US firm coming after one of South Africa’s SOEs for R125 million, and threat to Checkers and Pick n Pay
The rand weakened on Tuesday following the release of a local leading business cycle indicator. It traded at 17.66 against the dollar, which is approximately 0.3% lower than Monday’s closing rate.
According to central bank data released on Tuesday, South Africa’s composite leading business cycle indicator increased by 0.4% month-on-month in June.
This indicator gathers data on various factors, including vehicle sales, business confidence, and money supply, helping investors assess the outlook for Africa’s most industrialised economy.
On Wesnesday, 27 August, the rand was trading at R17.64 to the dollar, R23.72 to the pound and R20.49 to the euro. Oil was trading slightly lower at $68.48 a barrel.
Here are five other important things happening in and affecting South Africa today:
US firm coming after Denel: Denel is facing a lawsuit in Florida for millions of dollars from US firm Draken International, a private air-combat training group. They claim Denel failed to deliver nine of the 12 Cheetah fighter jets ordered in 2017. Draken is seeking at least R125 million in damages. [News24]
Threat to Checkers and Pick’n Pay: Amazon’s rapid expansion of fresh food deliveries in the coming years could be an early warning shot to traditional grocery retailers such as Checkers and Pick’n Pay in South Africa that they must enhance their e-commerce offerings. [MyBroadband]
Tourism considers legal action: According to former member Lawson Naidoo, the dissolved board of SA Tourism is exploring legal options. Tourism Minister Patricia de Lille dissolved the board last week, claiming it unlawfully held a special meeting. The board clashed with De Lille over disciplinary proceedings against its now-suspended CEO, Nombulelo Guliwe. [Business Day]
Issues with Eskom’s private grid procurement requirements: Concerns are growing over the criteria for bidders in South Africa’s first independent transmission project tender, potentially sidelining the domestic industry despite a 49% equity requirement. The government has launched a two-stage procurement process, with RFQ documentation available for a non-refundable fee of R150,000 and a submission deadline set for 23 September. [Engineering News]
South Africa’s dirty water problem: South Africa’s sewage crisis is worsened by official reports that overlook millions of litres of leaking wastewater. Contaminants like antibiotics, heavy metals, and plastics are entering freshwater sources. [TimesLive]
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