Option for businesses to buy BEE status on the cards, and South Africa sheds 19,000 jobs a month
The South African rand remained stable on Thursday as investors anticipated news regarding the renewal of the United States’ key trade initiative with Africa, which expired on Tuesday.
They were also evaluating the potential duration of the US government shutdown, its impact on economic data releases, and how these factors might influence the Federal Reserve’s decision-making.
The rand traded at 17.22 to the dollar, showing little change from Wednesday’s close, while the US dollar continued its downward trend against a basket of currencies.
The rand, which is often sensitive to fluctuations in global risk sentiment, received some support after Trade Minister Parks Tau expressed optimism about the renewal of the US African Growth and Opportunity Act (AGOA).
On Friday, 3 October, the rand was trading at R17.30 to the dollar, R23.25 to the pound and R20.28 to the Euro. Oil was trading slightly lower at $64.47 a barrel.
Here are five important things happening in and affecting South Africa today:
3% levy for BEE status: The government is considering a voluntary 3% revenue levy on unlisted companies to fund black-owned small businesses, promising over R40 billion annually. In return, firms will receive automatic level-3 broad-based BEE recognition, improving their standing in procurement processes, with potential for level 1 status based on employment equity compliance. [Business Day]
19,000 jobs lost per month: South Africa’s formal sector has shed 19,000 jobs a month over the last year, or 630 a day, according to the latest data from Statistics South Africa (StatsSA). The StatSA Quarterly Employment Survey revealed that 80,000 jobs were lost in the second quarter of 2025 alone. [Newsday]
Eskom’s profit lie: Eskom reported its first profit since 2017, following a R25.5 billion loss last year. The power utility attributed this to its turnaround strategy and a reduction in energy costs. However, an energy expert highlighted that this profit was only possible due to taxpayer support, as half of the R64 billion bailout went to interest payments. An additional R80 billion bailout is planned for next year as part of a R240 billion debt relief package from the National Treasury. This means that Eskom is receiving billions in taxpayer money to help it make ends meet due to its dismal financial performance. [MyBroadband]
South Africa’s government ranks below other African countries: The South African government is performing poorly, and the quality of life in the country is declining. According to the Chandler Good Government Index (CGGI), South Africa ranked 77th out of 120 countries, a drop from 70th in 2021. It even ranks below Rwanda (59th) and Botswana (61st). [Moneyweb]
Good news for new vehicle sales: Sales increased by 24.3% to 54,700 units compared to the same period last year. The vehicle rental market accounted for about 15.2% of total sales. The new passenger car market rose by 28% to 38,603 units, reaching its highest level since October 2014, according to Naamsa. [Engineering News]
Loading ...