Checkers taking a municipality to court, and SARS is coming after taxpayers for more
The South African rand strengthened on Wednesday following US producer prices data that were softer than expected.
This data reinforced expectations that the Federal Reserve will soon resume cutting interest rates.
According to the Labour Department, US producer prices unexpectedly fell in August, largely due to a decrease in service costs.
The rand was trading at 17.47 against the dollar, which is approximately 0.5% higher than Tuesday’s closing value.
Meanwhile, the dollar was down 0.2% against a basket of currencies as traders awaited the consumer price inflation report from the US, scheduled for release on Thursday.
This report could provide insight into the potential size and scope of future interest rate cuts by the Federal Reserve.
On Thursday, 11 September, the rand was trading at R17.49 to the dollar, R23.65 to the pound and R20.46 to the euro. Oil was trading slightly lower at $67.36 a barrel.
Here are five other important things happening in and affecting South Africa today:
Checkers taking a municipality to court: Shoprite Checkers is suing Free State municipalities and their officials for contempt over their failure to stop raw sewage outside a Welkom store. The retailer claims that municipal leaders have ignored a High Court order from April 2025, risking fines or imprisonment for acting municipal managers if they don’t comply. [Newsday]
SARS coming after taxpayers for more: The South African Revenue Service (SARS) missed its first-quarter tax collection target by over R2 billion. Warren Harris from the National Treasury noted that debt collection cases have become more complex, necessitating stricter enforcement. Additional resources have been allocated, and there are expectations for improved revenue performance for the remainder of the year. [News24]
South African residents are in trouble: The Department of Water and Sanitation has estimated that the backlog of infrastructure in 105 municipalities struggling to provide services to ratepayers to be around R400 billion. [EWN]
Walmart’s plans for South Africa: Walmart-branded stores in South Africa will focus on affordable food, groceries, and fresh products, alongside home and entertainment items. Massmart confirmed that Walmart will be an additional trading banner within its existing portfolio, which includes Builders, Game, and Makro, and will not replace any current brands. [MyBroadband]
Lesufi wants banks to pay your rates and taxes: Gauteng Premier Panyaza Lesufi said major banks should collect rates and taxes from their bondholders, arguing that municipalities lack the capacity for this task. He believes banks should pay the rates and taxes upfront and recover the costs from homeowners, transferring responsibility back to them only once the mortgage is fully paid. [TimesLive]
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