Major shipping company cuts direct line from South Africa to US, and good news about Mercedes-Benz plant
South Africa’s commodity-backed currency strengthened on Monday, boosted by rising gold prices.
Investors were processing last week’s unexpectedly weak US jobs data while awaiting updates on tariffs ahead of the United States’ August 8 deadline.
The rand was trading at 17.96 against the US dollar, which is approximately 0.3% stronger than Friday’s close.
As a major producer of precious metals, South Africa benefits from higher gold prices, which increased for a third consecutive session on Monday following the US jobs report that raised expectations for interest rate cuts by the Federal Reserve.
Since gold prices typically move inversely to interest rates, the anticipated cuts could further support prices.
This week, a key focus for South Africa is whether it can negotiate a more favourable trade agreement, as it currently faces a 30% duty on goods exported to the US, the highest rate among Sub-Saharan African countries.
On Tuesday, 5 August, the rand was trading at R17.93 to the dollar, R23.82 to the pound and R20.72 to the euro. Oil was trading slightly lower at $68.66 a barrel.
Here are five other important things happening in and affecting South Africa today:
Maersk cuts direct line: Starting October 1, Maersk will no longer offer direct shipments between South Africa and the US. Goods will instead be routed through European hubs, resulting in longer shipment times. This change comes amid increasing pressure on exporters, and Maersk confirmed the transition in a customer notice. [News24]
Mercedes-Benz factory operational: Mercedes-Benz South Africa has restarted production at its East London plant after a planned shutdown from 25 June to the end of July. A spokesperson confirmed that operations resumed on 31 July with a two-shift system. [Engineering News]
Changes coming to competition rules for exporters: South Africa on Monday outlined support measures for local companies that will be hit by a 30% US tariff this week, including exemptions from some competition rules and financial support facilities. [Newsday]
New mining rules for informal miners: The Department of Mineral Resources and Energy has updated the Draft Mineral Resources Development Bill, 2025, to include a licensing system for artisanal and small-scale mining (ASM). This aims to formalise operations, promote economic growth, and address access inequalities in South Africa’s mineral resources. [Business Day]
Spotify price changes: Spotify is raising premium subscription prices in several markets, including South Africa. An individual Premium subscription will go from R64.99 to R69.99. The Duo plan increases to R94.99, while the Family plan will be priced at R119.99. The Student plan sees a slight increase to R37.99. [MyBroadband]
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