by September or October, which could undermine Powell’s position. 

However, the rand later weakened as the dollar rebounded, following the announcement that South African President Cyril Ramaphosa had removed a Democratic Alliance (DA) politician from the deputy trade minister role.

On Friday, 27 June, the rand was trading at R17.87 to the dollar, R24.51 to the pound and R20.88 to the euro. Oil was trading slightly lower at $68.21 a barrel.

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

The 4 things the US demands from South Africa: The United States (US) have outlined four significant preconditions for the normalisation of bilateral relations between the United States and South Africa related to farm attacks, land expropriation, BEE, and “Kill the Boer”. [BusinessTech]

The GNU in trouble: Democratic Alliance (DA) leader John Steenhuisen criticised President Cyril Ramaphosa for removing DA member Andrew Whitfield as Deputy Minister of Trade, Industry and Competition. The DA has demanded Ramaphosa fire Ministers Thembi Simelane and Nobuhle Nkabane, Deputy Minister David Mahlobo, and other corruption-accused officials within 48 hours or face political repercussions. [BusinessTech]

Eskom has a big problem: Electricity and Energy Minister Kgosientsho Ramokgopa announced that municipalities owe over R100 billion to Eskom and have made little headway in reducing this debt, which could lead to the “collapse of South Africa’s electricity complex.” [MyBroadband]

Standard Bank’s message to Africa: Standard Bank CEO Sim Tshabalala has highlighted the high cost of capital for African countries, urging African states to enhance transparency and provide essential information for accurate country risk assessments. [Business Day]

The PIC is in the hot seat: Finance Minister Enoch Godongwana wants a review of the Public Investment Corporation’s R170 billion in non-performing unlisted portfolio within the next couple of months following the Daydreak Foods disaster. [News24]