South Africa categorised as mafia state, and Tshwane goes after whites-only settlement
The rand experienced little movement on Wednesday, despite the country reporting its highest inflation rate in 10 months.
Investors are currently awaiting the release of minutes from the Federal Reserve’s July meeting, as well as a symposium later this week that may offer insights into US monetary policy.
The rand, similar to other risk-sensitive currencies, often responds to global influences such as US economic data and policy changes. The rand was trading at 17.7025 against the dollar, reflecting a 0.1% decline from Tuesday’s close.
South Africa’s consumer price inflation rose to 3.5% year-on-year in July, marking its highest level since September 2024, primarily due to increases in food and fuel prices.
This inflation rate aligned with the median forecast from economists polled by Reuters and remained within the central bank’s target range of 3% to 6%.
Meanwhile, the Johannesburg Stock Exchange’s Top-40 index declined by about 0.2%. In contrast, South Africa’s benchmark government bond for 2035 strengthened, with the yield decreasing by 4.5 basis points to 9.6%.
On Thursday, 21 August, the rand was trading at R17.71 to the dollar, R23.86 to the pound and R20.60 to the euro. Oil was trading slightly lower at $65.98 a barrel.
Here are five other important things happening in and affecting South Africa today:
South Africa is a mafia state: A political analyst from North West University stated that South Africa is classified as a criminal or mafia state based on objective criteria. He emphasised that the combination of widespread crime and a weakened state has led to the country’s status as a mafia state. [Newsday]
Tshwane going after illegal whites-only settlement: The City of Tshwane issued a court notice requiring the Kleinfontein settlement to submit a new spatial planning and land use management application to replace an outdated one from 2013, or face demolition. Kleinfontein is among 17 settlements deemed illegal and improperly zoned. Community spokesperson Dannie de Beer stated that filing a new application will be costly. [EWN]
More car recalls: The National Consumer Commission has announced a recall for certain Citroen and Nissan vehicles due to safety issues. The recall includes Citroen C4, 054, and DS5 models (2009-2016) over risks from metal fragments in the driver airbag. Additionally, Nissan’s Qashqai model (September 2021 to April 2024) is being recalled due to battery connection problems. [News24]
Major steel tariff changes on the cards: South Africa’s steel industry is facing a major tariff overhaul after a 20-year review of R67 billion in imports. Proposed increases in customs duties and stricter import controls aim to protect the local sector. These tariffs could help ArcelorMittal SA, the largest steelmaker, which has warned of potential mill closures, threatening jobs and leading to small business failures. [Business Day]
Truth about prepaid electricity meter lockouts: Eskom has confirmed that reports of prepaid meter lockouts in South Africa are fake news. Misleading information has emerged from publications allegedly using AI to create false articles. These reports falsely claim that the utility plans to restrict customers’ prepaid meter usage for not implementing “periodic updates.” [MyBroadband]
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