R3 trillion in pensions under threat in South Africa, and bill to end MP medical-aid privileges
The South African rand weakened on Friday as investors focused on the upcoming release of domestic consumer price inflation data and a rate-setting meeting scheduled for next week.
The rand was trading at 17.40 against the dollar, which is about 0.2% lower than its previous close.
On Thursday, the currency had gained ground against a weaker dollar following a surge in US jobless claims and a slight increase in inflation.
This kept investors attentive to the possibility of Federal Reserve interest rate cuts next week and beyond.
Traders concentrating on the domestic market are watching the consumer price index (CPI) data set to be released on Wednesday.
Last month, South Africa’s statistics agency reported the highest inflation rate since September 2024.
The meeting of the Monetary Policy Committee (MPC) on Thursday will also provide additional insights into price pressures and the overall health of the economy.
On Monday, 15 September, the rand was trading at R17.36 to the dollar, R23.56 to the pound and R20.38 to the euro. Oil was trading slightly lower at $67.34 a barrel.
Here are five other important things happening in and affecting South Africa today:
R3 trillion in pensions under threat: Concerns have emerged in the asset management industry regarding the new board of the Public Investment Corporation (PIC) due to the appointment of several former associates of ex-CEO Dan Matjila and a lack of high-level investment experience. The PIC, Africa’s largest asset manager overseeing R3 trillion, has only one director with asset management experience, and three of the four new directors are linked to Matjila, who left amid corruption allegations. [News24]
End to MP medical-aid privileges: A bill will be introduced in parliament to eliminate mandatory medical aid for members of parliament, allowing them to use public healthcare services. Currently, all members of parliament and public office bearers in South Africa must join the Parmed medical aid scheme, which distances them from the realities of the public health system they oversee. [Newsday]
Trade, Industry & Competition Minister Parks Tau under fire: South Africa’s top business lobby groups have publicly criticised Trade, Industry & Competition Minister Parks Tau after he cancelled proposed changes to the National Credit Act aimed at helping small businesses secure loans. [Business Day]
Municipalities footing the bill for criminal households: Eskom insiders may be involved in large-scale electricity theft through “ghost vending,” creating unpaid prepaid tokens. This fraud forces municipalities to pay billions of rands for electricity consumed without compensation. [MyBroadband]
RAF CEO under investigation for excessive spending: The Office of the Public Protector is investigating former Road Accident Fund CEO Collins Letsoalo for maladministration and abuse of power. He reportedly spent over R10 million of public funds on security, including a R4 million armoured BMW X5, and had state-funded bodyguards escort his son to Mpumalanga to visit his girlfriend. [TimesLive]
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