The dark side of Temu and Shein, and South Africa’s biggest law firms under fire
The commodity-backed rand remained steady on Thursday, supported by rising gold prices as investors sought safety in the metal following the implementation of steep tariffs by US President Donald Trump.
The rand was trading at 17.79 against the dollar, very close to Wednesday’s closing value. US imports from South Africa now face a 30% duty, the highest rate among Sub-Saharan African countries.
Despite the government’s inability to negotiate a better deal, the rand showed resilience, partly due to South Africa’s status as a significant producer of precious metals.
On Thursday, South African President Cyril Ramaphosa’s office announced that he held a phone call with Trump regarding bilateral trade.
He noted that the trade negotiating teams from both countries will engage in more detailed discussions in the near future. The dollar traded flat against a basket of currencies.
On Friday, 8 August, the rand was trading at R17.72 to the dollar, R23.82 to the pound and R20.67 to the euro. Oil was trading slightly lower at $66.38 a barrel.
Here are five other important things happening in and affecting South Africa today:
The dark side of Temu and Shein: The entry of offshore e-commerce retailers like Temu and Shein into the South African market could result in a loss of over R6.2 billion in clothing manufacturing revenue by 2030. This finding comes from a recent report commissioned by the Localisation Support Fund. [Newsday]
Big law firms under fire: The Legal Practice Council (LPC) criticised top law firms for challenging new BEE targets in the legal sector. Implemented in September 2024, the broad-based BEE legal sector code aims to enhance black ownership and management in law firms. The firms argue the policy targets would be “impossible” to meet and could cause them to lose billions in contracts with big banks and the public sector. [Business Day]
Truecaller crackdown: South Africa’s Information Regulator is investigating complaints against the call screening platform Truecaller. Companies have alleged that Truecaller harmed their businesses by flagging their numbers and charging fees for whitelisting. [MyBroadband]
US tariff support coming: On Monday, 11 August, the South African government will announce support measures for companies and workers affected by the 30% reciprocal tariffs imposed by the United States on South African exports, which took effect at 00h01 Eastern Daylight Time on 8 August. [Engineering News]
IDT CEO faces criminal charges: Criminal charges have been filed against the currently suspended CEO of the Independent Development Trust (IDT), Tebogo Malaka, and IDT spokesperson Phasha Makgolane, concerning an alleged attempt to bribe a journalist. [Moneyweb]
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