Another R500 milllion in pension savings down the drain, and controversial law change on the cards
The South African rand showed little movement on Friday in response to a key U.S. inflation report and mixed domestic economic data. The rand traded at 17.67 against the dollar, remaining close to Thursday’s closing value.
The dollar was largely unchanged against a basket of currencies after the world’s largest economy reported an increase in the Personal Consumption Expenditures Price Index, which is the Federal Reserve’s preferred measure of inflation.
This development reinforced expectations of an interest rate cut next month. Domestically, central bank data indicated that South Africa’s M3 money supply growth slowed to 6.75% in July, down from 7.27% in June. In contrast, credit growth increased to 5.8%, up from 4.98%.
Additionally, the South African Revenue Service reported a better-than-expected trade surplus of R20.29 billion (approximately $1.16 billion) for July.
However, National Treasury data revealed a budget deficit of 150.85 billion rand for the same month.
On Monday, 1 September, the rand was trading at R17.71 to the dollar, R23.91 to the pound and R20.66 to the euro. Oil was trading slightly lower at $68.24 a barrel.
Here are five other important things happening in and affecting South Africa today:
R500 million in pensions down the drain: The Government Pensions Administration Agency (GPAA) has awarded a five-year biometrics contract worth R521 million to the LCS Identifii Consortium. However, LCS Technologies, which represented the consortium, is unregistered and in the process of deregistration, with no directors listed. [News24]
Controversial law change on the cards: The Western Cape High Court is hearing arguments on whether to decriminalise sex work, following a case by the Sex Workers Education and Advocacy Taskforce (SWEAT) claiming its criminalisation is unconstitutional. While awaiting a decision, the National Prosecuting Authority (NPA) has paused the prosecution of sex workers. [EWN]
New BEE laws head to constitutional court: As the government’s new employment equity target regulations are about to take effect on 1 September, the National Employers Association of South Africa (NEASA) and Business lobby group Sakeliga are appealing to the Constitutional Court to stop them. [Newsday]
AMSA to cut jobs: ArcelorMittal SA (AMSA) announced to employees on Friday that efforts to save its long steel business have failed, leading to the loss of 3,500 jobs. CEO Kobus Verster stated in a memo that the long steel operations will be wound down by the end of September. [Business Day]
Criminal syndicates cutting the lights: City Power has warned that organised crime is stealing and vandalising electrical infrastructure in Johannesburg, with repair costs reaching R1.2 million per unit. From March to mid-August 2025, 28 cases were reported, with areas going without power for days. [MyBroadband]
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