Another 50% tariff to hit South Africa, and Hyundai going after the government
The South African rand weakened on Friday as geopolitical tensions, a potential US government shutdown, and tariff-related economic uncertainties influenced the market.
The rand traded at 17.21 against the dollar, about 0.3% weaker than Thursday’s close. The dollar slipped slightly against major currencies, while most commodities steadied after this week’s rally.
Gold is on track for its eighth consecutive weekly gain, bolstered by expectations of US rate cuts, and silver remains near a record high.
Commerzbank analyst Volkmar Baur noted that these precious metals, which make up about 17% of South African exports, support the economy amid concerns over high US tariffs.
Investors are awaiting domestic data on business confidence, mining production, and retail sales for further economic insights.
The Top-40 index on the Johannesburg Stock Exchange fell by 0.6%, and the yield on South Africa’s 2035 government bond rose to 9.065%.
On Monday, 13 October, the rand was trading at R17.36 to the dollar, R23.20 to the pound and R20.19 to the Euro. Oil was trading slightly lower at $63.58 a barrel.
Here are five important things happening in and affecting South Africa today:
Major tariff blow for South Africa: The EU plans to impose 50% tariffs on steel imports, which will impact South Africa’s stainless steel exports. The local steel industry has urged the government to take urgent action to protect the domestic market. The EU is South Africa’s second-largest export destination for iron and steel, valued at R20.3 billion, after China at R25.4 billion. [News24]
Hyundai going after the government: Hyundai aims to expand its presence in government vehicle procurement, seeking to compete with Toyota and Volkswagen. The company hosted a “Government Day” to showcase its latest mobility solutions to procurement heads from various state departments. Over the past year, Hyundai has sold about 500 vehicles in the state. [Business Day]
Uber collapsing in South Africa: Uber is struggling in South Africa, with a rise in customer complaints about dangerous drivers, overcharging, and poor service. Recently, it received 25 one-star reviews on the customer feedback platform HelloPeter in the last week alone. [TopAuto]
Competition Commission should be shut down: Dawie Roodt believes the Competition Commission should close up shop because it does not understand how competition between businesses functions. The Efficient Group’s chief economist believes that allowing private businesses to work together will ultimately boost competition. [MyBroadband]
The rand is no longer weak and volatile: The rand deserves more respect for its recent stability, with South African Reserve Bank Governor Lesetja Kganyago stating that if it becomes “uncomfortably strong,” the bank would look to accumulate more reserves. He described the currency as “settling down to a more mature stage” and highlighted that reserves have surpassed $70 billion, marking a strong external position for the country. South Africa now meets all major reserve adequacy metrics, and Kganyago emphasised the success of the 27-year commitment to a free-floating exchange rate. [Moneyweb]
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