Government plans to blacklist more than 40 companies, and SARS going after Pepkor CEO for R300 million
The South African rand strengthened on Wednesday as investors prepared for the Federal Reserve’s decision and signs of easing trade tensions between the U.S. and China.
The rand was trading at 17.11 against the dollar, reflecting an increase of about 0.2% from Tuesday’s close.
Analysts noted that South Africa’s risk-sensitive rand was primarily supported by expectations of a 25-basis-point rate cut by the Federal Reserve, as well as US President Donald Trump’s meeting with Chinese President Xi Jinping, scheduled for Thursday.
Data released by the South African Reserve Bank earlier showed that the M3 money supply growth in September was 6.07%, down from 6.18% in August.
Meanwhile, credit growth for September was reported at 6.03%, which is higher than August’s 5.86% and exceeded the 5.85% forecast in a Reuters poll.
Economists anticipate that the upturn in credit will gain momentum in the coming months. The demand for company loans has been stronger than expected, suggesting a recovery in fixed investment during the third quarter.
Attention from domestic investors will shift to producer inflation, the budget balance data expected on Thursday, and trade balance figures due on Friday, as they look for clues regarding the health of Africa’s largest economy.
On Thursday, 30 October, the rand was trading at R17.18 to the dollar, R22.70 to the pound and R19.98 to the euro. Oil was trading slightly lower at $64.86 a barrel.
5 important things happening in South Africa today
Government plans to blacklist more companies: In September, the Public Works Department blacklisted 40 contractors for corruption and non-performance, the first time in 20 years. Now it plans to add more to this list with a new national database that will name and ban contractors and consultants from doing business with the state who fail to deliver. [Daily Maverick]
SARS going after Pepkor CEO: Pepkor CEO Pieter Erasmus will face the SA Revenue Service (Sars) next week over a demand for over R300 million related to his private business dealings. Sars claims Erasmus was involved in an alleged “impermissible tax avoidance arrangement” under the Income Tax Act. [Business Day]
Online gambling ban: The National Gambling Board (NGB) has praised a Supreme Court of Appeal ruling that bans bookmakers from offering fixed-odds bets on casino games, including roulette, under the Gauteng Gambling Act 4 of 1995. [BusinessTech]
What Nersa doesn’t want you to know: Nersa argued in the Pretoria High Court on 28 October that customers have no right to access the costs municipalities incur to supply them with electricity. This information is part of a cost-of-supply (CoS) study used for assessing municipal tariff applications annually. The court is reviewing the process Nersa used to set municipal tariffs for the financial year ending 30 June 2026. [The Citizen]
Ramaphosa still believes a deal with the US is on the table: President Cyril Ramaphosa announced ongoing negotiations for a US trade deal, expressing optimism without a specific timeframe. “We look forward to concluding an agreement soon,” he told reporters in Bern. [News24]
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