Shoprite has a warning for South Africa, and R400 million down the drain
The South African rand strengthened on Monday, supported by record gold prices as investors sought safety following renewed tariff threats from US President Donald Trump against China.
The commodity-backed currency experienced a decline of about 1.7% after Trump’s announcement on Friday, but has since attempted to recover some of those losses.
The rand traded at 17.3425 against the dollar, marking an increase of approximately 1% from Friday’s close, while the US dollar was last reported to be 0.2% stronger against a basket of currencies.
Like many risk-sensitive currencies, the rand is influenced by global factors such as US economic policy and data.
Analysts observed a resurgence in risk appetite at the beginning of the week, suggesting that the rand may see a modest recovery. On the Johannesburg Stock Exchange, the Top 40 index was up by 0.8%.
Meanwhile, South Africa’s benchmark 2035 government bond showed slight strength, with the yield falling by one basis point to 9.115%.
On Tuesday, 14 October, the rand was trading at R17.34 to the dollar, R23.15 to the pound and R20.10 to the Euro. Oil was trading slightly lower at $63.37 a barrel.
Here are five important things happening in and affecting South Africa today:
Shoprite warning: Shoprite warned that food insecurity is at a ten-year high, with 21% of children under five stunted due to malnutrition. CEO Pieter Engelbrecht highlighted concerns about youth unemployment and dependence on government grants, stressing the need to address these issues for social stability and business resilience. [Business Day]
R400 million down the drain: Nearly a decade after its announcement, the Daggafontein Mega City project in Springs, Gauteng, remains unfulfilled. Launched in 2016 as a multi-billion rand housing development aimed at replacing informal settlements, no houses have been built by the March 2023 deadline, despite nearly R400 million spent. [Newsday]
Eskom killing industries: The ferroalloy industry and platinum miners are facing challenges due to high electricity prices. Trade Minister Parks Tau said he aims to find a compromise between their needs and emphasised that supporting the ferroalloys industry will require electricity subsidies. He is in conversation with the Minister of Electricity and Energy to establish a fair subsidy approach for different sectors. [News24]
R242 billion win for South Africa: President Cyril Ramaphosa has welcomed a Team Europe investment package of nearly €12 billion (R242 billion), announced at the Global Gateway Forum in Brussels. This builds on the €4.7 billion package from the EU-South Africa Summit in March. The partnership focuses on South Africa’s priorities, including investment, clean energy transition, skills and technology, connectivity, and job creation, as highlighted by the President in his recent letter. [Engineering News]
Good news for DStv users: DStv has updated its Rewards programme, allowing customers to pay their monthly bills using DStv Rewards Coins via the MyDStv App. Customers can earn Coins by spinning the Rewards wheel, completing challenges, and entering competitions. This is the first time they can directly use their Coins for bill payments through the app. [MyBroadband]
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